Subrogation occurs by operation of law

This decision provides important insight into your property law. Here is what it changes for you.

The situation

Subrogation occurs by operation of law for the benefit of a person who, being bound with others or for others to pay the debt, had an interest in paying it. The Court of Appeal violates this provision where, in order to declare a company's claim preferential, it held that, following payment of the tax debts of property companies guaranteed by it, that company was legally subrogated to the rights of the Treasury against a company in receivership which had granted it a counter-guarantee, whereas the judgment had noted that the latter company "was not liable to the Treasury".

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

• Scrupulously respect the statutory time limits for appeals
• Keep all your supporting documents (deeds, acts, correspondence)
• Anticipate: preventive advice always costs less than litigation

For an analysis of your situation: 30-minute consultation at €45 with Maître Zakine.