Reid v. Mutual of Omaha Insurance Company

Mutual of Omaha (defendant) leased commercial space from Mervin and Ethna Reid (plaintiffs) for five years, but complained about noise and parking problems from a neighboring tenant, Intermountain, and vacated in 1982 after the Reids failed to address the complaints. The Reids sued for the rent remaining on the lease, and Mutual counterclaimed for constructive eviction. During the litigation, the Reids re-let the space to Intermountain for the remainder of the term, but Intermountain later went bankrupt and vacated, leaving the property empty again. The trial court rejected Mutual's constructive-eviction defense and awarded the Reids full remaining rent (minus what Intermountain had paid), and Mutual appealed.