Facts
The case concerns the increase in rents for three houses in Basel by Camugio AG, whose shares were acquired by Valorima AG. The appellant, Karl Schmitt, increased the rents by an average of 49.56%, which was accepted by the tenants under the pressure of the housing shortage. The Criminal Court of the Canton of Basel-Stadt convicted Schmitt of usury (Art. 157 para. 1 SCC) and sentenced him to a suspended sentence of six months' imprisonment and a fine of Fr. 10,000.--.
Camugio AG had acquired the three houses from Geotan GmbH in 1953 and had increased the rents several times. After the acquisition by Valorima AG in July 1963, the rents were increased again, resulting in an average increase of 49.56%. The tenants accepted the increase under the pressure of the housing shortage, although they tried to find other apartments.
Considerations
The Court of Cassation examined whether the increase in rents by Schmitt constituted an obvious disproportion between performance and consideration. It found that the market-rent yield for the apartments on April 1, 1964, was around Fr. 125,000.--, while Schmitt demanded Fr. 195,000.--. This disproportion is obvious, as it grossly violates the standards of decent business practice.
The Court of Cassation also pointed out that the distress of the tenants, who were under pressure from the housing shortage, was exploited. The tenants accepted the rent increase,…