Move-Out Delay Bars Tenant's 'Constructive Eviction' Argument

January 1, 2005

A tenant leased space in a building that it knew would be undergoing substantial renovation. The renovation caused heat, water, elevator, and noise problems. More than two years later, the tenant stopped paying rent and abandoned the space. The owner demanded more than $211,000 in unpaid rent from the tenant. The tenant claimed that the owner had “constructively evicted” it from the space—that is, the owner's actions during the renovation were tantamount to an eviction.

A tenant leased space in a building that it knew would be undergoing substantial renovation. The renovation caused heat, water, elevator, and noise problems. More than two years later, the tenant stopped paying rent and abandoned the space. The owner demanded more than $211,000 in unpaid rent from the tenant. The tenant claimed that the owner had “constructively evicted” it from the space—that is, the owner's actions during the renovation were tantamount to an eviction.

A New York court rejected the tenant's constructive eviction argument and ordered the tenant to pay more than $211,000 to the owner. The tenant couldn't prove that the owner had wrongfully acted to deprive the tenant of its use and enjoyment of the space. Rather, the owner had tried to remedy certain problems, while other problems had been only intermittent. Plus, the tenant didn't choose to shut its business until more than two years after the renovation problems started. This delay was “not reasonable,” the court said [New York International Beauty School Ltd. v. 308-312 West 36th Street, LLC].

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