Traffic Accident Compensation: Rental Income Excluded from Future Loss of Professional Earnings
The French Court of Cassation clarified on November 6, 2025 that rental income cannot be considered when calculating compensation for future loss of professional earnings resulting from a traffic accident.
In this case, a professional who had to stop his activity after an accident rented out his commercial premises. The Court of Appeal held that this rental income, which exceeded his previous earnings, eliminated any economic loss.
The Court of Cassation overturned this decision. It emphasized that future loss of professional earnings is intended to compensate only for lost professional income due to permanent incapacity, excluding asset-derived income such as rent. Treating these revenues as professional earnings violates the principle of full compensation, ensuring the victim suffers neither loss nor gain.
This ruling reinforces protection for victims regarding economic damages compensation following bodily injury accidents.
Cass. 2e civ., 6 novembre 2025, n° 23-21.633
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