Prescription of Eviction Compensation: Beware of the Two-Year Time Limit (Cass. civ. 3e, 5 Sept. 2012)

Imagine the situation: you are a tenant of commercial premises in La Chapelle-Saint-Luc, and your landlord gives you notice to sell. You are entitled to eviction compensation, but you wait a few years before taking action. Fatal mistake: the two-year period has passed, and you lose all right to compensation. This is exactly what happened to the company Le Boulingrin, in a case decided by the Court of Cassation on 5 September 2012.

This decision is a harsh reminder for all commercial tenants: the time limit to claim eviction compensation is two years, and the 2008 reform of prescription did not change this. But what exactly does this change? And how can you avoid finding yourself in this situation?

In this article, I will explain clearly and concretely what this ruling says, what the consequences are for you, and especially how to protect yourself. I am Maître Cécile Zakine, a real estate lawyer, and I deal with this type of case every day, particularly in the Troyes area. So, follow me, let's break it all down.

The Facts: A Story Like Many Others

The story begins with the company Le Boulingrin, tenant of commercial premises in La Chapelle-Saint-Luc, on the outskirts of Troyes. The owner, Mr. X, gives notice to vacate in order to sell the premises. In accordance with the commercial leases statute, the evicted tenant is entitled to eviction compensation, intended to compensate for the loss of his business. But the company Le Boulingrin does not claim this compensation immediately. It waits several years before suing its landlord.

Problem: in the meantime, the limitation period has run. The landlord invokes the two-year limitation period provided for in Article L. 145-60 of the Commercial Code, which states that all actions relating to commercial leases are time-barred after two years. The company Le Boulingrin retorts that the law of 17 June 2008, which reformed prescription in civil matters, modified this period or, at the very least, provided transitional rules favourable to it.

The Court of Appeal rules in favour of the landlord: the action is inadmissible because time-barred. The company Le Boulingrin appeals to the Court of Cassation. But the Court of Cassation dismisses its appeal by the ruling of 5 September 2012. It confirms that the 2008 law neither increased nor reduced the two-year limitation period of Article L. 145-60, and that no transitional provision allows reviving a prescription already acquired before the entry into force of the law. In other words, the two-year period remains unchanged, and if you have let this period pass, you can no longer claim anything.

The Reasoning of the Court — Explained

The Court of Cassation was very clear: Law No. 2008-561 of 17 June 2008 reforming prescription in civil matters neither increased nor reduced the two-year limitation period of Article L. 145-60 of the Commercial Code. This period remains two years, as before. And above all, the new law does not provide any transitional provisions for causes of interruption or suspension of prescription. Consequently, when the prescription of the action for payment of eviction compensation was acquired before the entry into force of the law (19 June 2008), an action brought after that date is inadmissible.

Concretely, the Court of Cassation validated the reasoning of the Court of Appeal which had noted that the two-year period was exceeded at the time the company Le Boulingrin acted. Regardless of the fact that the 2008 law extended certain limitation periods (such as the general limitation period from 30 to 5 years), the legislator expressly excluded special limitation periods such as that for commercial leases. What few people know is that this solution was later confirmed by other rulings, such as that of 17 December 2015 (No. 14-26.572).

The legal basis? Article L. 145-60 of the Commercial Code, which provides: “All actions to which commercial leases may give rise, between landlords and tenants, are time-barred after two years.” This is a short limitation period, intended by the legislator to ensure rapid legal certainty in commercial relations. The judges simply applied the letter of the law, without making room for equity. undefined, I have encountered cases where tenants in Nogent-sur-Seine lost their compensation for the same reason: they waited too long, thinking the period was longer or that the 2008 law offered them a lifeline. That is not the case.

What This Changes for You — Practically

For tenants: if you receive a notice to vacate (to sell, for repossession, etc.), you have two years from the notification of the notice to claim your eviction compensation. After this period, you lose all right. Example: imagine a business in Nogent-sur-Seine valued at €80,000. If you wait three years before acting, you will receive nothing. The loss can be enormous.

For landlord owners: this decision is rather good news. If you give notice to a tenant and they do not act within two years, you are safe. But be careful: do not rely on prescription to exonerate you from any obligation if you have committed a fault (for example, a fraudulent notice).

For buyers: if you purchase an occupied commercial premises, check whether a notice has been given and whether the tenant has acted within the time limits. Otherwise, you could inherit a dispute.

In short, the message is simple: do not delay consulting a lawyer as soon as you are faced with a notice or a refusal to renew a commercial lease. The two years pass quickly, and the financial consequences are severe.

Four Tips to Avoid This Type of Dispute

• Never wait to act: as soon as you receive a notice, consult a lawyer specialising in commercial leases. The two-year period begins to run from the notification of the notice. Do not let it expire without reacting.
• Check prescription dates: note the date of any document (notice, refusal of renewal, etc.) and calculate the deadline. Use a calendar or a reminder on your phone so you don't forget.
• Keep all documents: carefully keep registered letters, notices, receipts, etc. In case of a dispute, this evidence is essential to establish the starting date of prescription.
• If in doubt, file a claim before the deadline expires: even if you are not sure of your right, a writ of summons interrupts prescription. You can always withdraw later, but at least you will have saved your action.

Further Reading: Related Case Law and Developments

This decision is part of consistent case law. Even before 2012, the Court of Cassation considered that the two-year period of Article L. 145-60 was not modified by the 2008 law (Civ. 3e, 16 May 2012, No. 11-14.563). Since then, it has confirmed several times: the two-year limitation period is autonomous and was not affected by the reform (Civ. 3e, 17 Dec. 2015, No. 14-26.572).

The trend is therefore clear: judges are very strict on compliance with the two-year period. No relaxation is to be expected unless the legislator intervenes again. For the future, tenants must be particularly vigilant, as the slightest negligence can cost them dearly. Landlords, on the other hand, can rest easy if the period has expired.

Frequently Asked Questions

1. What is the time limit to claim eviction compensation? It is two years from the notification of the notice or refusal of renewal.
2. Did the 2008 law change this period? No, the Court of Cassation confirmed that the two-year period remains unchanged.
3. What if I have exceeded the deadline? Unfortunately, you have no remedy. Nevertheless, consult a lawyer to check if there is a cause of interruption or suspension that you may have overlooked.
4. Can I interrupt prescription? Yes, by suing the landlord in court before the deadline expires. A simple formal notice does not interrupt prescription.
5. Does the period run from the end of the lease? No, it runs from the notice or refusal of renewal, even if the lease continues temporarily.

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 →