Expropriation: Eviction of Tenant Impossible if Compensation Not Paid

Imagine: you are the owner of a building in Mauguio, let to a trader. One day, the commune notifies you of an expropriation order (a judicial decision transferring ownership to the expropriating authority). The tenant must leave. But the compensation that the commune owes you has not yet been paid. You wonder: "Can I prevent the eviction as long as I have not been paid?" The answer is yes, and it has been established since 1966 by the Court of Cassation.

This decision, often overlooked, is a powerful weapon for expropriated owners. It reminds us that the right of ownership does not automatically extinguish with the expropriation order: the owner retains a right of enjoyment (the right to use and have the property used) until the compensation is effective. In short, the expropriating authority cannot evict the tenant without having first paid or deposited (with the Caisse des Dépôts) the compensation due to the owner.

But what exactly does this change for you? And how should you react if you are affected? Let's dive into this typical case from the Montpellier region, where an owner in Béziers saw his building targeted by an expropriation procedure for an urban planning project.

The facts: a story that happens every day

Mr Dupont (fictitious name), owner of a building in Béziers, leases a commercial unit to Thouery company. The City of Paris (in the original case, but let's transpose to Montpellier) obtains an expropriation order (decision of the expropriation judge) to carry out urban development. The order transfers ownership to the city. The city then initiates eviction proceedings against the tenant, Thouery company, to vacate the premises.

But here's the thing: the city has not yet paid the expropriation compensation to Mr Dupont. He intervenes in the eviction proceedings to oppose it. He argues that as long as he has not been compensated, he retains enjoyment of his property, and therefore can oppose the eviction of his tenant. The Tribunal de Grande Instance (TGI) agrees: it refuses to order eviction. The city appeals, then appeals in cassation.

The Court of Cassation, in its judgment of 16 December 1966, dismisses the city's appeal. It confirms that the expropriated owner has an interest in intervening in the eviction proceedings against the tenant, where the expropriating authority does not prove that it has paid or deposited the compensation. In other words, eviction cannot be ordered without the owner having been compensated. This solution, given under the former Article 545 of the Civil Code (now codified in Article L. 12-1 of the Expropriation Code), remains relevant today.

The reasoning of the court — analysed

The judges of the Court of Cassation rely on the principle that expropriation (forced transfer of ownership for reasons of public utility) only deprives the owner of his right on condition that the compensation is paid or deposited in advance. This is known as the principle of prior payment, guaranteed by Article 17 of the Declaration of the Rights of Man and of the Citizen of 1789 (according to which "no one may be deprived of his property except where public necessity, legally established, obviously requires it, and on condition of just and prior indemnity").

The City of Paris argued that the expropriation order had extinguished the legal relationship between the owner and the tenant, and that therefore only the expropriating authority had standing to act in eviction. But the Court of Cassation rejected this argument: as long as the compensation is not paid, the owner retains a right of enjoyment over his property, and this right includes the right to oppose the eviction of his tenant. In this case, the city had indeed deposited part of the compensation (385,000 francs), but not the whole amount, and did not prove full payment. The Court concluded that the owner still had an interest in intervening to protect his right of enjoyment.

However, beware: this solution does not mean that the tenant can stay indefinitely. As soon as the compensation is paid or deposited, the expropriating authority can freely pursue eviction. But as long as this is not done, the owner can block the procedure. undefined, I have come across cases where the expropriating authority tried to evict the tenant before compensating the owner, to speed up the works. This decision prevents that.

What this changes for you — concretely

For landlord owners: if your property is expropriated, you have the right to oppose the eviction of your tenant as long as you have not received the full compensation. This gives you leverage to obtain prompt payment of the compensation. Concrete example: in Béziers, a rental building expropriated for €300,000. If the expropriating authority attempts to evict the tenant before paying you the compensation, you can apply to the court to suspend the eviction. In practice, you must intervene voluntarily in the eviction proceedings (by a summons to intervene).

For tenants: you are not directly concerned with the compensation, but know that as long as the owner is not paid, the expropriating authority cannot evict you. This may give you extra time to find new accommodation. If you receive a notice to quit, check with the owner whether the compensation has been paid. If not, you can contest the eviction.

For acquiring authorities (expropriators): be careful not to jump the gun. Before initiating eviction proceedings, ensure you have paid or deposited the full compensation. Otherwise, you risk having your application rejected, wasting time (and money). Depositing (with the Caisse des Dépôts et Consignations) is a safe way to protect against this risk.

In summary: if you are an expropriated owner and your tenant is threatened with eviction, do not hesitate to intervene to demand prior payment. If you are the expropriating authority, pay or deposit before acting.

Four tips to avoid this type of dispute

• Check payment of compensation before any eviction: if you are the expropriating authority, send the owner the cheque or deposit receipt before summoning the tenant for eviction. This will avoid your application being rejected.
• Systematically intervene in eviction proceedings: if you are an expropriated owner, as soon as you learn of an eviction action against your tenant, instruct a lawyer to intervene and raise the defence of prior payment.
• Require deposit in case of dispute: if the expropriating authority disputes the amount of compensation, ask the expropriation judge to order the deposit of the undisputed amount. This secures your right and allows the expropriating authority to proceed.
• Keep evidence of payment: whether you are the owner or the expropriating authority, keep the payment or deposit receipts safe. In case of dispute, they will be decisive.

Further reading: related case law and developments

This 1966 decision is part of a consistent line of the Court of Cassation. An earlier decision, Cass. civ., 24 May 1933, already stated that the expropriating authority cannot take possession of the property before payment of compensation. More recently, the Court of Cassation reaffirmed this principle in a judgment of 10 February 1999 (No 96-21.456): the expropriation order only divests the owner from the date of payment or deposit.

The trend is therefore towards strengthening the protection of the expropriated owner. The courts are very attentive to compliance with the principle of just and prior indemnity. This means that, even if the expropriation is lawful, the expropriating authority must pay before enjoying the property. In the future, we can expect judges to continue to sanction any attempt at premature eviction.

Key points to remember

• The principle: expropriation only becomes effective after payment or deposit of compensation. Before that, the owner retains enjoyment of his property.
• Eviction of the tenant: it cannot be ordered as long as the compensation has not been paid to the owner. The owner has the right to intervene to oppose it.
• What to do if you are an expropriated owner? As soon as you learn of eviction proceedings against your tenant, contact a lawyer to intervene and request a stay of proceedings until payment.
• What to do if you are the expropriating authority? Pay or deposit the compensation before initiating any eviction action. You will save time and avoid rejection.
• Caution: this right is not absolute. If the compensation is deposited, the expropriating authority can evict. Deposit is therefore an alternative to direct payment.

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