Contract Law Case Study

FACTS: The appellants rented an apartment from the defendant; the defendant filed separate actions against the tenants arguing default on the payment of rents due. The appellants do not deny non-payment; they argued housing code violations as “equitable defense” in an amount equal to the rent owed. The Court of General Sessions entered judgment for the landlord, and the DC Court of Appeals affirmed. The DC Circuit Court granted leave to appeal and reversed.
ISSUE: Whether housing code violations can be used as a defense to not pay rent.
RULE: The standards set out by housing regulations hold an implied warranty of habitability; breach of this warranty voids the contract.
ANALYSIS: An old tenet of law holds that the value of a lease rests