Eviction compensation: the trap of the two-year time limit, even if the landlord is in bad faith

Imagine for a moment: you own a commercial premises in Charleville-Mézières, let to a florist for twenty years. You want to recover your property to install your son, and you serve a notice with an offer of eviction compensation. The tenant does not move, you exchange letters, he asks you for documents to quantify the compensation, you provide them. Two years pass. And then, surprise: the tenant sues you to obtain eviction compensation, but you realise that the two-year period has expired. What happens? This decision of the Court of Cassation of 12 February 2026 (No. 24-10.578) provides a clear answer, and it will surprise more than one.

The question that every landlord asks themselves is simple: "Can my tenant still claim eviction compensation if I have been in bad faith or if I have acknowledged his right?" The answer is no. And that's where the shoe pinches.

In this judgment, the Court of Cassation reminds that the two-year period for bringing proceedings runs from the date of the notice, and that nothing — not even the landlord's bad faith — can interrupt or suspend it. After this period, the tenant loses his right to compensation and becomes an occupier without right or title. An eviction can then be applied for by way of interim proceedings. Let's decipher together this decision that changes the game for commercial leases.

The facts: a story like many others

Mr and Mrs X are owners of a commercial premises in Épernay, let to the company "Champagne et Fleurs" since 2005. In 2020, they decide to take back the premises to set up their own wine sales business. They serve a notice with an offer of eviction compensation to their tenant, in accordance with Article L. 145-9 of the Commercial Code (which governs the landlord's right of repossession). The notice sets the departure date at 31 December 2020.

The tenant does not leave the premises. He enters into discussions with the landlord to fix the amount of the eviction compensation (the sum due to the tenant for the loss suffered as a result of the eviction). The landlord, by letter, acknowledges the right to compensation and asks the tenant to provide him with information to quantify the compensation. The tenant complies, sends his accounts, and waits. But nothing happens: the landlord does not reply, and the tenant does not bring any legal proceedings before 31 December 2022, i.e. two years after the date of the notice.

In January 2023, the tenant brings proceedings before the Tribunal de Commerce of Reims to obtain the fixing of the eviction compensation. The landlord raises the limitation period: the action is late, the two-year period has expired. The tenant retorts that the landlord acknowledged his right to compensation, which interrupts the limitation period, and that his bad faith (by not replying) justifies a suspension of the period.

The Tribunal de Commerce rules in favour of the landlord. The tenant appeals. The Court of Appeal of Reims, in a judgment of 12 January 2024, reverses the decision: it considers that the landlord acknowledged the tenant's right to compensation (which interrupts the limitation period) and that in any event, the tenant's occupation is not abusive as long as the compensation is not fixed. The landlord appeals to the Court of Cassation.

The reasoning of the court — analysed

The Court of Cassation quashes the appeal judgment. Its reasoning rests on two essential points.

First, the two-year period is a limitation period, not a preclusive period. In other words, it is a period that extinguishes the action itself, and it runs from the date of the notice, whether or not the landlord has offered compensation. Article L. 145-9 of the Commercial Code provides that the tenant must, on pain of losing his right to compensation, bring proceedings within two years of the date for which the notice was given. This period can only be interrupted by legal proceedings, not by a mere acknowledgment of right. The Court of Appeal had considered that the landlord's acknowledgment of the right to compensation interrupted the limitation period, but the Court of Cassation reminds that only acts emanating from the creditor (the tenant) can interrupt the limitation period, not those of the debtor (the landlord).

Second, the landlord's bad faith is not a ground for suspending the limitation period. The tenant argued that the landlord had "dragged things out" by not replying to his requests for quantification. But the Court of Cassation is firm: bad faith does not appear in the legal list of grounds for suspension of the limitation period (Article 2234 of the Civil Code). The tenant had to act within two years, regardless of the landlord's manoeuvres.

Consequently, as from 1 January 2023, the tenant no longer has any right of occupation: he is an occupier without right or title. This situation constitutes a manifestly unlawful disturbance within the meaning of Article 835 of the Code of Civil Procedure (which allows the interim judge to order measures to put an end to a disturbance). The landlord can therefore obtain eviction by way of interim proceedings, without waiting for a judgment on the merits.

This decision is a confirmation of previous case law (Cass. 3e civ., 15 June 2017, No. 16-18.590; Cass. 3e civ., 10 March 2021, No. 20-13.247). It does not create a reversal, but it closes a door that some tenants were trying to open by invoking the landlord's bad faith.

What this changes for you — practically

For landlords, this decision is a security. If you serve a notice with an offer of eviction compensation, you know that the tenant has two years to act. If he does not, you can recover your property without having to pay compensation. Concrete example: in Charleville-Mézières, a monthly rent of €2,000, a potential eviction compensation of €50,000. If the tenant delays, you save that sum. But be careful: you must yourself comply with the formalities of the notice (time limit, reasons).

For commercial tenants, the message is clear: do not delay! As soon as you receive a notice, even if the landlord promises to compensate you, even if he asks you for documents, you must imperatively bring proceedings within two years. If you wait, you lose everything. Imagine a tenant in Épernay who has invested €30,000 in fitting out his premises and who achieves an annual turnover of €150,000. Without eviction compensation, his entire business is threatened.

For purchasers of commercial premises, always check whether a notice has been served and whether the two-year period has expired. If so, the purchaser can recover the premises vacant without compensation, which increases the value of the property.

undefined, I have come across cases where tenants, trusting the landlord's promises, let the period pass. Result: eviction without compensation, loss of the business. The rigour of the law is inexorable.

Four tips to avoid this type of dispute

• For the tenant: upon receipt of a notice with an offer of eviction compensation, consult a lawyer specialising in commercial law within 30 days. Do not rely on the landlord's verbal promises. The two-year period starts from the date of the notice, not from the date of receipt of the offer.
• For the landlord: keep proof of the date of service of the notice (recorded delivery, bailiff). Note in your diary the expiry of the two years. If the tenant has not acted, you can apply for eviction by way of interim proceedings the very next day.
• For both parties: put in writing any exchange concerning the eviction compensation. A simple email can be useful, but it does not interrupt the period. Only a writ of summons does.
• For the tenant: if you believe the landlord is in bad faith, do not wait to act. Bring proceedings within two years, even if the compensation is not yet quantified. You can always have it fixed later.

Further reading: related case law and developments

This decision is part of a consistent line of the Court of Cassation. Already, in a judgment of 15 June 2017 (No. 16-18.590), the Third Civil Chamber had ruled that the two-year period for bringing proceedings to fix eviction compensation runs from the date of the notice, and that the simple acknowledgment of the right to compensation by the landlord does not interrupt it. More recently, on 10 March 2021 (No. 20-13.247), the Court specified that the two-year limitation period cannot be interrupted by an acknowledgment of debt.

The particularity of the judgment of 12 February 2026 is that it explicitly excludes bad faith as a ground for suspension. Some commercial courts (such as that of Paris, in a 2022 decision) had sometimes suspended the period in case of fraudulent manoeuvres by the landlord. The Court of Cassation puts an end to these exceptions: legal certainty prevails. For the future, tenants will have to be more vigilant, and landlords can rely on a fixed period.

One question remains open: could the landlord's bad faith give rise to damages under Article 1240 of the Civil Code (civil liability)? It is possible, but this does not give a right to eviction compensation. The tenant will have to prove a separate loss.

What you absolutely must remember

FAQ:

1. Q: Can I still claim eviction compensation if the landlord acknowledged my right in writing? A: No, if the two-year period has expired. The acknowledgment does not interrupt the limitation period.
2. Q: What should I do if the landlord asks me for documents to quantify the compensation and I provide them? A: You must still bring proceedings within two years. The exchange of documents does not suspend the period.
3. Q: What is the time limit for acting? A: Two years from the date for which the notice was given (the end of the lease). After this period, the action is time-barred.
4. Q: Can I be evicted after two years? A: Yes, the landlord can apply for eviction by way of interim proceedings for manifestly unlawful disturbance, without waiting for a judgment on the merits.
5. Q: Does the landlord's bad faith change anything? A: No, it does not interrupt or suspend the limitation period. You can only claim damages if you prove a loss.

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 →