It is legal to unlawfully cancel a contract!?

[silvalf]

New mexico

Here is what happened to me: I have a commercial lease for an office space. A new owner came in, we had a disagreement and he told me my lease was cancelled.

I tried to get into the building to access my office, he physically blocked the door. I called the police and they said it was a civil issue and they would do nothing.

I called a lawyer and was told that a lease was a contract and that any party to a contract may terminate it at any time. Of course I can take the landlord to court and damages would be awarded for wrongful termination, but that is besides the point.

The point is, can it really be true that it is illegal for a person holding a valid lease (paid up and without having violated any terms) to enter their office simply by the landlord stating that the lease was terminated?

If that it true then I do not understand the world any more. If yes, why would anyone ever trust a contract or a lease if it can be terminated without court process or notice? If a landlord has a grudge as in my case (or much money and does not care about paying damages) you are done for, if your office work is pivotal to your life.

I hate to rant, but if this is true, who are the warped people who would allow a contract termination without due process?

And in my case, I cannot move (for new-agey sounding reasons, relating to the exact coordinates of the office) and my work for the last 18 years would be destroyed but no court would ever award me damages as my claims would be dismissed as new-agey mumbo jumbo and the damages are not measurable in money.

Thank you for chiming in

 

[doucar]

It is not a crime to breach a contract, so it is not "illegal". You have remedies. You can sue for breach of contract and as part of your relief, you can ask to have the lease reinstated. I don't know if this remedy is available in New Mexico or not or whether you would be limited to monetary damages. Contact a business law attorney and see if there are additional remedies available. People breach contracts every day.

 

[adjusterjack]

New Mexico does not have a statute addressing commercial tenancies.

The fall back is contract law which you can study up on at:

Contract Law — Judicial Education Center (unm.edu)

 

[silvalf]

Thank you for your reply. I understand I have remedies, all of which take months during which my delicate business which generates no income but literally is the focus of my life and strongly relies on event reliably conducted weekly for my patrons.

 

[zddoodah]

I can take the landlord to court and damages would be awarded for wrongful termination, but that is besides the point.

No...that's entirely the point.

can it really be true that it is illegal for a person holding a valid lease (paid up and without having violated any terms) to enter their office simply by the landlord stating that the lease was terminated?

It's probably not illegal, but you told us that the landlord "physically blocked the door," which I interpret to mean that it is not possible for you to access the leased premises without breaching the peace or causing damage to the premises. Do you have personal property in the leased premises that you want to recover?

If the landlord unlawfully terminated the contract, your recourse is to sue for money damages (and to recover possession of any personal property in the leased premises). Consult with a local attorney.

 

[Taxing Matters]

Thank you for your reply. I understand I have remedies, all of which take months during which my delicate business which generates no income but literally is the focus of my life and strongly relies on event reliably conducted weekly for my patrons.

Resorting to the courts is the remedy you have for this. Yes it takes time and money to pursue it. But it's either that or do nothing and end up kicked out and losing the lease.

 

[silvalf]

Hi. At this point I need to give more detail, if you still have the patience to answer. The landlord sent a letter saying that my lease (which continues for another year) is terminated because it is illegal (the previous owner who died issued it). He says that the hall has no usage permit and occupancy certificate for the activities we do (yoga, mediation, mindfulness, dance classes) and he is correct. The building was red tagged because it lacks sprinklers. (we had no idea).

But here is the point. The landlord could easily remedy this buy getting it fixed but he argues that our lease is illegal because the activities we do are not permitted and that therefore he is entitled to terminate it. (we spent 10s of thousands building a floor and 100s of hours promoting our events. They are targeted towards low income people and are extremely important to them, yet generate little income).

So if the previous landlord had not died, he could be held liable for fraud in the inducement and damages. I need to file a lawsuit (I can't afford an attorney) for wrongful termination and damages and injunctive relief to get the landlord to reinstate our lease and to fix the problems with the space asap.

My biggest worries are that the landlord will be off the hook arguing that "he did not issue the illegal leases" while my (uneducated) opinion is that a shrewd business man with a lawyer should know the lease terms before purchase and should have chosen to not buy the building if he did not like the leases. So the problem is with the building which is his responsibility, not with the lease.

On a side note, the only reason the landlord terminated is to get us out. With us gone he can charge about 9x the amount we are paying (he did get the building strongly discounted due to the presence of our lease).

So our intent is to get our lease and usage back asap because the business and years long effort is destroyed if we don't have our venue back soon.

Thank you

 

[doucar]

Good luck

 

[Taxing Matters]

So the problem is with the building which is his responsibility, not with the lease.

We don't have the lease to read. But I'm guessing that the lease does not say the landlord must make changes to the property to conform to your use of the property. As it stands now, it appears that the problem is that your use of the property violates the relevant zoning/use ordinances. That nonconforming use may indeed be grounds to terminate the lease. How much longer do you have on the lease? If it's not long, then all you are doing by filing suit is kicking the can down the road for a few months (or whatever the time is that is left) and the landlord will be free to refuse to renew the lease, and almost certainly would since the rent paid is so far below market value. Whether you have a shot to succeed in contesting the eviction depends a very great deal on the exact terms of the lease. You need to have a local contract or property lawyer review it and tell you where you stand. Also, who is actually the lessee? Is it you, a some nonprofit corporation or other entity, or what? Note that if the lessee is a corporation or other legal entity your organization likely MUST hire a lawyer to defend the suit for the organization. If you're not a lawyer, you aren't authorized to represent anyone but yourself in court. And that includes representing a corporation or other legal entity. (Some states make an exception to that for small claims court, but this isn't a small claims court matter.)