Tenant Must Prove Use of Space Violated Zoning Law

A computer business tenant signed a three-year lease for office space. Less than a year later, the tenant told the property manager she wanted to move out because she needed more space. During the conversation, the tenant got the impression that the manager had released her from the lease. When the tenant later got a demand for rent due, she sent the owner a letter saying that she believed she'd been released from the lease, and that the lease was unenforceable because the space she was renting wasn't zoned for retail use. The owner sued the tenant for nonpayment of rent. The tenant asked the court to dismiss the case, which the court did. The owner appealed.

A South Dakota appeals court reinstated the case, ruling that the tenant had to prove that her use of the space violated zoning law. The court said that, since the tenant had raised this issue as a defense to her nonpayment of rent, she had to prove that her use violated zoning law to prove that the lease was unenforceable [Bohlen v. Tyler].