Judgement of the Tokyo District Court on February 27, 2017 (Case Number: 2016-WA-10526)
- Tokyo District Court acknowledged the validity of cancellation of building lease contract based on around four months’ non-payment.
- An individual (lender) vs. a restaurant operating company and its owner (tenant)
- Claim to surrender a building based on cancellation of lease contract
Location and Purpose of Use of the Building
- a building for restaurant in Tokyo
- 23,000 yen per month (exclusive of tax)
- As the tenant did not pay the rent for around 6 months, the lender demanded to pay unpaid rent within 7 days, and manifested conditional intention to cancel the contract if the tenant did not pay them within the period.
- As the tenant only paid the rent for around 2 months within the period noticed, the lender demanded eviction based on cancellation of the lease contract.
- The tenant argued that non-payment of the rent caused by business slump after the Great East Japan Earthquake.
- The court denied the tenant’s allegations judging that the relationship of mutual trust between the lessor and the tenant was dissolved considering that the tenant frequently delayed payment for about three years and that around four months’ rent was still unpaid after payment by the tenant within the period noticed.
- The court acknowledged that the lease contract was validly cancelled based on around four months’ non-payment of the rent.
- This is one of the cases of eviction that cancellation of building lease contract based on around four months’ non-payment was acknowledged.