The plaintiffs, owners of a laundromat business, brought an action against their landlords for wrongful distraint, unlawful termination of their commercial lease, conversion, and defamation.
The landlords had seized the premises without notice, changed the locks, and posted notices accusing the plaintiff of fraud and embezzlement.
The court found the distraint and lease termination were unlawful, as a landlord cannot simultaneously terminate a lease and distrain property.
The court also found the landlords liable for conversion of the business and for defamation due to the false and malicious notices.
The plaintiffs were awarded $362,675 in total damages, including $50,000 for defamation and $50,000 in aggravated and punitive damages.
The defendants' counterclaim for alleged rental arrears was dismissed.