Case021: court acknowledged the validity of cancellation based on 3 months’ non-payment

Summary

  • Tokyo District Court acknowledged the validity of cancellation of building lease contract based on 3 months’ non-payment.

Parties of the Case

  • KMY Co., Ltd. (lender) vs. Faith to concept Co., Ltd. (tenant) and an individual resident (sub-lessee)

Claims

  • Claim to surrender a building, a parking lot and a trunk room based on cancellation of lease contract

Location and Purpose of Use of the Building

  • a room for dwelling, a parking lot and a trunk room

Rent

  • 430,000 yen per month (including parking fee)

Circumstances

  • The lender lent a room for dwelling, a parking lot and a trunk room to the tenant. The tenant subleased them to a sub-lessee with the lender’s prior consent.
  • When the tenant did not pay the three-months’ rent, the lender demanded to pay unpaid rent within 5 days, and manifested conditional intention to cancel the contract if the tenant did not pay that within the period.
  • As the tenant delayed payment, the lender demanded eviction based on cancellation of the lease contract.
  • The tenant argued that the air conditioner was out of order and there was trouble to live in the room, so the cancellation was invalid.
  • The court denied the tenant’s allegations because malfunction of the air conditioner was minor and the lender repaired the water heater withing reasonable period; and acknowledged that the lease contract was validly cancelled based on three months’ non-payment of the rent.

Comment

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