Owner Can't Collect Damages Beyond Property's Fair Market Value

Facts: An owner sued two tenants for defaulting on their commercial leases. The owner attempted to collect damages that would have been more than the fair market value of the properties. A Georgia trial court ruled in favor of the tenants, and the owner appealed.

Decision: A Georgia appeals court upheld the trial court's ruling.

Reasoning: The appeals court rejected the owner's calculations of damages because the leases did not establish rents based on square footage, and because square footage was not used in the calculation of rent-due under the leases. In other words, the court found that the owner's overall method of calculation was flawed.

• Truestreet v. Burdick, September 2007