State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-02a > 70a-2a-529

70A-2a-529. Lessor's damages for lessee's default.
(1) After default by the lessee under the lease contract of the type described inSubsection 70A-2a-523(1) or (3)(a), or, if agreed, after any other default by the lessee, if thelessor complies with Subsection (2), the lessor may recover from the lessee as damages:
(a) for goods accepted by the lessee and not repossessed by or tendered back to the lessorand for conforming goods lost or damaged after risk of loss passes to the lessee as provided inSection 70A-2a-219:
(i) accrued and unpaid rent as of the date of entry of judgment in favor of the lessor;
(ii) the present value as of the date determined under Subsection (1)(a)(i) of the rent forthe then remaining lease term of the lease agreement; and
(iii) any incidental damages allowed under Section 70A-2a-530, less expenses saved inconsequence of the lessee's default; and
(b) for goods identified to the lease contract where the lessor has never delivered thegoods or has taken possession of them or the lessee has effectively tendered them back to thelessor, if the lessor is unable after reasonable effort to dispose of them at a reasonable price or thecircumstances reasonably indicate that such an effort will be unavailing:
(i) accrued and unpaid rent as of the date of entry of judgment in favor of the lessor;
(ii) the present value as of the date determined under Subsection (1)(b)(i) of the rent forthe then remaining lease term of the lease agreement; and
(iii) any incidental damages allowed under Section 70A-2a-530, less expenses saved inconsequence of the lessee's default.
(2) Except as provided in Subsection (3), the lessor shall hold for the lessee for theremaining term of the lease agreement any goods that have been identified to the lease contractand are in the lessor's control.
(3) The lessor may dispose of the goods at any time before collection of the judgment fordamages obtained pursuant to Subsection (1). If the disposition is before the end of theremaining lease term of the lease agreement, the lessor's recovery against the lessee for damageswill be governed by Section 70A-2a-527 or 70A-2a-528, and the lessor will cause an appropriatecredit to be provided against any judgment for damages to the extent that the amount of thejudgment exceeds the recovery available under Section 70A-2a-527 or 70A-2a-528.
(4) Payment of the judgment for damages obtained pursuant to Subsection (1) entitles thelessee to the use and possession of the goods not then disposed of for the remaining lease term ofand in accordance with the lease agreement if the lessee complies with all other terms andconditions of the lease agreement.
(5) After a lessee has wrongfully rejected or revoked acceptance of goods, has failed topay rent then due, or has repudiated as provided in Section 70A-2a-402, a lessor who is held notentitled to rent under this section must nevertheless be awarded damages for nonacceptanceunder Sections 70A-2a-527 and 70A-2a-528.

Amended by Chapter 324, 2010 General Session