Facts

In this case, it was about a ground lease contract that was concluded in 1970 between K. AG and the landowner. In 1972, the ground lease was divided into condominium ownership. In 1983, the landowner G. demanded an adjustment of the ground lease rent to the index level as of December 31, 1982. This led to disputes between the parties over the index clause.

In 1983, G. sued the condominium association C. for payment of the cost-of-living adjustment. The District Court of Brugg partially upheld the claim in 1988, and the High Court of the Canton of Aargau dismissed the defendants' appeal as well as the plaintiff's cross-appeal in 1989.

The condominium association C. then appealed to the Federal Supreme Court.

Considerations

The Federal Supreme Court first had to examine whether the condominium association is responsible for the payment of the ground lease rent or whether each condominium owner is personally liable and in proportion to their share value.

The court concluded that the payment of the ground lease rent is one of the common burdens of the…