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ARTICLE · 14 DECEMBER 2022

Clarification On Rental Damages

ELVINGER HOSS PRUSSEN, société anonyme
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In a commercial judgment of 13 July 2022, the District Court of Luxembourg-City had the opportunity to rule on the causal link between rental damages and the failure to comply with the completion...

LuxembourgCorporate/Commercial Law

In a commercial judgment of 13 July 2022, the District Court of Luxembourg-City had the opportunity to rule on the causal link between rental damages and the failure to comply with the completion deadline for a flat acquired for rental purposes.1

In this case, the flat acquired by a couple for rental purposes was delivered late due to non-compliance in the bathroom floor. Having considered that the company responsible for these works had failed in its performance obligation to carry out the work within the contractual timeframe, which would have caused them rental damage, the owners of the flat brought an action before the court.

The court clarified that the nature of the damage suffered as a result of the delay in the delivery of the flat to be constructed differs according to the purchaser's intentions. Thus, if the purpose is to rent, the purchaser "thereby makes an investment for rental purposes" and "the damage is calculated in relation to the loss of rent

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