Not Constructive Eviction to Cut Tenant's Electricity If Lease Allows It

July 21, 2019

What Happened: To the owner, this was an open-and-shut case: The fashion store tenant it evicted owed unpaid rent. To the tenant, it was more complicated than that. The tenant contended that the owner committed constructive eviction by cutting off its electricity. The court sided with the owner, and the tenant appealed.    

Decision: The New York court agreed that there was no constructive eviction and upheld summary judgment for the owner.

What Happened: To the owner, this was an open-and-shut case: The fashion store tenant it evicted owed unpaid rent. To the tenant, it was more complicated than that. The tenant contended that the owner committed constructive eviction by cutting off its electricity. The court sided with the owner, and the tenant appealed.    

Decision: The New York court agreed that there was no constructive eviction and upheld summary judgment for the owner.

Reasoning: While cutting off electricity is normally grounds for constructive eviction, the lease expressly gave the owner the right to discontinue electrical services to the premises in the event that the tenant didn’t pay the electricity bills within five days of receiving them. And that’s what happened. The clause was clear, and other New York courts have found electricity shut-off clauses enforceable, the court explained. 

  • 214 W. 39th St. LLC v. Fashion Transcript LLC: 2019 N.Y. Misc. LEXIS 3656, 2019 NY Slip Op 31934(U)

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