Case032: court acknowledged the validity of cancellation based on non-payment of 2 months’ rent and 3 months’ electricity bill

C O N T E N T S

Judgement of the Tokyo District Court on February 25, 2011 (Case Number: 2010-WA-12032)

Tokyo District Court acknowledged the validity of cancellation of building lease contract based on non-payment of 2 months’ rent and 3 months’ electricity bill.

Beruju Co., Ltd. (lender) vs. Kongo-san Co., Ltd. (tenant) and an individual (joint surety)

As the tenant did not pay 2 months’ rent and 3 months’ electricity bill, the lender demanded to pay unpaid rent within 2 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 them within the period noticed, the lender demanded eviction based on cancellation of the lease contract. However, the tenant paid full amount of unpaid rent and unpaid electricity bill 5 days after lender’s notice.
The tenant argued that the relationship of mutual trust between the lender and the tenant had not been dissolved as the nonpayment was solved after only 5 days after the lender’s notice.
The court denied the tenant’s allegations judging that the relationship of mutual trust between the lessor and the tenant was dissolved considering that the tenant frequently delayed payment and the amount of nonpayment was up to 1,164,407 yen.
The court acknowledged that the lease contract was validly cancelled based on non-payment of 2 months’ rent and 3 months’ electricity bill.

This is one of the cases of eviction that cancellation of building lease contract based on non-payment of 2 months’ rent and 3 months’ electricity bill was acknowledged.