The French Supreme Court Clarifies Who Qualifies as “Project Owner”
A recent decision of the French Supreme Court (Cour de cassation, Third Civil Chamber, February 19, 2026) provides an important clarification regarding who is entitled to bring a claim under the French ten-year construction liability regime (garantie décennale).
The Court reaffirmed a key principle of French construction law:
Only the owner of the works, or a person holding a legal right to build, qualifies as the “project owner” and may bring an action based on the ten-year liability guarantee.
This clarification is particularly relevant for companies involved in real estate projects structured through multiple entities, such as property-holding companies and operating companies.
The Legal Context: The Ten-Year Liability Regime in French Construction Law
Under Article 1792 of the French Civil Code, builders are automatically liable for serious defects affecting the solidity of a structure or rendering it unfit for its intended purpose for a period of ten years after completion of the works.
This liability regime is one of the most protective construction law frameworks in Europe.
However, the right to invoke this protection depends on a specific legal status:
the claimant must qualify as the “maître de l’ouvrage” (project owner).
The February 2026 decision clarifies how strictly this concept is interpreted.
Facts of the Case
The dispute concerned construction works carried out on a wine estate property.
The works included the construction of several facilities:
- a wine-making building
- bottle storage premises
- a reception area.
Following the appearance of structural defects, the company operating the wine estate initiated legal proceedings against the builders and their insurers based on ten-year liability.
The Court of Appeal held that the claim was admissible.
It considered that the operating company could be treated as the project owner, since:
- the works were carried out for its exclusive business activity, and
- the buildings were located at the company’s headquarters.
The Supreme Court’s Ruling
The French Supreme Court overturned the decision.
It held that the Court of Appeal had misapplied Article 1792 of the Civil Code.
The Supreme Court emphasized that:
The status of “project owner” belongs only to the owner of the construction works or to a person holding a legal right to build on the land.
In this case, the appellate judges had themselves acknowledged a crucial fact:
the land on which the construction was carried out belonged to another entity.
Therefore, the operating company could not legally be considered the project owner.
As a result, its action based on the ten-year liability guarantee was inadmissible.
A Reaffirmation of a Strict Legal Criterion
The decision does not introduce a new rule.
However, it reaffirms a strict interpretation of the concept of project owner, rejecting broader economic or functional approaches.
According to the Supreme Court, the status of project owner does not depend on:
- who financed the construction works
- who operates the completed structure
- who economically benefits from the project.
Instead, the determining criterion remains legal ownership of the works or a legally recognized right to build.
This distinction is critical because it directly determines who may bring an action against builders under the ten-year liability regime.
Why This Decision Matters for Companies
Many corporate real estate projects involve multiple entities within the same group.
For example:
- a property-holding company may own the land and buildings
- an operating company may occupy and use the premises
- construction works may be commissioned in the interest of the operating entity.
The Supreme Court’s ruling highlights that such structures are not legally neutral.
In the event of construction defects, the ability to claim under the ten-year liability regime depends strictly on the legal qualification of the project owner.
Companies that overlook this aspect may face significant legal obstacles when seeking compensation for construction defects.
Strategic Implications for Corporate Governance
The decision also illustrates a broader point often observed in construction disputes:
the legal framework governing liability is determined long before any defect appears.
Key elements such as:
- ownership of the land
- allocation of building rights
- contractual designation of the project owner
are typically decided at the early stages of a project.
Yet these elements ultimately determine which entity within a corporate structure can enforce construction liability rights.
For corporate groups undertaking real estate investments, the case demonstrates the importance of legal structuring and governance in project development.
Key Legal Takeaways
The French Supreme Court decision of February 19, 2026 confirms several important principles of construction law:
- Only the owner of the works or a person holding a legal right to build qualifies as the project owner.
- The right to bring a claim under the ten-year liability regime depends on this legal status.
- Economic involvement in a construction project does not create project owner status.
- Corporate structures involving property companies and operating companies must clearly identify the legal project owner.
FAQ – Ten-Year Liability and Project Owner Status
Who can bring a claim under the French ten-year construction liability regime?
Only the project owner, defined as the owner of the works or a person holding a legal right to build, may bring such a claim.
Can a tenant or operating company claim under ten-year liability?
Not automatically. If the entity is not the legal owner of the works and does not hold a building right, it generally cannot invoke the ten-year liability regime.
Does paying for construction works make a company the project owner?
No. The legal ownership of the construction or the right to build determines project owner status, not the financing of the works.
Source : https://www.courdecassation.fr/decision/6997fe50cdc6046d470bf18e
