New York Laws
Part 5 - Default
2-A-528 - Lessor's Damages for Non-Acceptance, Failure to Pay, Repudiation, or Other Default.

(1) Except as otherwise provided with respect to damages liquidated in
the lease agreement (Section 2-A-504) or otherwise determined pursuant
to agreement of the parties (Sections 1--302 and 2-A-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 whether or not the lease
agreement qualifies for treatment under Section 2-A-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 Section 2-A-523(1) or 2-A-523 (3)(a),
or, if agreed, for other default of 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 Section 2-A-530, less expenses saved in
consequence of the lessee's default.
(2) If the measure of damages provided in subsection (1) 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 Section
2-A-530, due allowance for costs reasonably incurred and due credit for
payments or proceeds of disposition.

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