Following refusal to renew the contract at the first contractual expiry, the appeal pursuant to art. 447 bis cpc is the tool used in disputes relating to rental relationships. These certainly include those that concern the denial of renewal of the rental contract, in particular for residential rentals subject to law no. 431/1998.
Article 447 bis of the Code of Civil Procedure establishes that cases relating to leases, loans and leasing of companies are treated with the special procedure provided for disputes relating to employment. This means that rental cases follow a quicker procedure than the ordinary one, designed to speed up the resolution of disputes.
Denial of renewal of the residential rental contract
In the context of residential leasing, the refusal to renew occurs when, at the first expiration of the contract (after 4 years for 4+4 rental contracts, after 3 years in 3+2 contracts etc…), the landlord decides to do not renew the tenant’s contract. Law no. 431/1998 allows the lessor not to allow the extension foreseen for the contract only in specific cases (art. 3), for example:
• Need to use the property for oneself or for a family member.
• Need to carry out major renovation works.
• Sale of the property to third parties, but only if the tenant does not have the right of first refusal.
• When the tenant has another suitable property in the same municipality in which the property being leased is located.
If the landlord intends to avoid renewal on the first expiry, he must serve at least six months’ notice of formal refusal to the tenant, specifying one of the reasons provided by law. If this does not happen, the contract is automatically renewed for another four years. Communication by certified email, if the parties have it, is equivalent to notification by registered mail with return receipt.
Dispute and appeal pursuant to art. 447 bis and mandatory mediation
First of all, since it is a rental matter, mediation is mandatory as a condition for the proceeding of the judgment.
In the event of a negative outcome, when the tenant contests the refusal to renew the contract (considering it illegitimate), or the landlord believes that the tenant does not have the right to remain in the property at the end of the lease, it is possible to appeal to the Court through the special rite pursuant to art. 447 bis cpc.
The jurisdiction of the judgment is mandatory that of the Court where the property is located.
How does this process take place in its main phases?
Appeal procedure 447 bis cpc for refusal of renewal
- Filing the appeal: The interested party (usually the tenant, but can also be the landlord) files the appeal with the competent court. The appeal must include:
• The facts that led to the dispute (e.g. denial of renewal).
• The requests of the party taking legal action (e.g. the declaration of illegitimacy of the denial).
• Evidence to support your arguments.
- Summoning of the parties: Once the appeal has been filed, the judge sets a hearing to which both parties (landlord and tenant) are summoned. The particularity of the ritual pursuant to art. 447 bis cpc is that it follows the rules of labor disputes, with the aim of speeding up the judge’s decision.
- Hearing and defenses: During the hearing, both parties can present their defenses and produce any evidence (documents, testimonies, etc.). If the landlord has denied the renewal, he will have to demonstrate that the reason invoked is one of those provided for by law and that he has respected the notice periods.
- Sentence: After examining the evidence and defenses of the parties, the judge issues a sentence. If the judge recognizes the legitimacy of the refusal, the tenant will have to leave the property; otherwise, he will be able to continue to live in the property according to the contractual terms.
Reasons for the tenant’s opposition to the denial of renewal
The tenant can oppose the denial of renewal in the following cases:
• Invalid reasons for refusal: If the lessor has not indicated one of the reasons provided for by law no. 431/1998 or if he is unable to demonstrate them.
• Late or no notice: If the lessor has not notified the refusal at least six months before the expiry of the contract.
• Simulated reasons: If the tenant can demonstrate that the landlord has declared an untruthful reason (for example, he does not really need the property for personal use).
Advantages of the ritual pursuant to art. 447 bis cpc
The use of the special procedure pursuant to art. 447 bis offers several advantages compared to the ordinary procedure:
• Faster times: The procedure is accelerated, as it follows the rules of labor disputes. This allows for quicker resolution of the dispute.
• Procedural simplicity: The hearings are more concentrated and aim to quickly resolve the dispute, reducing the bureaucracy typical of ordinary proceedings.
• Greater flexibility of the judge: The judge has broader investigative powers and can take some procedural decisions ex officio to speed up the judgement.
Conclusion
The appeal pursuant to art. 447 bis cpc is a quick and effective tool for resolving disputes relating to the refusal to renew the rental contract. It is used both by the landlord to obtain the release of the property upon expiry of the contract, and by the tenant to contest a refusal deemed illegitimate. Thanks to its simplified procedures, it allows the issue to be addressed in a shorter time than an ordinary trial. However, it is essential to scrupulously respect the notice periods and provide adequate evidence to support your reasons.
