Opinion ID: 429509
Heading Depth: 2
Heading Rank: 3

Heading: Accrual of the Cause of Action for Damages

Text: 30 AIP also argues that under Florida law, a lessor operating for the account of the lessee has an affirmative duty to mitigate damages by making a good-faith effort to re-let the premises. Robinson v. Peterson, 375 So.2d 294, 296 (Fla.App.1979). AIP argues that hiring Coldwell Banker to operate the office park and entering into subleases of office suites with new and renewing subtenants did not satisfy the affirmative duty to use good efforts to re-let. At oral argument, it became clear that AIP's position is that Vareka was required to re-let the premises to a prime tenant, such as AIP had been, who would then sublease to other tenants. AIP correctly states Florida law: 31 Had the lessee prevailed on the question of whether the lessor did in fact use good efforts to re-let, the lessor's right of recovery would have been entirely defeated. 32 Robinson v. Peterson at 297. This language does not preclude recovery of damages in this case. 33 After resuming possession, Vareka retained Coldwell Banker Property Management Corporation to manage The Quarters. Although Coldwell Banker did not find a new prime tenant, AIP concedes that Coldwell Banker entered into subleases of office suites with new and renewing subtenants. The cases cited by AIP for the proposition that Vareka had an affirmative duty to re-let, Robinson v. Peterson and Coast Federal Savings, both involve a single lease rather than a prime lease and sublease fact pattern. Robinson v. Peterson, 375 So.2d 294 (Fla.App.1979); Coast Federal Savings and Loan Association v. DeLoach, 362 So.2d 982 (Fla.App.1978). Thus, in their single lease fact patterns, re-letting was the only means available to mitigate damages. In Kanter v. Safran, the court stated: 34 [This case] eliminates any thought that the lessor is necessarily required to seek an assignment of the defaulting lessee's specific interests or to sell only the remaining term of the original lease, since that term is 'at an end.' He is required only to recoup only what he can in good faith, consistent with his own interest as well as that of the defaulting lessee. 35 Kanter v. Safran, 82 So.2d 508, 509 (Fla.1955). Although not specifically applicable to this case, Kanter indicates that Florida law requires a good-faith effort to mitigate damages as opposed to requiring mitigation of damages by a specific method. Further, section 9.02(b) of the lease specifically gives the landlord authority to execute any subleases and specifies that the tenant is liable for damages whether or not the Premises or any part thereof be re-let. Because the district court found that Coldwell Banker's management had been efficient and successful, Vareka satisfied Florida's requirement that the lessor mitigate damages and thus, was not precluded from recovering damages.