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Landlord Tenant Law Litigation

Mass. Appeals Court: Accelerating Rent As Liquidated Damages Unenforceable

The Massachusetts Appeals Court recently reversed a judgment in favor of a landlord in a tenant default matter, finding that a provision of a commercial lease that accelerated the remaining rent as liquidated damages is unenforceable as a penalty. The opinion "brings uncertainty to thousands of existing commercial lease agreements."

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The Massachusetts Appeals Court recently reversed an $82,000 judgment in favor of a landlord in a tenant default matter, finding that a provision of a commercial lease that accelerated the remaining rent as liquidated damages is unenforceable as a penalty.

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