James owns a three-story building. He leases the ground floor to Juan’s Mexican
ID: 457467 • Letter: J
Question
James owns a three-story building. He leases the ground floor to Juan’s Mexican restaurant. The lease is to run for a five-year period and contains an express covenant of quiet enjoyment. One year later, James leases the top two stories to the Upbeat Club. The club’s hours run from 5:00 p.m. to 11:00 p.m. The noise from the Upbeat Club is so loud that it is driving customers away from Juan’s restaurant. Juan has notified James of the interference and has called the police on a number of occa-sions. James refuses to talk to the owners of the Upbeat Club or to do anything to remedy the situation. Juan aban-dons the premises. James files suit for breach of the lease agreement and for the rental payments still due under the lease. Juan claims that he was constructively evicted and files a countersuit for damages. Discuss who will be held liable.
Explanation / Answer
In this case James, the landlord, would be held liable.because the lease agreement includes an express covenant of quiet enjoyment.Quiet enjoyment,a clause used in lease agreement,is the right to enjoy and use premises in peace and without interference.Thus,if the landlord interferes with quiet enjoyment he/she may be suit for breach of contract.
In the covenant of quiet enjoyment,the landlord promises that during the term of the tenancy no one will disturb the tenant in the tenant's use and enjoyment of the premises.It also include the right to exclude others from the premises.
In this case,James refused to talk to the owners of the Upbeat club or to do anything to remedy the situation,thereby violating the covenant of quiet enjoyment.So,he must be held liable for the breach of agreement.
On the other hand,Juan has the right to abandon the primises as a remedy for James' breach of covenant of quiet enjoyment.Juan doesn't owe any rental payment due in the agreement because James has clearly breached the covenant of quiet enjoyment.
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