Owner Constructively Evicted Tenant by Changing Locks

After buying a building, the owner changed the locks and told the tenant that it and its employees were no longer welcome in the space. The owner then sued the tenant for violating the lease by failing to pay rent. The tenant argued that it hadn't violated the lease because the owner had “constructively evicted” it—that is, the owner had acted in a manner that was tantamount to an eviction.

A Texas appeals court ruled that the owner had constructively evicted the tenant and ordered the owner to pay damages to the tenant. The court said that by changing the locks and telling the tenant it was no longer welcome, the owner had deprived the tenant of the “use and enjoyment” of the space and forced it to abandon the space. The court also noted that the tenant had paid rent only a few days late, and that the owner hadn't notified the tenant of the lease violation until after it had changed the locks [Lazell v. Stone].