Takeo City entered into a contract with a cable TV company to install receivers in each home to build a disaster prevention system. Six residents and others demanded that the city sue the mayor, who signed the contract, for more than 405 million yen.

They claimed that the contract was concluded illegally without passing the council's resolution as required by the ordinance. The residents had filed an appeal against this, but the Chief Justice Takuya Miyama of the First Petty Bench of the Supreme Court decided to dismiss the appeal by the 13th.