Adagio Avignon Gare: PV-CP City condemned again
On October 26, 2022, the Nîmes Court of Appeal handed down a ruling confirming the Avignon Magistrates’ Court’s judgment of March 24, 2022 concerning a dispute between the PV-CP City company and several co-owners of the tourist residence located at address 80. PV-CP City, the lessee of the commercial leases, had stopped paying rent from March 2020 due to the Covid-19 pandemic and administrative restrictions. In June 2020, after the restrictions had been lifted, PV-CP City had proposed an amendment to the lessors to partially compensate for the unpaid rents, but only nine landlords had accepted.
Judicial termination of leases and eviction of PV CP CITY
The landlords took PV-CP City to court to obtain judicial termination of the leases, eviction of the company, and payment of unpaid rents and compensation. The Avignon Court of First Instance terminated the leases, ordered PV-CP City’s eviction, and ordered the company to pay unpaid rent, occupancy indemnities and damages for moral prejudice.
PV-CP City appealed, arguing that it was impossible to operate the premises due to sanitary restrictions, and requesting the suspension of rents for the periods concerned. The company also contested the nullity of the “Covid” endorsements on the grounds of fraud, and asked for extended payment terms in view of its financial difficulties.
The Court of Appeal rejected PV-CP City’s arguments, confirming that the sanitary restrictions did not constitute a partial loss of the leased property within the meaning of article 1722 of the French Civil Code, and that the lessors had not breached their obligation to deliver. The Court also rejected the request for payment deadlines, noting that PV-CP City had not justified its financial situation and had already benefited from payment deadlines.
Court confirms judicial termination
The Court confirmed the judicial termination of the leases and the eviction of PV-CP City, as well as the company’s order to pay unpaid rent, occupancy indemnities and damages for moral prejudice. The Court also ordered PV-CP City to pay the costs of the proceedings and an additional sum of 300 euros to each of the lessors under article 700 of the French Code of Civil Procedure.
In conclusion, the Nîmes Court of Appeal upheld the judgment of the Avignon Magistrates’ Court, rejecting PV-CP City ‘s arguments and ordering termination of the commercial leases, eviction of the company, and payment of the sums due to the lessors.
CA Nîmes, 26-10-2022 n° 22/01266 Confirmation
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