Judgment no. 17746/2024: The Primacy of the Emphyteuta's Right in Matters of Redemption

The recent judgment of the Court of Cassation no. 17746 of June 27, 2024, offers important clarifications on the subject of emphyteusis, a legal institution that governs the concession of a property by an owner (grantor) to another person (emphyteuta) with the right to exploit its fruits. In particular, the Court reiterated the primacy of the emphyteuta's right to redemption over the grantor's right to terminate the contract for breach.

Regulatory Context

The Italian legal system governs emphyteusis through articles 971, 972, and 973 of the Civil Code. These articles establish the conditions and procedures for applications for redemption, devolution, or termination for breach. It is fundamental to understand that, according to the judgment in question, the emphyteuta's right to request redemption cannot be nullified by the grantor's right to terminate the contract for breach.

Arts. 971, 972, and 973 of the Civil Code - Applications for redemption, devolution, or termination for breach - Primacy of the emphyteuta's potestative right over that of the grantor. In matters of emphyteusis, the system outlined by arts. 971, 972, and 973 of the Civil Code, concerning applications for redemption, devolution, or termination for breach, establishes the primacy of the emphyteuta's potestative right to redemption over the grantor's potestative right to terminate the contract for breach.

Analysis of the Judgment

The Court of Cassation, presided over by L. O. and with G. G. as rapporteur, carefully examined the case of M. (Avvocatura Generale dello Stato) versus F. (Stronati Claudio). The central issue concerned the possibility for the grantor to terminate the emphyteusis contract due to an alleged breach by the emphyteuta, who had not made the required improvements to the property. However, the Court ruled that, in the presence of a request for redemption by the emphyteuta, the grantor cannot exercise the right of termination.

• Primacy of the emphyteuta's right: the emphyteuta has the option to request redemption, even in case of breach.
• Limitations on the grantor's right: the latter cannot terminate the contract if the emphyteuta exercises their potestative right.
• Importance of protecting investments: the Court's decision protects the investments made by the emphyteuta on the property.

Conclusions

Judgment no. 17746/2024 represents an important step forward in the protection of the emphyteuta's right in Italy. It clarifies that the right to redemption prevails over any claims for termination by the grantor, highlighting the principle of stability of legal relationships. This jurisprudential trend could have a significant impact on emphyteusis contracts, providing greater certainty and protection to emphyteutas, especially in an economic context where investments in property improvements are increasingly frequent.