This section contains the nature of the case and procedural background.

Reldresal (P) entered a ten-year lease with Bolgolam (D). The lease did not state a purpose. D wanted to open a bar and restaurant in the building. P was aware of D's intent assisted D in renovating for use as a bar and restaurant. Zoning prohibited commercial use. The Belfaborac ordinance allowed for variances by showing a special hardship. D did not apply for a variance. Officials did not enforce the ordinance, and D opened without problems. The bar produced most of D’s profits. In November 1998, a new ordinance prohibiting the sale of alcoholic beverages over four percent alcohol was enacted and strictly enforced. D's was eventually forced to close the restaurant and bar. P sued D for rent. D claimed that the lease was not valid when executed and that even it if was, supervening events made the lease illegal and unenforceable. P got a summary judgment and D appealed.

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