Judgement of the Tokyo District Court on December 3, 2015 (Case Number: 2014-WA-7482, 28413)
- Tokyo District Court acknowledged the validity of cancellation of building lease contract based on around three months’ non-payment.
- Daito Building Management Co., Ltd. (lender) vs. health food company (tenant) and an individual (joint surety)
- Claim to surrender a building based on cancellation of lease contract
Location and Purpose of Use of the Building
- a building for storage and subdivision of health food and business office
- 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 rent for around three months, the lender demanded to pay unpaid rent within 5 days, and manifested conditional intention to cancel the contract if the tenant did not pay them within the period.
- As the tenant did not pay the unpaid rent, the lender demanded eviction based on cancellation of the lease contract.
- The tenant argued that there was a leak in the building and it caused damages because merchandise (health food) got moldy.
- The court denied the tenant’s allegations and acknowledged that the lease contract was validly cancelled based on around three months’ non-payment of the rent.
- This is one of the cases of eviction that cancellation of building lease contract based on around three months’ non-payment was acknowledged.