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Landlord & Tenant Law
Partial Constructive Eviction Defense Recognized
Black Quarry Millwork, LLC v. Sandy Littman Realty Corp., 2023 WL 8814771, AppDiv, First Dept. (memorandum opinion)
In commercial tenant's action for a declaratory judgment that it is not in breach of the lease, landlord appealed from Supreme Court's denial of its motion for summary judgment. The Appellate Division affirmed, holding that questions of fact remained about tenant's partial constructive eviction defense.
Tenant's business requires a fire sprinkler system. The City of Newburgh discontinued fire water supply services to the premises, citing deficiencies in the water supply system. Tenant asked landlord to remedy the deficiencies, but landlord asserted that the owner of neighboring property was responsible for remedying those deficiencies. Tenant then stopped paying rent and brought a declaratory judgment action to establish that it was not in breach of the lease. Landlord counterclaimed for unpaid rent and use and occupancy. Supreme Court awarded landlord summary judgment on its counterclaim for tenant's failure to comply with an order to post a bond or pay use and occupancy, but otherwise denied landlord's summary judgment motion. Landlord appealed.
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