Landlord and tenant – Commercial lease – Damages

Listen to this article

Where a commercial tenant was awarded damages in the amount of $12,850, the damages award must be vacated “as a windfall for a tenant who never paid the rent in question.”

The landlord is instead awarded $600 on its counterclaim for breach of contract.

“This is a commercial landlord-tenant case where the landlord challenges the damages awarded to the tenant and the dismissal of its breach of contract counterclaim. The tenant argues that the landlord’s appeal should be dismissed for procedural defects. Upon review, this Division finds no procedural defect warranting a dismissal of the appeal. In reaching the merits of the landlord’s claims, the damages award against the landlord is vacated, and an award of $600 shall be entered on the landlord’s counterclaim for breach of contract. …

“… In measuring damages relative to the tenant’s breach of contract claim, the fundamental goal is to place the injured party in as good a position as he would have been in had the contract been performed. … This award of damages does not reflect those principles. The defendant did not suffer any damages as he did not pay any rent or offer any testimony relative to lost profits arising from the landlord’s breach. Had the tenant actually paid rent, an award of damages would have been justified as to that amount. The landlord correctly views the damages award as a windfall for a tenant who never paid the rent in question. The damages award to the tenant is therefore vacated.

“The court also erred by dismissing the landlord’s counterclaim for breach of contract for the tenant’s failure to pay rent. There is no dispute that the tenant failed to pay rent as required under the lease, at least for April, 2019 and September, 2019, an amount totaling $2,600.00. It is also undisputed that the tenant made a payment of $2,000 in November of 2019, which would reduce the balance owed by the tenant to $600. Given the balance, it was an error for the court to dismiss the landlord’s breach of contract claim. The dismissal is therefore vacated, and a finding for the landlord on the breach of contract claim shall be entered in the amount of $600. …

“The damages award in favor of the tenant is vacated. The dismissal of the landlord’s breach of contract counterclaim is vacated, and an award of damages of $600 shall be entered in favor of the landlord.”

A.W. Puma Construction and Remodeling, LLC v. One Sixty Speen Street, LLC, et al. (Lawyers Weekly No. 13-053-25) (4 pages) (Prince, J.) (Northern District) Judgment entered by McGrath, J., in Framingham District Court. Thomas E. Sartini III for the plaintiff; Joshua Garrick for the defendants (App. Div. No. 24-ADCV-152NO) (Sept. 30, 2025).

Click here to read the full text of the opinion.