Statutory Remedies and Protections in Commercial Lease Disputes
I recently wrote a blog post here regarding some of the considerations involved for landlords and tenants in commercial leasing. The complex issues pertaining to commercial leasing can sometimes turn into disputes between the parties, and ultimately, litigation regarding the same. While the commercial lease itself will dictate most of the rights and remedies available to both landlords and tenants in litigation, landlords have some additional statutory remedies that can assist in pursuing their claims against a tenant, and tenants have minor statutory protections as well.
First, RCW 60.72.010 provides that a landlord will have a lien for rent upon personal property kept by the tenant on the premises. This lien is powerful. It takes priority over all other liens except those for taxes, general and special liens of labor, and mortgage liens duly recorded prior to the tenancy. Moreover, the landlord need not record the lien, and with limitations, can even enforce it against personal property of the tenant after that property has been removed from the leased premises. On the other hand, the lien is limited to only the two months of rent immediately preceding commencement of suit, except for special circumstances not applicable to commercial leases. Finally, under RCW 60.72.040, the landlord has the right to foreclose the lien as a personal property lien.
Second, RCW 59.12.170 provides that if a landlord sues to evict a tenant from the premises, the jury or court shall assess the damages due to the plaintiff by forcible entry or unlawful detainer as alleged in the complaint, and if the eviction follows a failure to pay rent, the jury or court shall also assess the rent due, and a judgment can be rendered against the tenant for double the amount of the rent due and the damages assessed. Again, this ability to pursue double damages serves as a powerful tool that landlords can utilize in the commercial context when suing a tenant for default in rent.
Commercial tenants, on the other hand, do not really receive much in the way of additional statutory protections. Unlike residential tenants, who can rely on the robust provisions of the Residential Landlord-Tenant Act (RCW 59.18), commercial tenants primarily receive protections under the unlawful detainer statute, which landlords must follow before proceeding with evictions. Most of these protections pertain to notice, which are important and strictly upheld, but ultimately somewhat minor in substance when it comes to protecting against landlord claims.
Once again, commercial landlords and tenants will best protect their rights by properly negotiating and understanding the terms of a commercial lease before signing on the dotted line. While statutory provisions do afford some enforcement mechanisms for landlords, and some small protections for tenants, the statutory scheme is far from robust when compared to residential landlord-tenant provisions. In other words, commercial disputes reside in a land almost wholly governed by contractual provisions.
If you are a commercial landlord or tenant, and you need guidance with understanding or negotiating a commercial lease, or you have a dispute pertaining to a commercial lease, the lawyers at Beresford Booth have the experience necessary to counsel you. Please do not hesitate to contact us for assistance. Please feel free to contact us at info@beresfordlaw.com or by phone at (425) 776-4100.