Dolly Investments, LLC v. MMG Sioux City, LLCAnnotate this Case
In this case stemming from a commercial lease dispute between Landlord and Tenant the Supreme Court held that both parties breached the lease agreement but that only the tenant's breach was material.
At issue in this case was which party was first to materially breach the lease agreement at issue and whether the other's material breach discharged either party's obligations to perform under the agreement. The district court ruled for Landlord on breach of contract claims and awarded her damages. On reconsideration, the district court determined that Landlord materially breached the lease and reduced her damages. The Supreme Court reversed, holding (1) both Tenant and Landlord breached the commercial lease; (2) Tenant's breach was material, and Landlord's breach was not; and (3) Tenant's material breach suspended Landlord's duty to perform during a cure period, and once that period ended, Landlord's duty to perform was discharged.