Having Held that Several Errors

This decision provides important clarification on your property law. Here is what it changes for you.

The situation

Having held that several errors had been committed before the opening judgment as to the identity of the finance lessee, during the registration of the finance lease agreement carried out by its finance lessor, so that the certificate of registrations and charges relating to its business was blank, and that, on the date of the opening judgment, the registration of the finance lease was not in proper form, with the result that this agreement, of which the finance lessee's creditors had no knowledge, was unenforceable against them and against the court-appointed creditors' representative, the Court of Appeal rightly dismissed the claim for the return of the leased equipment, since, on the date the collective proceedings were opened, the finance lessor's right of ownership in the equipment, which was the subject of the agreement, was not enforceable against the lessee's creditors, for failure to carry out at the competent court registry the registration provided for by Articles L. 313-7 and R. 313-3 to R. 313-11 of the Monetary and Financial Code

What the law says

This decision confirms the fundamental principles of property law.

Points to remember

• Strictly comply with the legal time limits for remedies
• Keep all your supporting documents (titles, deeds, correspondence)
• Anticipate: preventative advice always costs less than litigation

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