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Gotlieb v. Taco Bell Corp.
District Court, E.D. New York (1994) | 871 F. Supp. 147; 1994 U.S. Dist. LEXIS 20165; 1994 WL 703479
TL;DR: Landlord sued tenant (Taco Bell) for breaching a commercial lease. Despite initially rejecting tenant's repudiation, landlord's subsequent actions in negotiating a new lease with another party were found to be an acceptance of surrender by operation of law, limiting damages.
Legal Significance: This case illustrates that a landlord's conduct inconsistent with the continuation of a tenancy can constitute an acceptance of surrender by operation of law, terminating the lease and affecting recoverable damages, even if the landlord initially rejected the tenant's repudiation.