On November 26, 2024, the Paris judicial court handed down a ruling concerning a dispute between S.A. NEXITY STUDEA and Mr [T] [G] relating to a commercial lease. The dispute concerns premises located at [Address 5], [Location 10], leased for a student residence. The initial lease, signed in 1998, has been renewed several times, with modifications concerning the rent and its indexation.
Studea: Dismissal without eviction indemnity for serious and legitimate reasons
In February 2022, Mr [T] [G] issued a notice to NEXITY STUDEA, refusing to renew the lease without eviction compensation, citing serious and legitimate grounds. NEXITY STUDEA contested this notice, requesting its nullity and the payment of an eviction indemnity. The court examined several points of dispute:
- Indexation clause and VAT: Mr [T] [G] accused NEXITY STUDEA of not respecting the annual rent indexation clause and of charging him VAT. The court ruled that the rent was stipulated inclusive of all taxes and that NEXITY STUDEA did not have to pay an increase in VAT in addition to the contractual rent.
- Communication of minutes of general meetings: Mr [T] [G] complained that NEXITY STUDEA had not communicated the minutes of general meetings of co-owners to him. The court noted that the lessor had to give a special mandate to NEXITY STUDEA to represent him at the meetings, which he had not done.
- Subletting: Mr [T] [G] claimed that NEXITY STUDEA had illegally sublet the property without his consent. The court ruled that subletting was part of the activity authorised by the lease and that NEXITY STUDEA was not required to obtain the lessor’s consent for each subletting.
The court concluded that the reasons given by Mr. [T] [G] for refusing to renew the lease were ill founded. Consequently, it rejected Nexity Studea’s request that the notice be null and void, but recognised his right to eviction compensation.
The court orders a legal appraisal to determine the eviction indemnity
A legal appraisal was ordered to determine the amount of this indemnity and the occupancy indemnity due by Nexity Studea from October 1, 2022.
The court has also proposed mediation in an attempt to resolve the dispute amicably. The parties will meet with a mediator to discuss the terms of the mediation. If they accept, the expertise process will be suspended during the mediation.
Finally, the court set a provision of 6,000 euros for the expert’s fees, to be deposited by Nexity Studea before February 28, 2025. Nexity Studea‘s request for eviction was rejected, and the case was adjourned to a pre-trial hearing on March 19, 2025 to verify payment of the deposit. Costs and claims under article 700 of the French Code of Civil Procedure were reserved.
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