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Contracts Keyed to Summers
Marcovich Land Co. v. J.J. Newberry Co.
Facts
Paul March and Walter March are the legal successors-in-interest to Marcovich Land Corporation (Defendant). On September 30, 1953, Defendant leased commercial premises to J.J. Newberry Company (Plaintiff). The lease contained a clause that specified that, in the event the premises were damaged or destroyed by fire, Defendant would be responsible for repairing or reconstructing the premises at its own expense. On December 30, 1971, the building was completely destroyed by fire. Defendant did not rebuild the structure because it would have cost at least $452,000, an amount which Defendant considered commercially unfeasible. Plaintiff sued Defendant for lost profits as a result of his refusal to rebuild, and was awarded a judgment of $117,000.
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