Case022: court acknowledged the validity of cancellation based on around 3 months’ non-payment

C O N T E N T S

Judgement of the Tokyo District Court on December 3, 2015 (Case Number: 2014-WA-7482, 28413)

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

Daito Building Management Co., Ltd. (lender) vs. health food company (tenant) and an individual (joint surety)

In the lease contract, there was a special clause providing that the lender can cancel the contract without any demand if the tenant fails to pay the rent for two months or more.
When the tenant did not pay the rent for around three months, the lender demanded to pay unpaid rent within 5 days, and manifested conditional intention to cancel the contract if the tenant did not pay them within the period.
As the tenant did not pay the unpaid rent, the lender demanded eviction based on cancellation of the lease contract.
The tenant argued that there was a leak in the building and it caused damages because merchandise (health food) got moldy.
The court denied the tenant’s allegations and acknowledged that the lease contract was validly cancelled based on around three months’ non-payment of the rent.