Tuesday, March 27, 2012

SJC Rules in 275 Washington Street Corp. v. Hudson River International, LLC

The Massachusetts Supreme Judicial Court (SCJ)  held that when a commercial tenant breaks a commercial lease, the landlord will not be able to collect damages until the end of the original lease term, even if the lease contains an indemnity clause. Damages may be wholly ascertained and fully assessed against a tenant at the end of the lease term because of "the possible intervention of factors, presently unknown, that make the determination of damages uncertain at the present." 


The defendant in 275 Washington Street Corp. v. Hudson River International, LLC, conceded that it will owe damages for abandoning the premises and ceasing to pay rent, but the issue on appeal was whether damages may be determined at present time. The landlord argued that since the premises were re-leased, the damages are easily ascertainable by calculating the difference in rent between the original and substituted leases. The SJC  was sympathetic to the landlord, but concluded that "the tenant's view is consistent with the present state of Massachusetts law and is one with which we are constrained to agree." 



Glickman Turley's experienced attorneys represent individuals on a wide range of immigration matters, as well as other legal issues. Please contact our attorneys if you wish to discuss representation on immigration mattersreal estate purchase and salescondominium associationscriminal defensenon-profit law, civil litigation, business litigationbusiness law, trademark law, probate matters including wills, powers of attorney, health care proxy, same-sex parent adoptionsguardianshipsanimal law, or LGBT legal matters