Your previous counsel did a good job of advising you regarding this situation. NRS 118A.400 provides that, where there is damage or destruction of residential rental unit by fire or casualty to such extent that enjoyment of the dwelling unit is substantially impaired, you have the choice:
1. immediately vacate the premises and notify the landlord within 7 days after the casualty of your intent to cancel the Lease; or
2. vacate the part of the unit rendered unusable, and pay reduced rent in proportion to the diminution in the fair rental value of the dwelling unit or lack of use of the dwelling unit.
You cannot have deliberately or negligently caused the casualty to invoke this section. You have very strong defenses to any attempted eviction by the Landlord.
Answered on Aug 13th, 2012 at 2:15 PM