CUMMINGS PROPERTIES, LLC v. DARRYL C. HINES., 201 N.E.3d 295 (2022)

Citation: CUMMINGS PROPERTIES, LLC v. DARRYL C. HINES., 201 N.E.3d 295 (2022)
Parent Document: CUMMINGS PROPERTIES, LLC v. DARRYL C. HINES., 201 N.E.3d 295 (2022)
Jurisdiction: Massachusetts (state)
Effective Date: 2022-12-05
Original Source: https://www.courtlistener.com/opinion/10271850/cummings-properties-llc-v-darr... ↗

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In an action brought by a commercial landlord against the guarantor of a lease following the tenant's default on paying rent just two months into the lease's five-year term, the judge erred in concluding that the rent acceleration clause in the lease entitled the landlord to liquidated damages equal to the amount of rent due under the full term of the lease, where the clause was not a reasonable forecast of damages expected to occur in the event of a breach, given that it permitted the landlord to repossess the premises, relet it, and collect rent from the new tenant, as well as recover the full five years of rent from the original tenant (regardless of when in the lease period the default occurred and regardless of whether or when the landlord found a new tenant), without having to account for the rent received from the new tenant during the term of the original lease. [31-37]

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