QUESTION

Can my commercial landlord sue me for future rents.

Asked on Feb 19th, 2015 on Commercial Litigation - Georgia
More details to this question:
I opened a weight loss franchise in a strip center and signed a 36 month lease. The business closed after 9 months leaving me deeply in debt. I am 4 months behind in rent that I have offered to pay and asked for a reduced rent until the space can be re-leased. The landlord is suing me for a lump sum of $84,000+ although there is nothing in the lease that alooows anything like that. He (large Corp) is going forward with the suit even though I am offering to pay. Can he win that suit and what rights do I have?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
Are you sure there is nothing in the lease which accelerates the rent upon default?  It would be very surprising if there were not.  Almost all commercial leases have clauses that provide in substance that all rent under the lease shall become immediately due and owing upon any default by the tenant.  If so, your landlord can sue you for the entire amount of rent due for the full term of the lease.  If not, however, the landlord can only sue you for the rent owing to date, and must commence suit again (or amend his claims) as more rent becomes due. In some jurisdictions, commercial landlords have the obligation to mitigate damages, that is to attempt to rent out the space and reduce the amount owed by the defaulting tenant by the amount of rent received during the remaining term of the lease.  Not all jurisdictions have this rule, and I don't know what Georgia law provides. I see no defenses on the face of your email, but if you are deeply in debt you may be able to file for bankruptcy protection.  This could result in discharging your debt, and also possible tying up the proiperty for some time.  For these reasons, the landlord may be willing to settle for less rent to avoid a bankruptcy filing.
Answered on Feb 19th, 2015 at 1:06 PM

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