Dan's Desk

Commercial Lease Breaches: Calculating Damage

Written by Dan Gallatin | Mar 23, 2022 4:40:11 PM
A decent portion of businesses make the decision to rent versus buy their space.  In the lease situation, the contract governing the rights and responsibilities of the landlord and tenant is of course the commercial lease.  Unlike residential leases, commercial leases have a wide variety of allocations between the parties for maintenance-type items.
 
In the event a landlord fails to perform something to preserve the property and you cannot operate, the calculation and proving of damages is critical.  The “usual measure of damages” for a landlord’s breach of a covenant to repair “is the difference between the fair rental value of the premises as warranted and as they were during the tenancy.”  Additionally, consequential damages may be available to a tenant whose lease is breached by the landlord. See Romer v. Topel, 414 N.W.2d 787, 789 (Minn. Ct.  App. 1987).  “Consequential damages are the damages which naturally flow from the breach of a contract, or may reasonably be contemplated by the parties as a probable result of a breach of the contract.” Imdieke v. Blenda-Life, Inc., 363 N.W.2d 121, 125 (Minn. Ct. App. 1985), rev. denied (Minn. Apr. 26, 1985).
 
Using that law, we can work together to prove damages or help you minimize your damages.  I have successfully tried these cases to Minnesota juries in Hennepin County and Washington County, so put that experience to work for you.