Opinion ID: 4582131
Heading Depth: 1
Heading Rank: 2

Heading: facts

Text: We begin with a brief background. Additional facts will be discussed, as necessary, in the analysis section. As landlord, AVG Partners I, LLC, also known as AVG Partners (AVG), sued its tenant’s assignee, Genesis Health Clubs of Midwest, LLC, and its original tenant, 24 Hour Fitness USA, Inc. (collectively Genesis), for breaches of two commercial leases for property in Omaha, Nebraska. Each written lease was for a building that was used as a fitness club. One was located on South 145th Plaza (145th Plaza) and the other on North 118th Circle (North Circle). In April 2017, Genesis closed the North Circle facility and vacated the premises even though the lease did not expire until October 2019. It failed to make any of the monthly $63,154.29 rent payments for April 2017 or thereafter and failed to pay property taxes. AVG sent Genesis a notice of default each month from April 2017 to April 2019. With respect to the 145th Plaza lease, Genesis paid onehalf of the $56,291.67 monthly rent due from September 2017 through June 2018. In response to the insufficient rent 1 See Neb. Rev. Stat. § 45-104 (Reissue 2010). - 52 - Nebraska Supreme Court Advance Sheets 307 Nebraska Reports AVG PARTNERS I v. GENESIS HEALTH CLUBS Cite as 307 Neb. 47 payments, AVG sent notices of default. Despite the notices of default, Genesis never paid the remaining half of the rent due from September 2017 through June 2018. Since June 2016, Genesis had not paid any of the property taxes levied on 145th Plaza. The matter proceeded to a jury trial. Genesis did not dispute the amounts of monthly rent owed under the written leases. Nor was there any dispute that Genesis breached the leases by failing to pay rent and real property taxes. In Genesis’ opening statement, counsel informed the jury that there were two reasons why AVG was not owed all the money it claimed: AVG’s failure to mitigate the loss and its failure to give the required notice. The jury returned a special verdict in AVG’s favor. Regarding the North Circle property, it found that AVG met its burden of proving Genesis breached the lease agreement, causing AVG damages of $1,657,800 for unpaid rent and late fees from April 1, 2017, to the date of the verdict and of $264,937.47 for unpaid taxes payable to that date. The jury found that Genesis did not meet its burden of proving AVG failed to take reasonable steps to minimize its damages. Regarding the property at 145th Plaza, the jury found that AVG met its burden of proving Genesis breached the lease agreement. According to the verdict, AVG’s damages were $303,974.96 in unpaid rent and late fees from September 20, 2017, to the date of the verdict and $236,745.77 in unpaid taxes payable to that date. The court entered judgment on the verdict and further awarded prejudgment interest. Genesis appealed, and AVG cross-appealed. We moved the case to our docket. 2