Facts
The applicants, [A.] and [B.] , were tenants of an apartment owned by [X. AG] . [X. AG] terminated the rental agreement on January 26, 2006, effective April 30, 2006. The applicants challenged this termination due to abuse. The conciliation authority for rental matters in the canton of Zug confirmed the validity of the termination as of June 30, 2006, and extended the rental agreement once for six months until December 31, 2006. The Judicial Commission of the High Court of the canton of Zug overturned this ruling and referred the matter back to the District Court for further written proceedings and evidence. The single judge again confirmed the validity of the termination as of June 30, 2006, and granted the tenants a one-time extension until December 31, 2006. The applicants requested the FSCA to overturn the judgment of the High Court of the canton of Zug and declare the termination of January 26, 2006, effective April 30, 2006, or June 30, 2006, to be abusive.
Considerations
The FSCA examined the question of whether the termination of the rental agreement by [X. AG] was abusive. The applicants argued that the termination was made without an objectively justifiable interest or by disappointing the legitimate trust of the opposing party in the continuation of the contractual relationship.
The FSCA found that the lower court had considered the termination grounds of [X. AG] , according to which the applicants had repeatedly behaved indecently, to be valid. The lower court had established that applicant 1 had behaved indecently on several occasions in recent years, particularly towards the mother of the board of directors of [X. AG] . The FSCA found that the lower court had not established the termination grounds of [X. AG] in an arbitrary manner or in violation of a procedural constitutional provision.
The FSCA…