Where cracks in a building are attributable to the lessor’s lack of maintenance, the lessor cannot be exempted from liability.
A commercial lease was signed in 2008 for premises used as a hotel-restaurant.
The lease was subsequently renewed on June 1, 2015 for a nine-year term.
In 2016, the tenant reported cracks in the building’s facade. A closure order was issued in 2017 by the local mayor, following the opinion of the safety commission.
After a legal appraisal, the tenant summoned the landlord to restore the property and compensate him for his loss. Given the scale of the work to be carried out, which far exceeded the value of the property, the lessor sought to apply the provisions of article 1722 of the French Civil Code, which stipulates that:
“If, during the term of the lease, the leased property is destroyed in its entirety by a fortuitous event, the lease is terminated by operation of law; if it is destroyed only in part, the lessee may, depending on the circumstances, request either a reduction in the price, or the termination of the lease itself. In either case, no compensation is due”.
The Caen Court of Appeal followed the lessor’s lead, and ruled that the lessor was justified in claiming a “fortuitous event”, justifying the absence of compensation to the lessee.
In its ruling dated January 9, 2025, the French Cour de Cassation overturned the decision of the Court of Appeal, holding that the deterioration of the buildings could not be regarded as a fortuitous event as it was in particular due a lack of maintenance of the leased property attributable to the lessor.
The lessor cannot therefore be relieved of his obligations and responsibilities if the cracks affecting the building are linked to a failure in his obligation to maintain the property, under article 606 of the French Civil Code.