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Please please provide me with a few details about the dispute with your landlord. Why are you afraid of him taking you to court? What County in Indiana are you in?
Not all issues are grounds to break a lease, but what you describe with the hot water would certainly fall into that category. It sounds like it may have been a new hot water heater installed, which didn't work. The fact that the warranty company couldn't figure out what was wrong with it did not excuse the landlord from providing you with a working hot water heater that you needed. He should've simply replaced the water heater and not waited for the warranty company to act. You had an absolute right to break your lease and move.
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Let's hope so. Many of our township judges are sympathetic to tenant complaints. Especially when they are not being used as excuses for nonpayment of rent.