275 Washington Street Corp. v. Hudson River Int'l (2013)
Massachusetts' Supreme Judicial Court ruled that a landlord could not recover post-termination damages from a defaulting tenant because the lease's indemnification clause didn't set a date to measure damages. The court said the amount wasn't due until the original lease term ended.
The landlord was left with virtually no remedy and had to wait until the original lease term expired to determine damages.
The decision pushed Massachusetts commercial landlords to draft detailed liquidated-damages and rent-acceleration clauses rather than relying on bare indemnification language.
Abbey Lafayette's recovery in the WNDR case may hinge on the exact language in its lease. If it relied on an indemnification clause without a fixed damages date, it could face the same problem the landlord in Hudson River faced.
