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My client went out of business and closed their shop at a local shopping center.

The landlord sued for breach of contract and unpaid future rent.

The Landlord was awarded five years future rent by the court.

We are closing out the client's books and I'm wondering if I need to book the judgement?

The company is an LLC (partnership of husband and wife) and the judgement is personal. I believe they are going to file bankruptcy.

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If they file bankruptcy the judgment will go away. In the meantime, if the judgment is personal I don't know where you'd book it - it isn't the responsibility of the LLC so it should not go there. And there are no books, per se, for an individual.

I'm also more than a bit surprised that the landlord got a judgment for future rent. The landlord is under a legal obligation to try to mitigate his damages. What you've said seems to indicate that the court has said to him that he doesn't even have to try to re-rent the building. This is highly unusual in my experience.

What jurisdiction is your client in?

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