Refusal to renew a café-brasserie lease
On September 23, 2024, the Second Civil Chamber of the Pontoise Judicial Court handed down a judgment concerning a dispute between the Établissement Public Foncier d’Ile de France (EPFIF) and Mr [T] [G] and Mrs [M] [Aa] wife [G] concerning the renewal of a commercial lease. The initial lease, signed on January 30, 2008, covered premises used as a café-bar-brasserie-tobacco shop-Française des jeux presse PMU-furnished rooms. The lease was tacitly extended until October 1, 2018, when the couple [G] requested its renewal. EPFIF refused the renewal and proposed an eviction indemnity.
Judicial appraisal of eviction and occupancy indemnities
As the parties were unable to agree on the amount of the compensation, Mr and Mrs [G] applied to the interim relief judge to appoint a legal expert to assess the eviction and occupancy compensation. The expert submitted his report on March 16, 2021. EPFIF then served a writ of summons on spouses [G] to set the compensation. Spouses [G] asked for the eviction indemnity to be updated, which was refused by the pre-trial judge.
EPFIF asked the court to set the eviction indemnity at €1,076,415, the annual occupancy indemnity at €51,631, or alternatively at €42,300, and to order spouses [G] to pay EPFIF €5,000 under article 700 of the French Code of Civil Procedure. Mr. and Mrs. [G] requested a new expert appraisal, an eviction indemnity of €1,647,300, and an occupancy indemnity of €35,716 excl. tax per annum.
Main compensation at €960,000
The court ruled that the legal expert had correctly valued the eviction indemnity at €960,000, using recognized methods adapted to the characteristics of the business. The couple [G] did not demonstrate any notable change in the accounting elements subsequent to the expert’s report. The court therefore set the main compensation at €960,000.
Ancillary indemnities
Replacement costs at €105,710 and commercial disturbance at €28,221
With regard to ancillary compensation, the court set the costs of re-investment at €105,710, commercial disturbance at €28,221, and miscellaneous costs at €2,000. Relocation and moving expenses were not awarded for lack of supporting documents. Redundancy costs will be reimbursed on presentation of supporting documents.
Occupancy allowance of €39,600 excl. tax per annum.
The total eviction indemnity was set at €1,095,931. EPFIF was ordered to pay this sum to Mr and Mrs [G] and to pay them €5,000 under article 700 of the French Code of Civil Procedure. Theoccupancy indemnity was set at €39,600 excl. tax per year from October 1, 2018 until the premises are vacated. EPFIF will be required to repay any excess sums received, with interest at the legal rate.
The court rejected the parties’ requests for a new expert appraisal and other claims. The decision is provisionally enforceable.
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