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Ely
Ely, Counselor at Law
Category: Legal
Satisfied Customers: 102350
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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Can a business sue a landlord for loss of revenue if he fails

Customer Question

Can a business sue a landlord for loss of revenue if he fails to keep a property in a safe condition for human occupancy and also fails to provide items offered in lease agreement to the point that it makes business impossible to be reasonably conducted?
Submitted: 7 years ago.
Category: Legal
Expert:  Ely replied 7 years ago.
Hello,



My name is XXXXX XXXXX I am one of JustAnswer's attorneys. I'll be helping you resolve your matter today.



Please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.



Can you tell me what exactly he fails to do?





Customer: replied 7 years ago.
There is no ventilation in the building, has not provided build-out according to lease, the ceiling is incomplete, no hot water, floors are damaged, offered marketing services provided none and is now indicated building is in foreclosure
Expert:  Ely replied 7 years ago.
May I ask if you're more interested in breaking the lease or to sue him for alleged lost revenue? B/c breaking the lease would be easier.
Customer: replied 7 years ago.
The loss of revenue suit is my preferred path, I operate a recording studio and have lost a minimum of 800 per week for 3 months with this guy and will have to move at my expense now to a new location.
Expert:  Ely replied 7 years ago.
The problem is that loss of revenue is NOT a recognized way for damages. You can't sue for what you WOULD have received unless there was a contractual and sure reason to believe you would. Courts have REPEATEDLY refused "would be" income as damages. Sorry.You can try using "constructive eviction" to break the lease. Constructive eviction is a term used in the law of real property to describe a circumstance in which a landlord either does something or fails to do something that he has a legal duty to provide (e.g. the landlord refuses to provide heat or water to the place or keep the shopping strip area clean), rendering the property uninhabitable or unusable for its purpose. Your current condition MAY qualify. You can write them a letter and leave now, and use constructive eviction as a defense if they come after you and/or keep the deposit, or file for constructive eviction NOW as an offense in eviction court to break the lease.

Best of luck in your matter. I'm here if you need any more clarification or follow up information.



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Customer: replied 7 years ago.
The foreclosure looming over the property I imagine did not pop up overnight, that doesn't color this whole deal as intentional fraud?
Expert:  Ely replied 7 years ago.
Well, the new owner would still be contractually obligated to you, so maybe and maybe not....this is a stretch. People come through attorney doors all the time who have been morally wronged but for whom legal avenues are few. I am afraid this is one of these times.



Best of luck in your matter. I'm here if you need any more clarification or follow up information.



I hope you found my answer helpful, and if so please click on the ACCEPT button. This is the only way for me to get credit for my work - when you put in your payment information, I receive no credit for my time with you unless you press ACCEPT.



There is no fee for follow up questions should you wish to continue in this thread.



Remember, sometimes the law under which your situation falls does not give you the outcome or the choices you wanted - please understand that this is not the attorney's fault, but the way of circumstance.



There might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.



If you feel that I went an extra step to help, a bonus would be appreciated!



You can always request me for a future legal consultation through my profile at http://www.justanswer.com/profile.aspx?PF=7286322&FID=7 If you do this, make sure to begin the question with “This Question is for Eli…”

















Ely and 2 other Legal Specialists are ready to help you
Customer: replied 7 years ago.
The bank becomes the new owner unless someone steps in to save this property so until it's sold does owner=bank in this situation?
Expert:  Ely replied 7 years ago.
Correct indeed sir.
Customer: replied 7 years ago.
BTW in regard to the loss revenue, I have documentation of the booked sessions, deposits collected and refunded. Normally when a session is booked half is due up front as a non-refundable deposit. Courtesy was extended to me by clients permitting rescheduling to get facility in order after a reasonable amount of time unable to provide services a refund had to be given as no transaction had been completed by no fault of client. So some portion of the revenue I speak of was already realized but then lost.
Expert:  Ely replied 7 years ago.
In that case, you may TRY suing him for tortuous interference with business contract, but you'd have to prove that each customer left due to the conditions - a hard mountain to climb.