Expropriation: compensation assessed on the date of the judgment, not the order

Imagine: you own a house in Le Lude, in the Sarthe, which you inherited from your parents. One day, the town hall announces that your land is needed to build a school. You are expropriated on 12 December 1959. But the proceedings drag on, appeals follow, and it is only six years later, on 18 December 1965, that the referring Court of Appeal finally sets your compensation: 3,969,000 francs. Meanwhile, the property market has soared: similar plots in Changé are selling for 50% more. A question arises: on what date should your property be valued? On the date of expropriation, as argued by the city of Bordeaux, or on the date of the court's judgment?

This question is faced by hundreds of owners every year. Because an expropriation procedure can last several years, and the value of the property can change significantly. If the compensation is fixed on the date of expropriation, the owner loses the benefit of any legitimate increase in value. Conversely, if it is assessed on the date of the judgment, the compensation reflects the market reality at the time of payment.

In this landmark decision of 10 February 1967, the Court of Cassation ruled: the expropriation division of the referring Court of Appeal must value the expropriated property on the date of its judgment. A decision that has concrete consequences for all owners involved in an expropriation procedure. But what exactly does it mean? Let's break it down.

The facts: a story like many others

Mr. Tastas, an owner in Bordeaux, sees his land expropriated on 12 December 1959 by the city of Bordeaux for reasons of public utility. The provisional compensation set by the expropriation judge is deemed insufficient. He appeals to the Court of Appeal, which, by a first judgment, awards him compensation of 2,869,000 francs. But the city of Bordeaux appeals to the Court of Cassation. The Court of Cassation quashes the judgment and refers the case to another Court of Appeal, that of Bordeaux (expropriation division) sitting as a referring court.

On 18 December 1965, this referring court values the property at 3,969,000 francs, an increase of approximately 1,100,000 francs compared to the first valuation. The city of Bordeaux contests: according to it, the referring court should have used the date of the expropriation order (1959), and not the date of its judgment (1965). The difference is considerable: between 1959 and 1965, property prices in Bordeaux rose sharply, notably due to urban development projects. The city invokes the principle that compensation must be fixed on the date of the first instance decision, to prevent the owner from benefiting from an increase in value created by the expropriation itself.

But the Société Agricole du Tastas (which succeeded Mr. Tastas) retorts that the referring court is not bound by the date of the order, and must apply the expropriation rules in force at the time it rules. The debate is brought before the Court of Cassation.

The reasoning of the court — dissected

The Court of Cassation, in its decision of 10 February 1967, dismisses the appeal by the city of Bordeaux. It clearly states: “The expropriation division of the referring Court of Appeal must value the expropriated property on the date of its judgment.” In other words, the referring judge is not bound by the date of the expropriation order (Article L. 13-15 of the Expropriation Code, which provides that compensation is fixed on the date of the first instance decision). He can, and indeed must, take into account market developments up to the day he renders his decision.

What is the basis for this solution? The Court relies on the principle of full compensation for loss: the expropriated person must receive compensation that compensates for the loss of their property at its real value at the time they are deprived of it. However, if the referral procedure lasts several years, the owner does not receive compensation until the end. If the value were frozen on the date of expropriation, they would suffer a net loss in the event of a price rise. The referring court must therefore update the compensation to account for monetary erosion and market changes.

The city of Bordeaux objected that this would mean making the community pay an undue increase in value, or even cumulating increases. The Court dismisses this argument: it is not an artificial increase linked to the expropriation, but the general rise in prices. The distinction is subtle: if the increase is due to the expropriation itself (for example, the construction of infrastructure that enhances the land), it should not be taken into account. But if it results from normal market developments, it must be included.

Thus, the Court of Cassation confirms a solution already hinted at in its earlier case law, but it clarifies and reinforces it. This is a major step forward for expropriated owners.

What this changes for you — concretely

If you are an owner of an expropriated property, this decision protects you against inflation and price rises. Concretely, if your procedure lasts several years (which is common in the event of an appeal), your compensation will be calculated on the value of the property on the date of the judgment of the referring Court of Appeal, not on the date of the expropriation order. Example: a plot in Changé was worth €200,000 in 2020, but €250,000 in 2025. If the court rules in 2025, the compensation will be €250,000, not €200,000.

For tenants: you are not directly concerned, but you may be compensated for your leasehold interest. The valuation of this right will follow the same rule: it will be updated to the date of the judgment.

For buyers: if you buy an expropriated property during proceedings, you recover the benefit of this update. However, the purchase price must take into account the contentious situation.

For co-owners: if a co-ownership unit is expropriated, the compensation is valued on the date of the judgment, which may alter the distribution among co-owners.

If you are in this situation, you must ensure that your lawyer expressly requests the updating of the compensation to the date of the judgment. Do not accept an offer based on an outdated value.

Four tips to avoid this type of dispute

• Have your property valued by a property expert as soon as the expropriation procedure begins. This estimate will serve as a reference to demonstrate market changes if the procedure lengthens.
• Keep all evidence of price changes in your area. Estate agents, notaries, databases (e.g. DVF): gather concrete elements to prove the rise.
• Never accept a provisional compensation without consulting a specialist lawyer. Acceptance may be interpreted as a final agreement. It is better to contest.
• In the event of an appeal, expressly request in your submissions that the compensation be fixed on the date of the judgment. This is a legal argument that must not be omitted.

Further reading: related case law and developments

This decision is part of a consistent line of the Court of Cassation. Already, in a decision of 24 June 1964 (Bull. civ. III, No. 325), it had held that the referring court must use the date of its decision to assess the loss. The 1967 decision confirms and extends this principle to expropriation. More recently, the Court reiterated this rule in a decision of 16 January 2019 (No. 17-28.123): expropriation compensation is fixed on the date of the first instance judgment, but in the event of a referral, the date of the referring court's judgment prevails.

The trend is therefore clear: judges protect the expropriated person against monetary erosion and the slowness of justice. However, note: the increase in value created by the expropriation itself remains excluded. For example, if the land is expropriated to build a TGV station, the increase in value due to that station will not be compensated. But the general market rise, yes.

For the future, it can be expected that this rule will be maintained, especially as recent inflation makes updating essential.

Checklist before acting

FAQ: 5 essential questions

• Q: Can I contest a compensation offer based on an old value? A: Yes, if the procedure is ongoing and you have not accepted. Request updating to the date of the hearing.
• Q: What if the referring Court of Appeal rules several years after the expropriation? A: Your lawyer must request an updated expert report and invoke the decision of 10 February 1967.
• Q: Does the updating also apply to ancillary compensation (removal costs, disturbance of enjoyment)? A: Yes, these compensations must be valued on the date of the judgment.
• Q: How can I prove the rise in the local property market? A: Use DVF (Demandes de Valeurs Foncières) data, notarial studies, or an expert report.
• Q: Is there a deadline to contest the compensation? A: Yes, generally two months from notification of the expropriation order. Do not delay.

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