Setting the amount of the indemnity

Application pratique:

This case law confirms the landlord is only liable for the business value, not the higher relocation cost. The landlord should request a formal business valuation and present the decision to the tenant or court to cap the indemnity. They should also keep all correspondence and lease documents to support their position. If negotiations fail, they can cite this precedent in eviction proceedings to avoid overcompensation.

Application pratique:

Under this decision, the tenant cannot claim the full relocation cost because it exceeds the business value. The tenant should focus on gathering evidence of the business's true market value (accounts, goodwill) and negotiate an indemnity based on that figure. They may also explore alternative premises with lower fit-out costs to stay within the cap. Seeking early legal advice is crucial to avoid costly litigation over an unclaimable amount.

Application pratique:

This case law allows the investor to calculate the maximum potential eviction indemnity as the business value (€90,000), not the relocation cost. The investor should commission a professional business valuation before purchase and factor this capped liability into the property price and renovation budget. They should also ensure the sale agreement reflects this understanding to avoid disputes with the tenant later. Consulting a French real estate lawyer can help structure the purchase and eviction strategy accordingly.