Annotation to the ruling of the Dutch Supreme Court of 14 February 2014 (Alog-onroerend goed en handelsmaatschappij B.V./Ultimo Vastgoed B.V. et al.) TvHB 2014/2 no. 6.


The strict test of the Helsdingen/Klein (Herenhuis) ruling, in which the Dutch Supreme Court considered that the mere circumstance that the operation of the leased property is unprofitable in unaltered condition is insufficient to assume urgent own use and that in such case there must be a structural imbalance between the operating costs and the rental income, does not apply to the lease of business premises under Section 290 of Book 7 of the Dutch Civil Code. The protection of the lessee of business premises within the meaning of Section 290 of Book 7 of the Dutch Civil Code concerns the protection of a right of a (fundamental) different nature, in which respect the economic interests of the lessee and the lessor particularly play a part. The lessor of business premises cannot be required in a case such as the present one – in which the need for renovation is not under discussion between the parties – to continue a lease that will result in a loss-making operation after the renovation.

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