Kentucky Statutes 355.2A-528 – Lessor’s damages for nonacceptance, failure to pay repudiation, or other default
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(1) Except as otherwise provided with respect to damages liquidated in the lease agreement (KRS § 355.2A-504) or otherwise determined pursuant to agreement of the parties (KRS § 355.1-302 and KRS § 355.2A-503), if a lessor elects to retain the goods or a lessor elects to dispose of the goods and the disposition is by lease agreement that for any reason does not qualify for treatment under KRS § 355.2A-527(2), or is by sale or otherwise, the lessor may recover from the lessee as damages for a default of the type described in KRS § 355.2A-523(1) or 355.2A-523(3)(a), or, if agreed, for other default by the lessee:
(a) Accrued and unpaid rent as of the date of default if the lessee has never taken possession of the goods, or, if the lessee has taken possession of the goods, as of the date the lessor repossesses the goods or an earlier date on which the lessee makes a tender of the goods to the lessor;
(b) The present value as of the date determined under clause (a) of the total rent for the then remaining lease term of the original lease agreement minus the present value as of the same date of the market rent at the place where the goods are located computed for the same lease term; and
(c) Any incidental damages allowed under KRS § 355.2A-530, less expenses saved in consequence of the lessee’s default.
(2) If the measure of damages provided in subsection (1) of this section is inadequate to put a lessor in as good a position as performance would have, the measure of damages is the present value of the profit, including reasonable overhead, the lessor would have made from full performance by the lessee, together with any incidental damages allowed under KRS § 355.2A-530, due allowance for costs reasonably incurred and due credit for payments or proceeds of disposition.
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 242, sec. 32, effective July 12, 2006. — Amended
1992 Ky. Acts ch. 116, sec. 21, effective January 1, 1993 — Created 1990 Ky. Acts ch. 363, sec. 75, effective January 1, 1991.
(a) Accrued and unpaid rent as of the date of default if the lessee has never taken possession of the goods, or, if the lessee has taken possession of the goods, as of the date the lessor repossesses the goods or an earlier date on which the lessee makes a tender of the goods to the lessor;
Terms Used In Kentucky Statutes 355.2A-528
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures (KRS §. See Kentucky Statutes 355.2A-103
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lease: means a transfer of the right to possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. See Kentucky Statutes 355.2A-103
- Lease agreement: means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in this article. See Kentucky Statutes 355.2A-103
- Lessee: means a person who acquires the right to possession and use of goods under a lease. See Kentucky Statutes 355.2A-103
- Lessor: means a person who transfers the right to possession and use of goods under a lease. See Kentucky Statutes 355.2A-103
- Present value: means the amount as of a date certain of one (1) or more sums payable in the future, discounted to the date certain. See Kentucky Statutes 355.2A-103
- Treatment: when used in a criminal justice context, means targeted interventions
that focus on criminal risk factors in order to reduce the likelihood of criminal behavior. See Kentucky Statutes 446.010
(b) The present value as of the date determined under clause (a) of the total rent for the then remaining lease term of the original lease agreement minus the present value as of the same date of the market rent at the place where the goods are located computed for the same lease term; and
(c) Any incidental damages allowed under KRS § 355.2A-530, less expenses saved in consequence of the lessee’s default.
(2) If the measure of damages provided in subsection (1) of this section is inadequate to put a lessor in as good a position as performance would have, the measure of damages is the present value of the profit, including reasonable overhead, the lessor would have made from full performance by the lessee, together with any incidental damages allowed under KRS § 355.2A-530, due allowance for costs reasonably incurred and due credit for payments or proceeds of disposition.
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 242, sec. 32, effective July 12, 2006. — Amended
1992 Ky. Acts ch. 116, sec. 21, effective January 1, 1993 — Created 1990 Ky. Acts ch. 363, sec. 75, effective January 1, 1991.