Facts
A. and B. (Appellants 1) occupy a 4 1/2-room apartment and C. (Appellant 2) a 2 1/2-room apartment in Basel. In 2003, the X. Company (Respondent) announced rent increases, which the Appellants considered abusive. The Civil Court of Basel-City and the Appellate Court of Basel-City upheld the Respondent's claims.
The Appellants filed a civil law appeal requesting that the rent increases be declared abusive. The Federal Supreme Court dismissed the appeal to the extent that it was admissible.
Considerations
The Appellants argued that the rent increase was null and void because it was not made on a form approved by the canton. However, the lower court held that the Respondent's subsidiary, which had represented it, had changed its company name but had already obtained approval for an increase form under the original company name. Therefore, it was not obliged to obtain a new approval after the change of company name.
According to Article 269d paragraph 1 of the Swiss Code of Obligations (CO), the landlord must notify and justify a rent increase on a form approved by the canton. The rent increase is null and void if the landlord does not use the prescribed form (Art. 269d para. 2 lit. a CO). The form must have been approved by the competent cantonal authority.
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