Case: court acknowledged the validity of cancellation based on around 2 months’ non-payment

Summary

  • Tokyo District Court acknowledged the validity of cancellation of building lease contract based on around 2 months’ non-payment.

Parties of the Case

  • Toyo Alex Co., Ltd. (sublessor) vs. Sales Product Company Co., Ltd. (lessee, a company producing various events and advertisement)

Claims

  • Claim to surrender building based on cancellation of building lease contract

Location and Purpose of Use of the Building

  • Office building in Kabukicho, Shinjuku, Tokyo

Rent

  • 2,350,000 yen per month (exclusive of tax)

Circumstances

  • The tenant did not pay the rent for four to five months and promised to pay them all twice; however, the tenant broke the promise twice.
  • The rent of around two months were not paid when the lease contract was cancelled by the sublessor.
  • The tenant argued that the tenant paid lots of money on the building, and that it became impossible to establish a training school for actors because of robbery and murder case in the building.
  • The court judged that the payment by the tenant on the building was based on terms of the lease contract, and that the sublessor is not responsible for the robbery and murder case in the building.
  • The court judged that particular circumstance does not exist that the non-payment does not dissolve the relationship of mutual trust between the parties of the lease agreement.

Comment

  • This is one of the cases that cancellation of building lease contract based on around two months’ non-payment was acknowledged. Although there was a robbery and murder case in the building, the court judged that such incident does not justify two months’ non-payment.