Landlord-Tenant

Landlord-Tenant 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 Termination Problems Page 430-31, Problems 1-3. Leases Should leases be written in plain English? Is the lease on page 432 so written? Are leases contracts of adhesion? Formalities Statute of Frauds Exceptions for short term leases one year three year 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 property’s fair rental value, if lower 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 L’s 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 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? Problems Methods of eviction Summary proceedings Ordinary eviction Problem 6, Page 450 Problem 8, Page 451 Problem 9, Page 451 Problem 10, Page 451 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 Illegality and Commercial Frustration Page 457, Problems 1 and 2 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 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 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 T’s use and enjoyment of the premises. If L breached this covenant, T could terminate the lease. It was the one dependent covenant Actual Eviction  Problems 1 and 2, pg. 461 Constructive Eviction  Occurs where L wrongfully performs or fails to perform some duty that L is obligated to perform resulting in T’s 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 T’s use and enjoyment of premises Notice from T to L and reasonable opportunity to remedy interference T must vacate within a reasonable time Constructive Eviction-General Requirements  Occurs where L wrongfully performs or fails to perform some duty that L is obligated to perform resulting in T’s 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 T’s use and enjoyment of premises Notice from T to L and reasonable opportunity to remedy interference T must vacate within a reasonable time 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 Louisiana Leasing Company v. Solkolow What are the facts of this case? Problem 1, page 465 See page 462 Problem Problem Problem Problem 2, 3, 4, 6, page page page page 465 465 465 (Last paragraph) 467 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? 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 sanitary…in 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 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 L’s action for possession, does T then continue to live in the apartment free of any obligation to pay something to L? 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? 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.” 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 Pugh v. Holmes-Fair Market Value Damages or rent reduction equals: PR (Promised rent) - AIV(As is value) of premises while premises in breach PR=$150 AIV=$100 Damages=$50 Pugh v. Holmes--Fair Market Value •Damages or rent reductions if T stays in possession equals: If T stays in possession: If T leaves the premises: AWV=As warranted Value PR=Promised Rent AIV=As is value AWV minus PR (lost benefit of the bargain) Mease v. Fox (Iowa) 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 PR=$100 AIV= 75 Damages= $25 Damages if T leaves=$50 Davidow v. Inwood North Professional Group-Phase I What does the court hold? Robinson v. Diamond Housing Corp  What are the facts of this case?  Why is the court worried about landlord’s 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? Assignment and Subletting  Common law distinction between assignment and subleasing  “Modern” American view Assignment-Privity of Contract and Estate L PC/PE T PE Assignee Assignment-Privity of Contract and Estate L PC T PE Assignee Assignment-Privity of Contract and Estate L PC T PE Assignee Second Assignee Assignment-Privity of Contract and Estate L PC T PE/PC Assignee Assumption Assignment-Privity of Contract and Estate L Novation T PE Assignee Assignment-Privity of Contract and Estate L Novation T PE/PC Assignee Assumption Subletting-Privity of Contract and Estate L PC/PE T Subletting-Privity of Contract and Estate L PC/PE T Subtenant Restraints on Assignment and Subletting  Validity  Lease clauses-Strictly construed  Landlord’s consent  Not to be unreasonably withheld Termination of Tenancies by Tenant’s Wrongful Conduct  Landlord’s 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 rent=anticipatory 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” 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 L’s consent not be unreasonably withheld amount to a wavier? 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 Remember O conveys to A and his heirs Goodbye and Thanks