8: Tenant's Breach, Landlord Remedies Flashcards
What is the doctrine of surrender and acceptance?
If a T vacates the property, the LL reenters the property without preserving his rights to recover damages, then the LL’s action is viewed as an acceptance of the T’s surrender of the property
What does it mean when the LL reenters the property without preserving his rights to recover damages?
There is a clause in the lease that states LL re-entry is not acceptance of surrender
What is the majority (trend) rule for mitigating losses?
The LL is obligated to provide a good faith effort in attempting to re-lease the property. The LL has a duty to mitigate damages.
Under the majority (trend) approach, what are the costs recoverable for re-leasing the property?
Since the LL is given an affirmative duty to mitigate losses, it is only right to pass the costs associated with the process to the breaching T
What are the factors to determine if the LL made a good faith effort to re-lease property?
- Did LL take similar or more steps as to when he first leased property?
- Did LL hire a real estate agent?
- Did LL attempt to re-lease at a higher monthly rent?
What is the minority rule for mitigating losses?
Upon surrender of the property by T, LL doesn’t have to take affirmative action to re-lease
What are the three possible outcomes for mitigating losses under the minority rule?
- LL can occupy the premises & terminate the lease, effectively terminating the P of C & K
- LL can relet premises on behalf of T
- LL can do nothing & wait for lease to end & sue for unpaid rent/damages
If the LL sues for unpaid rent after doing nothing and waiting for lease to end, where is the burden of proof?
Burden of proof on the LL
What are the methods of recovery for rent/damages?
- Multiple causes of action rule
- Anticipatory breach doctine
- Retained jurisdiction concept
What is the Multiple Causes of Action Rule?
LL can recover only those rents that have accrued through the time of the trial. Once a judgment is entered, the case is closed and the court’s jurisdiction over the party and subject matter ends. To recover additional retns, LL must initiate a new suit
What is the Anticipatory Breach Doctrine?
LL cna bring suit prior to the expiration of the lease & obtain recovery that includes not only already accused rents, but also an amount that represents the present value of the amount by which the total of the future rents due under the lease exceeds the fair market rental value of the premises over the same period
What is the Retained Jurisdiction Concept?
Allows LL to obtain judgment soon after T’s breach, but rather than requiring the institution of an entirely new suit to collect future rents, it permits the court to retain jurisdiction over the parties and the subject matter and enter new damage awards as additional rents accrue
What is the remedy for breach of lease?
A party who is injured by breach of contract is entitled to compensation for the injury sustained & is entitled to be placed, as near as this can be done with money, in the same position he would have occupied if the contract had been formed
What is the measure of damages for the breach of contract?
The amount which would have been received if the contract had been performed as made, which means the value of the contract, including the profits & advantages which are its direct results & fruits
