Jetz Service Co. v. Salina Properties

865 P.2d 1051 (1993)

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Nature of the Case

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Facts

P supplies and maintains coin-operated laundry equipment in approximately 2,000 locations in an eight-state area. P had a warehouse full of washers and dryers numbering in the thousands. D leased 175 square feet of an apartment complex to P for use as a coin-operated laundry facility. Five washing machines and five dryers were installed in November of 1987. The lease was for a six-year term. P paid an initial $3,000 decorating allowance and was entitled to the first $300 per month or 50%, whichever was greater, of the gross receipts from the machines during the term of the lease. The lease stated the parties assumed the duties of a landlord and tenant under the laws of Kansas. With 16 months remaining on the term of the lease, D disconnected all of P's equipment and replaced it with its own laundry equipment. P retrieved its property at a cost of $187.50 and stored the washers and dryers in one of its warehouses. Four sets of the laundry equipment were released in the Kansas City area in January 1993, although other suitable laundry equipment was available to complete this transaction. P sued to recover its lost profits for the remaining 16 months of the lease. D claimed that P failed to mitigate its damages and should only recover the cost of moving its equipment. The trial court determined P was a 'lost volume' lessee and had sustained loss of profits and damages in the amount P requested. P was granted judgment for damages of $6,383.08 and $2,165 in attorney fees. D appealed. D claims that P failed, as a matter of law, to mitigate its damages and failed to prove the requisite elements to recover lost profits.