On 13 December 2018, the Constitutional Council received a Priority Question of Constitutionality (QPC) from the Court of Cassation concerning the application of the law governing rental relationships. This law provides that, in the absence of a timely refund, the security deposit shall be increased by a sum equal to 10% monthly rent excluding charges for each monthly period started late.
The applicant submits that this provision disregards the principles of proportionality and individualization of penalties and the right to property provided for in the 1789 Declaration of Human and Citizen's Rights.
The Constitutional Council dismisses these arguments and declares the provision constitutional. The contested surcharge is not a punishment but a compensation proportional to the amount of the security deposit, intended to compensate for the damage caused by the late return of the security deposit by the lessor.
Furthermore, the Constitutional Council recalls the settled case-law of the Court of Cassation, which does not allow this increase to be cumulated with the default interest at the statutory rate laid down in the Civil Code.
