Aurora Business Park Associates v. Michael Albert, Inc.

548 N.W.2d 153 (1996)

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Nature of the Case

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Facts

Aurora (P) leased property to Albert (D). The term was for five years, and D took possession of the property but vacated the premises about two years later. No June of 1993 rent was paid, and notice of default was given D. P then served notice to quit and took possession. P was unsuccessful in reletting the property. In August of 1993, P sued D to recover the past unpaid rent and the balance of the rent remaining on the lease. D moved for a dismissal at the end of P's case claiming that P failed to establish reasonable diligence in attempting to relet. That motion was denied. D then claimed an award of future rent would be improper as the acceleration clause in the lease was a penalty. P got the judgment for $221,692.28 with interest plus attorney fees and court costs. The court found that P had used reasonable diligence in attempting to relet and did not reduce the future rent to present value. D filed a motion for a new trial. The future rent was then reduced to present value; $215,251.90.