Commercial Court of Paris, March 15, 2021, No. 2020048008
In this case, an insurance company signed a memorandum of understanding with its insured before the start of the Covid-19 pandemic, the purpose of which was to compensate the insured following a fire.
Among the conditions precedent conditioning the payment of the compensation is the conclusion of a new commercial lease before October 27, 2020.
Due to the health crisis, and despite numerous unsuccessful searches which the insured has provided evidence of, the insured is unable to conclude a new commercial lease before the agreed date.
Since the suspensive condition was not met, the insurer refuses to pay the compensation.
Seized of the matter, the Paris Commercial Court considered in this instance that the health crisis constituted an unforeseeable change in circumstances " because it rendered the search for a business, as stipulated in the protocol agreement, impossible due to the government-imposed closure of all bars and restaurants, and that the consequences of this unforeseen event were excessively onerous for [the insured], causing them to lose the financial advantage provided by the possibility of the suspensive condition being lifted ." The conditions of Article 1195 of the Civil Code were thus clearly met.
In accordance with the powers conferred on judges under this article, the court postpones the date of fulfillment of the suspensive condition to a date later than that provided for in the protocol, thus allowing the insured to benefit from the insurance compensation.
