Adagio Marseille Saint-Charles lessors win their case
The case concerns a dispute between several owners of the Adagio Marseille Saint-Charles residence and the société par actions simplifiée PV HOLDING, now PV-CP CITY, over unpaid rents for the years 2020 and 2021, during the COVID-19 crisis.
The dispute
The plaintiffs are individual owners of the Adagio Marseille Saint-Charles residence. They claim payment of unpaid rent from PV HOLDING/PV-CP CITY, which claimed to be unable to operate the premises due to government measures related to the pandemic.
Judgment
The court ruled that PV HOLDING’s claims were unfounded, pointing out that PV-CP CITY was PV HOLDING’s successor in terms of commercial lease obligations. The court also rejected the arguments of loss of the leased property and exception of non-performance put forward by the defense.
Reasons for the decision
1 Partial loss of the leased property (article 1722 of the French Civil Code)
The court rejected the argument that the impossibility of operating the premises due to government measures constituted a partial loss of the leased property. It was specified that the loss must be definitive, which was not the case here since use of the premises was temporarily suspended but not destroyed.
2 Exception of non-performance (article 1219 of the French Civil Code)
PV-CP CITY cannot invoke the exception of non-performance, since the restrictive measures were external and independent of the lessors, and the premises were still available for use.
Lack of proof of a partial contribution to exclude PV HOLDING from liability
The court ordered PV-CP CITY to pay the rent arrears, specifying the amounts due to each plaintiff, and rejected the claims of PV HOLDING, which had not proved that it had been exonerated by a partial contribution agreement.
56,328 € in covid rents
On April 11, 2024, the Marseilles Magistrates’ Court ordered a PIERRE ET VACANCES company to pay a total of €56,328 in unpaid covid rents to the lessors of the Adagio Marseilles Saint-Charles tourist residence.
11,040 in legal fees
The judges ordered PIERRE ET VACANCES to pay €11,040 in legal fees (23 lessors x €480).
67,368 in total condemnation
The operator must make a total payment of €67,368.
Provisional enforcement
In accordance with article 514 of the French Code of Civil Procedure, the decision is enforceable on a provisional basis.
Abusive resistance by the operator
It is difficult to understand the obstinacy of PIERRE ET VACANCES group companies in the matter of covid rents since the Court of Cassation rulings of June 30, 2024. Court dockets have been clogged since the covid years.
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