Jury Properly Determined Owner's Damages for Loss of Tenant's Lease

July 31, 2006

A tenant had the right to terminate its lease if certain parts of the property on which its store was located were taken by condemnation. The tenant went dark, but continued to pay its rent. The city condemned part of the property for street and utility improvements. The tenant then terminated its lease based on the condemnation. So the owner sued the city, claiming that it was entitled to damages for the loss of the tenant's lease. A jury awarded the owner $61,350 in damages. The owner appealed, claiming that it was entitled to more.

A tenant had the right to terminate its lease if certain parts of the property on which its store was located were taken by condemnation. The tenant went dark, but continued to pay its rent. The city condemned part of the property for street and utility improvements. The tenant then terminated its lease based on the condemnation. So the owner sued the city, claiming that it was entitled to damages for the loss of the tenant's lease. A jury awarded the owner $61,350 in damages. The owner appealed, claiming that it was entitled to more.

A North Dakota appeals court ruled that the jury had properly determined the owner's damages for the loss of the tenant's lease. The court explained that damages in a condemnation lawsuit are appropriate if they're within the range of the evidence presented. Here, the city's experts testified that the owner suffered no damages and the owner's experts testified that it suffered $613,500 in damages. And because the jury's award fell between $0 and $613,500, it was within the range of evidence presented, the court noted.

  • City of Grand Forks, N.D. v. Hendon/DDRC/BP, LLC: No. 20050197, 2006 N.D. LEXIS 120 (N.D. Sup. Ct. 6/1/06).

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