Opinion ID: 521461
Heading Depth: 2
Heading Rank: 4

Heading: Damages Beyond the Date of Rejection

Text: 22 Plaza contends that the bankruptcy court's order rejecting and terminating the lease as of November 15, 1985, bars damages beyond that date. This contention lacks merit. 23 In its February 5, 1986, order rejecting the lease, the bankruptcy court stated that its order was without res judicata or collateral estoppel effect with respect to state law issues, including damages. The bankruptcy court also stated that Plaza and Club would be permitted to proceed with their state court remedies, including eviction. 24 Damages recoverable for wrongful eviction include those amounts that are necessary to compensate the tenant for the detriment proximately caused by, or likely to result from, the eviction. Castillo v. Friedman, 197 Cal.App.3d Supp. 6, 19, 243 Cal.Rptr. 206, 213 (1987). The measure of damages is normally the value of the term, less the rent reserved. Id. Damages for the loss of use of property may be had to the end of the lease term. Asell, 32 Cal.App.3d at 825-26, 108 Cal.Rptr. at 571-72. 25 Plaza relies on Rosano v. Superior Court, 147 Cal.App.3d 92, 194 Cal.Rptr. 749 (1983), in support of its contention that Club is not entitled to damages for wrongful eviction beyond the date of the bankruptcy court's termination of the lease. In Rosano, the issue before the court was whether a tenant is entitled to damages for lost profits beyond the end of the lease term. Id. at 93-94, 194 Cal.Rptr. at 750. The court held that damages for lost profits are limited to those losses incurred during the unexpired term of the lease, including the period following notice of termination when the tenant is clothed with a legal right to possession. Id. at 96, 194 Cal.Rptr. at 751. Plaza argues that because Club had no legal right to possession following the bankruptcy court's rejection of the lease, Club should be limited to damages for the period between Plaza's eviction of Club in August 1985 and the court's rejection of the lease in November 1985. 26 The relevant inquiry is the extent to which Club had a legal right to possession under the terms of the lease. See id. at 95-97, 194 Cal.Rptr. at 751-52 (determining when tenant's legal right to possession of the leasehold expired based on the terms of the lease); Asell, 32 Cal.App.3d at 826, 108 Cal.Rptr. at 572 (determining damages for wrongful eviction based on remaining term of the lease). Under the terms of the lease, Club had a legal right to possession through November 1988, the end of the five-year lease term. 3 Accordingly, the bankruptcy court properly awarded damages to Club through the remaining term of the lease.