Fera v. Village Plaza, Inc.

396 Mich. 639, 242 N.W.2d 372 (1976)

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Nature of the Case

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Facts

Fera (P) leased retail space from Village Plaza (D) in order to open a 'book and bottle shop' in D's shopping center. A $1,000 deposit was paid by P After this lease was executed, P gave up approximately 600 square feet of their leased space so that it could be leased to another tenant. In exchange, it was agreed that liquor sales would be excluded from the percentage rent override provision of the lease. Numerous work stoppages occurred, and eventually, Bank of the Commonwealth received a deed in lieu of foreclosure after default by Fairborn and Village Plaza. Schostak Brothers managed the property for the bank. When the space was finally ready, Ps were refused the space because the lease had been misplaced, and the space rented to other tenants. Alternative space was offered but refused by Ps as unsuitable for their planned business venture. P sued for his deposit and lost profits and received a jury verdict of $200,000. The court of appeals reversed; it held that a new business cannot recover damages for lost profits for breach of a lease and that P was barred from recovery because the proof of lost profits was entirely speculative. P appealed.