Owner Versus Pierre & Vacances: A €73,000 Eviction Compensation Dispute

Summary of the judgment of the Bordeaux Judicial Court (5th Civil Chamber) – 16 April 2026, No. 23/08072

Background and parties

S.C.I. [N] ET FILS (landlord) purchased a flat in a tourist residence ([Address 4] in [Town 6]) and served a notice of termination with refusal to renew to S.A.S. PV HOLDING (the original tenant) on 15 March 2023, and subsequently to S.A.S. PV EXPLOITATION FRANCE (the assignee of the business) on 11 June 2024, with effect from 31 December 2024. The tenant, remaining on the premises, claimed compensation for eviction (€73,892.11), whilst the landlord sought eviction and the return of the keys subject to a penalty payment.

Claims of the parties

• S.C.I. [N] ET FILS:
  • Contests the classification as a commercial lease, arguing:
    • The absence of any explicit mention in the contract.
    • The term of 10 years (instead of the usual 9 years).
    • The absence of a right to renewal and of eviction compensation in the lease.
    • A rent that is too low and obligations on the tenant to carry out works, which are incompatible with a commercial lease.
  • Claim:
    • The termination of the lease and the eviction of the tenant.
    • Occupancy compensation of €234.20 per month from 1 January 2025.
• PV HOLDING and PV EXPLOITATION FRANCE:
  • Invoke the classification as a commercial lease (Art. L. 145-1 of the Commercial Code), because:
    • The tenant operates a business (tourist residence with hotel-style services).
    • The lease contains clauses typical of commercial leases (e.g. reference to Art. L. 145-31).
  • Claims:
    • The nullity of the notice of termination dated 15 March 2023 (served on PV HOLDING and not on PV EXPLOITATION FRANCE).
    • The payment of eviction compensation of €73,892.11 (calculated on the basis of turnover and commercial practices).
    • A judicial expert assessment to evaluate this compensation.

Court decision

1. Classification of the lease:
   • The court recognises the lease as a commercial lease (Art. L. 145-1 of the Commercial Code), because:
     • The tenant operates a tourist residence (Art. D. 321-1 of the Tourism Code), providing services (cleaning, entertainment, thalassotherapy).
     • The Act of 22 July 2009 (Art. L. 321-3 of the Tourism Code) explicitly subjects tourist residence leases to the status of commercial leases.
     • The notices of termination issued by the landlord refer to Articles L. 145-14 et seq. of the Commercial Code.
2. Validity of notices:
   • The notice dated 15 March 2023 (to PV HOLDING) is null and void, as the landlord has not invoked it and has issued a second valid notice on 11 June 2024 (to PV EXPLOITATION FRANCE), taking effect on 31 December 2024.
3. Right to remain in the premises:
   • The tenant cannot be evicted before payment of the eviction compensation (Article L. 145-28 of the Commercial Code).
   • The applications for eviction and for return of the keys subject to a penalty payment are dismissed.
4. Eviction compensation:
   • The court recognises the tenant’s right to compensation, but rejects the proposed amount (€73,892.11), because:
     • The multiplier coefficients applied by the tenant are discretionary.
     • The impact of the Covid-19 crisis on turnover is not sufficiently justified.
   • Order for an expert valuation to assess:
     • The amount of the eviction compensation (market value of the business, removal costs, etc.).
     • The occupancy compensation due from 1 January 2025.
   • Expert’s remit:
     • To examine the management accounts and the rental statement for the residence.
     • To assess incidental damages (business disruption, re-letting costs).
     • Submit a preliminary report within 4 months and a final report within 6 months.
   • Deposit: PV EXPLOITATION FRANCE must pay €2,500 within 2 months to cover the expert’s fees.
5. Proceedings and costs:
   • Costs reserved (proceedings continue).
   • Provisional enforcement as a matter of law (Art. 514 of the Code of Civil Procedure).
   • Adjournment to the preparatory hearing on 9 December 2026 for submissions following the filing of the expert report.

Legal issues

• Criteria for a commercial lease: The provision of services (even ancillary ones) in a tourist residence is sufficient to classify the lease as commercial, even in the absence of an explicit mention.
• Tenant protection: The right to remain in the premises (Art. L. 145-28) takes precedence over eviction claims, as long as the eviction compensation has not been paid.
• Assessment of compensation: An expert report is mandatory if the evidence produced by the parties is insufficient or disputed.