Facts
A.B. has been a tenant since 1974 of an apartment in the canton of Neuchâtel. In 2009, the lessor Caisse A. sent him an account of heating costs for the period from July 1, 2008 to June 30, 2009, showing a balance due of CHF 329.25. A dispute followed, and the parties brought the matter before the Conciliation Commission. Although no agreement was reached, the judge was not seized.
In 2010, the lessor initiated debt collection proceedings against A.B. and his spouse B.B. for the amount of CHF 329.25. The payment orders were challenged. The lessor then summoned the tenants to pay this amount within thirty days, failing which the lease would be terminated. Only an amount of CHF 164.60 was paid. On October 11, 2010, the lessor sent each spouse a notice of termination of the lease for November 30, 2010, citing this non-payment.
The spouses filed a request to declare the termination ineffective, or subsidiarily to annul it. The Conciliation Commission upheld this subsidiary conclusion. The Civil Court and the Court of Appeal also ruled the termination to be abusive. The lessor then appealed to the Federal Supreme Court.
Considerations
The Federal Supreme Court upheld the lessor's appeal and found the termination to be valid.
According to case law, termination in accordance with Art. 257d CO can, in very exceptional circumstances, contravene the rules of good faith. This may be the case, in particular, when the lessor has claimed an amount significantly higher than the outstanding amount, when the arrears are insignificant, or when the…