Laws vary from state to state, but unless a commercial lease agreement states otherwise, there is generally an implied warranty that the tenant/lessee under a commercial lease will have the right to quiet and peaceful enjoyment of the leased premises.
Actual eviction of a tenant by its landlord consists of the removal or exclusion of the tenant from the premises by the landlord’s physical acts—such as changing the locks and removing the tenant’s personal property—or by threats of violence equivalent to force. Actual eviction may also be accomplished by order of a court.
In contrast, a constructive eviction is an intentional act or omission of the landlord that permanently deprives the tenant of the use and enjoyment of the premises and causes the tenant to abandon the premises. A constructive eviction occurs when a landlord interferes with the tenant’s right to the quiet and peaceful enjoyment of the leased premises to such a degree that the tenant had no reasonable choice or an alternative to permanently leaving the premises.
If a commercial tenant believes it has been constructively evicted from the leased premises, the tenant may file a lawsuit against the landlord for wrongful eviction and may request that it be relieved of its obligation to pay the remaining rent due under the lease agreement. If the judge or jury finds the tenant was wrongfully evicted (by constructive eviction), the court may award the tenant:
• its actual damages, including general damages for the tenant’s lost benefit of the bargain if the market value of the lease exceeds the remaining rent payments;
• special damages for lost profits, moving expenses, prepaid rent, lost start-up business expenses;
• exemplary or punitive damages;
• attorney fees;
• prejudgment interest;
• postjudgment interest; and
• costs of court.
In Texas, commercial lease agreements typically include an implied warranty of quiet enjoyment, meaning tenants have the right to use their leased premises without interference. Actual eviction involves the landlord physically removing or excluding the tenant from the premises, which can be through changing locks, removing property, or threats equivalent to force, and may require a court order. Constructive eviction occurs when a landlord's actions or failures to act substantially interfere with the tenant's use and enjoyment of the premises, prompting the tenant to abandon the property. If a tenant in Texas believes they have been constructively evicted, they can sue the landlord for wrongful eviction. A successful claim may lead to the tenant being awarded actual damages (including lost benefits of the lease), special damages (such as lost profits and moving expenses), possibly exemplary damages, attorney fees, prejudgment and postjudgment interest, and court costs. The tenant may also be relieved from the obligation to pay remaining rent under the lease if constructive eviction is proven.
