Covenant of Quiet Enjoyment Breach results in liability in damages to T, but T still liable to rent
Actual Eviction – L physically prevents T’s entry T not liable for rent
Constructive Eviction – (1) Intentional acts of L that breach a duty to T and (2) cause substantial interference with T’s enjoyment of premises, or render it unfit for T’s purpose, and (3) T vacates premises (4) within a reasonable time after L’s breach REQUIRES T to vacate
Lounsbery v. Snyder (NY) – L stacks wood with T’s permission, T wants to revoke permission later
Entry in the nature of trespass that doesn’t interfere with enjoyment of the premises is not constructive eviction
Must be exclusion of T from portion of premises or substantial deprivation of the enjoyment of property in whole or part
Reste Realty Corp v. Cooper (NJ) – Office floods due to leaky retaining wall
Holding: T was constructively evicted so not liable for rent
Material Breach – Significant breach that persists over time that L has notice and opportunity to remedy
Consider lease, who is in best (or only) position to make repairs
Does problem affect more than just T’s premises?
5th Ave. Building Co. v. Kernochan (NY) – Lease includes basement vault under revocable license with city city revoked
Partial Actual Eviction – If L’s fault total rent abatement, if 3rd party’s fault Apportionment. Policy that L cannot apportion his own wrong
BUT SEE Movie Theater Case – Exception for de minimis PAE due to pylons
Duty to Deliver Premises – Failure to deliver premises on promised date constitutes a material breach of the rental agreement.
Implied Warranty of Habitability Safe, decent and habitable housing for T
Distinct from Covenant of Quiet Enjoyment because no need to vacate upon constructive eviction
Luxury items usually not included
Hilder v. St. Peter – T rents crappy place from L, complains, but L never fixes
Implied warranty is in every lease, covers latent/patent, can’t be waived
Breach – L must have notice and opportunity to repair
Must be material breach – Look @ housing code, effect on T’s health/safety, length of time and seriousness, eyes of reasonable person
Remedies – T may withhold rent, sue for damages, repair/deduct, constructive eviction T should give notice & establish escrow account for rent
T doesnot need to vacate
Punitive
Willful/wanton or personal ill will
L has notice and fails to repair facility essential to health/safety
Policy Modern T is incapable of fixing premises themselves
Often facilities are common to many T in building
T has limited bargaining power
Exceptions to Warranty Single family residences (maybe), agricultural leases, long-term leases, casual leases by non-merchant landlords, commercial leases
Illegal Lease Cannot make a lease for premises that are not habitable or are in violation of the housing code – Problem exists before creation of the lease
Minor violations don’t count
L must have at least constructive notice
T must pay reasonable rental value
Damages – T pays abated rental price
Brown v. South Hall Realty Co – No rent due because unsafe and unsanitary conditions violated housing code
Rent Control Artificially holding rent at below market rate concurrent with not allowing L to evict T at end of lease to bring in new T’s at market rate