Business law – Construction – Case law

Two recent Court decisions in Business Law and Construction Law deserve to be mentioned.

LYCÉES D’ILE DE FRANCE (ILE-DE-FRANCE HIGH SCHOOLS)

For many years, legal reports have been talking about the case called « Lycées d’Ile de France« , in which the political parties had implemented, in the early 1990s, a questionable financing system.

This case resulted in many Court decisions before criminal jurisdictions as well as the French Competition Council.

More recently, the Ile-de-France region claimed, before the civil courts, the compensation of its damages estimated to more than 200 million Euros, both against construction companies having taken part in the contracts at the time and natural persons.

By a remarked decision of 17 December 2013, the Tribunal de Grande Instance (district court) of Paris found the action of the region had become time-barred, rendering all its claims impossible to review.

FENEON DELABRIERE AVOCAT represents several parties to this dispute.

CANCELLING A SALE OF PROPERTY FOR FUTURE COMPLETION (VEFA)

By a judgment of 10 December 2013 and upon request of FENEON DELABRIERE AVOCAT, the Reims Court of Appeal cancelled, several years after its signature, a sale of property for future completion made as part of a property building program for tax exemption.

The Court of Appeal pointed out the delays of the property developer in the performance of his work and his « incompetence ».

The Court thus ordered the developer to reimburse the amount of the property to the purchaser less the rents collected, which were not related to the developer’s estimates, and on the basis of which the client had signed the contract.