Case006: court acknowledged the validity of cancellation based on 2 months’ non-payment and not supplying a shortage of the deposit

C O N T E N T S

Judgement of the Tokyo District Court on April 28, 2011 (Case Number: 2010-WA-37882)

Tokyo District Court acknowledged the validity of cancellation of building lease contract based on 2 months’ non-payment and not supplying a shortage of the deposit.

Mizuho Bank Co., Ltd. lent two rooms to the lessee. Yodobashi Camera co., Ltd. bought the building and succeeded the position of the lender of the rooms.
As the tenant did not pay the rent for around two months, the lender appropriated the deposit to the unpaid rent.
The tenant also delayed payment of the rent for another two months.
The lender demanded to supply the shortage of the deposit and to pay two-months’ unpaid rent within 14 days. As the tenant did not pay them, the lender cancelled the lease agreement.
The tenant paid the most part of the demanded amount one day after the cancellation.
The court judged that shortage of the deposit can be deemed similar to unpaid rent as the shortage occurred because of the tenant’s non-payment of the rent, and that particular circumstance did not exist that the non-payment did not dissolve the relationship of mutual trust between the parties of the lease agreement.