(a)Except as otherwise provided in Section 1951.4, if a lessee of real property breaches the lease and abandons the property before the end of the term or if his right to possession is terminated by the lessor because of a breach of the lease, the lease terminates. Upon such termination, the lessor may recover from the lessee:
(1)The worth at the time of award of the unpaid rent which had been earned at the time of termination;
(2)The worth at the time of award of the amount
by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the lessee proves could have been reasonably avoided;
(3)Subject to subdivision (c), the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the lessee proves could be reasonably avoided; and
(4)Any other amount necessary to compensate the lessor for all the detriment proximately caused by the lessee’s failure to perform his obligations under the lease or which in the ordinary course of things would be likely to result therefrom.
(b)The “worth at the time of award” of the amounts referred to in paragraphs (1) and (2) of subdivision (a) is computed by allowing interest
at such lawful rate as may be specified in the lease or, if no such rate is specified in the lease, at the legal rate. The worth at the time of award of the amount referred to in paragraph (3) of subdivision (a) is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus 1 percent.
(c)The lessor may recover damages under paragraph (3) of subdivision (a) only if:
(1)The lease provides that the damages he may recover include the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award, or for any shorter period of time specified in the lease, exceeds the amount of such rental loss for the same period that the lessee proves could be reasonably avoided; or
(2)The lessor relet the property
prior to the time of award and proves that in reletting the property he acted reasonably and in a good-faith effort to mitigate the damages, but the recovery of damages under this paragraph is subject to any limitations specified in the lease.
(d)Efforts by the lessor to mitigate the damages caused by the lessee’s breach of the lease do not waive the lessor’s right to recover damages under this section.
(e)Nothing in this section affects the right of the lessor under a lease of real property to indemnification for liability arising prior to the termination of the lease for personal injuries or property damage where the lease provides for such indemnification.
Notes of Decisions
Avalon Pac.-Santa Ana, L.P. v. HD Supply Repair & Remodel, LLC, 192 Cal. App. 4th 1183 (Cal. Ct. App. 2011).
· cites it 3× “2, subdivision (a) includes costs incurred in making repairs the lessee was required to make, and damages for the lessee’s breach of a covenant to maintain or improve the property or to restore the premises on termination of the lease.”
City of San Diego v. Rider, 47 Cal. App. 4th 1473 (Cal. Ct. App. 1996).
· cites it 4× “(Civ. Code, § 1951.2.) This change in the law, however, is not significant to our analysis.”
Int'l Indus., Inc. v. Olen, 577 P.2d 1031 (Cal. 1978).
· cites it 2× “(Civ. Code, § 1951.2, subd. (d).) Plaintiff subsequently relet the premises for a higher rental than that provided in the lease.”
Kendall v. Ernest Pestana, Inc., 709 P.2d 837 (Cal. 1985).
· cites it 2× “[18] Civil Code section 1951.2 provides: "(a) Except as otherwise provided in Section 1951.”
Intel Corp. v. Hartford Acc. & Indem. Co., 692 F. Supp. 1171 (N.D. Cal. 1988).
· cites it 2× “been criticized on the theory that a breach of the “duty” does not give rise to a correlative right of action, [citations omitted] It is perhaps more accurate to say that the wrongdoer is not required to compensate the injured party for damages which are avoidable by reasonable…”
Hong Sang Mkt., Inc. v. Peng, 20 Cal. App. 5th 474 (Cal. Ct. App. 2018).
“The statute provides, with an exception not relevant here, 5 that a lessor who brings an unlawful detainer action is not precluded from bringing a separate action to recover rent under *113 Civil Code section 1951.”
First Nat'l Mortg. Co. v. Fed. Realty Inv. Trust, 633 F. Supp. 2d 985 (N.D. Cal. 2009).
· cites it 9× “Pursuant to the parties’ stipulation that rental damages are to be determined pursuant to Cal. Civ.Code § 1951.2, First National is entitled to the scheduled rent less the rent that FRIT proved could reasonably have been avoided by First National.”
Matter of Escondido West Travelodge, 52 B.R. 376 (S.D. Cal. 1985).
· cites it 3× “An analysis of California law must begin with an examination of California Civil Code § 1951.2. Under that section, a lease terminates if, among other things, a lessee’s “right to possession is terminated by the lessor because of a breach of the lease.”
Grand Prospect Partners v. Ross Dress for Less, Inc., 232 Cal. App. 4th 1332 (Cal. Ct. App. 2015).
“” (Civ. Code, § 1951.2, subd. (a)(1).) Harden calculated (1) the unpaid rent as $513,320 and (2) the accrued interest as $158,780, using an interest rate of 10 percent.”
Ai Ping Lu v. Grewal, 130 Cal. App. 4th 841 (Cal. Ct. App. 2005).
“Under the common law in effect prior to the enactment, the breach of the lease, if treated as a termination, ended the lessee’s obligation to pay rent, forcing a lessor to abandon its claim.”
Cal. Civil Code § 1951.2(a): 3 cases
Matter of Escondido West Travelodge, 52 B.R. 376 (S.D. Cal. 1985).
“An analysis of California law must begin with an examination of California Civil Code § 1951.2. Under that section, a lease terminates if, among other things, a lessee’s “right to possession is terminated by the lessor because of a breach of the lease.”
First Nat'l Mortg. Co. v. Fed. Realty Inv. Trust, 633 F. Supp. 2d 985 (N.D. Cal. 2009).
“Pursuant to the parties’ stipulation that rental damages are to be determined pursuant to Cal. Civ.Code § 1951.2, First National is entitled to the scheduled rent less the rent that FRIT proved could reasonably have been avoided by First National.”
Cal. Civil Code § 1951.2(a)(1): 1 case
Matter of Escondido West Travelodge, 52 B.R. 376 (S.D. Cal. 1985).
“An analysis of California law must begin with an examination of California Civil Code § 1951.2. Under that section, a lease terminates if, among other things, a lessee’s “right to possession is terminated by the lessor because of a breach of the lease.”
Cal. Civil Code § 1951.2(a)(2): 3 cases
First Nat'l Mortg. Co. v. Fed. Realty Inv. Trust, 633 F. Supp. 2d 985 (N.D. Cal. 2009).
“Pursuant to the parties’ stipulation that rental damages are to be determined pursuant to Cal. Civ.Code § 1951.2, First National is entitled to the scheduled rent less the rent that FRIT proved could reasonably have been avoided by First National.”
Cal. Civil Code § 1951.2(b): 1 case
First Nat'l Mortg. Co. v. Fed. Realty Inv. Trust, 633 F. Supp. 2d 985 (N.D. Cal. 2009).
“Pursuant to the parties’ stipulation that rental damages are to be determined pursuant to Cal. Civ.Code § 1951.2, First National is entitled to the scheduled rent less the rent that FRIT proved could reasonably have been avoided by First National.”
Cal. Civil Code § 1951.2(c)(2): 3 cases
Intel Corp. v. Hartford Acc. & Indem. Co., 692 F. Supp. 1171 (N.D. Cal. 1988).
“been criticized on the theory that a breach of the “duty” does not give rise to a correlative right of action, [citations omitted] It is perhaps more accurate to say that the wrongdoer is not required to compensate the injured party for damages which are avoidable by reasonable…”
First Nat'l Mortg. Co. v. Fed. Realty Inv. Trust, 633 F. Supp. 2d 985 (N.D. Cal. 2009).
“Pursuant to the parties’ stipulation that rental damages are to be determined pursuant to Cal. Civ.Code § 1951.2, First National is entitled to the scheduled rent less the rent that FRIT proved could reasonably have been avoided by First National.”
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