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)
- Claim to surrender a building based on cancellation of lease contract
Location and Purpose of Use of the Building
- A building for an office under a girder bridge of railroad
- 180,000 yen per month (exclusive of tax)
- 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.