Facts
This case was about the termination without notice of a lease for a medical practice due to planned renovation work by the landlord. The tenant (plaintiff) terminated the lease without notice, as he considered the execution of the renovation work to be unreasonable. The lower courts ruled in favor of the tenant, whereupon the landlord (defendant) appealed to the Federal Supreme Court.
The facts can be summarized as follows
- The tenant (plaintiff) had rented premises for his medical practice since 1984.
- From April 1997, the landlord (defendant) carried out a "renovation and conversion" of the building complex, which was also to include the renovation of the facade.
- On February 26, 1998, the landlord informed the tenant that the facade renovation would take place between April 28 and May 29, 1998.
- As the parties could not agree on a replacement property, the tenant terminated the lease without notice on March 24, 1998.
- The tenant sued for compensation, while the landlord wanted the claim dismissed and his counterclaim for rent payments after the termination to be upheld.
- The lower courts ruled in favor of the tenant and rejected the landlord's counterclaim.
- The landlord appealed the decision of the lower courts to the Federal Supreme Court.
Considerations
The Federal Supreme Court dismissed the landlord's appeal and confirmed the decision of the lower courts.
The key issue for the assessment was whether the planned renovation work was reasonable for the tenant as a medical practice or not. The Federal Supreme Court concluded that the lower courts had rightly affirmed the unreasonableness of the work for the tenant:
- A medical practice with its technical equipment and the need for a smooth patient operation differs significantly from simple office or storage spaces.
- The temporary relocation to a…