Eviction damages

Café-bar-restaurant eviction compensation

On January 25, 2023, the Paris Court of Appeal handed down a ruling concerning a dispute between Mrs [E] [M] wife [O], operator of a café-bar-restaurant, and SCI [Adresse 1], owner of the premises. Mrs [O] had been placed in receivership in 2013, and a reorganization plan was adopted in 2014. In 2016, SCI [Adresse 1] gave Mrs [O] notice to quit without offering to renew the lease, with an offer of eviction compensation. Mrs [O] then applied to the interim relief judge to assess this compensation.

In 2020, the Bobigny Regional Court set the eviction indemnity at €119,700 and the annual occupancy indemnity at €21,043. Mrs [O] appealed against this judgment, claiming an eviction indemnity of €237,500 and an occupancy indemnity of €20,812/year. SCI [Adresse 1] also appealed, claiming an eviction indemnity of €103,141.50 and an occupancy indemnity of €28,018/year.

The Court of Appeal examined the arguments of both parties. It valued the business at €76,200 based on EBITDA and €84,900 based on sales, setting the main eviction indemnity at €89,402.

Ancillary compensation

Replacement costs were set at €8,940, commercial disturbance at €4,800 and moving costs at €2,000, for a total of €105,142.

Eviction compensation at €105,142 and occupancy compensation at €22,560/year

Regarding the occupancy indemnity, the Court set the rental value of the commercial part at €18,265 and the residential part at €6,804, i.e. a total of €25,069, with a 10% allowance for precariousness, i.e. €22,560 per year.

The Court partially reversed the 2020 judgment, setting theeviction indemnity at €105,142 and theoccupancy indemnity at €22,560/year. Mrs. [O] was ordered to pay the costs of the appeal and to bear her own irreducible expenses.

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