Legal Updates

A lessee may not suspend rental payments due to a claim of damage

June 3, 2019
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A lessor sought the evacuation of a lessee who canceled checks, inter alia, due to a contention of set-off and due to a claim of the lessor's debt to it due to damage.

The Court accepted the claim and ordered the eviction of the lessee from the property. Obligation of the lessee to pay rent and obligations of the lessor to amend defects in the leased property are separate and independent obligations and a set-off may not be made without a written notice. The lessee contended that it is entitled to deduct from rent damage incurred after investing over ILS 500,000 in renovation of the rented property, at which point it transpired that the leased space does not match the representations in the agreement. Setting-off may not be made orally and a contention of damage is not justification for avoiding payment of rent. Had the lessee wanted to remain in the property, it should have duly paid the rent and then settle its quarrel with the lessor in legal proceedings.

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