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Judicial Decisions on Fidelity Guarantee (2) A Study through Judicial Decisions in the Last Twenty Years Makiko Noto In this paper I took up and examined judicial decisions on fidelity guarantee (Mimoto-Hosho) in the last twenty years. In the part (2) of the paper, I reviewed judicial decisions on the term and effect of fidelity guarantee contracts and pointed out the issues of current fidelity guarantee contracts. A guarantor is released from the obligation to pay reparations based on a fidelity guarantee contract after the elapse of a predetermined period of time or by the end of the employment relationship before the elapse of the predetermined period. However, a fidelity guarantee contract sometimes continues for a long period by updating it, and the fidelity guarantee contract for a long-term employee is concluded. Usage like this may be contrary to its institutional meaning. The determination method of a guarantor s responsibility is unique. The existence or nonexistence of the liability of a guarantor and the amount of damage to pay are at the discretion of the court (Fidelity Guarantee Act, Article 5). Unlike other regular contracts, the contents of the obligation which a guarantor undertakes in a fidelity guarantee contract are not decided by the contractual agreement between an employer and a guarantor. Therefore, the problem arises that it is hard for a guarantor to foresee the result after the passage of time. Human relations like family, the work environment, and the awareness of contracts and/ or the law have greatly changed since the enforcement of the Fidelity Guarantee Act. The Legislative Council of the Ministry of Justice decided to establish a working group in 2009, and now it keeps on deliberating the revision of the Civil Code (law of obligations), which is the basic law. By contrast, the Fidelity Guarantee Act, which is a special law, needs to be reexamined more intensely in response to changes in society. The time when we should revise the framework of the Fidelity Guarantee is fast approaching. 064 THE HIKONE RONSO 2012 autumn / No.393
Judicial Decisions on Fidelity Guarantee (2) Makiko Noto 065