Facts

The [Y.] Insurance Company (respondent) carried out extensive renovation work on its property in [B.] in 2001. It notified the tenant [X.] (appellant) of a rent increase from CHF 927.-- to CHF 1'394.-- effective from December 1, 2006. The appellant contested the increase with the Conciliation Board, whereupon the respondent filed a lawsuit with the District Court of Arlesheim. The District Court partially upheld the claim and set the monthly rent at CHF 1'343.--. The appellant filed an appeal against this judgment, which the Cantonal Court of Basel-Landschaft dismissed on May 26, 2009.

Considerations

The Federal Supreme Court states that in the case of comprehensive renovations, according to Art. 14 of the Ordinance on the Rental and Leasing of Residential and Commercial Premises (VMWG), 50-70% of the costs are generally considered value-enhancing investments. The appellant was unable to prove that the proportion of value-enhancing investments was less than 55%. The lower court correctly applied the…