Abandoned objects: auction procedures and rights of parties

"`html

What happens to suitcases left in a hotel for months on end? How can a garage owner dispose of a car that has never been recovered? The law lays down specific procedures for auction of abandoned objects, protecting the rights of both owners and custodians.

1. Legal framework for sales of abandoned items

Abandoned objects are those that an owner has entrusted to someone else with no initial intention of disposing of them, but which he or she is slow to recover. This distinct legal situation deserves attention.

Unlike property with no owner (which belongs to the municipality where it is located under article 713 of the Civil Code), abandoned objects have an identifiable owner who retains his or her rights.

These sales are governed by two main laws:

• The law of 31 March 1896 on objects abandoned by innkeepers
• The law of 31 December 1903 for objects entrusted to professionals

In all cases, the use of a judicial public sale requires the authorisation of a judge - usually the judge of the judicial court.

2. Sale of abandoned items by innkeepers or hoteliers

Conditions precedent to the sale

To sell a guest's belongings, the hotelier must:

• Prove that the items were abandoned at the time of departure
• Wait six months after the customer's departure
• Making an application to the judge of the judicial tribunal

Please note: only "household effects brought by the traveller and abandoned at the time of departure" can be subject to this procedure (article 1 of the law of 31 March 1896).

Article 2 of this law (amended by the law of 18 December 2019) specifies: "the depositary may submit to the judge of the judicial court or to the president of the judicial court, depending on the value of the movable effects left in pledge or abandoned, a request which states the facts, designates the objects and gives an approximate valuation.

Auction procedure

The procedure involves several stages:

1. Judge's order fixing the date, time and place of the sale, the upset price and the name of the public official in charge of the sale
2. Opening closed objects (trunks, suitcases) by the public officer in the presence of the depositary
3. Sale announcement by posters eight days in advance
4. Passenger information if the address is known, by registered letter

Two complications may arise:

• If the judge considers that there is "extreme urgency", he may authorise the sale before the six-month period has expired.
• The owner may oppose the sale by bailiff's writ served on the depositary.

Rights and obligations of the parties

After the sale, the price is split as follows:

• Sales charges are deducted in priority
• The hotelier is paid his claim on the remaining proceeds
• The surplus is paid to the Caisse des dépôts et consignations on behalf of the owner.

If the price is insufficient to cover the costs, the hotelier must pay the difference, with possible recourse against the customer.

Crucially, the amount deposited is forfeited to the Treasury if it is not claimed within two years of the deposit.

3. Sale of abandoned items by professionals

Field of application

The law of 31 December 1903 aims to:

• Objects entrusted to a professional to work on, shape, repair or clean
• Ships and pleasure boats taken in for repair or maintenance
• Movable property held by public officials
• Items stored in furniture repositories
• Land motor vehicles stored in a garage

For vehicles, the waiting period before sale is reduced to three months, compared with one year for other goods.

Specific procedure

The procedure is similar to that for items abandoned by hoteliers:

1. Application by the professional to the judge of the judicial court
2. Order setting out the terms and conditions of the sale
3. Informing the owner by registered letter
4. Possibility of opposition by the owner
5. Public auction

According to article 1 of the law of 31 December 1903: "movable objects entrusted to a professional to be worked, shaped, repaired or cleaned and which have not been removed within a period of one year may be sold under the conditions and in the forms determined by the following articles.

Sales price distribution

The same goes for items left behind by hoteliers:

• Fees are deducted in priority
• The professional is paid his claim
• The surplus is paid to the Caisse des dépôts et consignations

A special feature is that the amount deposited is forfeited to the Treasury after five years (compared with two years for items abandoned by hoteliers).

4. Penalties for non-compliance with formalities

Civil penalties

Failure to comply with the procedures may result in civil penalties:

• Damages to the owner or any other injured third party
• Professional liability of the ministerial officer or broker
• Sale may be null and void in serious cases

Article L. 322-5 of the French Commercial Code states: "any breach of the rules set out in articles L. 322-1 to L. 322-7 of the French Commercial Code may result in the seller, as well as the person who carried out the sale, owing damages to all those who have suffered loss.

Criminal penalties

Breaches of these rules may result in:

• Confiscation of goods offered for sale
• Fine of €3,750 imposed jointly and severally on the vendor and the public official

These penalties apply in particular to the illegal sale of new goods.

Disciplinary sanctions

The professionals involved (auctioneers, bailiffs, notaries, brokers) are also liable to disciplinary action by their professional association.

For sworn merchandise brokers, article L. 131-32 of the French Commercial Code provides for penalties ranging from a warning to disbarment with permanent loss of the right to be sworn in again.

A lawyer can advise you on how to avoid these pitfalls during a public sale of abandoned items. Our team will guide you in drawing up your application and represent you before the court for the management and auctioning of assets. Contact us for an initial consultation.

Sources

• Civil Code, article 713 on property with no owner
• Law of 31 March 1896 on voluntary public sales of fruit and crops hanging by their roots
• Law of 31 December 1903 on the sale of certain abandoned objects
• French Commercial Code, Articles L. 322-1 to L. 322-7 and L. 131-32
• Decree no. 2019-966 of 18 September 2019 amending the Act of 31 March 1896
• Répertoire de procédure civile Dalloz, "Vente publique d'objets abandonnés", November 2021

" `