Laws vary from state to state, but unless a commercial lease agreement states otherwise, there is generally an implied warranty that the tenant/lessee under a commercial lease will have the right to quiet and peaceful enjoyment of the leased premises.

Actual eviction of a tenant by its landlord consists of the removal or exclusion of the tenant from the premises by the landlord’s physical acts—such as changing the locks and removing the tenant’s personal property—or by threats of violence equivalent to force. Actual eviction may also be accomplished by order of a court.

In contrast, a constructive eviction is an intentional act or omission of the landlord that permanently deprives the tenant of the use and enjoyment of the premises and causes the tenant to abandon the premises. A constructive eviction occurs when a landlord interferes with the tenant’s right to the quiet and peaceful enjoyment of the leased premises to such a degree that the tenant had no reasonable choice or an alternative to permanently leaving the premises.

If a commercial tenant believes it has been constructively evicted from the leased premises, the tenant may file a lawsuit against the landlord for wrongful eviction and may request that it be relieved of its obligation to pay the remaining rent due under the lease agreement. If the judge or jury finds the tenant was wrongfully evicted (by constructive eviction), the court may award the tenant:

• its actual damages, including general damages for the tenant’s lost benefit of the bargain if the market value of the lease exceeds the remaining rent payments;

• special damages for lost profits, moving expenses, prepaid rent, lost start-up business expenses;

• exemplary or punitive damages;

• attorney fees;

• prejudgment interest;

• postjudgment interest; and

• costs of court.

In New York, commercial tenants are generally entitled to the implied warranty of quiet enjoyment, meaning they should be able to use their leased premises without significant interference from the landlord. Actual eviction involves the physical removal or exclusion of the tenant by the landlord, which can be through changing locks, removing property, or threats equivalent to force, and may require a court order. Constructive eviction, on the other hand, occurs when a landlord's actions or failures to act substantially interfere with the tenant's ability to use the premises, leading the tenant to abandon the property. If a tenant in New York believes they have been constructively evicted, they can sue the landlord for wrongful eviction. If the court finds in favor of the tenant, the tenant may be awarded actual damages, special damages, and possibly punitive damages, attorney fees, interest, and court costs. The tenant may also be relieved of the obligation to pay remaining rent under the lease if constructive eviction is proven.