Facts

Company Y. is the owner of a building in P. Since October 1, 2000, A.X. and B.X. have been tenants of an apartment in this building. Between April 2006 and March 2007, major renovation work was carried out, causing nuisance to the tenants. On December 8, 2006, Y. notified the tenants of a rent increase to take effect on April 1, 2007.

A.X. brought the matter before the Conciliation Commission for Tenancy Matters, contesting the rent increase and requesting a rent reduction due to the nuisance. The conciliation failed. A.X. and B.X. then brought the case before the Rental Tribunal, which rejected their contestation of the rent increase.

A.X. and B.X. appealed the case to the Federal Tribunal, primarily requesting that the monthly rent be set at 1,203 Swiss francs 50 cents as of April 1, 2007.

Considerations

The Federal Tribunal dismissed the appeal. It considered that the spouses X., as co-tenants, formed a necessary material consortium and had to act together to contest the rent, already at the stage of the conciliation request. However, A.X., acting alone, had not validly brought the matter before the Conciliation Commission. Consequently, the rent increase had become final, as it had not been contested in time by the co-tenants.

The Federal Tribunal rejected the appellants' argument that the spouse could…