Current law or the Supreme Court precedent doesn’t recognize goodwill in retail store as a legal right. Accordingly, when tenants transfer the right of lease, the goodwill, which was paid to the former tenants, is not the right for the compensatio...
Current law or the Supreme Court precedent doesn’t recognize goodwill in retail store as a legal right. Accordingly, when tenants transfer the right of lease, the goodwill, which was paid to the former tenants, is not the right for the compensation. When the retail store is under redevelopment, the issue is if the tenants have any right for compensation in the goodwill. Firstly, the goodwill decided by location factor reflects effects accidently accrued by external factors and it is not the benefit or right that is free to be disposed. Accordingly, it is not the object of compensation when the retail building is under redevelopment. Secondly, the goodwill decided by facility factor can be compensated by appraisal and assessment of existing and new facility when tenants have newly invested something on facilities. Accordingly, there is no room for raising any issue of compensation when retail building is under redevelopment. Thirdly, the goodwill decided by business factor could be the object of compensation as tenants’ business rights only when the tenants have generated supplementary benefit with their own investment and trial. To provide specific compensation, the legal basis specified in the clause 3 of article 23 in the Constitution should be provided in advance. In addition, it is necessary to consider carefully the introduction of compensation for removal enforced in U.K. and France with the recognition of tenants’ legal right for business right. In case of introducing the compensation for removal, compensation law needs to be revised in such a way that compensation conforming with the compensation for removal is to be provided to tenants of retail building.