Tenant Not Entitled to Space After Subtenant Default

July 31, 2007
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Facts: The owner leased a building to a tenant that later sublet the building to a third party for the purposes of running a restaurant. Several years later, a fire damaged the building. The subtenant had the following legal options: 1) fix the damage and recover the cost from the owner; 2) sue the owner for damages; or 3) move out and claim constructive eviction—that is, being forced to leave because the space is inhabitable. Instead, the subtenant stayed in the space, but stopped paying rent to the original tenant, which in turn stopped paying the owner.

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