Facts
The appellant [A.] is the owner of a condominium unit in [B.]. On this property, there is a bearer bond in the ninth rank for CHF 300,000 at 9% interest. By a pledge agreement dated November 16, 2000, the appellant pledged the bearer bond to Bank [Y.] to secure all claims of the respondent against the former [A. AG] (now: [C. AG]) arising from contracts already concluded or to be concluded in the future within the existing business relationship. The pledge agreement did not provide for a right of termination. Nevertheless, on March 30, 2004, the appellant terminated the pledge relationship and demanded that the respondent return the bond. The respondent stated that the bond could only be returned upon payment of the principal claim of CHF 300,000 and the accrued and current annual interest.
The appellant filed a lawsuit against the respondent with the Cantonal Court of Zug, requesting that the respondent be ordered to immediately return the bond to him free of charge and to pay him all proven damages for default. The Cantonal Court dismissed the claim. The appellant appealed to the High Court of the Canton of Zug, which also dismissed the appeal and confirmed the first-instance judgment.
Considerations
The Federal Supreme Court states that the pledge agreement does not provide for a right of termination, and such a right cannot be derived from Art. 27 para. 2 of the Swiss Civil Code or Art. 2 of the Swiss Civil Code. The pledge agreement serves to secure claims and is therefore not terminable without further ado. The pledgor does have an interest in regaining the pledge, but this interest is protected by the…