For the application of Article L

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

The situation

For the application of Article L. 113-5 of the Insurance Code, the judicial decision condemning the insured on the ground of his liability constitutes for the insurer of that liability the occurrence, both in its principle and in its extent, of the covered risk and is therefore binding on it, unless there is fraud against it. Consequently, the decision is overturned which, in order to dismiss the victim whom a real estate agent had been irrevocably ordered to compensate for the harmful consequences of the defective performance of an oral management mandate, from the direct action she subsequently brought against the civil liability insurer of that real estate professional, held that the insurer is entitled to rely on the absence of cover resulting from the absolute nullity incurred by such a mandate, due to failure to satisfy the mandatory requirements of Articles 6 of Law No. 70-9 of 2 January 1970 and 72 of Decree No. 72-678 of 20 July 1972, whereas the liability debt of the real estate agent, established both in principle and in amount, was binding on the insurer, which could no longer contest its cover except with regard to the terms of its policy.

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

• Strictly comply with the legal time limits for appeals
• Keep all your supporting documents (title deeds, deeds, letters)
• Anticipate: preventive advice always costs less than litigation

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