BILL NUMBER: S421
SPONSOR: LIU
 
TITLE OF BILL:
An act to amend the real property law, in relation to requiring land-
lords to mitigate damages when commercial tenants vacate premises in
violation of the terms of the lease
 
PURPOSE OR GENERAL IDEA OF BILL:
Amends the real property law to include commercial landlords in the
section of the real property law requiring that landlords mitigate
damages when tenants vacate premises before the expiration date of a
lease.
 
SUMMARY OF PROVISIONS:
Section 1 amends section 227-e of the real property law, as added by
section 4 of part M of chapter 36 of the laws of 2019 to include commer-
cial leases in the law.
Section 2 provides that this act shall take effect immediately.
 
JUSTIFICATION:
New York State has restored the duty of landlords to mitigate damages
when a tenant vacates before the end of a lease term for residential
units. This public policy decision is based on the long-standing princi-
ple of the duty of a plaintiff to minimize damages. This sound princi-
ple, now applied to residential units, is also good public policy to
protect commercial tenants from property owners who make no effort to
re-rent a vacant property or minimize damages. Currently, it is common
for commercial leases to include such a provision. This legislation
would extend the state policy to commercial landlords and tenants on a
uniform basis.
 
PRIOR LEGISLATIVE HISTORY:
01/03/24 REFERRED TO JUDICIARY
01/18/23 REFERRED TO JUDICIARY
01/05/22 REFERRED TO JUDICIARY
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S421: 227-e real property law