Facts
The City of Lancy had leased a premises belonging to Sibra Management S.A. to make it available to a neighborhood association. The lease was due to expire on March 31, 1986, but the City of Lancy objected to the termination and requested a judicial extension of the lease for a period of two years.
The Rental Tribunal of the Canton of Geneva dismissed the request, but the Rental Appeals Chamber of the Canton of Geneva annulled this judgment and extended the lease until March 31, 1988. Sibra Management S.A. then filed an appeal for reform with the Federal Tribunal against the judgment of the Appeals Chamber.
Considerations
The Federal Tribunal first examined the issue of the classification of the premises as a "commercial premises" within the meaning of Art. 267a CO. Although the notion of "commercial premises" is not clearly defined in the law, the Federal Tribunal concluded, after a thorough analysis of the case law and doctrine, that the premises in question could be considered as commercial premises, as they were made available to a neighborhood association to carry out various cultural and social activities, which constituted a sufficiently close use with the purpose of the association.
The Federal Tribunal then examined Sibra Management S.A.'s argument that the conditions for the application of Art. 267a CO were not met, as the termination of the lease would only have painful consequences for the neighborhood association, and not for the City of…