Facts
The dispute opposes Pierre Benso, tenant of a three and a half room apartment in a building in Geneva, to the owner company S.I. rue Schaub "I". The last rent was 4'282 francs per year, excluding charges, as of August 1, 1975. In 1980/81, significant work was carried out in the building, including the construction of a seventh floor, for a total cost of 659'431 francs. The landlord notified a rent increase to 7'620 francs per year as of August 1, 1982, which the tenant contested.
The Rent and Lease Court of the canton of Geneva ruled that the increase was lawful and set the annual rent at 7'620 francs. The Court of Justice of the canton of Geneva declared the tenant's appeal inadmissible. The tenant then appealed to the Federal Court.
Considerations
The Federal Court examined the question of whether maintenance costs and additional services provided by the landlord could justify a rent increase. It considered that maintenance costs intended to maintain the condition suitable for the use of the rented property could only justify a rent increase if there was a cost increase within the meaning of art. 15 al. 1 letter b AMSL and 9 al. 1 OSL.
The Federal Court also examined the question of the distribution of construction costs between tenants of old and new apartments. It considered that the costs of refurbishing the facades and elevator should be distributed among all tenants, including those of the attics.
Finally, the Federal…