Sommer v. Kridel

Supreme Court of New Jersey · 1977 · Property

Propertylandlord-tenantduty to mitigateabandonmentrelettingresidential leasemitigation of damagesabandonment

Facts

In Sommer, Kridel signed a two-year lease, paid the first month's rent and a security deposit, then before taking possession wrote the landlord that his engagement had been broken, he could not take the apartment, and he was surrendering all rights to it. The landlord did not respond, did not show the apartment to a third party who was ready, willing, and able to rent it, and did not attempt to re-let it for about 15 months. In Riverview, Perosio took possession under a two-year lease, later vacated after paying through January 1974, and the landlord sued for rent for later months. In both cases the tenants argued the landlords failed to mitigate damages.

Issue

When a residential tenant wrongfully vacates before the end of the lease term, may the landlord recover the full rent due under the lease without attempting to re-let the apartment? More specifically, does a residential landlord have a duty to make reasonable efforts to mitigate damages, and who bears the burden of proving those efforts?

Rule

A landlord seeking damages under a residential lease from a defaulting tenant has a duty to mitigate damages by making reasonable efforts to re-let the abandoned apartment. Where the landlord has other vacant apartments, he must treat the abandoned unit as part of his vacant stock. As part of the landlord's cause of action, the landlord bears the burden of proving that he used reasonable diligence to attempt to re-let the premises. Whether reasonable diligence was used depends on the facts of each case.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

Nina Flores signed a one-year lease for an apartment in Newark, New Jersey, but moved out after three months and told the landlord she would not return. The landlord left the unit vacant for the remaining nine months, made no effort to advertise or show it, and then sued Nina for the entire unpaid balance of rent.

If the landlord seeks unpaid rent for the balance of the lease term, which result is most consistent with the governing rule?

Explanation. A residential landlord seeking damages from a defaulting tenant must mitigate by making reasonable efforts to re-let the abandoned apartment. The landlord bears the burden of proving reasonable diligence as part of the cause of action. Because this landlord did nothing to re-let, he cannot recover avoidable damages.