Facts
The legal predecessor of Cooperative B. (the Landlord) terminated the lease agreement with A. SA (the Tenant) for a retail premises effective 31 December 2016 on 21 November 2013. The Landlord justified the termination by stating that an architectural competition would be held and various usage options would be examined, whereby as the owner of the property, it wished to keep all options open for the "comprehensive construction project".
The Tenant filed a lawsuit requesting the termination to be declared null and void, alternatively to be annulled as abusive, and subsidiarily to extend the tenancy for the maximum duration of six years. The Regional Court of Oberland and the High Court of the Canton of Bern dismissed the lawsuit.
The Tenant appealed to the Federal Supreme Court, requesting the High Court's decision to be annulled and the termination to be declared ineffective, alternatively to be annulled as abusive.
Considerations
The Federal Supreme Court held that the termination of a lease agreement with a view to extensive renovation or refurbishment works that significantly restrict the continued use of the leased premises does not violate the principle of good faith. However, the validity of such a termination requires that the landlord has a sufficiently developed and elaborated project at the time of…