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The Covenant of Quiet Enjoyment

By Emily K. Bardon
May 01, 2016

Although in many states the covenant of quiet enjoyment is implied in a commercial real estate lease, a landlord can limit its responsibilities and reduce its exposure by narrowing the scope of the covenant in the lease agreement.

Damage Caps

A landlord can attempt to cap its liability by limiting the type or amount of damages for which it is liable under the lease. These types of limits are not typically found in the quiet enjoyment provision itself, but rather sprinkled throughout the lease or in a specific “limitation of liability” provision. In a 2011 case, Frittelli, Inc. v. 350 North Canon Drive, LP, 202 Cal.App.4th 35 (C.A. 2nd Dist. 2011), a California court affirmed the parties' ability to limit the scope of quiet enjoyment, whether express or implied, and found that the landlord was not liable for a breach where the lease specifically stated that the landlord shall be not liable under any circumstances for any injury or damage to tenant's business or for any loss of income or profit therefrom.

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