What is the all or nothing rule for commercial tenant rent abatement?

"New York", United States of America

The following excerpt is from Westbury Flats, LLC. v. Backer, 130 N.Y.S.3d 631 (Table), 68 Misc.3d 1219 (A) (N.Y. Civ. Ct. 2020):

Most notably is the all or nothing rule for commercial tenant rent abatement, where the lessor deprives the lessee of but a fraction of leasehold, the lessee is entitled to withhold the entire 100% amount of rent, with the theory that even where a fraction is deprived, no matter how de minimis, the contractual benefit of the bargain to lessee is breached obviating the payment of rent ( Dyett v. Pendelton , 8 Cow 727 [NY Sup Ct 1826] ). Deprivation of any portion of leasehold wholly vitiates or breaches the entire lease contract. Even where tenant retained some portion of the premises, nonetheless tenant was not required to pay for the part of the premises retained because there existed "such a disturbance, such an injury to its beneficial enjoyment, such a diminution of the consideration upon which the contract is founded, that the law refuses its aid to coerce the payment of any rent" ( id. at 731 ).

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