Morrison v. Smith
757 S.W.2d 678, 1988 Tenn. App. LEXIS 427 (1988)
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Rule of Law:
A landlord breaches the implied covenant of quiet enjoyment by interfering with a tenant's possession, such as by shutting off essential utilities, before the tenancy has been lawfully terminated through proper notice. For a month-to-month tenancy, termination requires notice given at least one full rental period in advance, making the termination effective at the end of the subsequent rental period.
Facts:
- On June 25, 1986, Linda Smith signed a lease to rent a lot for her mobile home from New Prospect Village for $60 per month.
- The standard lease was altered for monthly rent, but clauses remained requiring weekly utility payments, which were calculated by the landlord's manager.
- After September 1986, Smith, having lost her job, fell behind on payments and consistently carried a balance.
- In April 1987, the landlord shut off Smith's electricity for non-payment; it was restored after her daughter's boyfriend paid $100.
- In mid-June 1987, after Smith was late paying her June rent, the landlord shut off both her electricity and water.
- On June 15, 1987, after shutting off the utilities, the landlord provided Smith with a written notice demanding payment of $212.72 or vacation of the premises by June 22, 1987.
- Smith did not pay the balance or vacate the lot by the date specified in the notice.
Procedural Posture:
- New Prospect Village (plaintiff) filed an unlawful detainer action against Linda Smith (defendant) in the General Sessions Court of Lawrence County.
- The General Sessions Court awarded possession and a monetary judgment to New Prospect Village.
- Smith removed the case to the Circuit Court and filed a counterclaim for damages alleging constructive eviction and trespass.
- The Circuit Judge affirmed the lower court's award to New Prospect Village and dismissed Smith's counterclaim.
- Smith, as appellant, appealed the Circuit Court's decision to the Court of Appeals of Tennessee.
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Issue:
Does a landlord's act of shutting off a tenant's essential utilities for non-payment of rent, prior to the legal termination of the tenancy, constitute a breach of the implied covenant of quiet enjoyment?
Opinions:
Majority - Cantrell, Judge
Yes, a landlord's act of shutting off a tenant's essential utilities before the tenancy is lawfully terminated constitutes a breach of the implied covenant of quiet enjoyment. Smith's month-to-month tenancy was not properly terminated when the landlord filed suit. Under Tennessee law, notice given mid-month for a month-to-month tenancy does not terminate the lease until the end of the following month. Therefore, the notice given on June 15 only became effective to terminate the tenancy at the end of July. Because Smith was still in lawful possession when the landlord shut off her water and electricity, this action was a clear interference with her right to quiet enjoyment of the premises. While the court rejected Smith's trespass claim and found the constructive eviction claim moot, it held that a tenant need not abandon the premises to sue for damages resulting from a breach of the covenant of quiet enjoyment.
Analysis:
This decision reinforces significant procedural protections for tenants by strictly construing notice requirements for lease termination. It establishes that landlord self-help remedies, such as shutting off essential utilities to coerce a tenant, are impermissible before a tenancy is lawfully terminated. The case clarifies that such actions constitute a breach of the covenant of quiet enjoyment, for which a tenant can recover damages without being forced to abandon the premises. This precedent strengthens tenants' rights against extra-judicial eviction tactics and limits the enforceability of lease clauses that permit such actions.

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