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The court found the commercial tenant breached and repudiated the lease by failing to take occupancy, awarding the landlord damages for lost rent and diminution in property value.
The plaintiffs, a commercial landlord and property owner, brought an action against a tenant and its guarantor for damages arising from the breach and repudiation of a ten-year commercial lease.
The tenant had abandoned the premises and delivered a notice of termination, claiming the lease was frustrated by COVID-19 restrictions and that the landlord failed to timely complete agreed-upon improvements.
The court found that the lease commenced on March 1, 2020, its start date was not conditional on the completion of landlord improvements, and the tenant had repudiated the contract.
Consequently, the court dismissed the tenant's counterclaim for misrepresentation and rescission, and awarded the plaintiffs damages for lost rent, mitigation costs, and the diminution of the property's market value.
