Duties to mitigate vary state by state; while Texas' high court recently held a landlord to the duty, appellate decisions in New York, Pennsylvania ruled against it
Article Abstract:
State courts vary in their interpretation of landlord duties to mitigate a lease. Recently, New York and Pennsylvania appellate courts have ruled that landlords need not mitigate damages, while Texas and Iowa supreme courts have found they have some duty to mitigate. The New York case was Holy Properties L.P.v. Kenneth Cole Productions, Inc., the Pennsylvania one Stonehedge Square L.P. v. Movie Merchants, Inc. and the Texas one Austin Hill Country Realty, Inc. v. Palisades Plaza, Inc. Elsewhere, the law varies significantly. The law on landlords' duties to mitigate is developing throughout the country and attorneys should be aware of the latest developments in their jurisdiction.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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Rulings aid sellers granting options; option contracts can protect sellers faced with defaulting buyers, says evolving case law
Article Abstract:
The conventional wisdom that real property sellers derive no benefits from giving options may not always be correct. Sellers who grant buyers options to purchase rather than entering into an agreement of sale can bolster their right to keep the buyer's deposit in the event of default. An option of first refusal can undercut the option holder's right to use an alternative option. Options to purchase can yield tax savings for the seller not available with installment sale agreements.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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Bankruptcy of tenants may change lease terms; shopping center landlords may have to deal with altered terms if the trustee assigns the lease
Article Abstract:
A federal district court decision in Rickels Home Centers, Inc. emphasized that the Bankruptcy Code's pro-assignment provision, Section 365(f)(1), could override some lease provisions. Thus, different or creative drating of adequate-assurance standards in leases will not help landlords in bankruptcy courts. Landlord could require tenants to share profits with them if the latter assign or sublease.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1998
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