Building Expansion Didn't Deprive Tenant of 'Peaceable Possession'

A lease gave an owner the right to expand its building, as long as the expansion didn't disturb the tenant's “peaceable possession” of the space (that is, the work couldn't harm the tenant's business operations). But during construction, the electricity at the building was disrupted temporarily. And a fire later damaged the tenant's space. The tenant sued the owner for violating its right to peaceable possession of the space. The owner asked the court to dismiss the lawsuit.

A Louisiana appeals court dismissed the tenant's lawsuit. The court ruled that the owner hadn't deprived the tenant of the peaceable possession of its space. The court noted that Louisiana law bars construction during a lease unless the tenant consents to the construction. Here, the court said, the tenant had consented to the construction because the tenant: 1) asked the owner to expand its building to allow the tenant's business to grow; 2) helped the owner secure funding for the construction; and 3) submitted plans for a proposed expansion [Southwest Steel of Louisiana, Inc. v. Vinton Harbor and Terminal Dist.].