Eviction Compensation: Time Limit for Exercising the Right of Repentance Runs Only After Notification of the Date of Pronouncement

Imagine: you own a commercial property in Valognes, leased to a florist. The lease is nearing its end, you refuse renewal. The tenant claims eviction compensation (the sum due by the lessor who does not renew the commercial lease). The Caen Court of Appeal fixes this compensation at €50,000. You then have 15 days to change your mind and renounce the eviction by paying this sum. But if you were not informed of the exact date of pronouncement of the judgment, these 15 days have not started to run. That is precisely what the Court of Cassation ruled in this decision of 13 June 2001.

This decision, which concerns Article 32 of the Decree of 30 September 1953 (now Article L. 145-58 of the French Commercial Code), answers a practical question: from when does the period for exercising the right of repentance run? For lessor-owners, this is a crucial question: a calendar error can cost thousands of euros.

But what exactly does it change? In this article, I will tell you the story behind this decision, explain the judges' reasoning, and give you practical advice to avoid this type of dispute. Whether you are an owner in Coutances, a tenant in Valognes, or a real estate professional, this decision concerns you.

The Facts: A Story Like Many Others

Mr X, owner of a commercial property in Valognes, leases it to Mr Y, a tradesman. In 1993, the lessor refuses to renew the lease. In accordance with the law, the tenant applies to the court to have the eviction compensation fixed (the sum the owner must pay if he does not renew the lease). On 23 May 1995, the Caen Court of Appeal delivers a judgment fixing this compensation at a certain sum.

The problem: the Court of Appeal delivered its judgment on 23 May, but the owner was not informed of this date. He learns of it later and then exercises his right of repentance (i.e., he finally decides to pay the compensation to keep his premises free). But the tenant contests: according to him, the 15-day period for exercising this right had already expired.

In short, did the owner still have the right to buy himself out? The Caen Court of Appeal had ruled in his favour, but the tenant appealed to the Court of Cassation. The case therefore goes up to the Court of Cassation, which must decide: from when does the 15-day period run?

What few people know: in my practice, I have come across cases where owners lost their right of repentance for acting one day too late. Here, the stakes were exactly that.

The Reasoning of the Court — Analysed

The Court of Cassation relies on Article 32 of the Decree of 30 September 1953 (now Article L. 145-58 of the French Commercial Code). This text provides that the lessor may, within 15 days of the decision fixing the eviction compensation, renounce the eviction by paying this compensation. But the question was: do these 15 days run from the pronouncement of the decision, or only from the moment the parties become aware of it?

The judges of the Court of Cassation answer: "For the period under Article 32 of the Decree of 30 September 1953, now Article L. 145-58 of the Commercial Code, to run, the parties must have had knowledge of the date on which the decision fixing the eviction compensation is rendered." In other words, it is not the date of pronouncement that matters, but the date on which the parties learn of this decision.

However, be careful: the Court adds an additional condition. It specifies that "the completion of the formality by which the President of the court indicates to the parties the date of pronouncement of the decision must be expressly mentioned and cannot be presumed." Concretely, this means that the registry must prove that the parties were informed. If this information is not expressly mentioned in the file, the period does not run.

In this case, the Court of Appeal had found that the owner had not received notification of the date of pronouncement of the judgment of 23 May 1995. It deduced that the period had not started to run, and therefore that the right of repentance had been exercised in time. The Court of Cassation approves this reasoning and dismisses the appeal.

This decision confirms a line of case law protective of the lessor, but it is also logical: how can one comply with a time limit if one does not know when it starts?

What This Changes for You — Practically

For the lessor-owner: you can now be reassured. If you were not expressly informed of the date of the decision, you cannot be time-barred. But beware: as soon as you become aware of the decision (e.g., by notification from the opposing lawyer), the period runs. Do not delay in acting.

For the tenant-trader: this decision is less favourable to you. You cannot oppose the owner with a time limit that has not been regularly notified. If you wish the period to run, you must ensure that the decision has been brought to the lessor's attention in a certain manner.

Concrete example: in Coutances, an owner's right of repentance was contested because he had acted 20 days after the pronouncement of a judgment. But since he had not received notification of the date, the Court of Appeal validated his repentance. Without this decision of the Court of Cassation, he would have lost.

If you are in this situation, you must check two things: the date on which the decision was brought to your attention, and the existence of an express mention of this notification in the file. In case of doubt, act quickly as soon as you become aware of the decision.

Four Tips to Avoid This Type of Dispute

• Tip #1: Demand written notification of the date of pronouncement. When a judgment or order is reserved, ask the registry or your lawyer to provide you in writing with the date on which the decision will be rendered. Keep this information.
• Tip #2: Never presume the time limit. Do not count the 15 days from the date you believe to be the pronouncement date. Wait until you have certainty, e.g., receipt of a copy of the decision or a letter from the registry.
• Tip #3: In case of appeal, anticipate. As soon as the judgment is rendered, prepare your decision to repent or not. If you are unsure, consult a lawyer specialised in commercial law.
• Tip #4: Have the notification recorded. If you are the tenant, and you want the period to run, ask the registry to notify the decision to the lessor by registered letter with acknowledgement of receipt. Keep proof of this notification.

Further Reading: Related Case Law and Developments

This decision of 13 June 2001 is part of a series of decisions protective of the lessor. For example, the Court of Cassation had already ruled, in a decision of 17 January 1984, that the period under Article 32 runs only from the service of the decision (Civ. 3e, 17 Jan. 1984, No. 82-15.693). Here, it goes further by requiring an express mention of the formality.

More recently, the Court of Cassation recalled that the right of repentance may be exercised up to the date of assignment of the leasehold interest, even after expiry of the period, if the lessor was not informed (Civ. 3e, 22 Mar. 2018, No. 17-12.471). The trend is therefore clear: judges protect the lessor against involuntary time-bar.

For the future, this case law could be reinforced by the requirements of civil procedure regarding notification. Courts will have to ensure that the mention of the date of pronouncement is systematically included in the file.

Summary and Next Steps

FAQ

What is the time limit for exercising the right of repentance after fixing eviction compensation? 15 days from the date on which the parties became aware of the decision fixing the compensation.

What if I was not informed of the date of pronouncement? The period does not run. You can exercise your repentance as soon as you become aware of the decision, even several months later.

Can the tenant contest my repentance if I exceeded the 15 days from pronouncement? Yes, but you can defend yourself by proving that you were not informed of the date. The burden of proof of notification lies with the person invoking the time limit (often the tenant).

What are the consequences if the time limit is exceeded? You definitively lose the right to retain the premises by paying the compensation. You must vacate the premises and pay the eviction compensation as fixed.

Should I consult a lawyer? Yes, as soon as you become aware of an eviction procedure. A specialised lawyer will help you comply with time limits and exercise your rights.

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 →