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 New Hampshire, commercial tenants are generally entitled to an implied warranty of quiet enjoyment, meaning they should be able to use their leased premises without significant interference. Actual eviction involves the landlord physically removing or excluding the tenant from the premises, which can be through changing locks, removing personal property, or by court order. Constructive eviction, on the other hand, occurs when a landlord's actions or failures to act substantially interfere with the tenant's ability to use the premises, forcing the tenant to abandon them. If a tenant in New Hampshire 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 exemplary or punitive damages, along with attorney fees, prejudgment interest, postjudgment interest, and court costs. The tenant may also be relieved from the obligation to pay the remaining rent due under the lease.