Termination of a lease agreement after enforcement proceedings and possibility of lease extension

Facts

D. AG (the defendant) had leased two properties belonging to A. AG in liquidation. Bank X. (the plaintiff) acquired these properties through enforcement proceedings with a double auction. On August 30, 2000, the plaintiff terminated the lease with the defendant effective March 31, 2001. The Commercial Court ruled that the termination was valid but extended the lease for two years. The plaintiff appealed this decision.

Considerations

1. The Federal Tribunal considered that the plaintiff, as the successful bidder, had become the owner of the properties at the time of the auction and could therefore terminate the lease, even if it was not yet registered in the land register. The validity of the termination is therefore not called into question. 2. Regarding the possibility of extending the lease, the Federal Tribunal ruled that the fact that there was a double auction, with a higher price at the second…