Senate Bill S2949A

2019-2020 Legislative Session

Requires landlords to mitigate damages if a tenant vacates a premises in violation of the terms of the lease

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to judiciary
Jun 20, 2019	committed to rules
Apr 29, 2019	amended on third reading 2949a
Mar 04, 2019	advanced to third reading
Feb 28, 2019	2nd report cal.
Feb 27, 2019	1st report cal.187
Jan 31, 2019	referred to judiciary

Votes

- Feb 27, 2019 - Judiciary Committee Vote
  S2949A
  
  Aye
  
  11
  
  Nay
  
  2
  
  Aye with Reservations
  
  2
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Judiciary Committee Vote: Feb 27, 2019
      
      aye (11)
      
      Bailey
      
      Breslin
      
      Gounardes
      
      Hoylman-Sigal
      
      Kaplan
      
      Myrie
      
      Ranzenhofer
      
      Savino
      
      Sepúlveda
      
      Stavisky
      
      Thomas
      
      nay (2)
      
      Boyle
      
      O'Mara
      
      aye wr (2)
      
      LaValle
      
      Lanza

Bill Amendments

Original

A (Active)

co-Sponsors

View additional co-sponsors

2019-S2949 - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §227-e, RP L

2019-S2949 - Summary

Requires landlords to mitigate damages if a tenant vacates a premises in violation of the terms of the lease.

2019-S2949 - Sponsor Memo

                                
 
BILL NUMBER: S2949

SPONSOR: STAVISKY
 
TITLE OF BILL:

An act to amend the real property law, in relation to requiring land-
lords to mitigate damages if a tenant vacates a premises in violation of
the terms of the lease

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would require residential landlords to mitigate damages to a
tenant in cases where the tenant vacated the premises.

 
SUMMARY OF PROVISIONS:

Section one of the bill adds a new section 227-e of the real property
law as it relates to imposing a duty on landlords to mitigate damages to
tenants. The landlord must, in good faith, take reasonable actions to
re-rent the premises at a fair market value. Any new tenant lease that
is executed shall terminate the previous tenant's lease and any damages

from that point forward.

Section two of the bill relates to the effective date.

 
JUSTIFICATION:

This bill will ensure that only actual damages are recoverable in situ-
ations where a tenant vacates a property in violation of the lease.
Currently, New York State law does not explicitly provide for the duty
to mitigate damages on landlords.  There was a court decision that
applied an earlier ruling related to commercial leases on residential
leases; stating that the landlord has no obligation to mitigate damages
on a tenant (Rios v Carrillo, 2008). This decision states that if a
tenant vacates the property in violation of the lease, the landlord can
choose not to move forward in re-renting the premises and allow the
tenant to be responsible for damages equal to the entirety of the lease.

This bill would explicitly state that the landlord must take reasonable
steps to re-rent the premise. The tenant could still be liable for
damages if the premises cannot be re-rented or due to market consider-
ations had to be rented at a lower rent. Some judges already apply this
generally accepted standard as a matter of equity, however, others do
not. This will provide the courts with guidance in determining damages
in landlord-tenant cases.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S2949 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2949
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2019
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property law, in relation  to  requiring  land-
   lords  to mitigate damages if a tenant vacates a premises in violation
   of the terms of the lease

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real property law is amended by adding a new section
 227-e to read as follows:
   § 227-E. LANDLORD DUTY TO MITIGATE DAMAGES. IN  ANY  LEASE  OR  RENTAL
 AGREEMENT  COVERING PREMISES OCCUPIED FOR DWELLING PURPOSES, IF A TENANT
 VACATES A PREMISES IN VIOLATION OF THE TERMS OF THE LEASE, THE  LANDLORD
 SHALL,  IN GOOD FAITH, TAKE REASONABLE AND CUSTOMARY ACTIONS TO RENT THE
 PREMISES AT FAIR MARKET VALUE. IF THE LANDLORD  RENTS  THE  PREMISES  AT
 FAIR  MARKET VALUE, THE NEW TENANT'S LEASE SHALL, ONCE IN EFFECT, TERMI-
 NATE THE PREVIOUS TENANT'S LEASE AND MITIGATE DAMAGES OTHERWISE RECOVER-
 ABLE AGAINST THE PREVIOUS TENANT BECAUSE OF SUCH TENANT'S  VACATING  THE
 PREMISES.  THE  BURDEN OF PROOF SHALL BE ON THE PARTY SEEKING TO RECOVER
 DAMAGES. ANY PROVISION IN A LEASE THAT  EXEMPTS  A  LANDLORD'S  DUTY  TO
 MITIGATE  DAMAGES UNDER THIS SECTION SHALL BE VOID AS CONTRARY TO PUBLIC
 POLICY.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06169-01-9

co-Sponsors

View additional co-sponsors

2019-S2949A (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §227-e, RP L

2019-S2949A (ACTIVE) - Summary

Requires landlords to mitigate damages if a tenant vacates a premises in violation of the terms of the lease.

2019-S2949A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2949A

SPONSOR: STAVISKY
 
TITLE OF BILL:  An act to amend the real property law, in relation to
requiring landlords to mitigate damages if a tenant vacates a premises
in violation of the terms of the lease

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would require residential landlords to mitigate damages to a
tenant in cases where the tenant vacated the premises.

 
SUMMARY OF PROVISIONS:

Section one of the bill adds a new section 227-e of the real property
law as it relates to imposing a duty on landlords to mitigate damages to
tenants. The landlord must, in good faith, take reasonable actions to
re-rent the premises at a fair market value. Any new tenant lease that
is executed shall terminate the previous tenant's lease and any damages
from that point forward.

Section two of the bill relates to the effective date.

 
JUSTIFICATION:

This bill will ensure that only actual damages are recoverable in situ-
ations where a tenant vacates a property in violation of the lease.
Currently, New York State law does not explicitly provide for the duty
to mitigate damages on landlords. There was a court decision that
applied an earlier ruling related to commercial leases on residential
leases; stating that the landlord has no obligation to mitigate damages
on a tenant (Rios v Carrillo, 2008). This decision states that if a
tenant vacates the property in violation of the lease, the landlord can
choose not to move forward in re-renting the premises and allow the
tenant to be responsible for damages equal to the entirety of the lease.

This bill would explicitly state that the landlord must take reasonable
steps to re-rent the premise. The tenant could still be liable for
damages if the premises cannot be re-rented or due to market consider-
ations had to be rented at a lower rent. Some judges already apply this
generally accepted standard as a matter of equity, however, others do
not. This will provide the courts with guidance in determining damages
in landlord-tenant cases.

 
PRIOR LEGISLATIVE HISTORY:

Revised 4/29/2019

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S2949A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2949--A
     Cal. No. 187
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2019
                                ___________
 
 Introduced  by  Sens.  STAVISKY, SALAZAR, BIAGGI, HOYLMAN, KRUEGER, LIU,
   MONTGOMERY -- read twice and ordered printed, and when printed  to  be
   committed  to  the  Committee  on Judiciary -- reported favorably from
   said committee, ordered to first and second report, ordered to a third
   reading, amended and ordered reprinted, retaining  its  place  in  the
   order of third reading
 
 AN  ACT  to  amend the real property law, in relation to requiring land-
   lords to mitigate damages if a tenant vacates a premises in  violation
   of the terms of the lease
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property law is amended by adding  a  new  section
 227-e to read as follows:
   §  227-E.  LANDLORD  DUTY  TO MITIGATE DAMAGES. IN ANY LEASE OR RENTAL
 AGREEMENT, EXCLUDING ANY REAL ESTATE PURCHASE CONTRACT DEFINED IN  PARA-
 GRAPHS  (A),  (C)  AND  (D)  OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED
 SIXTY-ONE OF THIS  CHAPTER,  COVERING  PREMISES  OCCUPIED  FOR  DWELLING
 PURPOSES,  IF  A  TENANT VACATES A PREMISES IN VIOLATION OF THE TERMS OF
 THE LEASE, THE LANDLORD  SHALL,  IN  GOOD  FAITH,  TAKE  REASONABLE  AND
 CUSTOMARY  ACTIONS  TO  RENT  THE  PREMISES AT FAIR MARKET VALUE. IF THE
 LANDLORD RENTS THE PREMISES AT FAIR MARKET VALUE, THE NEW TENANT'S LEASE
 SHALL, ONCE IN EFFECT, TERMINATE THE PREVIOUS TENANT'S LEASE  AND  MITI-
 GATE  DAMAGES  OTHERWISE RECOVERABLE AGAINST THE PREVIOUS TENANT BECAUSE
 OF SUCH TENANT'S VACATING THE PREMISES. THE BURDEN OF PROOF SHALL BE  ON
 THE  PARTY  SEEKING  TO  RECOVER  DAMAGES. ANY PROVISION IN A LEASE THAT
 EXEMPTS A LANDLORD'S DUTY TO MITIGATE DAMAGES UNDER THIS  SECTION  SHALL
 BE VOID AS CONTRARY TO PUBLIC POLICY.
   § 2. This act shall take effect immediately.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06169-07-9

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Senate Bill S2949A

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

Votes

Feb 27, 2019 - Judiciary Committee Vote

Judiciary Committee Vote: Feb 27, 2019

Bill Amendments

co-Sponsors

2019-S2949 - Details

2019-S2949 - Summary

2019-S2949 - Sponsor Memo

2019-S2949 - Bill Text download pdf

co-Sponsors

2019-S2949A (ACTIVE) - Details

2019-S2949A (ACTIVE) - Summary

2019-S2949A (ACTIVE) - Sponsor Memo

2019-S2949A (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S2949A

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Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

Votes

Bill Amendments

co-Sponsors

2019-S2949 - Details

2019-S2949 - Summary

2019-S2949 - Sponsor Memo

2019-S2949 - Bill Text download pdf

co-Sponsors

2019-S2949A (ACTIVE) - Details

2019-S2949A (ACTIVE) - Summary

2019-S2949A (ACTIVE) - Sponsor Memo

2019-S2949A (ACTIVE) - Bill Text download pdf

Comments