Duval v. Chedot

Mr. Duval (defendant), a certified public accountant, performed accounting and tax services for Mr. Chedot (plaintiff), who operated a garage business. Chedot later terminated Duval’s services and hired another accountant. Duval billed Chedot for services performed before the termination, but Chedot refused to pay, apparently believing that Chedot had a claim for malpractice against Duval. Pending payment of Duval’s bill, Duval retained Chedot’s records, as allowed under French law. French tax authorities later audited Chedot. Chedot asked Duval to return Chedot’s business records, but Duval refused because Chedot had not paid the bill. Chedot then asked Duval to give the tax authorities access to the records, but Duval again refused. The tax authorities assessed further taxes and penalties against Chedot. Chedot sued Duval in Caen, France, claiming the tax charges were Duval’s fault. Duval counterclaimed for payment of his bill for services rendered and a judicial declaration that Duval had the right to retain Duval’s records until paid. The trial court entered judgment in favor of Duval for payment of the bill, which Chedot did not appeal. The trial court then entered judgment against Duval for abusing his right to retain the records and awarded sizable damages. Duval unsuccessfully appealed to the Caen intermediate appellate court. Duval then appealed to the Court of Cassation—France’s highest court of appeal.