Holy Properties Limited, L.P. v. Kenneth Cole Productions, Inc.

Brief Fact Summary.

Kenneth Cole Productions, Inc. appealed a judgment that they breached their lease with Holy Properties Limited, L.P. (Holy Properties) under claims that Holy Properties failed to mitigate damages by finding replacement tenants.

Synopsis of Rule of Law.

A landlord does not have a duty to mitigate damages after a tenant abandons the property.

Facts.

Kenneth Cole Productions, Inc. (Kenneth) vacated office space rented in a commercial office building after a change in owners. The new owners, Holy Properties Limited, L.P. (Holy Properties) then evicted Kenneth and sued for failure to pay rent. The trial court granted judgment to Holy Properties.

Issue.

Whether a landlord has a duty to mitigate damages after a tenant abandons the property?

Held.

No. When Kenneth abandoned the lease, Holy Properties was within it’s right to collect the rent due under the lease. The judgment of the trial court is affirmed.

Discussion.

Only executor contracts require a party to mitigate damages. A tenant’s obligation to pay rent is fixed according to the lease term.