Early Termination of the Lease Due to Unauthorized Subletting

Facts

Since 1988, the spouses X. have been renting an apartment in Geneva. In 1998, [Y.] became the new owner of the building. In May 2001, [Y.] notified the spouses X. of an ordinary termination of the lease for August 31, 2001, on the grounds that the tenants had failed to provide the identity of the subtenants and the conditions of the sublease, contrary to the requirements of the lease.

The spouses X. contested this termination. In January and February 2002, they sublet the apartment to the spouses U. for a rent of CHF 12,000 per month, without having requested the landlord's consent. On February 6, 2002, [Y.] notified the spouses X. of a new termination for March 31, 2002, invoking Art. 257f para. 3 CO.

The spouses X. contested this early termination. The Rental Tribunal of the Canton of Geneva declared the termination valid. The Rental Appeals Chamber confirmed this judgment. The spouses X. then filed a civil appeal with the Federal Tribunal.

Considerations

The Federal Tribunal dismissed the appeal. It considered that the sublease starting in January 2002 was subject to the ordinary regime of Art. 262 CO, which requires the landlord's consent. When the landlord refuses this consent for one of the reasons provided for in Art. 262 para. 2 CO, he can terminate the lease prematurely under Art. 257f para. 3 CO.

In the present case, the landlord had validly refused his consent to the sublease, as the tenants had refused to communicate the conditions of the sublease (Art. 262 para. 2 let. a CO) and the…