N.Y. Uniform Commercial Code Law § 2-a-519: Lessee's Damages for Non-delivery, Repudiation, Default, and Breach of Warranty in Regard to Accepted Goods

Section 2-A-519. Lessee's Damages for Non-delivery, Repudiation,

Default, and Breach of Warranty in Regard to Accepted

Goods.

(1) Except as otherwise provided with respect to damages liquidated in

the lease agreement (Section 2-A-504) or otherwise determined pursuant

to agreement of the parties (Section 1--302 and 2-A-503), if a lessee

elects not to cover or a lessee elects to cover and the cover is by

lease agreement, whether or not the lease agreement qualifies for

treatment under Section 2-A-518(2), or is by purchase or otherwise, the

measure of damages for non-delivery or repudiation by the lessor or for

rejection or revocation of acceptance by the lessee is the present

value, as of the date of the default, of the then market rent minus the

present value as of the same date of the original rent, computed for the

remaining lease term of the original lease agreement, together with

incidental and consequential damages, less expenses saved in consequence

of the lessor's default.

(2) Market rent is to be determined as of the place for tender or, in

cases of rejection after arrival or revocation of acceptance, as of the

place of arrival.

(3) Except as otherwise agreed, if the lessee has accepted goods and

given notification (Section 2-A-516(3)), the measure of damages for

non-conforming tender or delivery or other default by a lessor is the

loss resulting in the ordinary course of events from the lessor's

default as determined in any manner that is reasonable together with

incidental and consequential damages, less expenses saved in consequence

of the lessor's default.

(4) Except as otherwise agreed, the measure of damages for breach of

warranty is the present value at the time and place of acceptance of the

difference between the value of the use of the goods accepted and the

value if they had been as warranted for the lease term, unless special

circumstances show proximate damages of a different amount, together

with incidental and consequential damages, less expenses saved in

consequence of the lessor's default or breach of warranty.