Sté Roussy v. Roussel ès Qual
France Court of Cassation
26 May 2010, F-D No. 09-66.615 (2010)
- Written by Curtis Parvin, JD
Facts
SCI Roussy (Roussy) (defendant), a French real estate company, leased commercial premises to Black Clover to operate a pub. One of the shareholders of Black Clover was also a senior manager of Roussy. Under the lease terms, Black Clover would turn over all fixtures and improvements on the premises to Roussy upon the lease’s termination. Black Clover spent substantial sums building out the pub—more than Black Clover would likely recover from the pub’s planned operation. In the meantime, Black Clover stopped making lease payments to Roussy, and Roussy did nothing to enforce its rights as the landlord for over one year. When the build-out work neared completion, Roussy moved to implement a cancellation clause in the lease because Black Clover could not make the long-overdue lease payments. Black Clover was forced into judicial liquidation, and the first-degree court appointed M. Roussel (the liquidator) (plaintiff) as the liquidator. The liquidator sought to extend Black Clover’s debt to Roussy, making Roussy liable to pay Black Clover’s liabilities. The first-degree court ruled in favor of Roussy, but an appellate court reversed the decision and ruled in favor of the liquidator, holding Roussy responsible for Black Clover’s liabilities. Roussy appealed to the French Supreme Court, commercial division.
Rule of Law
Issue
Holding and Reasoning (Per curiam)
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