The appellant, Herr, leased an apartment from the respondent, Innomet Projects (Pty) Ltd, under a written lease commencing 1 February 2010, later extended by addendum until 30 November 2011. Herr paid a rental deposit of R64 000. During December 2010 Herr became aware that major structural renovations were planned in the unit directly below his apartment, involving extensive construction that would commence in April 2011. Herr notified Innomet that the construction would render the premises uninhabitable, particularly given the presence of a newborn baby, and gave notice that he would vacate by the end of February 2011, which he did. Innomet did not respond to these notices, accepted return of the keys, and inspected the premises, which were found to be in excellent condition. Innomet later re-let the premises at a lower rental. Herr sued for repayment of the deposit; Innomet counterclaimed for damages alleging repudiation and premature termination of the lease.