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Supreme Court of New Jersey - 378 A.2d 767, 74 N.J. 446
Tags: Property, Contracts, Landlords, Tenants, Duty to mitigate
tl;dr:
A landlord has the obligation to mitigate his damages after a tenant breaks the lease agreement.Video Summary
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Landlords have a duty to mitigate damages by making reasonable efforts to re-let an apartment wrongfully vacated by the tenant. A landlord breached this duty when they did not respond to the tenant's letter and did not re-enter or exhibit the apartment until over a year later when it was rented to a new tenant. The Appellate Division reversed the decision that a landlord is not obligated to mitigate damages caused by a defaulting tenant. The majority rule in landlord-tenant law considers a lease as a transfer of property interest to the tenant, which limits the landlord's control over the property. However, the distinction between a lease and a contract is no longer valid due to evolving social factors that have influenced the law of estates for years. This trend is considered wise and well-considered.
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