JMB Properties Urban Co. v. Paolucci

Alfred Paolucci (defendant) ran a jewelry store in a mall starting in 1978, and after an audio-video store (Barretts) opened next door in 1984 and generated noise so severe it shook display cases and drove away customers, mall owner Carlyle Real Estate and its manager JMB Properties Urban Company (plaintiffs) unsuccessfully tried soundproofing in 1985. Despite the ongoing noise, Paolucci signed a new six-year lease in August 1986 requiring him to operate continuously and not compete within five miles, and only after Barretts finally moved out in February 1990 did Paolucci stop paying rent and abandon the premises in August 1990 - two years before lease-end - relocating to a competing site within five miles. When Carlyle and JMB sued for unpaid rent and breach, the trial court found Paolucci had been constructively evicted, and the plaintiffs appealed.