Termination of a Lease Agreement and Limitation Period for Damages Claims

If an insolvency administrator terminates a lease agreement prematurely, the lessor (landlord) is entitled to compensation for the damage incurred due to the shortened agreed lease term.

In this context, it is important to note that the landlord has a duty to mitigate damages and must therefore promptly seek a new tenant for the property.

If the landlord had a secured legal position due to a contractual waiver of termination, and the insolvency administrator interfered with this right by prematurely terminating the lease, the damage is not considered a recurring monthly loss of rent, but rather the loss of the entire contractual claim to performance.

This claim arises at the time the termination becomes effective, and from that point on, the limitation period for asserting the damage claim begins.

OGH ruling of 24.04.2024, 9 Ob 70/23v