2024.06.24

2022 (Ju) 1744

Minshu Vol. 78, No. 3

(Civil Case)Judgment concerning the relationship involved in the use of housing leased by a local housing corporation and the applicability of Article 32, paragraph (1) of the Act on Land and Building Leases

Case seeking a decrease in the amount of rent

Judgment of the First Petty Bench, quashed and remanded

Tokyo High Court, Judgment of May 25, 2022

Article 32, paragraph (1) of the Act on Land and Building Leases is applicable with regard to the relationship involved in the use of housing leased by a local housing corporation.

Article 32, paragraph (1) of the Act on Land and Building Leases; Article 24 of the Local Housing Corporation Act; Article 16, paragraph (2) of the Regulation for Enforcement of the Local Housing Corporation Act

The judgment in prior instance is quashed.

The case is remanded to the Tokyo High Court.

Concerning the reasons for a petition for acceptance of final appeal stated by the counsel for final appeal, ISHIHATA Akihiko and OGASAWARA Kensuke

1. The outline of the facts determined by the court of prior instance is as follows.

(1) The appellee of final appeal is a local housing corporation as referred to in the Local Housing Corporation Act (hereinafter referred to as the "Housing Corporation Act"; such corporation is hereinafter referred to as a "local housing corporation"), and it leases a number of housing units in Kanagawa Prefecture. The appellants of final appeal each lease from the appellee one room in the building specified in the list of article attached to the judgment in first instance.

(2) Approximately every three years during the period from April 2004 to April 2018, the appellee notified the appellants of the revision of the rents for the rooms mentioned above (hereinafter the revision of these rents is collectively referred to as the "Revision of Rents"). As a result, the monthly rents, which had initially been 39,530 yen to 56,350 yen, were finally set at 61,950 yen to 86,910 yen.

2. The appellants, as their principal claims against the appellee, seek a declaratory judgment on the amounts of rents, alleging that the portions of the changes to the rents through the Revision of Rents that exceeds the appropriate rents do not take effect, and also seek the return of the overpayment of the rents based on the right to claim return of unjust enrichment, on the grounds that they have paid the rents after changes.

3. The court of prior instance determined that pursuant to Article 16, paragraph (2) of the Regulation for Enforcement of the Local Housing Corporation Act (hereinafter referred to as the "Housing Corporation Regulation"), which is established through delegation under Article 24 of the Housing Corporation Act, a local housing corporation may revise rents for housing it leases (hereinafter referred to as a "corporation's housing"), and that Article 32, paragraph (1) of the Act on Land and Building Leases is not applicable with regard to the relationship involved in the use of a corporation's housing because Article 16, paragraph (2) of the Housing Corporation Regulation is a special provision in relation to Article 32, paragraph (1) of the Act on Land and Building Leases. The court of prior instance ruled that the changes to the rents through the Revision of Rents are effective under Article 16, paragraph (2) of the Housing Corporation Regulation, and therefore that the appellants' principal claims should be dismissed.

4. However, the abovementioned determination by the court of prior instance cannot be upheld, for the following reasons.

A local housing corporation is a corporation established for the purpose of supplying collective housing with a favorable living environment to working people in need of housing in areas where there is a significant shortage of housing, thereby contributing to stabilizing the lives of residents and promoting social welfare (Articles 1 and 2 of the Housing Corporation Act), and in order to achieve this purpose, it may carry out operations including the leasing of housing (Article 21, paragraphs (1) and (3) of the Housing Corporation Act). The relationship involved in the use of a corporation's housing to be established by a local housing corporation with a lessee as part of its operations mentioned above is a lease relationship under private law, and it should be said that the Act on Land and Building Leases is applicable with regard to this relationship except where there is any special provision under laws and regulations.

Then, let us look at whether there is any special provision in relation to Article 32, paragraph (1) of the Act on Land and Building Leases with regard to the relationship involved in the use of a corporation's housing. The Housing Corporation Act provides that in order to carry out operations relating to the leasing, etc. of housing, a local housing corporation must endeavor to ensure that housing will be used appropriately by working people in need of housing and that rents will be appropriate (Article 22), and with regard to the standards for carrying out such operations, it provides that a local housing corporation "must carry out these operations in accordance with standards specially specified by other laws and regulations if such standards exist, and also in accordance with standards specified by Order of the Ministry of Land, Infrastructure, Transport and Tourism" (Article 24). As delegated under Article 24 of the Housing Corporation Act, Article 16, paragraph (2) of the Housing Corporation Regulation provides that "If a local housing corporation intends to change a rent for housing for lease, it is to specify the rent while comprehensively taking into consideration matters such as rents for the same types of housing in the vicinity, the rent before the change, and changes in economic conditions. In this case, the rent after the change is to be specified so that it does not exceed rents for the same types of housing in the vicinity."

In light of the abovementioned purpose of a local housing corporation, in addition to the wording of the abovementioned relevant provisions of the Housing Corporation Act, it is understood that in view of the public nature of a local housing corporation, the purpose of Article 24 of the Housing Corporation Act is to require that a local housing corporation follow not only standards specially specified by other laws and regulations but also supplementary or additional standards as a rule for carrying out operations relating to the leasing, etc. of housing, and to delegate Order of the Ministry of Land, Infrastructure, Transport and Tourism to specify the details of such supplementary or additional standards because they cover specialized and technical matters corresponding to the details of the operations. If so, Article 24 of the Housing Corporation Act is not considered to delegate the relevant Ministerial Order to establish a provision for excluding the application of Article 32, paragraph (1) of the Act on Land and Building Leases, which governs changes in the relationship of rights and obligations under private law, with regard to the relationship involved in the use of a corporation's housing, and granting a formative right for the change of rents separately from the right to demand an increase or decrease in rents prescribed in that paragraph. Furthermore, Article 16, paragraph (2) of the Housing Corporation Regulation, in view of its abovementioned wording, is nothing more than a provision that specifies supplementary or additional standards that should be followed in addition to standards specified by other laws and regulations in the case where a local housing corporation changes a rent for the corporation's housing, and it should not be understood as a provision for excluding the application of Article 32, paragraph (1) of the Act on Land and Building Leases with regard to the relationship involved in the use of a corporation's housing, and granting the abovementioned formative right to a local housing corporation. There is no other legal basis for considering that the application of Article 32, paragraph (1) of the Act on Land and Building Leases is excluded with regard to a rent for a corporation's housing.

For the reasons stated above, it is reasonable to construe that Article 32, paragraph (1) of the Act on Land and Building Leases is applicable with regard to the relationship involved in the use of a corporation's housing.

5. The determination by the court of prior instance that is contrary to the above contains a violation of law or regulation that has clearly influenced the judgment. The counsel's arguments are well-grounded in this respect, and the judgment in prior instance should inevitably be quashed, without the need to make a determination on the other arguments of the counsel. The case is remanded to the court of prior instance for further examination.

For the reasons stated above, the Court unanimously decides as set forth in the main text of the judgment.

Justice MIYAMA Takuya

Justice YASUNAMI Ryosuke

Justice OKA Masaaki

Justice SAKAI Toru

Justice MIYAGAWA Mitsuko