Action by commercial tenant for constructive eviction fails for lack of wrongful ouster allegation. Admission to retaining possession did not help.

Bad idea to stay in possession and do work in premises while claiming constructive eviction

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Commercial tenant brought action for constructive eviction, but failed to allege wrongful ouster from actual physical possession of the leased premises. Plaintiff even admitted that it retained possession and continued to perform construction work there. Affirming the dismissal of the complaint and the vacating of a Yellowstone injunction, the Appellate Division First Department held that dismissal of the action was proper and ruled that counsel fees should be awarded. The court also reiterated the rule that a Yellowstone injunction does not relieve the tenant from the obligation to pay rent.

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Reference Info:Decision | State, 2nd Circuit, New York | United States


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