Expropriation compensation: valuation fixed at the date of judgment

Imagine: you own a building in Sartène, a property you acquired twenty years ago. One morning, you receive a registered letter: your building is being expropriated for public utility purposes, for the benefit of a social housing office. Your compensation? It will be fixed by a judge. But on what date? On the date of expropriation? On the date of moving out? On the date of the trial? The question is crucial: between these moments, the value of your property may have increased or decreased. This 1965 decision, handed down by the Court of Cassation (the highest judicial court), provides a clear answer: compensation is valued at the date of judgment, neither before nor after. But beware, there are nuances.

The facts: a story that happens every day

We are in Paris, in 1962. A company, SCI Périchau, owns a building in the 13th arrondissement. The public social housing office of the City of Paris decides to expropriate the building to build social housing. The expropriation order (the act transferring ownership to the office) is made on 2 December 1962. But the amount of compensation is not fixed on that day. It would take until the judgment of the court, rendered a few months later. In the meantime, the value of the building increased, notably because the office carried out roadworks nearby. SCI Périchau claims compensation based on the value at the date of judgment, including this increase in value. The public social housing office, for its part, maintains that the compensation must be fixed at the date of the expropriation order. The court finds in favour of the company. The office appeals to the Court of Cassation (a form of appeal before the Court of Cassation).

The reasoning of the court — analysed

The Court of Cassation, in its judgment of 15 October 1965, quashes (annuls) the decision of the lower court. It relies on Article L. 13-15 of the Expropriation Code (now Articles L. 321-1 et seq.), which provides that expropriation compensation is valued at the date of the first instance decision (the judgment). But it adds an essential clarification: this valuation must not take into account changes in value resulting from the announcement of the planned works or their execution, unless the composition or condition of the property has actually changed between the order and the judgment. In other words, the judge must place himself at the date of judgment, but disregarding any increases (or decreases) in value caused by the expropriation itself. Why? Because these variations are not the doing of the owner, but of the administrative decision. The trial judges (the first judges) had erred in including the increase in value linked to the office's works. The Court of Cassation reminds them that compensation must be fair and prior, but not speculative.

What this changes for you — concretely

If you are the owner of an expropriated property, this decision is a double-edged sword. On the one hand, it guarantees you that compensation will be valued at a date close to your actual departure (the judgment). On the other hand, it prevents you from benefiting from increases in value generated by the expropriation project itself. For example, if a developer expropriates your land in Sartène to build a commercial area, you cannot claim compensation based on the future value of the neighbourhood once the works are completed. On the other hand, if your property deteriorated between the order and the judgment (e.g., a fire), the judge will take it into account. Concrete case: in Propriano, an owner of an investment property was expropriated for a road project. The order was made in 2020, the judgment in 2022. In the meantime, the value of the property had fallen due to a dangerous building order (safety hazard). The judge took this decrease into account, as it was independent of the project. Result: compensation reduced by 15%. Moral: have the condition of your property recorded as of the order.

Four tips to avoid this type of dispute

• Have a joint inventory of fixtures drawn up as of the expropriation order. This fixes the composition of the property and avoids later disputes.
• Keep all evidence of works or deterioration occurring between the order and the judgment. Invoices, dated photos, expert reports.
• Do not accept the first compensation offer without legal advice. The administration tends to undervalue. A specialist lawyer can negotiate or challenge.
• If you disagree with the valuation, apply to the expropriation judge before the expiry of the appeal deadline (2 months after notification of the order). After this deadline, the compensation is definitively fixed.

Further reading: related case law and developments

This 1965 decision is a classic. It has been confirmed by later judgments, notably Cass. 3e civ., 12 June 1973, No. 72-70.106, which specifies that increases in value resulting from the announcement of works are excluded even if they predate the order. More recently, Cass. 3e civ., 11 May 2017, No. 16-17.482, recalled that the judge must place himself at the date of judgment, but disregarding variations due to the expropriation. The trend is therefore stable: compensation is valued at the date of judgment, but 'outside the influence' of the project. For the future, the question arises as to whether new technologies (such as artificial intelligence for valuing properties) will change this rule. Nothing is less certain: expropriation law is very protective of the owner, and the Court of Cassation ensures that compensation remains 'fair and prior'.

Frequently asked questions

What is the reference date for the valuation of my expropriation compensation?
The date of the first instance judgment (tribunal judiciaire), unless the property has changed in composition or condition between the order and the judgment.

Can I challenge the compensation if it is too low?
Yes, by applying to the expropriation judge within two months of notification of the order. A lawyer is strongly recommended.

Are increases in value linked to the expropriation project taken into account?
No, unless they result from an actual change in the composition or condition of the property (e.g., construction of a retaining wall on the land).

What if my property deteriorates after the order?
The decrease in value will be taken into account, as it is independent of the expropriation project. Have the deterioration recorded by a bailiff.

Does this rule apply to all expropriations?
Yes, whether it is a classic expropriation for public utility purposes or an expropriation for natural risks (e.g., risk prevention plan).

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. Make an appointment →