Facts
The real estate company Constellation-Ouest rents out two apartments in Geneva to Jean-Pierre Dubois and Armand Muller. On May 24, 1974, it announced to the tenants a rent increase effective October 1, 1974. Dubois and Muller have individually contested the increase. The landlord filed a joint application with the Chambre des baux et loyers (Tenancy Tribunal) to have the disputed rent increases declared non-abusive. The Chambre des baux et loyers ordered the landlord to submit documents on the amount of equity invested and the return on these funds. The landlord refused to submit these documents, invoking Art. 15(a) of the Federal Resolution on Measures against Abuses in the Rental Housing Sector (AMSL). The court of first instance dismissed the applications for rent increases, as the landlord had not submitted the required documents. The landlord appealed, which was declared inadmissible by the Geneva Court of Appeal.Considerations
1. The Federal Supreme Court first examines whether the landlord's appeal is admissible. It finds that the rent increases for Dubois and Muller must be added together, as it is a joint hearing and a single judgment. This means the amount in dispute exceeds 8,000 francs, which justifies the admissibility of the appeal. 2. The Federal Supreme Court discusses the relationship between Art. 14 and Art. 15 AMSL. It holds that Art. 14 is the general provision that defines what constitutes an abusive rent. In contrast, Art. 15 lists cases in which a rent is generally not considered abusive. However, fulfilling one of the conditions of Art. 15 does not automatically exclude the rent from being considered abusive under Art. 14. 3. In the present case, the landlord has claimed that the rents do not exceed the usual rents in the area (Art. 15(a) AMSL). The Federal Supreme…