Order No. 23220 of 2024: Passive Standing of the Assigning Tenant in Lease Assignment

Within the realm of leases, Order No. 23220 of August 28, 2024, issued by the Court of Cassation, provides important clarifications on the passive standing of the assigning tenant. The judgment, which rejects the appeal against a decision by the Court of Appeal of Florence, specifically addresses the issue of the original tenant's liability in the event of a lease assignment.

The Tenant's Position in Lease Assignment

According to the order, in the event of a lease assignment, the passive standing of the original tenant persists. This means that for all actions relating to the continuation or termination of the lease relationship, the original tenant remains liable, unless they have been released by the assigning landlord. This principle is fundamental to understanding the legal dynamics governing leases and contract assignments.

(CONTENT AND FORM) Actions relating to the continuation or termination of the lease relationship - Passive standing of the assigning tenant - Existence - Conditions. With reference to the assignment of the lease agreement, for all actions pertaining to the continuation or termination of the lease relationship, the passive standing of the original tenant persists, on a procedural level, if the assignor has not been released by the assigning landlord.

Implications of the Judgment

This judgment underscores the importance of the assignor's release from liability towards the landlord. In practice, if the tenant assigning the lease is not released, they will always be held accountable for contractual obligations, even if the new tenant takes over the management of the property. The implications for landlords and tenants are significant:

• The landlord can seek recourse against the original tenant for any defaults.
• The assignor must pay close attention to the release clauses in the assignment contract.
• The new tenant, despite having assumed the lease, is not exempt from liability if the assignor has not been released.

Conclusions

Order No. 23220 of 2024 represents an important reference point for understanding the passive standing of the assigning tenant in lease assignments. It clarifies that the risk of liability remains with the original tenant, unless they are expressly released by the landlord. It is crucial for the parties involved to understand these dynamics to avoid unpleasant surprises and to best manage their rights and duties within the context of leases.