Case015: court acknowledged the validity of cancellation based on 2 months’ non-payment and sublease without permission
C O N T E N T S
Judgement of the Tokyo District Court on June 23, 2016 (Case Number: 2016-WA-4204)
Summary
- Tokyo District Court acknowledged the validity of cancellation of building lease contract based on 2 months’ non-payment and sublease without permission.
Parties of the Case
- Tenryu Co., Ltd. (lender) vs. Misaki Co., Ltd. (tenant) and Emukuryu Co., Ltd. (occupant)
Claims
- Claim to surrender a room based on cancellation of lease contract
Location and Purpose of Use of the Building
- a building for sports gym, office, parking lot and stockroom
Rent
- 1,780,000 yen per month (exclusive of tax)
Circumstances
- The tenant subleased the building to a third party (the defendant) without permission of the lender. The tenant also delayed payment of the rent for two months.
- The lender cancelled the contract because of sublease without permission and two months’ arrearage.
- The tenant argued that the relationship of mutual trust between the lender and the tenant had not been dissolved because the amount of unpaid rent was not large and the third party was substantially the tenant’s staff.
- The court denied the tenant’s allegations and acknowledged that the lease contract was validly cancelled based on two months’ non-payment of the rent and sublease without permission.
Comment
- This is one of the cases of eviction that cancellation of building lease contract based on two months’ non-payment and sublease without permission was acknowledged.
