DAMAGES AND REMEDIES — Mitigation — Landlord’s Duty to Mitigate Loss by Accepting Surrender of Premises
Ratio Decidendi
Per Oguntade, JSC, in Reynolds Construction Co. (Nig.) Ltd. v. Rockonoh Properties Co. Ltd. (2005) NLC-491999(SC) at p. 16; Paras C–D:
"As I observed earlier the trial court had pointed out in his judgment the nature of the remedies ordinarily available to a landlord in plaintiff's situation. Those remedies do not include a refusal to accept the surrender of a demised property. There was therefore a clear justification on the part of the trial Judge to consider the question whether the course of action pursued by the plaintiff did not amount to a failure to mitigate the damages."
Explanation / Scope
A landlord may have a duty to mitigate loss by accepting surrender of leased premises. Refusing surrender may constitute failure to mitigate. The principle applies to damages and landlord-tenant law. The rule requires landlords to act reasonably to minimise loss. The court will consider whether the landlord’s conduct increased damages.