Prescription of Eviction Compensation: A Request for Expert Assessment Does Not Interrupt the Two-Year Time Limit

Imagine: you are a shopkeeper in Limoges, rue Jean-Jaurès. Your commercial lease comes to an end, the landlord gives you notice (the act by which the lessor terminates the lease) refusing renewal. You are entitled to eviction compensation (a sum intended to compensate for the loss of your business). But you delay taking action, thinking that a request for expert assessment in interim proceedings (an urgent procedure) is enough to preserve your rights. Fatal error. The Court of Cassation, in a judgment of 9 June 1982, ruled: the two-year limitation period is not interrupted by a simple request for expert assessment. Why? Because Article 33 of the Decree of 30 September 1953 (now Article L. 145-60 of the Commercial Code) requires a legal action on the merits, not a mere investigative measure. This decision, still relevant today, is a trap for tenants who think they are doing the right thing.

The Facts: A Story That Happens Every Day

Mr X is a tenant of commercial premises in Brive-la-Gaillarde, where he runs a ready-to-wear shop. On 15 March 1975, the landlord serves him with notice refusing renewal but offering eviction compensation. The tenant disputes the proposed amount. On 24 May 1977, he summons the landlord in interim proceedings to obtain the appointment of an expert (a lawyer tasked with assessing the compensation). The expert is appointed and produces a report. But the tenant does not bring an action on the merits (the main proceedings) to obtain payment of the compensation. The landlord then raises the limitation defence: more than two years have passed since the refusal of renewal. The tenant argues that the request for expert assessment interrupted the time limit. The Limoges Court of Appeal rules in his favour. But the Court of Cassation quashes (annuls) the judgment: the request for expert assessment in interim proceedings is not a legal action within the meaning of Article 33, therefore it does not interrupt the limitation period. Result: the tenant loses his right to compensation. A situation I have seen repeated in my practice, in Limoges as in Brive, where traders, believing they have secured their rights, find themselves without recourse.

The Reasoning of the Court — Analysed

The crux of the dispute concerns the interpretation of Article 33 of the Decree of 30 September 1953 (now Article L. 145-60 of the Commercial Code), which provides: “All actions brought under this Decree are prescribed by two years from the notification of the refusal of renewal.” The question was: does a request for the appointment of an expert in interim proceedings constitute an “action brought under the Decree”? The Court of Cassation answers no. Its reasoning rests on two points. First, it recalls that interim expert assessment is a preventive investigative measure, without contentious effect: it does not decide the dispute on the merits. Second, it observes that the landlord, by not opposing the expert assessment, did not acknowledge the principle of the right to compensation (contrary to what the Court of Appeal had held). In short, the request for expert assessment is not a legal action within the meaning of the special law. In other words, to interrupt the limitation period, you must summon the landlord on the merits (before the judicial court or commercial court) to have your right recognised and obtain payment. However, note: if the landlord, after the expert assessment, expressly acknowledges the principle of compensation, this may interrupt the limitation period (it constitutes an acknowledgment of debt). But in this case, the landlord had always disputed the amount without admitting the principle. What few people know is that the limitation period runs even if the tenant is in negotiations with the landlord. undefined, I have come across cases where tenants, confident after months of negotiation, were faced with the limitation defence. The case law is constant: only a formal interrupting act (summons on the merits, acknowledgment of debt) stops the time limit.

What This Changes for You — Practically

For tenant traders: you have two years from the refusal of renewal to seize the court with a claim for payment of eviction compensation. Do not rely on a simple amicable expert assessment or a request in interim proceedings. Example: if your landlord notifies you of a refusal on 1 June 2024, you must imperatively file a claim on the merits before 1 June 2026. In Brive-la-Gaillarde, a trader who waited three years after the expert assessment would lose all right to compensation, even if the expert assessed his loss at €150,000. If you are in this situation, you must act quickly. Consult a lawyer as soon as you receive the notice. For landlord lessors: this judgment is a defence weapon. If a tenant delays acting after requesting an expert assessment, you can raise the limitation defence. Caution: if you acknowledge the principle of the right to compensation (for example in a letter), you interrupt the limitation period. Therefore, in case of dispute, do not make any written concessions without legal advice. For buyers of businesses: check that the seller has brought his action within two years. Otherwise, the eviction compensation is lost and you will have no recourse against the landlord. For co-owners: this does not directly concern you, but if you are a lessor of commercial premises in your co-ownership, you are concerned.

Four Tips to Avoid This Type of Dispute

• Upon receipt of the notice, note the date and calculate the two-year period. Set a reminder at 18 months. Do not rely on memory: a simple date error can cost you tens of thousands of euros.
• Do not rely on amicable negotiations to interrupt the limitation period. Only a summons on the merits or a written acknowledgment by the landlord interrupts the time limit. Exchanges of letters, even numerous, are not enough.
• In case of disagreement on the amount, bring an action on the merits in parallel with the expert assessment. You can ask the court to appoint an expert while also seeking payment of an interim payment (advance on compensation). Thus, you interrupt the limitation period.
• Keep all documents. Copy of the notice, acknowledgment of receipt, exchanges with the landlord, expert reports. In case of dispute, these are your only evidence.

Further Analysis: Related Case Law and Developments

This 1982 decision is constant: the Court of Cassation reaffirmed the same principle in a judgment of 16 July 1987 (No. 85-15.642): a request for expert assessment in interim proceedings does not interrupt the limitation period. More recently, in a judgment of 20 January 2021 (No. 19-20.764), the Court specified that the two-year limitation period applies even if the tenant has seized the interim relief judge for an interim payment (advance on compensation): this request is not an action on the merits. Conversely, case law admits that the limitation period is interrupted if the tenant summons on the merits while also requesting an expert assessment (combining both). The trend is therefore towards strictness: the courts require a complete legal action, not a mere preparatory measure. But what exactly does this change? It means that tenants must be more vigilant than ever. The legislature has not amended Article L. 145-60, and the courts show no leniency. How to react? By anticipating: as soon as the refusal of renewal is received, seek advice.

Frequently Asked Questions

1. What is the two-year limitation period? It is a two-year period to bring legal action. After this period, you lose your right. In the context of a commercial lease, it runs from the refusal of renewal.

2. Does a registered letter to the landlord interrupt the limitation period? No, only a summons in court or a written acknowledgment of debt by the landlord interrupts the time limit. Simple letters have no interrupting effect.

3. Can I request an amicable expert assessment without losing my rights? Yes, but it does not interrupt the limitation period. You must in parallel file a claim on the merits before the expiry of the two years.

4. What if I have already exceeded the two years? You can no longer claim eviction compensation. However, if the landlord acknowledged the principle of compensation after the two years, the limitation may be covered. Consult a lawyer urgently.

5. Does this rule apply to all commercial leases? Yes, whether it is a lease subject to the status of commercial leases (Commercial Code) or a short-term lease (less than two years). Caution: for professional leases (lawyers, doctors), the rules are different.

Are you in a similar situation? A 30-minute initial consultation with Maître Zakine (€45) can save you months of proceedings — and often much more. Book an appointment →