delivered the opinion of the Court.
By Chapter 12, § 2 of the Laws of 1974, now codified as Maryland Code (1974), Real Property Article § 8-207, effective 1 July 1974, the General Assembly abrogated the common law rule that a landlord was under no duty to mitigate dаmages in the event of a breach of the covenants of a residential lease by his tenant. 1
Section 8-207 now provides, in part:
“(a) Duty to mitigate damages. — The aggrieved party in a breach of a lease has a duty to mitigate damages if the damages result from the landlord’s or tenant’s:
“(1) Failure to supply possession of the dwelling unit;
“(2) Failure or refusal to take possession at the beginning of the term; or
“(3) Termination of occupancy before the end of the term.” (emphasis added).
It is conceded that the Wilsons’ notice, given on 28 May 1974, was not a timely notice. Upon receiving the Wilsons’ notice, Mrs. Ruhl responded, on 14 June 1974, by letter that it was not her responsibility to find a new tenаnt and that the lease was not assignable nor could the premises be sublet. The Wilsons vacated the premises on 31 July 1974, the July rent having been paid, at which time Mrs. Ruhl held a security deposit of $345.00, equivalent to one month’s rent.
On 27 July 1974, Mrs. Ruhl listed the property for sale with the real estate firm of Russell T. Baker & Co., with which she was associated. On 30 September 1974, she listed the property as for sale or for rent, аnd on 21 October 1974, the property was listed as for rent. Finally, a new tenant was found who took possession on 1 December 1974.
Thereafter, Mrs. Ruhl brought suit against the Wilsons in the District Court for Baltimore County, which entered judgment in Mrs. Ruhl’s favor against the Wilsons for $345.00 (the amount of the security deposit) plus $1.00. On appeal to the Circuit Court for Baltimore County, that court entered judgment against the Wilsons for $1,035.00, being three months’ rent, in addition to the security deposit, or rent for the period 1 August to 30 November 1974.
We granted certiorari in order that we might determine whether Mrs. Ruhl had discharged the duty to mitigate damages imposed upon her by the statute. Under the facts of this case, we conclude that she did not when she initially offered the property for sale, any more than she would have, had she offered the property for rent at a clearly exorbitant rate.
Section 8-207 of the Real Property Article, as we have already noted, abrogated the common law rule that a
It was the third option which, in effect, was eliminated by § 8-207. The first option, acceptance of an abandonment, which terminated the tenancy, relieves the tenant of any further obligation to pay rent. The second option amоunts to an election by the landlord of assuming a duty to mitigate his damages. Thus, the net effect of § 8-207 is simply to eliminate the third option from the landlord’s arsenal, limiting his choices either to acceрting the abandonment or to an undertaking to relet the premises on behalf of the tenant. These two choices comprise the so-called minority rule, now applied in a growing number of jurisdiсtions. See,
e.g., Wright v. Baumann,
We begin by noting that the minority rule only requires the landlord to exercise reasonable diligence in an effort to obtain a new tenant,
Myers v. Western Farmers Ass’n,
What we must determine, therefore, is whether it can be said that Mrs. Ruhl satisfied the duty to mitigate, imposed by § 8-207 of the Real Property Article, when she listed the property for sale on 27 July 1974. We are firmly of the opinion that she did not, because the duty to mitigate damages, in our view, specifically requires the landlord to exercise reasonable diligence to relet the premises. We have reached this decision by examining the cases in those jurisdictions which follow the minority view in light of the fact that we believe that the purpose of § 8-207 was to adopt the minority view.
In
Coffin v. Fowler,
Thus, where the landlord reеnters and lists the property for sale, as Mrs. Ruhl did, it is unclear whether the reentry was in order to cause a surrender or to attempt to mitigate. It is obvious, however, as
Coffin v. Fowler, supra,
holds, that had Mrs. Ruhl sold the property, a surrender would have occurred because resale, akin to reletting for a term longer than the original term, is so inconsistent with the tenant’s estate as to allow for no other interpretation than that the landlord had reentered in order to accept a surrender,
Eidelman v. Walker & Dunlop, Inc.,
There is a split of authority in those jurisdictions which have adopted the minority view as to who has the burden of proving mitigation by the landlord. In Iowa, for example, the burden is placed on the landlord,
Vawter v. McKissick,
Judgment of the Circuit Court for Baltimore County reversed; case remanded to that court for thе entry of a judgment for $538.20 plus interest and costs against appellants in favor of appellee; costs of this appeal to be equally divided between the parties.
Notes
. Maryland had alwаys followed the common law rule, which remains the majority rule today, Eidelman v. Walker & Dunlop, Inc.,
. We have been referred to no case and have found none in which a landlord reentered and listed thе property for sale in a jurisdiction imposing a duty to mitigate on the landlord. See, however, Wohl v. Yelen,
. There was no evidence that Mrá. Ruhl failed to act in good faith when she offered the property for sale, there being no contention that the asking price of $55,000.00 was excessive.
