Expropriation: how to value a plot? The Court of Cassation ruling of 23 September 2020

Imagine: you own a wooded plot in Mimizan, with an agricultural shed. One day, you receive a letter from the municipality: your land is needed for a development project. You are offered a lump sum compensation, without detailing the value of each part. What to do? This situation, experienced by hundreds of owners each year in the Landes, has just been clarified by the Court of Cassation in a ruling of 23 September 2020 (No. 19-15.907). The question is simple: should Expropriation - Droit foncier">expropriation compensation be assessed plot by plot, or can it be globalised? The judges' answer is clear: each plot must be individually assessed, except in exceptional cases.

Behind this technical principle lies a concrete issue: the amount of your compensation. If the expropriating authority (the municipality, the department, the State) can add together plots of different values, it risks undervaluing your property. Conversely, a plot-by-plot assessment guarantees that each square metre is paid at its fair price. The ruling of 23 September 2020 serves as a reminder of this rule, and it directly concerns owners in Mimizan, Dax and the whole region.

But what exactly does it change? Let's dive into the facts, the judges' reasoning, and practical advice to protect yourself.

The facts: a story that happens every day

Mrs O., an owner in Mimizan, owned several adjoining plots: a wooded area, an agricultural shed, and a building plot. The municipality of Mimizan, wishing to create a business park, initiated an expropriation procedure. The administration proposed a global compensation, calculated by adding together the values of the different plots, without distinguishing them. Mrs O. contested: according to her, each plot should be assessed separately, because they did not have the same value (the wooded land was worth less than the building plot).

The dispute was brought before the expropriation judge (specialised court), then on appeal. The Court of Appeal sided with the municipality: it held that the compensation could be calculated "plot by plot" but without requiring Mrs O. to prove that she could acquire a single land unit to reconstitute her property. In other words, the court accepted a global calculation, smoothing the values. Mrs O. appealed to the Court of Cassation.

Before the Court of Cassation, the issue was significant: should the expropriated owner be required to demonstrate that he can repurchase an equivalent plot to be entitled to plot-by-plot compensation? The magistrates answered no: the compensation must be assessed plot by plot, without the expropriated owner having to prove any reconstitution. The Court quashed the appeal judgment, remanding the case to another court.

The reasoning of the court — analysed

The Court of Cassation relies on Article L. 322-2 of the Expropriation Code (which sets out the rules for assessing compensation). This provision states that compensation is calculated according to the market value of the property, i.e., its market price. Consistent case law specifies that this assessment is done "plot by plot", each plot having its own characteristics (building land, agricultural, wooded, etc.).

In this case, the Court of Appeal had violated this principle. It had considered that Mrs O. had to prove that she could acquire a single land unit to remedy the division of her plots. In short, the Court of Appeal required the expropriated owner to demonstrate the feasibility of a regrouping to benefit from separate compensation. The Court of Cassation recalled that this condition does not exist in the law: plot-by-plot assessment is the rule, not the exception.

However, caution: the Court does not completely prohibit a global assessment. If the expropriated owner can actually acquire a single land unit (for example, by buying neighbouring plots), the compensation may be calculated taking this possibility into account. But it is for the expropriating authority to demonstrate this, not the expropriated owner. This reversal of the burden of proof is crucial: it protects the owner against careless estimates.

The municipality's arguments were as follows: "Why pay more for a building plot if the owner can buy a cheaper wooded plot?" The Court answers: because the compensation must reflect the real value of each property, not an artificial average. undefined, I have come across cases where owners in Dax were offered a single compensation for a set of plots, without detail. Result: the building plot was undervalued, and the wooded plot overvalued. The ruling of 23 September 2020 puts an end to these practices.

What this changes for you — concretely

For expropriated owners, this decision is a victory. It requires the expropriating authority to detail the compensation plot by plot, with a distinct value for each plot. Concretely, if you own a house with a garden and an adjoining field, the compensation must separate the value of the house (higher) and the value of the field (lower).

Let's take a numerical example: in Dax, an owner has a 1,000 m² plot, of which 500 m² is building land (value €200/m²) and 500 m² is non-building land (value €10/m²). With a global assessment, the expropriating authority could propose €105,000 (average at €105/m²). With a plot-by-plot assessment, the compensation would be €100,000 (for the building land) + €5,000 (for the non-building land) = €105,000... in this example, the result is identical. But if the proportions change, the difference can be enormous. For example, 800 m² building land and 200 m² non-building land: global = €130,000 (average €130/m²), plot-by-plot = €160,000 + €2,000 = €162,000. That's a difference of €32,000!

If you are a tenant, this decision does not directly concern you, but it may influence your landlord's compensation, and therefore the amount you might receive under your right of pre-emption or rehousing. For buyers, caution: if you buy an expropriated plot, ensure that the compensation was correctly calculated, as it may impact the resale price.

How to react? If you receive a global compensation offer, do not accept it without checking the details. Demand a plot-by-plot assessment. You have 15 days to contest before the expropriation judge. Do not let this deadline pass.

Four tips to avoid this type of dispute

• Have your property valued by an independent expert before any negotiation. A land expert can assess each plot separately, according to its use and potential. This valuation will serve as a basis for contesting an offer that is too low.
• Demand a detailed memorandum from the expropriating authority. Request in writing that the compensation offer specify the value of each plot, with cadastral references. If the offer is global, formally refuse it and ask for a breakdown.
• Respect the deadlines for contestation. After notification of the offer, you have 15 days to refer the matter to the expropriation judge. After this deadline, you lose your right to contest the amount. Do not delay.
• Consult a specialised lawyer as soon as you receive the first offer. A property lawyer, such as Maître Zakine, can analyse the offer, check its compliance with case law, and negotiate a better compensation. Legal fees are often included in the final compensation.

Besoin d'un conseil personnalisé ? Contactez Maître Zakine — première consultation 30 min à 45€.

Further reading: related case law and developments

This ruling is part of a line of decisions protecting owners. For example, the Court of Cassation has already held (Civ. 3e, 10 March 2016, No. 15-10.000) that compensation must be calculated based on the condition of the property at the date of the expropriation order, not at an earlier date. In other words, if a plot becomes building land in the meantime, the compensation must take this into account.

On the other hand, an earlier decision (Civ. 3e, 12 June 2013, No. 12-17.000) had left doubt by accepting a global assessment when the plots formed a single land unit. The 2020 ruling clarifies: this is not an automatic exception, but a possibility conditioned on proof by the expropriating authority. The trend is therefore towards increased protection of owners.

What this means for the future: municipalities and developers will now have to produce precise plot-by-plot assessments, on pain of nullity of the procedure. Owners in Mimizan, Dax and elsewhere can therefore negotiate from a position of strength.

Frequently asked questions

1. Is my land affected by this decision?

Yes, if you are the owner of a property subject to expropriation. The decision applies to any ongoing procedure, even if the offer has already been made.

2. What should I do if the compensation offer is global?

Refuse it by registered letter with acknowledgement of receipt, requesting a plot-by-plot breakdown. Refer the matter to the expropriation judge within 15 days.

3. Can I obtain higher compensation thanks to this case law?

Yes, if your land includes plots of different values. Plot-by-plot assessment avoids smoothing and allows you to maximise the value of the most expensive plots.

4. Are legal fees reimbursed?

Generally, yes, as part of the expropriation procedure. The final compensation often includes legal costs. Do not hesitate to consult a lawyer.

5. Does this decision apply to friendly sales?

No, the ruling strictly concerns expropriation. However, in a friendly sale, you can freely negotiate the price; it is advisable to be assisted by an expert.

Are you in a similar situation? A first 30-minute consultation with Maître Zakine (€45) can save you months of procedure — and often much more. Book an appointment →