This section contains the nature of the case and procedural background.

Mutual and Reid, as landlord entered into a five-year lease for office space at the rate of $1,100 per month. The term was to end in October 1985. Mutual took possession and began conducting its insurance business. Soon afterward, another tenant, Intermountain Marketing, moved in next door and used the space to train its large sales force. Mutual made numerous complaints about the excessive noise, and occupation of all the parking spaces. Mutual felt that Reid did not respond properly and gave notice and vacated the premises in February 1982. Reid (P) filed suit for breach of lease. Mutual (D) defended on constructive eviction. P then remodeled the entire premises and leased the former D space to Intermountain. In November of 1982, Intermountain vacated and declared bankruptcy. The court found against D for its counterclaim and awarded P damages. P got the entire lease amount remaining less rents received from Intermountain and the cost of reletting and attorney fees. D appealed.

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