Cancellation of Planning Permission: 5-Year Limitation Period for Liability Claims

Imagine the scene: you live in a lovely house in Plan-de-Cuques, with an unobstructed view over the hills. One morning, you see a “planning permission” sign planted on the neighbouring plot. Work begins, a building rises from the ground. You assume everything is in order. A few years later, you learn that this planning permission was cancelled by the Administrative Court of Marseille for abuse of power (i.e., because it was illegal). You then wish to claim damages from the owner for the harm you suffer (loss of sunlight, obstructed view, decrease in your property’s value). But a crucial question arises: how long do you have to bring a claim?

This decision of the Court of Cassation of 30 March 1994 (No. 91-22.013) answers this question very precisely. It sets a limitation period (the period after which you can no longer bring a legal action) of 5 years from the completion of the works. In other words, if you wait more than 5 years after the end of construction, you lose all right to compensation, even if the permission was illegal. A rule that surprises and deserves to be explained in detail.

The Facts: A Story That Happens Every Day

In 1978, Mr and Mrs Y. obtained planning permission to build a house on a plot located in an area subject to strict planning rules. Permission was granted on 6 November 1978. However, neighbours challenged its legality before the administrative court, which cancelled this first permission on 25 July 1980. Mr and Mrs Y. then submitted a new application and obtained a second permission on 3 February 1981, amended on 13 March 1981. Again, neighbours challenged it, and the court cancelled both permissions by final decisions.

In the meantime, construction was completed. The dissatisfied neighbours brought a civil liability action (i.e., a claim for damages) against Mr and Mrs Y. based on Article 1240 of the Civil Code (formerly Article 1382), which provides that any act of a person which causes harm to another obliges the person by whose fault it occurred to compensate for it. But Mr and Mrs Y. raised a major argument: the claim was time-barred because more than 5 years had passed since the completion of the works.

The question came before the Court of Cassation: what is the starting point of the limitation period? Is it the date of cancellation of the permission, or the date of completion of the works? The lower courts had ruled in favour of the neighbours, but the Court of Cassation overturned their decision.

The Reasoning of the Court — Explained

The Court of Cassation relied on Article 2270-1 of the Civil Code (now Article 2224 since the 2008 reform) which provides that claims for extra-contractual civil liability (i.e., claims for compensation for harm caused without a contract) are time-barred after 5 years from the manifestation of the harm or its aggravation. For buildings erected in accordance with planning permission, the harm (loss of view, decrease in value, etc.) manifests itself upon completion of the works. The starting point of the period is therefore the date of completion, not the date of cancellation of the permission.

However, note that this reasoning applies to claims based on a violation of planning rules or public utility easements (constraints imposed for the public interest, such as distances from boundary lines). The Court thus specifies that the period runs “after completion of the works,” not after the administrative decision cancelling the permission.

What few people know is that this solution rests on a subtle distinction between the illegality of the permission (established by the administrative court) and civil fault (assessed by the judicial court). The fact that the permission is cancelled does not automatically mean that the builder committed a civil fault: the harm must still be certain and directly linked to the construction. But even if fault is established, the 5-year limitation runs from completion.

In short, the Court of Cassation protects the legal certainty of builders: once the works are finished, third parties have a reasonable period of 5 years to bring a claim, but beyond that, they are precluded (i.e., they lose their right to act). This confirms previous case law (notably Civ. 3e, 8 July 1981, Bull. III, No. 139) which had already established this principle.

What This Means for You — Practically

For landlord owners (owners who rent out their property): if you build a rental building and your permission is challenged, you know that after 5 years from the end of the works, you are safe. But be careful: if additional works are carried out after completion, the period may restart for those works only.

For buyers (persons who purchase a property): before buying, check the completion date of existing constructions. If a permission was cancelled but the works were completed more than 5 years ago, the sellers cannot be sued by neighbours. For example, in Marseille, if you buy a house completed in 2018 whose permission was cancelled in 2019, neighbours have until 2023 to bring a claim. After that, the claim is time-barred.

For co-owners: if your co-ownership suffers harm from an illegal neighbouring construction, you must act quickly. The 5-year period runs from completion, not from discovery of the illegality.

If you are in this situation, you must check the completion date of the works (e.g., the date of the declaration of completion of works). If it is more than 5 years ago, you no longer have a remedy in liability. But you may still be able to act on another basis (e.g., abnormal neighbourhood disturbance, which also has a 5-year limitation but sometimes the starting point is different).

Four Tips to Avoid This Type of Dispute

• Keep all dates: Carefully keep the date of completion of works (Declaration Attesting Completion and Conformity of Works, or DAACT). It is this date that triggers the limitation period. Without this date, you risk losing your claim.
• Act quickly after cancellation of permission: As soon as you learn of the cancellation of planning permission, do not delay in consulting a lawyer. The 5-year period has already started from completion. Every month counts.
• Check dates when acquiring property: Before buying a property, ask the seller for the completion date of all constructions. If a permission was cancelled, ensure that the 5-year period has expired to avoid future claims against the seller.
• Photograph the premises: If you are a neighbour of a construction that bothers you, take photos as soon as the works are completed. They will serve to precisely date the harm and prove its existence before the limitation period expires.

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Further Reading: Related Case Law and Developments

The decision of 30 March 1994 is part of a consistent line. Already, in a judgment of 8 July 1981 (Civ. 3e, Bull. III, No. 139), the Court of Cassation had held that a liability claim based on a violation of planning rules is time-barred after 5 years from completion of the works, even if the permission was cancelled subsequently. This solution was reaffirmed in several later judgments, such as Civ. 3e, 12 July 2000, No. 98-21.656.

Since the reform of limitation periods by the Law of 17 June 2008, the period has remained 5 years (Article 2224 of the Civil Code), but the starting point is now “the day on which the holder of a right knew or ought to have known the facts enabling him to exercise it.” However, for claims based on cancelled planning permission, case law continues to apply the starting point at completion of the works, because the harm manifests itself at that completion. There is therefore no significant change.

This case law provides great legal certainty for builders, but it may seem harsh for neighbours who discover the illegality of the permission late. undefined, I have encountered cases where neighbours waited for the end of the administrative proceedings (sometimes 3 or 4 years) to bring a civil claim, only to find themselves time-barred. Hence the importance of acting in parallel.

Summary and Next Steps

FAQ: Frequently Asked Questions

1. What is the time limit to bring a claim after cancellation of planning permission?
The period is 5 years from completion of the works, not from the date of cancellation of the permission. It is therefore crucial to know the completion date.

2. Can I still bring a claim if the works were completed more than 5 years ago?
No, the civil liability claim is time-barred. However, you may possibly invoke an abnormal neighbourhood disturbance if the harm persists, but that basis has its own limitation periods.

3. What should I do if I discover the cancellation of permission after completion of the works?
Consult a lawyer immediately to verify the completion date. If it is within the last 5 years, you can still act. Otherwise, explore other avenues (neighbourhood disturbance, demolition claim if the construction does not comply with the Local Planning Plan, etc.).

4. Does the 5-year period apply to all claims?
It applies to civil liability claims based on a violation of planning rules or public utility easements. Other claims (such as a demolition claim for construction without permission) may have different limitation periods.

5. How can I prove the completion date of the works?
By the declaration of completion of works (DAACT) filed at the town hall, by invoices from contractors, or by bailiff’s reports. In case of dispute, the court may order an expert appraisal.

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