172 Van Duzer Realty Corp. v Globe Alumni Student Assistance Ass’n, Inc.

Plaintiff, a property owner, and Defendant, a tenant, entered into a one-year commercial rental lease agreement. Prior to the end of the one-year term, the parties extended the lease for a nine-year term. Several months after executing the lease extestion, Defendant vacated the premises and ceased paying rent. Plaintiff commenced this action for rent arrears and an amount equal to the future remaining rent owed on the lease. Supreme Court entered judgment for Plaintiff in the amount of $1,488,604, consisting of the rent remaining due under the lease, reduced by the amount of rent Plaintiff was able to collect by reletting the premises. Defendants appealed, arguing that Plaintiff was barred from collecting unpaid future rents pursuant to an acceleration clause in the leasehold agreement. The Court of Appeals affirmed as modified, holding that the court below erred by limiting the damages hearing to whether Plaintiff relet the premises without allowing Defendants the opportunity to present evidence that the undiscounted accelerated rent amount was disproportionate to Plaintiff’s actual losses, notwithstanding that Plaintiff had possession and no obligation to mitigate. View "172 Van Duzer Realty Corp. v Globe Alumni Student Assistance Ass’n, Inc." on Justia Law