Case009: court acknowledged the validity of cancellation based on 2 months’ non-payment

Summary

  • Tokyo District Court acknowledged the validity of cancellation of building lease contract based on 2 months’ non-payment.

Parties of the Case

  • An individual building owner (lender) vs. an individual (restaurant manager)

Claims

  • Claim for damages caused by delay of surrender after cancellation of the building lease contract

Location and Purpose of Use of the Building

  • Rooms of a building for restaurant and stockroom in Tokyo

Rent

  • 124,000 yen per month (tax included)

Common Service Expense

  • 100,000 yen per month (tax included)

Deposit

  • 320,000 yen

Circumstances

  • In the lease contract, there was a special clause providing that the lender can cancel the contract without any demand if the tenant fails to pay the rent for two months or more.
  • When the tenant did not pay the two-months’ rent, the lender cancelled the contract.
  • After the tenant vacate the building, the tenant sued the lender arguing that the lender obstructed operation of the tenant’s restaurant.
  • The lender filed a counterclaim against the tenant demanding damages caused by delay of sur-render after cancellation of the building lease contract.
  • The court judged that the tenant’s allegation cannot be acknowledged and that the lease contract was validly cancelled based on two months’ non-payment of the rent.

Comment

  • This is one of the cases that cancellation of building lease contract based on two months’ non-payment was acknowledged.