45,960 euros main compensation and 30,359 euros additional compensation
The case concerned a dispute between Mrs Z and the town of Deauville over a commercial lease. Mrs. Z had leased premises in Deauville, but the town refused to renew the lease in 2011, offering an eviction indemnity of 12,716 euros. After several rulings, the Tribunal de Grande Instance de Lisieux ordered the town to pay 45,960 euros in main compensation and 30,359 euros in ancillary compensation to Ms. Z in 2017. Mrs. Z appealed, requesting a principal indemnity of 175,000 euros, additional indemnities of 43,500 euros, and 100,000 euros in damages for disturbance of enjoyment.
Multiplier factor of 4 for average EBITDA over the last three years
The Caen Court of Appeal revalued the main eviction indemnity at 60,772 euros, based on the value of the business, calculated on the basis of the average EBITDA for the last three years and a multiplier factor of 4.
Ancillary compensation
The court also set ancillary compensation at 31,475.45 euros, including a reinvestment indemnity of 6,077.20 euros, compensation for commercial disruption of 3,798.25 euros, and moving expenses of 21,600 euros.
No fault on the part of the City of Deauville in carrying out the redevelopment work
The court rejected Ms. Z’s claim for damages, ruling that the City of Deauville had not committed any fault in exercising its rights as lessor and carrying out the development work. The court also overturned the provisions of the initial judgment concerning costs, ordering the City of Deauville to pay the costs of the first instance and appeal, as well as the irreducible costs of 1,000 euros in the first instance and 2,000 euros in the appeal.
In conclusion, the Caen Court of Appeal partially overturned the initial judgment, increasing the main eviction indemnity and ancillary indemnities, while rejecting Ms. Z’s claim for damages. The town of Deauville was ordered to pay the costs of the proceedings and irreducible expenses.
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