Arrowhead Ridge I, L.L.C. v. Cold Stone Creamery, Inc.Annotate this Case
Arrowhead Ridge initiated a forcible entry and detainer action when its tenant, Cold Stone Creamery, defaulted on its lease. The trial court granted Arrowhead partial summary judgment, and the issues of mitigation of damages, interest, and attorneys' fees proceeded to trial. The trial court concluded that (1) Arrowhead failed to mitigate its damages due solely to an exclusivity provision in a lease with another tenant, and (2) Arrowhead could not recover its attorneys' fees under either the terms of the lease or state law. The court then denied the parties' motions for a new trial. On appeal, the Supreme Court reversed, holding (1) because the undisputed evidence established that Arrowhead made substantial efforts to lease the premises to another tenant, the trial court abused its discretion by denying Arrowhead's motion for a new trial; (2) the record established that Arrowhead mitigated its damages by the exercise of reasonable diligence as a matter of law; and (3) the trial court did not abuse its discretion by denying Arrowhead's motion for a new trial on the basis that it could recover the attorneys' fees it incurred due to Cold Stone's default. Remanded.