JETZ SERVICE CO. V. SALINA PROPERTIES
865 P.2d 1051 (1993)
NATURE OF THE CASE: Salina (D), landlord, appealed the judgment, which awarded lost profits damages to Jetz (P), laundry contractor, under the 'lost volume seller' measure of damages, where D did not contest liability for breaching a lease for P to supply coin-operated laundry equipment.
FACTS: P supplies and maintains coin-operated laundry equipment in approximately 2,000 locations in an eight-state area. P had a warehouse full of washers and dryers numbering in the thousands. D leased 175 square feet of an apartment complex to P for use as a coin-operated laundry facility. Five washing machines and five dryers were installed in November of 1987. The lease was for a six-year term. P paid an initial $3,000 decorating allowance and was entitled to the first $300 per month or 50%, whichever was greater, of the gross receipts from the machines during the term of the lease. The lease stated the parties assumed the duties of a landlord and tenant under the laws of Kansas. With 16 months remaining on the term of the lease, D disconnected all of P's equipment and replaced it with its own laundry equipment. P retrieved its property at a cost of $187.50 and stored the washers and dryers in one of its warehouses. Four sets of the laundry equipment were re-leased in the Kansas City area in January 1993, although other suitable laundry equipment was available to complete this transaction. P sued to recover its lost profits for the remaining 16 months of the lease. D claimed that P failed to mitigate its damages and should only recover the cost of moving its equipment. The trial court determined P was a 'lost volume' lessee and had sustained loss of profits and damages in the amount P requested. P was granted judgment for damages of $6,383.08 and $2,165 in attorney fees. D appealed. D claims that P failed, as a matter of law, to mitigate its damages and failed to prove the requisite elements to recover lost profits.
ISSUE:
RULE OF LAW:
HOLDING AND
DECISION:
LEGAL ANALYSIS:
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