Was Christmas Store Tenant Constructively Evicted?

A Christmas store tenant sued the owner, claiming that the owner had constructively evicted it—that is, the owner had acted in a way that's tantamount to an eviction. According to the tenant, it was forced out of business by frequent holiday parties held by a neighboring restaurant, which were permitted by the owner. During these parties, elevator closures and high screens reduced visibility of and accessibility to the tenant's space. Also, chairs and tables available to the public were removed, and signs saying, “Closed for a private party” were posted, reducing pedestrian traffic.

A New York appeals court ruled that a jury must decide if the tenant had been constructively evicted. The court noted that although the lease said that alterations to the building didn't constitute constructive eviction, the lease required the owner to make “reasonable efforts to minimize interference” with the tenant's use and occupancy of its space. So a jury would have to decide if the owner had made reasonable efforts to minimize the impact of the restaurant's parties on the tenant's business [Incredible Christmas Store-New York, Inc. v. RCPI Trust].