The full text of the judgment given by Judges Wenfu Yiko Hu, Chung Hung-sung and Chu Kan-lin in the Shanghai Provisional Court of Appeals in the Nanking Road Tenant case is now available for publication. It will be recalled that judgment was rendered in favour of appellants the Lao Dah Fong Candy Store and 14 other tenants, against the Dah Lung Land Investment Ca. who sought to evict appellants from their buildings at the corner of 'Nanking and Fokien Roads in order to make way Zér the erection of a combined hotel and department store known as the Great China Ca. 'The decision of the lower court in respect of two other tenants' occupancy was upheld. Notice had teen served on the tenants by drove Out and eviction orders were respondents over a year ago to
issued by the lower court, but the tenants remained in possession and appealed.
No leases had been entered into but appellants claimed that verbal arrangements had been made with the deceased manager of the respondent company for them to remain for a period of 20 years. This was denied by respondents. The tenants said they were "prepared to suffer a bit" by paying ai increased rental, but this was not three months' rent in lieu of notice. The tenants claimed that. they could not accept this.
Respondents, said the case was quite a simple one; the tenants were Folding up the landlords for. more money. The respondents had the ight to give notice to quit and to sceept whomsoever they wished as tenants. They were prepared to give every assistance to appellants Dut the latter had refused to heed them. Respondents wanted back the whole of the premises and nothing else.
An array of counsel appeared in the case. Miss. Soumi Cheng and Messrs, "Li Sing-yang and) Tsu Yung-fa represented the tenants and Messrs. Chien Mei-kuei, Li Tsuyu and Hu Ching-yung peared for the Dah Lung Investment Ca. Dr. Shih Ken was present on behalf of the Great China Ca.
After reviewing the facts of the case, the three judges of the Court of Appeals give the following judgment, after which they explain their reasons.
The appeal of the tenants is hereby upheld and the judgment of the Court of First. Instance is hereby reversed, costs of both the Gourt of First' Instance and the Court of Appeals to be borne by respondents. The appeal of 100 Chuanchang (one of the tenants) is hereby dismissed, "vith costs.
Reasons: The two most impo tant points raised by appellants in the case under review are (1) the veried of occupation and (2) the question of custom. In the leases centered. into by respondents with the Mei Foo store and the Hua Ying dispensary, the periods of occupancy are specifically set out but, in the present instance, the tenants claim that the landlords, by their duly authorized representative, agreed to allow them to retain in possession of the premise period of 20 years, There 8 no written agreement to this effect.
storekeepers are ordered by their When swith cases in which Iandlords to vacate their premises the Shanghai Provisional Court hi always made it a practice of conaueting an investigation into local evstom and practice. "It has invariably been found that the mort important condition under which Iandlords may eject their tenants is when they require the premises for their own occupation. The practice of landlords evicting. thei order to make profit or to tran for them to third parties is not recognized by local custom. As the existence of this custom is the most may be considered to represent the majority of people residing in the International' Settlement. Therefore, we find that reasonable evid-fence has been adduced to show that the custom actually prevails in Shanghai at the present time, Furthermore, it would be unjust and unpardonable if ti landlord, after demanding several months' "key money" from tenants before allowing them to take possession of premises and to spend several thousand dollars on decora tions and furnishings, tenants at will and leases the premises to third parties without making reasonable compassionate grants to the tenants whom he wishes to evict. As the custom mentioned in the last preceding paragraph is not contrary or detrimental to. good practice, it must be considered to be effective.
The appellants in the ease under review do not owe any rentals to the respondents. The buildings in question have only been erected within the past ten years and. it does not appear necessary that they should be demolished or rebuilt, Tt will be impossible for the appellants to continue in "possession of the premises after the buildings are rebuilt, In these circumstances and under such conditions, it is, in"our opinion, not right that the land. lords should attempt to. evict their tenants end cause them heavy losses in the form of "key money, ceration and furnishing expenses, ete, because such money will have bee spent by the tenants for nothing.
Landlords should not be permitted to eject their tenants under the pretext thatthe "fang piao" (rent receipts) stipulate that landlords may eaned or terminate leases with their tenants at any such time as they (the landlords) "may desire, Dbeenuse the same rent receipts also stipulate that tenants may not sublet their promises to others.
clearly inequitable -hough it is a well-known custom among local tenants frequently to. subslot their premises to others. A letter from the Commission for the Reorgant tion of Shanghai Commercial Organization docs not deny that this custom is prevalent in Shanghai at the present time, Custom, therefore, will be the basis upon which this Court renders judgment in the present ense and Judgment, accordingly, is rendered stated. important factor in the case under review, an investigation was thought necessary to determine whether it prevails in Shanghai. According to a letter received by the Court from the Chinese Rate-Fayers Association, that organiz tion says that the ' custom actually prevails in Shanghai at the present time and the Association further states that, if the custom isnot given due recognition the effects will be of an exceptionally grave nature. As most of the members of the Chinese Ratepayers Associa tion are of the "capitalist" class it is considered that their opinion
Text read from the printed page and cleaned; old type leaves the occasional error.