[WSBARP] Landlord's Election of Remedies

Marcus Fry mfry at lyon-law.com
Wed Mar 12 12:57:25 PDT 2014


Tom:

Thanks for the comment.  Paul, look at the unpublished case 3601 Group,
Inc. v. Alfalfa's Northwest, Inc., 2003 Wash. App. LEXIS 2773.  I think it
would be helpful in seeing what factors to consider.  The fight was over
what remedy that landlord had elected whether to relet on tenant’s behalf
or terminated and relet on landlord’s behalf.  The property in this suit
was very attractive (one of the factors to consider in LL’s election)
although strangely could not seem to keep a tenant (another factor for LL
to consider) because the tenant that took over also defaulted.  

 

Marcus J. Fry

Lyon, Weigand & Gustafson, P.S. 
Adoption Attorney*

P.O. Box 1689 
Yakima, Washington  98907 
Telephone:  (509) 248-7220 
Facsimile:  (509) 575-1883 

 

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From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Tom J. Westbrook
Sent: Wednesday, March 12, 2014 11:06 AM
To: wsbarp at lists.wsbarppt.com
Subject: RE: [WSBARP] Landlord's Election of Remedies

 

Always good to have a Tenant that can pay and you can chase. Assuming the
lease allows re-entry when tenant abandons or terminates before end of
lease term, then my preference is to have the LL re-lease. Marcus does way
more of this than I do, so he may have a different view – make sure you
get his opinion and see what Steve Whitehouse has to say as well. Those
guys always seem to be spot on.

 

Regards, 

 

        Tom

 

From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Wednesday, March 12, 2014 10:48 AM
To: wsbarp at lists.wsbarppt.com
Subject: RE: [WSBARP] Landlord's Election of Remedies

 

Actually, the tenant has other business that are more successful than this
location and owns a home so it may be worthwhile to go after the tenant.
You have said “If circumstances are right, I prefer to re-enter the
premises and have LL re-lease to new Tenant to mitigate damages on front
end and then go after the Tenant for loss of rents, damages, etc.”

My question is if you “prefer” to re-enter and re-lease, is it after a
termination of the original lease or is it a re-lease of the premises in
the name of the tenant?  Does it make a difference?  

 

 

-----Original Message-----
From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Tom J. Westbrook
Sent: Wednesday, March 12, 2014 10:45 AM
To: wsbarp at lists.wsbarppt.com
Subject: RE: [WSBARP] Landlord's Election of Remedies

 

Hi Paul,

 

My advice to LL is always the same – what is the best cash flow decision
for them? Since most defaulting tenants like this are effectively judgment
proof, it doesn’t often make a lot of business sense to go after the
Tenant unless there are significant damages caused by Tenant. If
circumstances are right, I prefer to re-enter the premises and have LL
re-lease to new Tenant to mitigate damages on front end and then go after
the Tenant for loss of rents, damages, etc.

 

Sincerely,

 

Tom

 

Thomas J. Westbrook

Attorney at Law

 

Thomas J. Westbrook, PLLC

PO Box 1

Littlerock, WA 98556

 

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Evergreen Plaza Building

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Suite 101

Olympia, WA 98501

 

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From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Wednesday, March 12, 2014 10:18 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Landlord's Election of Remedies

 

Listmates:  It’s been a while so I apologize for the basic question.
Commercial landlord client has a tenant who has unilaterally vacated with
three years remaining on the lease and sent the keys.  LL may elect to (1)
terminate the lease, mitigate damages, and sue T for the difference OR (2)
not terminate the lease but rather re-enter the premises and re-let the
premises either in the name of the LL or in the name of the tenant, and
then sue for the difference.

 

What are the factors in LL’s decision to make either election?  

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Bar Association nor its officers or agents. 

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