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Randolph (D) rented a loft space from Minjak Co (P) in 1976 pursuant to a commercial lease even though the majority of spaces were rented for residential purposes. The loft space was 1700 sq. ft. and two-thirds of that space was used as a music studio. The remainder of the space was used as D's residence. A tenant above them began to operate a health spa business, and from November 1977 until February 1982, D suffered at least 40 separate water leaks from the upper floor activities. The water literally poured into D's space. Complaints to P went unheeded. In January 1978, the, tenant above then began to sandblast the walls and this caused sand to seep into D's loft. In September 1981, P began major renovations such that the dust began to cause D eye and sinus problems, nausea, and soreness in their throats; D gave numerous incidents of hazard to occupants from the sloppy construction work and disregard for the safety of the residents. The jury awarded a rent abatement of 80% on the music studio portion of the loft for constructive eviction from July 1981 to November 1983 and a 40% rent abatement on the residential portion of the rent for breach of warranty of habitability from January 1981 to November 1983, and a 10% abatement on the rent attributable to the residential portion for all of 1979 on a breach of warranty of habitability; and punitive damages of $20,000. Reasonable attorney fees were awarded, but the punitive damages were lowered to $5,000. The Appellate Term reversed the judgment as to the 80% rent abatement.

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