Opinion ID: 1453336
Heading Depth: 3
Heading Rank: 2

Heading: Compensatory Damages for the Holdover Period

Text: Both Economy and American argue that the trial court had no basis for awarding compensatory damages of $67,500 against them. This amount represents the monthly sublease rental of $7,500 times the nine months during which American remained in possession after termination of the sublease (from July 1, 1986, to March 31, 1987). American, however, does not seriously dispute that the relationship between it and Garcia after the sublease ended (assuming the primary lease was still in effect) was a holdover tenancy, continuing from month to month. See Hofmann v. McCanlies, 76 N.M. 218, 413 P.2d 697 (1966). As a holdover sublessee, American was obligated to pay the reasonable rental value to its sublessor, Garcia, for the time it held over. Strauss v. Boatright, 160 Colo. 581, 587, 418 P.2d 878, 881 (1966); see T.W.I.W., Inc. v. Rhudy, 96 N.M. 354, 359, 630 P.2d 753, 758 (1981) (owner entitled to fair rental value of leased premises during holdover period). To determine the reasonable rental value, a court can properly use the rental payment in a lease. Didamo v. Tyrol Sport Arms Co., 680 P.2d 1328 (Colo. App. 1984). Here, the sublease rental was $7,500 per month, and the court found that this was in fact the fair rental value of the property. [10] American, therefore, was obligated to Garcia for this amount until it vacated the property it previously had subleased. As to Economy, the same analysis applies to its liability to Garcia for this nine-month period as has been applied above to its liability for the sublease period. That is, the trial court found that a proximate result of Economy's attempted termination of the lease was American's withholding rental payments that otherwise would have gone to Garcia. This finding  together with the fact that Garcia was entitled to possession under the lease and to the reasonable rental value of the leased property until termination of the lease on March 31, 1987  supports the trial court's award of compensatory damages of $67,500 against Economy.