Owner's Bad Faith Entitles Tenant to Rent Rebate

May 31, 2008
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Facts: In 1997, a Vermont tenant signed a 10-year lease for retail space where the tenant opened a natural foods store. The lease required that the tenant meet every applicable code requirement.

The initial renovations that the tenant completed included building a 500-square-foot mezzanine. The owner had consented to the mezzanine, but neither the tenant nor the owner knew that creating this extra space resulted in the total space in the building exceeding the 15,000-square-foot limit designated in the certificate of occupancy.

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