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					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   2,   page   465
Problem   3,   page   465
Problem   4,   page   465 (Last paragraph)
Problem   6,   page   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               AWV minus PR
PR=Promised Rent                     (lost benefit of the bargain)
AIV=As is value


                                  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
                                PR= $100
AIV= 75
                                AIV= 75
Damages= $25
                                Damages if T stays= $75
                                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                    T
           PC/PE


                   PE


                        Assignee
Assignment-Privity of Contract
and Estate


     L                  T
           PC


                PE


                      Assignee
Assignment-Privity of Contract
and Estate


     L                    T
           PC




                PE
                       Assignee



                     Second Assignee
Assignment-Privity of Contract
and Estate


     L                    T
           PC


                                   Assumption
                PE/PC


                        Assignee
Assignment-Privity of Contract
and Estate


     L                       T
           Novation


                      PE


                           Assignee
Assignment-Privity of Contract
and Estate


     L                          T
           Novation


                                         Assumption
                      PE/PC


                              Assignee
Subletting-Privity of Contract and
Estate


      L                 T
            PC/PE
Subletting-Privity of Contract and
Estate


      L                  T
            PC/PE




                      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

				
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