Disagreement over the amount of rent for a renewed lease
This case concerns a dispute between Mr [K] [V] and Mrs [T] [M], wife [V], lessors, and SARL Boucherie Normande, lessee, over the renewal of a commercial lease. The initial lease, signed on July 8, 2010, covered commercial and residential premises located at [Location 1], for an annual rent of 23,449.68 euros. In 2019, the lessee requested renewal of the lease on the same terms, but the lessors proposed an increase in the rent to 37,790 euros, which led to a disagreement.
Provisional fixing of the rent and a legal appraisal
The landlords then referred the matter to the rent judge of the Lisieux judicial court, who provisionally set the rent at 30,000 euros excluding charges, and ordered a legal appraisal. On June 10, 2022, the judge set the annual rent at 26,882.80 euros, rejected the lessors’ request for an expert appraisal and ordered them to reimburse the excess rent received since July 1, 2019, as well as to pay 4,000 euros in procedural indemnities to the lessee.
Request for further expert appraisal rejected
The lessors lodged an appeal, requesting additional expert appraisal to analyze changes in the lessee’s sales and an increase in rent to 41,162 euros. After examining the arguments and the expert reports, the Caen Court of Appeal upheld the lower court’s judgment. It rejected the request for further expert appraisal, deeming that the accounting documents produced made it possible to rule on the dispute.
Rejection of the request to de-cap the rent
The court also upheld the annual rent of 26,882.80 euros, basing its decision on the characteristics of the premises, the use to which the premises were put, the obligations of the parties, local commercial factors and prices in the vicinity. It ruled that there had been no significant change in local market factors to justify an increase in the rent.
Lastly, the court ordered the lessors to pay the costs of the appeal and 3,000 euros to the lessee under article 700 of the French Code of Civil Procedure, rejecting their claim for procedural damages.
CA Caen, 15-02-2024, n° 22/01824
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