Westhaven Associates, Ltd. v. C.C. of Madison, Inc.

Cost Cutters (defendant) broke its ten-year lease with shopping-center landlord Westhaven (plaintiff) after about a year and a half, closing without approval; the lease allowed Westhaven to recover attorney's fees incurred in reletting the space and separately included liquidated damages provisions covering the deficiency between contract rent and any re-letting rent, plus reletting costs and fees. Westhaven's evidence showed departing tenants cause ripple-effect harm to a shopping center beyond lost rent, by driving away foot traffic for other stores; the trial court awarded Westhaven its attorney's fees but found the liquidated damages provisions unreasonable and unenforceable, and both sides appealed.

Whether an injured landlord may recover attorney's fees and stipulated (liquidated) damages under lease provisions covering those categories.