Tenant Responsible for Landlord’s Property Removal Costs

What Happened: A landlord sued a warehouse tenant for unpaid rent and the $9,000 it spent to remove the seven trailers, two tractors, two refrigerators, two pianos, furniture, and other property the tenant left behind after being evicted. While admitting liability for the rent, the tenant denied responsibility for the landlord’s removal costs. The lease didn’t say anything about the tenant’s having to pay the landlord’s costs of removing abandoned property, it argued. And since the landlord drafted the lease, that ambiguity should count against it. The Indiana court agreed and tossed the landlord’s claim for moving costs.  

Decision: The appeals court reversed and sided with the landlord.  

Reasoning: Even though the lease didn’t explicitly state it, the tenant had an obligation to surrender the premises in as good condition as it was at the start of the lease as a matter of law. The tenant violated that obligation by leaving its property behind and was responsible for the costs the landlord incurred as a direct result of that violation, the court concluded.  

• Mt. Trace Dev., LLC v. Spillman: 2020 Ind. App. LEXIS 58, 2020 WL 810939