Extinction of an Unincorporated Association Pending Litigation: The Ruling of the Court of Cassation in Order no. 27235 of 2025

Within the landscape of Italian civil law, unincorporated associations represent an extremely widespread and dynamic reality. Often, however, the lack of formal legal personality raises complex questions, especially when the entity is involved in judicial litigation while simultaneously undergoing a phase of dissolution or extinction. A recent and significant decision by the Court of Cassation, Order no. 27235 of October 11, 2025, provides important clarifications on this delicate scenario, outlining the boundaries of the procedural capacity of an extinguished entity.

The Case and the Decision of the Supreme Court

The matter brought to the attention of the court of last resort originated from a dispute involving an unincorporated association and the state administration, represented by the State Attorney's Office. During the appellate proceedings, an objection was raised regarding the entity's lack of procedural capacity following its dissolution. The Second-Instance Tax Justice Court of Sicily had rejected this objection, a decision that was subsequently upheld by the Supreme Court.

The Court of Cassation dismissed the appeal filed by A. M. M., confirming that the extinction of an unincorporated association during a lawsuit does not abruptly erase its presence in the proceedings. The entity continues to exist as a center of legal imputation for all pending relationships.

The Principle of Contention: Procedural Capacity Survives

To fully understand the scope of this decision, it is essential to analyze the principle expressed by the judges of the court of last resort:

The dissolution of an unincorporated association during the course of litigation does not automatically result in the loss of its procedural capacity, as it remains in existence as a center of legal effects in relation to all relationships pertaining to it that have not yet been exhausted, through the representation of the former holders of the representative bodies in office at the date of dissolution, operating under the principle of prorogatio.

This principle clarifies a cornerstone rule: the end of an association's activities is not equivalent to its immediate legal and procedural "death." If there are still open legal relationships (such as an ongoing lawsuit), the association retains the capacity to stand in court. But who represents it? The Court identifies the solution in the principle of the prorogatio of corporate bodies. The individuals who held representative positions at the time of dissolution continue to exercise their functions limited to the management and resolution of pending matters.

Practical Implications for Associations

The Supreme Court's decision is in line with previous jurisprudential trends (such as judgment no. 30606 of 2018) and ensures the stability of legal relationships. The practical consequences of this orientation are manifold and of great significance:

• Protection of third-party creditors: The association's creditors can continue to assert their rights in court without fearing that the entity's dissolution will nullify the legal action taken.
• Continuity of defense: The association can continue to defend itself or assert its claims in judicial proceedings without suffering automatic procedural interruptions.
• Responsibility of representatives: Former administrators, operating under the principle of prorogatio, retain the power and duty to manage the transitional phase, remaining liable for obligations assumed pursuant to Article 38 of the Civil Code.

Conclusions

Order no. 27235 of 2025 of the Court of Cassation reaffirms a principle of legal civility and procedural efficiency. By preventing the de facto dissolution of an unincorporated association from resulting in a void of protection or an easy loophole to evade responsibilities, the Supreme Court ensures that justice can take its course, clearly identifying the former administrators as the parties authorized to steer the entity until the final resolution of all pending matters.