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Property Keyed to Rabin
Ruud v. Larson
Facts
In 1966, Ruud (Plaintiff) leased property to Larson (Defendant) for a ten-year term, at the conclusion of which the lease was renewed for another ten years. Defendant operated Mid-State Oil Company on the premises. In 1981, Defendant failed to pay property taxes, and in early 1982, Defendant failed to pay rent for two months. Rudd sued for breach of the lease, and the trial court found that Defendant failed to pay real estate taxes from 1981 to 1985, and rent totaling $24,500. Defendant had attempted to find a sublessor to pay $1,200 per month in rent. Before trial, Mid-State had declared bankruptcy and the bankruptcy court approved the sale of substantially all of Mid-State’s assets to Charles Luna. Defendant and Luna agreed that Defendant would pay all tax arrearages. After Defendant vacated the premises, Plaintiff repaired and advertised the premises for rent. These efforts produced 140 contacts and fifty prospective tenants. The trial court found that Plaintiff had made diligent efforts to mitigate damages. Defendant appealed, arguing that the district court erred in finding that Plaintiff had made a good faith effort to mitigate.
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