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International Trust Co. v. Weeks, 203 U.S. 364 (1906)

International Trust Co. v. Weeks

No. 31

Argued October 17, 1906

Decided December 3, 1906

203 U.S. 364


An action for rent of premises for unexpired term of a lease brought by the lessor against the stockholders' agent to whom the comptroller has released the assets of a national bank is a suit to wind up the affairs of the bank, of which the Circuit Court of the United States has jurisdiction.

Under a provision in a lease that, in case of reentry for breach of covenant, the lessors may relet the premises at the risk of lessee, who shall remain for the residue of the term responsible for the rent reserved and shall be credited with such amounts only as shall by the lessors be actually realized, as the same has been construed by the highest court of Massachusetts, the lessor has not the absolute discretion, after entry, to relet or not to relet the premises, but it is his duty to prevent unnecessary loss or diminution of rent, and, in the absence of a reasonable effort to relet the premises, cannot recover.

125 F. 370 affirmed.

The facts are stated in the opinion.

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