Q: my LLC recently broke a lease with my landlord and we are being sued for unpaid rent and damages.
We didn't pay any rent because of disputes on a buildout that was done by the landlord prior to us moving into the space. we found out that the work had been done without the proper permits being obtained and no inspections being done. We were also not provided an occupancy permit upon moving into the space. The landlord included the cost of the buildout they did as part of our monthly rent payments and we were concerned that raising any issues with the city inspector would lead to our business being closed because of the unauthorized work that was done on our location. Would any of these issues void our lease with out landlord?
A: A lease is a contract. In general, non-performance entitles the other party to rescind the contract. Doing build-out work without permits is worse than non-performance, it is illegal. A party that acts unlawfully cannot come into court and ask for a legal remedy. You should consider counter-suing the landlord for breach of contract damages--after all, you surely lost money over this. One alternative is to ask the court to rescind the contract. But rescission does not come with any money; so I would encourage you to counter-sue for the money you lost.
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