Facts
According to a lease agreement concluded on May 22, 2001, company [Y. SA] rented commercial premises of approximately 150 m2 to the business federation Z. for a term of five years, from June 1, 2001 to May 31, 2006. On February 13, 2003, the lease was transferred to X., who proceeded to operate an erotic massage parlor on the premises. On April 1, 2003, the lessor put X. on notice to close the massage parlor and use the premises in accordance with the contract, i.e., by installing offices. On April 16, 2003, the lessor terminated the contract with effect as of May 31, 2003. X. filed a request with the conciliation commission to annul the termination, while [Y. SA] requested the forced eviction of the premises. The Rental Tribunal of the Canton of Geneva rejected X.'s claim and granted Y. SA's counterclaim. X. appealed the judgment, but the Rental Appeals Chamber upheld the decision. X. then filed an appeal for review with the Federal Tribunal.Considerations
The Federal Tribunal dismissed the appeal. It considered that the operation of an erotic massage parlor constituted a breach of the contract, as the premises had been rented for office use. Although X.'s deception about its intentions was not relevant to the assessment of the situation, the Federal Tribunal held that the lessor was entitled to terminate the lease under Art. 257f(3) of the Swiss Code of Obligations, even if the tenant's activity did not create an intolerable situation.
Indeed, the…