Tenant's right to contest the initial rent as providing an excessive return to the landlord

Facts

In this case, Ms. R. became the tenant of an apartment belonging to Company X. The agreed rent was 12,480 francs per year, while the previous tenant's rent was 11,160 francs. Ms. R. contested the initial rent before the conciliation commission and the Rental Tribunal of the Canton of Geneva, requesting that the rent be reduced to 7,488 francs based on a calculation of the return.

The Rental Tribunal dismissed the plaintiff's claim, and the Appeals Chamber for Rental Matters of the Canton of Geneva confirmed the judgment. Ms. R. then appealed to the Federal Tribunal.

Considerations

The Federal Tribunal considered that the cantonal court had violated federal law by refusing the tenant the right to prove that the rent allows the landlord to obtain an excessive return and is therefore abusive within the meaning of Art. 269 CO.

Indeed, according to the case law, when the rent is within the usual rents of the neighborhood (Art. 269a let. a CO), the tenant must nevertheless be…