Landlord-Tenant

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Landlord-Tenant
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Classification of Tenancies

• Term of years
• Begin on fixed date end on fixed date
• No notice necessary to terminate-fixed by lease
• Periodic tenancy
• Renews for period to period
• Notice to terminate equals period exceed only 6
  months notice necessary to terminate a tenancy
  from year-to-year
• Tenancy at will
• No notice necessary to terminate

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Termination Problems

• Page 430-31, Problems 1-3.

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Leases

• Should leases be written in plain English?
• Is the lease on page 432 so written?
• Are leases contracts of adhesion?

5
Formalities

• Statute of Frauds
• Exceptions for short term leases
• one year
• three year

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Lease vs. Contract to Have a Lease

• L and T enter into an agreement on 1/1/90
  providing that on 9/1/90 T will takes possession
  of Blackacre for a 5-year term and pay L rent of
  1,000 per month. On 7/1/90 T notifies L that T
  is terminating the agreement.
• Is L entitled to
• 60,000 of unpaid rents (12,000 x 5)
• The present value of the 60,000
• The difference between 60,000 and the propertys
  fair rental value, if lower

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Hannah v. Dusch-Facts

• What are the facts of this case?

L leases property to T for a term commencing on
1/1/28. On 1/1/28 Ls prior tenant was still in
possession such that T could not take possession
on the first day of the term. T seeks damages
from L
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Hannah v. Dusch-Issue

• What is the issue in this case?
• Whether L implied covenants to put T in actual
  possession of the property or merely to put T in
  the position of having the legal right to
  possession?
• What are the American and English Rule?
• What reasons exist for each?
• Which is the better rule?

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Problems

• Methods of eviction
• Summary proceedings
• Ordinary eviction
• Problem 6, Page 450
• Problem 8, Page 451
• Problem 9, Page 451
• Problem 10, Page 451

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Illegality and Commercial Frustration

• Illegality at commencement of lease
• Prohibition
• Zoning laws
• Superceding illegality
• Commercial frustration
• War rationing
• Change in drinking age
• Who should bear the risk of loss

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Illegality and Commercial Frustration

• Page 457, Problems 1 and 2

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Ingalls v. Hobbs--Facts

• What are the facts of this case?

• L leases T a furnished summer house for use
  during the summer months
• T did not have a chance to inspect the house
  before moving in
• House was not fit for habitation
• T refused to pay rent
• L sues T for rent

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Ingalls v. Hobbs-Issue
Whether a short-term lease of a furnished home
where T did not have the chance to inspect the
premises includes an implied warranty that the
premises are fit for the particular purpose for
which they were rented
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Lease Covenants

• Independent
• Dependent
• Common law rule
• Common law exception

L promises that during the term of the tenancy
neither L nor anyone claiming through L nor a
third party having a superior title to L will
interfere with Ts use and enjoyment of the
premises. If L breached this covenant, T could
terminate the lease. It was the one dependent
covenant
15
Actual Eviction

• Problems 1 and 2, pg. 461

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Constructive Eviction

• Occurs where L wrongfully performs or fails to
  perform some duty that L is obligated to perform
  resulting in Ts substantial loss of use and
  enjoyment of the premises
• Four elements
• L must wrongfully perform or fail to perform some
  obligation that L is under some expressed or
  implied duty to perform
• As a result there is a substantial interference
  with Ts use and enjoyment of premises
• Notice from T to L and reasonable opportunity to
  remedy interference
• T must vacate within a reasonable time

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Constructive Eviction-General Requirements

• Occurs where L wrongfully performs or fails to
  perform some duty that L is obligated to perform
  resulting in Ts substantial loss of use and
  enjoyment of the premises
• Four elements
• L must wrongfully perform or fail to perform some
  obligation that L is under some expressed or
  implied duty to perform
• As a result there is a substantial interference
  with Ts use and enjoyment of premises
• Notice from T to L and reasonable opportunity to
  remedy interference
• T must vacate within a reasonable time

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Constructive Eviction

• L leases an apartment to T for 5 years. In the
  third year the windows pull apart from the walls
  letting cold air into the apartment. The cold air
  makes the apartment unbearable. T advises L of
  the problem but L does nothing. Can T claim a
  constructive eviction
• If T does not vacate the apartment
• If T vacates the apartment
• L leases an apartment to T for 5 years. T later
  vacates the apartment claiming that his use and
  enjoyment were interfered with by
• tenants upstairs running a house of prostitution
• landlord running a house of prostitution
• Upstairs
• Next door in an adjoining building

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Louisiana Leasing Company v. Solkolow

• What are the facts of this case?
• Problem 1, page 465
• See page 462
• Problem 2, page 465
• Problem 3, page 465
• Problem 4, page 465 (Last paragraph)
• Problem 6, page 467

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Constructive Eviction

• What are the risks for the tenant who believes
  he/she/it has been constructively evicted?
• What might a tenant do to minimize the risk of
  guessing wrong?
• Charles Burt Inc. v. Seven Grand Corp.
• If a tenant has been constructively evicted, is
  the tenant entitled to relief, other than lease
  termination?

21
Brown v. Southall Realty Co.

• What are the facts of this case?

• L leased apartment to T as a month-to-month
  tenant
• DC Housing Code makes it illegal to rent
  apartment unless it and its furnishings are
  clean, safe and sanitaryin repair and free of
  rodents and vermin
• Parties agree that at time lease signed the
  premises did not comply with the DC Housing Code
• T failed to pay rent.
• L sues T for possession for nonpayment of rent
• T defends on grounds lease was illegal

22
Brown v. Southall Realty Corp.

• How would the case have been decided in the
  absence of the specific prohibition in the DC
  Ordinance?
• How important to the case was it that L knew
  premises were in violation of the Code?
• Suppose T paid the rents but then sued L to
  recover the prior rents? Same result
• If T successfully asserts an illegality defense
  to Ls action for possession, does T then
  continue to live in the apartment free of any
  obligation to pay something to L?

23
Pugh v. Holmes

• What are the facts of this case?
• What problems arise if T merely utilized the
  constructive eviction defense?
• Why does court abolish caveat emptor doctrine?
• Is adoption of the implied warranty a proper role
  for the judiciary?
• How is the implied warranty defined for purposes
  of this case?
• Page 482
• Note 3, page 488
• Other definitions?

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Pugh v. Holmes-Summary of Remedies

• Remedies for breach
• Termination of lease by vacation
• Tenant may also remain in possession. In such
  case
• If breach total, rent abates fully
• If L did not breach (T guessed wrong), and T
  failed to pay rent, L entitled to possession for
  nonpayment of rent
• If L breaches partially, rent abates to some
  amount less that the agreed upon rent.
• Rent withholding
• Rent sequestration (escrow)
• Repair and Deduct
• Specific performance in unique situations.

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Happy Thanksgiving
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Pugh v. Holmes-Rent Abatement

• Percentage reduction of use method
• Reduce the amount of rent owed by a percentage
  equal to the percentage by which the use of the
  premises has been decreased by the breach of the
  warranty
• Proof problems
• Lay people can make judgement
• 2nd full paragraph page 487

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Pugh v. Holmes-Fair Market Value

• Damages or rent reduction equals

PR (Promised rent) - AIV(As is value) of premises
while premises in breach
PR150 AIV100 Damages50
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Pugh v. Holmes--Fair Market Value

• Damages or rent reductions if T stays in
  possession equals

If T stays in possession AWVAs warranted
Value PRPromised Rent AIVAs is value
If T leaves the premises AWV minus PR (lost
benefit of the bargain)
Mease v. Fox (Iowa)
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Comparison
L leases to T for 100. AW value would have been
150 As is value if 75
AW 150 PR 100 AIV 75 Damages if T stays
75 Damages if T leaves50
PR100 AIV 75 Damages 25
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Davidow v. Inwood North Professional Group-Phase I

• What does the court hold?

31
Robinson v. Diamond Housing Corp

• What are the facts of this case?
• Why is the court worried about landlords
  engaging in retaliatory action?
• What must landlord do to convince court that
  termination of lease is not retaliatory?
• Page 517 (first full paragraph)
• Fix and evict for unrelated lawful reason
• Convincing showing that repairs were impossible
  or unfeasible, and take unit off the rental
  market.
• What acts other than lease termination might a
  landlord do to retaliate against a tenant?

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Assignment and Subletting

• Common law distinction between assignment and
  subleasing
• Modern American view

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Assignment-Privity of Contract and Estate
PE
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Assignment-Privity of Contract and Estate
L
T
PC
PE
Assignee
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Assignment-Privity of Contract and Estate
L
T
PC
Assignee
PE
Second Assignee
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Assignment-Privity of Contract and Estate
L
T
PC
Assumption
PE/PC
Assignee
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Assignment-Privity of Contract and Estate
L
T
Novation
PE
Assignee
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Assignment-Privity of Contract and Estate
L
T
Novation
Assumption
PE/PC
Assignee
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Subletting-Privity of Contract and Estate
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Subletting-Privity of Contract and Estate
Subtenant
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Restraints on Assignment and Subletting

• Validity
• Lease clauses-Strictly construed
• Landlords consent
• Not to be unreasonably withheld

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Termination of Tenancies by Tenants Wrongful
Conduct

• Landlords remedies
• Acceptance of surrender and terminate the lease
• Express
• Implied
• Hold T to terms of the lease
• Sue for rents as they become due
• Sue from past-due rents
• Sagamore v. Willicutt (default in payment of rent
  coupled with notification T will not pay future
  rentanticipatory breach to which L entitled to
  PR minus FRV
• Duty to mitigate (Waiver)
• Somers v. Kridel
• URLTA 4.203(c) If the landlord fails to use
  reasonable efforts to rent the dwelling unit at a
  fair rental the rental agreement is deemed to be
  terminated by the landlord as of the date the
  landlord has notice of the abandonment

43
Acceptance of Surrender

• Risks
• Keys
• Reletting
• For benefit of T
• For benefit of L
• Change in configuration of premises
• Does prohibition on assignment or subletting with
  proviso that Ls consent not be unreasonably
  withheld amount to a wavier?

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Holdover Tenancy Doctrine

• Term of years and T WRONGFULLY holds over beyond
  the end of the term
• L can treat T as a trespasser and sue for
  possession
• L can hold T as a periodic tenant
• For year-to-year
• Shorter period by some state laws
• One year
• Timing of election
• Judicial exceptions
• Commonwealth Building Corp. v. Hirschfield
• Herter v. Mullen
• Pre-termination negotiations
• Increased rental

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Remember
O conveys to A and his heirs
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Goodbye and Thanks
Good Luck on your Exams and Happy Holidays