Commercial Leases/Business Goodwill

The burden of the eviction indemnity falls on the lessor (Article L. 145-14 Commercial Code).
In the event of joint ownership, each of the co-owners is liable for the payment of the indemnity. Thus, the Court of Cassation considers that it is up to one of the joint owners of a building, who intends to refuse the renewal, to obtain the agreement of their co-owners or, failing such agreement, the au …

Debtor

The burden of the eviction indemnity falls on the lessor (Article L. 145-14 Commercial Code).

In the event of joint ownership, each of the co-owners is liable for the payment of the indemnity. Thus, the Court of Cassation considers that it is up to one of the joint owners of a building, who intends to refuse the renewal, to obtain the agreement of their co-owners or, failing such agreement, the authorization provided for in Article 815-5 or Article 815-6 of the Civil Code . However, solidarity is not presumed, and debts arising from the operation of the joint ownership are only joint and several among co-owners by the effect of the law or an express stipulation .

In the event of a division of ownership, only the usufructuary has the status of lessor . If the usufructuary of a building for commercial use, leased, has the power to unilaterally issue a notice refusing renewal , the eviction indemnity owed, pursuant to Article L. 145-14 of the Commercial Code, is their responsibility .

In the event of the landlord's death, the lease does not terminate (Art. 1742 Civil Code); it is transferred to the heirs, who are obligated to execute it, particularly regarding the payment of compensation in the event of a renewal refusal and the offer of eviction compensation.

If it is the responsibility of the person who has leased commercial premises to pay the eviction indemnity provided by law when they have refused its renewal , the sale of the building by the lessor does not release them from their obligations to pay the eviction indemnity that may be owed to the lessee to whom they issued, before the sale, a notice of termination with refusal to renew the lease . Similarly, in the case of subletting, the principal tenant, who is the subtenant's lessor, must pay them the indemnity, unless the subtenant has a direct right against the lessor.

Cass. 3e civ., 18 April 1985, LawLex202200002610JBJ.

Cass. 1re civ., 29 November 2005, LawLex202300011686JBJ.

Cass. 3e civ., 13 December 2005, LawLex202300011688JBJ.

Cass. 3e civ., 9 December 2009, LawLex202200002288JBJ.

Cass. 3e civ., 19 December 2019, LawLex202200002287JBJ.

Cass. 3e civ., 15 January 1974, LawLex202300011687JBJ.

Cass. 3e civ., 10 December 1997, LawLex202300011689JBJ, which quashes the appeal decision that held, to dismiss the tenant's claim for eviction compensation, that this claim should have been addressed to the new owner of the premises, whose existence the tenant was aware of since he paid his last rents to him and returned the keys of the rented premises without any reservation.

Commercial Leases/Business Goodwill

268. Debtor

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

268. Debtor

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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