Judgment No. 17746/2024: The Prevalence of the Right of the Emphyteuta in the Matter of Redemption

The recent ruling of the Court of Cassation No. 17746 of June 27, 2024, provides important clarifications regarding emphyteusis, a legal institution that regulates the granting of a property by an owner (grantor) to another person (emphyteuta) with the right to exploit its fruits. In particular, the Court reiterated the prevalence of the emphyteuta's right to redemption over the grantor's right to terminate the contract for breach.

The Regulatory Context

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

Articles 971, 972, and 973 c.c. - Requests for redemption, reversion, or termination for breach - Prevalence of the emphyteuta's discretionary right over that of the grantor. Regarding emphyteusis, the system outlined by Articles 971, 972, and 973 c.c., concerning requests for redemption, reversion, or termination for breach, establishes the prevalence of the emphyteuta's discretionary right to redemption over the grantor's discretionary 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 the rapporteur, carefully examined the case of M. (Attorney General of the State) against F. (Claudio Stronati). The central issue concerned the grantor's ability 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 determined that, in the presence of a request for redemption from the emphyteuta, the grantor cannot exercise the right of termination.

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

Conclusions

Judgment No. 17746/2024 represents an important step forward in protecting the rights of the emphyteuta in Italy. It clarifies that the right to redemption prevails over any claims for termination by the grantor, highlighting the principle of stability in legal relationships. This jurisprudential orientation 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.

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