MBE Fast Fact: American Rule vs. English Rule

It's reasonable to have not heard of the difference between the American Rule and the English rule as it relates to landlord/tenant law. I hadn't either and it doesn't show up much in the outlines. But it does show up on the MBE so it's worth noting the distinction.

The American rule states that a landlord is obligated only to deliver legal possession, and not actual possession, of a leased premises to a tenant.  So, if a tenant arrives at the start of a lease to find a previous tenant still in possession, it is the tenant who will be required to sue for eviction, and not the landlord.  Provided the landlord met all legal obligations regarding the new tenant's lease, the fact that a previous tenant has held over and remained in possession will not give the new tenant the right to cancel the lease or refuse to pay the landlord rent for the time that the new tenant is out of possession.  The American rule survives in only a few jurisdictions.

In contrast, under the English rule, if we accept the same circumstances as above, the tenant may cancel the lease, since the landlord is obligated not only to provide legal possession to the tenant, but actual possession as well.  The landlord would then have standing to sue the previous tenant who refused to vacate the property.