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 North Carolina, commercial tenants are generally entitled to an implied warranty of quiet enjoyment, meaning they can use the leased property without interference from the landlord. Actual eviction involves the landlord physically removing the tenant or preventing access to the property, possibly through changing locks or threats of violence. Constructive eviction occurs when the landlord's actions or failures to act make the property unusable for the tenant, forcing them to leave. If a tenant in North Carolina believes they have been constructively evicted, they can sue the landlord for wrongful eviction. If the court finds in favor of the tenant, the tenant may be awarded actual damages, special damages, and possibly punitive damages, attorney fees, and court costs. The tenant may also be relieved from the obligation to pay remaining rent. It's important for both landlords and tenants to understand their rights and obligations under North Carolina law and the specific terms of their lease agreement.