Village Commons, LLC v. Marion County Prosecutor’s Office

The Marion County Prosecutor's Office (MCPO) (defendant) leased basement office and evidence-storage space from Village Commons and Rynalco (Landlord) (plaintiffs) under a seven-year lease requiring the Landlord to maintain the premises but limiting the MCPO's remedies for breach to suing for an injunction or damages, with no right to terminate or withhold rent. Recurring water leaks starting in 2001 substantially damaged the premises and evidence boxes, and though the Landlord made some repairs, it never fixed the underlying problem and refused to pay for mold remediation despite health risks; the MCPO vacated in January 2003 and stopped paying rent. The Landlord sued for breach, the MCPO counterclaimed for wrongful eviction, and the trial court found the exclusive-remedy provision didn't preempt the MCPO's defenses and that the Landlord had actually and constructively evicted the MCPO, awarding the MCPO damages. The Landlord appealed.