The plaintiff property owner in Peppercorn 1248 LLC v. Artemis DCLP, LLP, 2016 IL App (1st) 143791-U, sued a corporate tenant and its real estate brokers for return of commission payments where the tenant never took possession under a ten-year lease for a Chicago daycare facility. Shortly after the lease was signed, the tenant invoked a licensing contingency and terminated the lease. The …
Tag Archives: CRE
The Landlord’s Duty to Mitigate Damages
When a commercial tenant defaults under a multi-year lease, say by abandoning the premises with several years left on the lease, the law requires the landlord to mitigate its damages. So, if retail tenant skips out on a 10-year lease after year 2, the landlord cannot sit idly by for 8 years and then recover 8 …