## Facts

- Frenchtown Square Partnership owned and leased space in a shopping center to Lemstone, Inc. under a ten-year commercial lease beginning June 3, 1989.
- In 1998, Frenchtown leased other space in the same shopping center to Alpha Gifts, which sold items similar to Lemstone’s merchandise.
- Lemstone claimed the competition reduced profits and impaired its ability to pay rent.
- About six months before the lease expired, Lemstone ceased operations, abandoned the premises, and stopped paying rent for the remainder of the term.
- Frenchtown did not relet the premises during the remaining lease term.
- Frenchtown sued for unpaid rent and related charges; Lemstone asserted, among other defenses and counterclaims, that Frenchtown failed to mitigate damages.

## Issues

1. Whether a commercial landlord has a duty to mitigate damages when a tenant breaches a commercial lease and abandons the premises.
2. If such a duty exists, whether mitigation is measured by a reasonableness standard and who determines reasonableness.

## Decision

- The Supreme Court of Ohio held that a lessor has a duty to mitigate damages when a lessee abandons a commercial leasehold.
- The Court held that the landlord’s mitigation efforts must be reasonable.
- The Court held that reasonableness of mitigation is to be determined by the trial court.
- The Court affirmed the court of appeals on the duty-to-mitigate question and remanded for the trial court to determine whether Frenchtown’s mitigation efforts were reasonable and to calculate damages accordingly.

## Legal Principles

- A commercial lessor must take reasonable steps to mitigate damages after a tenant abandons the leasehold.
- The mitigation obligation requires reasonable efforts, not guaranteed success in reletting.
- Whether the lessor’s mitigation efforts were reasonable is a fact-specific determination for the trial court.

## Conclusion

Ohio law imposes a duty on commercial landlords to reasonably mitigate damages following a tenant’s abandonment, and the trial court must decide whether the landlord’s mitigation efforts were reasonable before damages are finalized.


Frenchtown Square P'ship v. Lemstone, Inc., 791 N.E.2d 417 (Ohio 2003)