Case034: court acknowledged the validity of cancellation based on non-payment of 2 months’ rent and breach of prohibition of signboard installation

C O N T E N T S

Judgement of the Osaka High Court on June 20, 2018 (Case Number: 2018-NE-239)

Osaka High Court acknowledged the validity of cancellation of building lease contract based on non-payment of 2 months’ rent and breach of prohibition of signboard installation.

JR West Real Estate & Development Company (lender) vs. Tokuya Real Estate Co., Ltd. (tenant)

There was special clause forbidding signboard installation in the lease contract because the building located under a girder bridge for railroad and it was important for the lender to keep environment around the property as a shopping street.
As the tenant did not pay 2 months’ rent and did not remove large signboards despite repeated demand, the lender demanded to pay unpaid rent within 5 days and remove signboards within 10 days, and manifested conditional intention to cancel the contract if the tenant did not pay them within the period.
As the tenant only paid one month’s rent within the period and did not remove signboards, the lender demanded eviction based on cancellation of the lease contract.
The court acknowledged that the lease contract was validly cancelled based on non-payment of 2 months’ rent and breach of prohibition of signboard installation.

This is one of the cases of eviction that cancellation of building lease contract based on non-payment of 2 months’ rent and breach of prohibition of signboard installation was acknowledged.