A Case Highlighting Post-COVID Rental Tensions

In a ruling dated February 26, 2026, the Grenoble Court of Appeals provides a further illustration of the disputes arising from the COVID-19 pandemic in the area of commercial leases.

In this case, several landlords had leased commercial units located in a tourist residence operated by a tenant company. Following the health crisis, the tenant company had partially ceased paying rent starting in 2020, citing, in particular, administrative restrictions and the closure of ski lifts.

Faced with these unpaid rents, the landlords issued a demand for payment invoking the termination clause. The tenant company then challenged this demand, seeking its annulment or, in the alternative, the suspension of its effects.

The central question: Can force majeure exempt a party from paying rent?

The core of the dispute lay in the tenant’s invocation of force majeure and contractual clauses allowing for the guaranteed rent to be challenged in the event of an exceptional occurrence interrupting tourism activity.

The company argued that the pandemic, combined with the closure of ski lifts and travel restrictions, constituted an administrative impediment rendering the normal operation of the residence impossible.

However, the landlords contested this analysis. They argued that the residence had never been subject to an administrative closure and that tourist activity, although reduced, had not been completely interrupted.

A Strict Assessment of Force Majeure

The Court of Appeal adopted a rigorous stance, consistent with prevailing case law. It implicitly noted that force majeure can only be invoked if the performance of the obligation is rendered impossible, and not merely more difficult or less profitable.

In this case, several factors led to the rejection of the tenant’s argument:

• The tourist residence was not subject to an administrative closure;
• Not all lockdown periods affected operations, particularly due to periods of routine closure;
• The absence of ski lifts did not completely prevent the accommodation of tourists or the pursuit of alternative activities.

Thus, the court found that the tenant had not demonstrated a total interruption of tourism activity.

The Inapplicability of the Contractual Clauses Invoked

The tenant company also invoked a contractual clause allowing for the guaranteed rent to be challenged in the event of force majeure or administrative obstruction.

However, the court found that the conditions for applying this clause were not met. In the absence of a genuine interruption of business, this provision cannot take effect.

This analysis confirms a trend in case law toward strictly interpreting clauses that derogate from the principle of rent payment.

Confirmation of the Termination of the Leases

Consequently, the Court of Appeal upheld the trial court’s judgment in its entirety. It affirmed:

• the validity of the demand for payment;
• the triggering of the termination clause;
• the automatic termination of the commercial leases.

The tenant is also ordered to pay the costs as well as compensation for non-recoverable expenses.

A Decision in Line with Case Law

This ruling is consistent with decisions handed down since the health crisis. The courts have largely refused to consider the pandemic as a case of force majeure exempting parties from paying commercial rent.

More broadly, this decision reiterates two fundamental principles:

• the payment of a sum of money is rarely affected by force majeure;
• economic difficulties, even significant ones, are not sufficient to justify a breach of contract.

Conclusion

The ruling by the Grenoble Court of Appeal illustrates the judges’ firm stance against attempts to challenge commercial rent payments during a crisis. By requiring proof of total impossibility of performance, it secures contractual relationships and protects landlords’ interests.

This now well-established approach confirms that while the pandemic has profoundly disrupted the economy, it has not suspended the essential obligations arising from commercial leases.

Compensation for Eviction and Occupancy: Insights from a February 27, 2026, Ruling by the Albertville Judicial Court

A classic commercial lease case

The judgment rendered on February 27, 2026, by the Albertville Judicial Court provides an interesting illustration of litigation involving commercial leases, particularly regarding eviction compensation and occupancy compensation.

The dispute pitted the company SODEREV TOUR against individual landlords following a notice of termination with refusal to renew concerning an apartment operated in a tourist residence. The central issue concerned the assessment of the compensation owed by both parties after the lease’s expiration.

Determining Eviction Compensation

Compensation Based on Actual Loss

Eviction compensation is intended to compensate for the loss suffered by the commercial tenant deprived of their business. In principle, it corresponds to the value of the lost business.

In this case, the tenant company sought compensation exceeding 50,000 euros, based on a so-called “hotel” method, which relies on revenue figures. However, the court refused to automatically follow this approach.

The use of a comparative method

The judge favored a concrete method based on market comparisons. The court-appointed expert had analyzed sales of similar tourist residences and applied a coefficient tailored to the property’s characteristics.

This method resulted in setting the value of the business at 30,882 euros, the amount awarded as the principal compensation. The court emphasizes that the hotel method is not a mandatory benchmark and must be adapted to the specificities of the para-hotel business.

Limited incidental damages

Regarding additional compensation, the court adopts a restrictive stance. In particular, it refuses to award replacement costs, finding that the rarity of the property makes any equivalent replacement unrealistic.

Only compensation for business disruption is allowed, but it is limited to one month’s gross operating surplus, or 1,152 euros, due to the damage being deemed limited.

Occupancy compensation: a distinct approach

A calculation based on rental value

After the lease ends, a tenant remaining on the premises must pay occupancy compensation. This corresponds to the rental value of the property.

In this case, the parties proposed different calculation methods. The court ultimately adopted a pragmatic approach, setting the compensation at €9,333 per year, in accordance with the landlords’ request.

Rejection of the reduction for precariousness

The tenant company sought a significant reduction due to the precarious nature of its continued occupancy. The court rejected this argument, finding that the situation was not truly precarious, particularly given the prolonged duration of occupancy.

This position reflects a concrete assessment of the circumstances, far from an automatic application of the reductions typically applied.

The limited impact of the health crisis

The absence of force majeure regarding payment

A notable point in the judgment concerns the impact of the COVID-19 pandemic. The tenant company argued that periods of closure should suspend payment of the occupancy fee.

The court rejected this argument, noting that force majeure does not in itself affect the obligation to pay rent or equivalent compensation.

A distinction between business operations and financial obligations

The judge drew a clear distinction: while the health crisis may have affected business operations, it did not call into question the landlord’s provision of the property.

Thus, the tenant’s economic difficulties cannot be transferred to the landlord, in accordance with the logic of entrepreneurial risk.

A balanced decision

Ultimately, the court adopted a balanced solution, relying heavily on the expert report. It set realistic compensation amounts and rejected the excessive claims of both parties.

Costs are shared, and compensation for non-recoverable expenses is awarded to the landlords, reflecting a fair allocation of responsibilities.

This judgment illustrates the importance of a concrete analysis in commercial lease matters, as well as the central role of expert assessment in determining compensation.

Grenoble Court of Appeals Reaffirms a Key Rule

(Court of Appeal of Grenoble, Jan. 29, 2026, No. 24/01222)

This decision provides a particularly important clarification for landlords of tourist accommodations: the health crisis never suspended the obligation to pay rent, and contractual mechanisms allowing for rent reductions may be rendered ineffective.

This decision is part of a now well-established line of case law, but it goes further by combining several major strategic tools for landlords.

1. The Key Principle: The Obligation to Pay Rent Remains Despite the Crisis

The Court reiterates a fundamental principle of contract law:

👉 a debtor of a sum of money cannot exempt themselves from payment by invoking force majeure.

In the context of commercial leases, this means in practice that:

• the administrative closure does not affect the leased property,
• it affects only the tenant’s business operations,
• and therefore does not justify a suspension of rent.

The Court further specifies that only the destruction of the property (Article 1722 of the Civil Code) could justify an exemption, which was obviously not the case here.

👉 This is a decisive point in practice:

any strategy of unilateral rent suspension by tenants is legally tenuous.

2. The nullification of rent reduction clauses

The major contribution of the ruling lies in the analysis of the contractual clause.

The lease provided for a reduction of rent to 30% of revenue in the event of force majeure.

The Court ruled that:

👉 this clause renders the tenant’s essential obligation meaningless

👉 it must therefore be deemed unenforceable

Two factors are decisive:

• the lease is a standard-form contract imposed by the operator,
• the clause shifts the bulk of the economic risk to the landlord.

👉 In practice, this is a significant lever:

many tourist residence leases contain similar clauses.

3. The Ineffectiveness of Operators’ COVID Arguments

The Court methodically dismantles the operators’ standard arguments:

❌ Force majeure

Rejected as inapplicable to an obligation to pay.

❌ Defense of non-performance / obligation to deliver

Rejected: landlords are not liable for administrative measures.

❌ COVID Orders

The Court reiterates a key point:

👉 they suspended penalties (termination clause),

👉 not the obligation to pay rent.

4. Strategic Consequence: Triggering of the Termination Clause

The consequence is radical:

• payment order issued in 2021
• not settled
• outside the legally protected period

👉 the termination clause is automatically acquired

👉 the lease is terminated as of June 21, 2021

The Court then orders:

• eviction of the tenant
• payment of arrears
• post-termination occupancy compensation

👉 Here set at €1,000 per month.

5. Major collateral effect: end of the debate on eviction compensation

Essential strategic point:

👉 since termination is effective prior to notice,

👉 the issue of eviction compensation becomes moot.

Direct consequence:

• no right to renewal
• no eviction compensation
• total loss of goodwill for the operator

6. Lessons for Landlords

This decision should be read as a practical guide:

1. Do not accept unilateral rent waivers

They can be challenged retroactively.

2. Challenge rent adjustment clauses

They are often legally vulnerable.

3. Use the leverage of the termination clause

This is the decisive weapon here.

4. Anticipate the “zero eviction indemnity” strategy

By triggering an early termination.

Conclusion

The ruling of January 29, 2026 marks an important milestone in securing the rights of landlords in tourist residences.

It confirms a clear line:

👉 the operational risk remains the responsibility of the operator

👉 rent remains due, even during a crisis

👉 unfair clauses can be nullified

And above all:

👉 a well-constructed litigation strategy allows for the avoidance of any eviction compensation.

This is now one of the most powerful tools available to landlords.

(Grenoble Court of Appeal, Jan. 29, 2026, No. 25/01560)

The ruling handed down by the Grenoble Court of Appeal on January 29, 2026, may seem technical at first glance. However, it highlights a procedural tool that is remarkably effective in disputes involving tourist residences: the dismissal of a redundant appeal for lack of subject matter.

Behind this decision lies a major strategic lesson for landlords facing litigious operators.

1. The Context: A Classic Operator Strategy

In this case, landlords had issued a notice of termination without an offer of renewal to the operator Vacancéole, which remained in the premises claiming eviction compensation.

The proceedings quickly became complicated:

• challenge to the notice of termination,
• request for an advance on eviction compensation,
• attempt at a judicial appraisal,
• debates over occupancy compensation.

Following an order by the pretrial judge, the operator filed an appeal…

But a decisive factor emerged:

👉 another appeal proceeding concerning the same dispute was already underway, or had even already been decided.

2. The solution: an appeal declared “moot”

The Court takes an extremely clear position:

👉 when the subject matter of the dispute has already been decided in a parallel proceeding,

👉 the new appeal becomes legally moot.

In this case:

• same order being challenged,
• same parties,
• same claims,
• same scope of the dispute.

The Court therefore finds a procedural duplication and rules without hesitation:

👉 the appeal is declared moot

👉 the appellant is ordered to pay costs

3. Strategic takeaway: putting a stop to delaying tactics

This decision perfectly illustrates a common practice in tourist residence disputes:

👉 multiplying proceedings to delay the resolution of the dispute.

Operators often use:

• successive appeals,
• procedural motions,
• requests for expert opinions,
• multiple challenges to the eviction notice.

Objective: to buy time and maintain operations.

The Court’s response here is clear:

👉 the judge does not tolerate the duplication of proceedings.

4. A lever underutilized by landlords

In practice, this decision opens a clear offensive path for landlords.

1. Identify procedural duplications

When multiple proceedings target the same subject matter, this must be raised immediately.

2. Object on the grounds of lack of subject matter

This is a simple, quick, and highly effective means.

3. Accelerate the resolution of the dispute

By neutralizing parasitic proceedings, the landlord refocuses the debate on the merits of the case.

5. Practical consequences

The practical benefits are significant:

• reduction in court delays,
• limitation of procedural costs,
• increased pressure on the tenant,
• securing the eviction strategy or claim for occupancy damages.

👉 In short: less distraction, more efficiency.

Conclusion

This ruling, seemingly purely procedural, sends a strong message:

👉 multiple appeals do not protect the operator

👉 the judge prioritizes the efficiency and consistency of proceedings

For landlords of tourist residences, the lesson is simple:

👉 litigation strategy is not solely about the merits of the case, but also about mastering procedural grounds.

And in this area, the argument that the appeal is “moot” is now a particularly powerful tool for regaining the initiative.

(Lyon Court of Appeal, Jan. 29, 2026, No. 23/02100)

The ruling issued by the Lyon Court of Appeal on January 29, 2026, represents a landmark decision in litigation involving tourist residences. It clearly outlines the interactions between three key parties: the developer-seller, the operator, and the co-owners acting as landlords.

Beyond the factual complexity, this ruling offers a particularly useful strategic framework.

1. The central principle: the seller’s obligation to deliver

The Court reiterates a fundamental principle derived from Article 1603 of the Civil Code:

👉 the seller must deliver a property that conforms to the contractually intended use.

In this case, the units had been sold as part of a tourist residence project, with:

• a building permit specifically for this conversion,
• an obligation to lease the units via a commercial lease,
• a clear economic purpose: tourist operation.

Consequently, the Court ruled that the seller was necessarily required to:

👉 carry out the work necessary for the effective operation as a tourist residence,

particularly regarding safety standards for establishments open to the public.

However, since this work was not carried out, the establishment was subject to an administrative closure in 2015.

2. Extended Liability: From Contractual to Quasi-Tort Liability

The major contribution of the decision lies here:

👉 the seller’s breach of contract toward the buyers engages its liability toward third parties.

In this case, the operator (DG Holidays), although not a party to the sales agreements, obtained:

• an order requiring the seller to indemnify it,
• for an amount exceeding 1 million euros corresponding to the work required to bring the property up to code.

👉 This is a key strategic point:

the traditional structure of tourist residences (seller → landlords → operator)

does not insulate the developer from liability toward the operator.

3. The reversal of economic risk

In this type of arrangement, the operator often contractually assumes:

• the work required by regulations,
• operating expenses,
• economic risks.

This was the case here.

But the Court reverses this:

👉 if these expenses stem from an initial failure by the seller,

👉 the seller must ultimately bear the cost.

In other words:

👉 the operator’s contractual commitment

👉 does not negate the developer’s initial fault.

4. Shared liability for operating losses

Regarding operating losses, the Court adopts a nuanced approach.

It notes:

• that the administrative closure resulted from a failure to bring the facility up to standard,
• but that the operator was itself obligated to carry out this work.

Consequence:

👉 50/50 shared liability.

Compensation is therefore limited to:

👉 342,599 euros for operating losses.

This solution is particularly noteworthy:

👉 it establishes a principle of shared liability in tourist residences.

5. Rejection of the operator’s opportunistic claims

The Court, however, rejects:

• claims related to the additional operating costs of hotel-style operation,
• additional conversion work (equipment, kitchenettes, etc.).

Why?

👉 lack of proof of a sufficiently serious breach by the seller,

👉 and above all, lack of a direct causal link.

6. Strategic lessons for landlords

This ruling goes beyond the mere seller/operator relationship.

It reveals several levers for landlords:

1. Identify responsibilities upstream

The developer may remain a hidden debtor in the economic chain.

2. Leverage the concept of contractual purpose

This is at the heart of the obligation to deliver.

3. Utilize quasi-tort liability

To circumvent the absence of a direct contractual link.

4. Anticipate shared liability

Especially when the operator is also at fault.

Conclusion

The January 29, 2026 ruling marks a significant development:

👉 the legal structure of tourist residences does not prevent risk from being traced back to the developer.

It confirms a fundamental principle:

• the seller guarantees initial compliance,
• the operator is responsible for operations,
• but original faults never disappear.

👉 For landlords, this is a major strategic factor:

in certain cases, the true debtor is not who one might think.

(Toulouse Court of Appeal, March 24, 2026, No. 24/00275)

The ruling handed down by the Toulouse Court of Appeal on March 24, 2026, constitutes a particularly landmark decision regarding the determination of rent for renewed leases. It validates a contractual practice that remains underutilized: the total contractual exclusion of rental value in favor of a purely index-based mechanism.

This solution offers landlords a powerful tool for securing rental income.

1. The Principle: Contractual Freedom Takes Precedence Over Rental Value

In commercial lease law, the principle is well-established:

• the rent for a renewed lease is generally capped (Article L.145-34 of the Commercial Code),
• but it may be set at the rental value in certain cases.

The Court, however, emphasizes a key point:

👉 these rules are not matters of public policy

👉 the parties may contractually derogate from them

In this case, the lease contained a clear clause:

• setting the renewed rent according to the index variation,
• prohibition on invoking rental value criteria.

2. The issue: rental value vs. capped rent

The debate centered on a classic question:

👉 Can the tenant request a rent below the cap by citing a lower rental value?

The Court’s answer is clear:

👉 no, when the contract excludes any reference to rental value.

The tenant argued that:

• the clause only prevented the rent from exceeding the cap,
• but did not prohibit a reduction based on rental value.

The Court rejects this analysis.

3. Interpretation of the clause: a total exclusion

The Court adopts a strict reading of the clause:

• the first paragraph mandates index-based rent setting,
• the second prohibits any reference to rental value.

It concludes that:

👉 the parties’ common intention was to exclude any determination based on rental value, whether upward or downward.

Key point:

👉 the clause applies in both directions

👉 it protects both the landlord and the tenant

4. The tenant’s waiver: a decisive factor

The Court goes further by legally characterizing the situation:

👉 the tenant has waived the right to rely on the rental value

However, the waiver of a right:

• cannot be presumed,
• but may be implied if it is unequivocal.

In this case:

👉 acceptance of the clause is sufficient to characterize this waiver.

This is a fundamental point:

👉 the tenant cannot retroactively renege on a clear contractual mechanism.

5. Consequence: Automatic Determination of Rent

The Court draws all the consequences of its reasoning:

• no debate on the rental value,
• no need for a judicial appraisal,
• direct application of the index.

The rent is thus set at:

👉 €256,311.70 per year, excluding VAT and charges

The ruling therefore overturns the judgment that had ordered an appraisal.

6. Strategic Implications for Landlords

This decision offers several key lessons:

1. Secure the rent through lease drafting

A well-drafted clause prevents any dispute over rental value.

2. Neutralize judicial appraisals

By removing the reference to rental value, the basis for the appraisal is eliminated.

3. Avoid opportunistic rent reductions

The tenant can no longer cite a market downturn.

4. Stabilize long-term profitability

The index-based mechanism ensures financial predictability.

7. A tool particularly suited to managed residences

This solution is particularly relevant for:

• tourist residences,
• student residences,
• properties operated as a single unit.

In these arrangements:

👉 rental value is often contested

👉 operators seek to renegotiate downward

👉 the clause validated by the Court constitutes a direct response to these strategies.

Conclusion

The ruling of March 24, 2026 marks a significant development:

👉 rental value is no longer a foregone conclusion when it comes to renewal

👉 the contract can provide for its total exclusion

For landlords, the message is clear:

👉 the rent battle is won at the drafting stage of the lease, well before any litigation.

And in a context of increased pressure from tenants, this decision provides a key contractual tool to regain economic control of the commercial lease.

(Albertville Court of First Instance, Jan. 9, 2026, No. 22/00200)

The judgment handed down by the Albertville Court of First Instance on January 9, 2026, perfectly illustrates how courts approach disputes involving tourist residences in practice.

Beyond the principles, this decision highlights a fundamental reality:

👉 the judge adopts an economic, pragmatic approach that is often unfavorable to the maximalist positions of operators.

1. A decisive classification: partial loss of the business

First key point: the classification of the damage.

The operator (SODEREV TOUR) sought substantial eviction compensation.

The court reiterates an often-overlooked fact:

👉 the loss of a single unit in a residence

👉 constitutes a partial loss of business assets.

Direct consequence:

• the compensation is not calculated as a total loss,
• but as limited replacement compensation.

👉 This is a major lever for landlords:

structurally reducing the basis for compensation.

2. The calculation method: rejection of theoretical approaches

The court adopts a balanced position between:

• the hotel method (claimed by the operator),
• actual operating data,
• and the analysis of the court-appointed expert.

It retains:

• an adjusted average revenue (excluding COVID years),
• an average between actual and theoretical data,
• a coefficient of 1.5, well below the tenant’s claims.

Result:

👉 Main compensation set at €19,722

👉 Clear message from the court:

high coefficients are not granted without serious demonstration of industry standards.

3. Incidental Damages: Strict Limits

1. Reinvestment Costs

The court limits these to 5%, applying a realistic approach:

• the operator does not purchase the properties,
• they can rebuild their portfolio of lots.

2. Business disruption

Here again, a restrictive approach:

👉 limited to one month’s revenue

👉 Strategic lesson:

incidental damages must be precisely demonstrated;

otherwise, they are significantly reduced.

4. Occupancy damages: return to rental value

On this point, the court reiterates a fundamental principle:

👉 occupancy compensation must correspond to the rental value

(Article L.145-28 in conjunction with L.145-33 of the Commercial Code).

It rejects:

• the expert’s hotel-based calculations,
• arguments related to the health crisis.

It upholds:

• a standard rental value,
• a 10% precariousness allowance.

Result:

👉 occupancy compensation set at €5,343 per year

5. Rejection of the COVID Arguments

A particularly important point:

The operator argued that it could suspend rent payments during lockdown periods.

The court clearly rejects this position:

👉 the contractual clause invoked does not apply to the occupancy compensation

👉 no suspension is permitted

👉 This is a clear confirmation:

the health crisis does not negate the post-termination financial obligation.

6. Strategic takeaways for landlords

This decision provides several effective lines of attack:

1. Emphasize the partial loss of the property

This is the starting point for drastically reducing the compensation.

2. Challenge high multipliers

Require proof of commercial use.

3. Regulate ancillary compensation

Reject any unjustified lump-sum assessment.

4. Defend a “traditional” rental value

Against hotel-style approaches that are often inflationary.

5. Neutralize COVID arguments

By clearly distinguishing between contractual rent and occupancy compensation.

Conclusion

The January 9, 2026 ruling confirms a fundamental trend:

👉 the judge favors a realistic economic approach,

based on objectifiable data rather than theoretical models.

For landlords in tourist residences, the lesson is clear:

👉 a well-constructed strategy allows for significant containment of eviction costs

while securing a stable occupancy allowance.

In a context where operators systematically seek to maximize their rights,

this type of decision shows that the balance of power can be effectively rebalanced.