Rent Obligation 'Survived' Owner's Reentry

Facts: The owner of space leased by a kitchen and bath product retailer locked the tenant out of its space after it paid partial rent for several months and then stopped paying rent altogether. The tenant claimed that it was relieved of the obligation to pay rent after the owner locked the tenant out of the leased premises. The owner asked a trial court for a judgment in its favor without a trial and for damages. The trial court granted the request. The tenant appealed.

Decision: A New York appeals court upheld the trial court’s decision in favor of the owner.

Reasoning: The appeals court agreed that the owner was entitled to relief for its breach of contract claim against the tenant. It explained that the reason the tenant wasn’t excused from its rent obligation after the lock-out was that the lease itself provided that rent “survived” the owner’s reentry to the space upon the tenant’s default—in this instance, the failure to pay rent before the lock-out.

• Medlock Crossing Shopping Center Duluth, Ga. Limited Partnership v. Kitchen & Bath Studio, Inc., March 2015