Mesilla Valley Mall Co. v. Crown Industries
New Mexico Supreme Court
808 P.2d 633 (1991)
Crown Industries (defendant) rented mall space from Mesilla Valley Mall Company (plaintiff), tried unsuccessfully to renegotiate its lease, and then abandoned the space after paying rent through a set date. Mesilla repossessed the space and let a local museum occupy it rent-free, with an agreement that the museum would vacate immediately whenever Mesilla asked. Mesilla acknowledged the museum drew foot traffic to the mall. Mesilla then sued Crown for the remaining rent owed under the lease. The trial court held Crown wasn't liable for additional rent because Mesilla had accepted Crown's surrender of the lease by re-appropriating the space.
Whether a landlord relieves an abandoning tenant of liability for rent when the landlord re-appropriates the leased premises for its own use and benefit, and not for the tenant's benefit as well.