[RPPTL LandTen] Breach of Lease/Damages/Accelerated Rent thru what date

[Anthony J. Horky]

My 2 cents.  There is a Florida standard jury instruction on this.  See the
notes on use below for case citations.  In the past, I've used an accountant
to calculate the present day value of accelerated rent and have not been
challenged on the method.    

 

501.7  REDUCTION OF DAMAGES TO PRESENT VALUE

 

Any amount of damages which you allow for [future medical expenses], [loss
of ability to earn money in the future], [or] [(describe any other future
economic loss which is subject to reduction to present value)] should be
reduced to its present money value and only the present money value of these
future economic damages should be included in your verdict.

 

The present money value of future economic damages is the sum of money
needed now which, together with what that sum will earn in the future, will
compensate (claimant) for these losses as they are actually experienced in
future years.

 

NOTES ON USE FOR 501.7

 

1.          Designing a standard instruction for reduction of damages to
present value is complicated by the fact that there are several different
methods used by economists and courts to arrive at a present-value
determination. See, for example, Delta Air Lines, Inc. v. Ageloff, 552 So.2d
1089 (Fla. 1989), and Renuart Lumber Yards v. Levine, 49 So.2d 97 (Fla.
1950) (using approach similar to calculation of cost of annuity); Jones &
Laughlin Steel Corp. v. Pfeifer, 462 U.S. 523, 103 S.Ct. 2541, 76 L.Ed.2d
768 (1983), and Loftin v. Wilson, 67 So.2d 185 (Fla. 1953) (lost stream of
income approach); Beaulieu v. Elliott, 434 P.2d 665 (Alaska 1967) (total
offset method); Culver v. Slater Boat Co., 688 F.2d 280 (5th Cir. 1982), and
Seaboard Coast Line Railroad v. Garrison, 336 So.2d 423 (Fla. 2d DCA 1976)
(discussing real interest rate discount method and inflation/market rate
discount methods); and Bould v. Touchette, 349 So.2d 1181 (Fla. 1977) (even
without evidence, juries may consider the effects of inflation).

 

2.          Until the Florida Supreme Court or the legislature adopts one
approach to the exclusion of other methods of calculating present money
value, the committee assumes that the present value of future economic
damages is a finding to be made by the jury on the evidence; or, if the
parties offer no evidence to control that finding, that the jury properly
resorts to its own common knowledge as guided by instruction 501.7 and by
argument. See Seaboard Coast Line Railroad v. Burdi, 427 So.2d 1048 (Fla. 3d
DCA 1983).

 

    

 

 

Regards,

 

Anthony J. Horky, Esquire

Anthony J. Horky, P.A.

301 Yamato Road, Suite 1240

Boca Raton, Florida 33431

Telephone: (561) 226-4628

Facsimile: (561) 994-6693

Website:  <http://www.horkylaw.com> www.horkylaw.com

 

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From: landten-bounces at lists.flabarrpptl.org
[mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Jeff Mazor 
Sent: Wednesday, February 08, 2012 5:29 PM
To: 'RPPTL Landlord Tenant Committee'
Subject: [RPPTL LandTen] Breach of Lease/Damages/Accelerated Rent thru what
date

 

I've researched this to death and haven't found a direct answer. Maybe you
can help?

 

Question One: If not provided for in the Lease, what discount rate do you
use to calculate the Present Value of sums that come due under a lease? 

 

Question Two: IF we sue for damages under an "Original Lease", we are
entitled to a judgment equal to: 

(i)   past due rent, repair expense and other charges; plus,

(ii)  landlord's attorneys' fees and costs; plus, 

(iii) "accelerated balance" due under the lease, less a credit for "the
amount received upon reletting the premises", Boulevard Shoppes, A.B. v.
Pro-1 Realty, Inc.605 So.2d 1317 (Fla., 4th DCA, 1992), reduced to present
value.

 

 

Thanks, 

 

Jeff Mazor

 

Jeffrey R. Mazor, Esq.

J. R. Mazor & Associates, P.A.

Presidential Circle Building 

4000 Hollywood Blvd.,  Suite 265-s

Hollywood, FL 33021

Phone: 954-962-3500

Fax:       954-962-3560

Email:   JMazor at Mazor.com

 

 

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