Facts
On 4 January 1996, the F. spouses concluded a lease agreement with X. S.A. for a four-room apartment in Neuchâtel. The monthly rent was 1400 fr. plus 140 fr. of advance charges. The tenants did not pay rent and did not move into the apartment. The landlord terminated the lease on 30 May 1996, pursuant to art. 257d CO, after putting the tenants on notice to pay the rent arrears.
The landlord re-rented the apartment on 1 April 1997 and claimed from the tenants compensation corresponding to the rent from 1 August 1996 to 31 March 1997. The district court condemned the tenants to pay 413 fr. 95, plus interest, as advertising costs, and dismissed the claim for the rest.
The Civil Court of Appeal of the Neuchâtel Cantonal Court dismissed the landlord's appeal, considering that the termination of the lease agreement is not of a different legal nature depending on whether it is based on the special provision of art. 257d CO or the general provisions of art. 107 ss CO.
Considerations
The Federal Court partially admitted the landlord's appeal, annulled the judgment under appeal and referred the case back to the cantonal authority for a new decision. It considered that art. 257d CO applies, even if the tenants did not move into the apartment, since the landlord had made the rented property available to them.
The Federal Court also considered that the landlord's termination of the lease was in accordance with federal law, and that the tenants were in default of paying the rent and agreed ancillary costs. It further considered that the compensation to which the landlord may claim is equivalent to the contractually fixed rent that she did not…