CONSTRUCTIVE EVICTION
Contact Neufeld Legal for commercial leasing legal matters at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com
While an actual eviction involves the physical removal of a tenant from the leased premises, the doctrine of constructive eviction addresses a more subtle, yet equally disruptive, interference with the tenant's possessory rights. This legal principle acknowledges that a landlord's actions, or in some cases, inaction, can render the property unfit for the purposes for which it was leased, effectively forcing the tenant to vacate. For commercial tenants, particularly those operating businesses reliant on the premises being fit for use (e.g., retail, manufacturing, or professional services), a successful claim of constructive eviction can justify terminating the lease and pursuing damages against the landlord without incurring the severe penalties of a unilateral breach.
The core legal test for establishing constructive eviction in Canada generally requires demonstrating that the landlord's conduct substantially and fundamentally interferes with the tenant's right to quiet enjoyment of the premises, to such an extent that the tenant can no longer carry on their intended business. This interference is not limited to physical invasions; it can arise from a failure to perform critical maintenance or repairs mandated by the lease, persistent and intolerable noise or odour issues emanating from other parts of the building controlled by the landlord, or the withdrawal of essential services like heat, air conditioning, or elevator access. Crucially, the tenant must usually show that the condition or interference was so severe and persistent that it essentially deprived the tenant of the beneficial use of the property. The determination is highly fact-specific, relying on the express terms of the lease and the objective impact of the landlord's actions on the tenant's business operations.
For a commercial tenant to successfully claim constructive eviction, they must typically demonstrate that they have clearly notified the landlord of the issue and provided a reasonable opportunity for the landlord to remedy the breach, especially where the issue is the landlord's failure to act. After giving notice and if the substantial interference continues unabated, the tenant must then actually abandon or vacate the premises within a reasonable time, as remaining in possession generally waives the claim. Therefore, the decision to claim constructive eviction is a significant and often risky legal maneuver in a commercial context, as it involves the termination of a legally binding contract. Legal counsel is essential to properly assess the circumstances, document the landlord's breach, provide the necessary notice, and execute the physical departure, thereby preserving the tenant's right to terminate the lease and seek compensation for the losses incurred.
For knowledgeable and experienced legal representation in negotiating, reviewing and drafting lease agreements, and protecting your business’ legal rights thereunder, contact lease lawyer Christopher Neufeld at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or Chris@NeufeldLegal.com.
