Right of resumption

Article 42 of the Law on Agricultural Contracts states that: The grantor, read lessor, who has become the owner of the land for at least one year may obtain for himself, or for a member of his family who qualifies, early termination of the contract, subject to notice of termination, to be given, by registered letter with return receipt, at least three years before the end of the agricultural year in which the release of the land by the concessionaire, read lessee, will take place, provided that the following conditions concur jointly, in the person for whom the taking is exercised:

(1) who is a direct farmer or a person treated as such under Article 7 of the Agricultural Contracts Law.

2) who has in his or her family, at the time of the intimation of termination, at least one active direct-cultivating unit under the age of fifty-five;

3) that in the notice of termination he obligates himself to cultivate the land directly for a period of not less than nine years and to have it cultivated directly, for the same period, by any family members taken into consideration;

(4) who is not in the enjoyment, in any capacity, of other land which, with the crops being grown, can absorb more than half of his and his family’s labor power.

Moreover, it is expressly stipulated that the aforementioned provision also applies to the landlord, a direct farmer, who has been emigrating for employment in Italy or abroad for less than five years provided that the indicated conditions are met.

In that case, however, the notice of termination must be sent at least two years before the end of the crop year in which the tenant’s release of the land will occur.

Not insignificant is the consequence, provided by the legislature for the person who after exercising resumption fails to fulfill the obligation to cultivate the land directly for a period of not less than nine years. The regulations, in this regard, stipulate that the tenant has the right, at his or her option, to take action for damages or, alternatively, to reinstate the contract even against any third party in addition to damages.

Also not to be underestimated is the circumstance that, in the case of litigation at trial, plaintiffs who have acted, under Article 42 Law No. 3 May 1982. 203, proved, incorso di causa, all the legal conditions for the exercise of the right of resumption, referred to in Art. 42, are required, pursuant to and for the purposes of Article Article 43 of the said law, to pay compensation to the tenant.

The court, in fact, may, if requested, liquidate in favor of the tenant compensation for having been pronounced the blameless termination of the lease inter partes, determining, as well, the amount not exceeding 12 annuities of the rent paid by the tenant nor less than the rent related to the remaining annuities of the contract term, provided that it does not exceed 12.

The above inasmuch as the aforementioned Article 43 prescribes that, in all cases of irresponsible termination of leases, tenants who are direct cultivators, tenants who are not direct cultivators, sharecroppers, tenant farmers, tenant farmers, sharers and soccidari are entitled, in exchange for the interruption of the term of the lease, to fair compensation, the amount of which, in the absence of agreement between the parties, is set by the court. And that in determining the amount of compensation, the court shall take into account the productivity of the fund, the years for which the relationship should have continued as well as all other elements recurring in the case.

Lastly, it should be kept in mind that the tenant, until the compensation is actually paid, is entitled to the right of retention of the fund.

Attorney Chiara Roncarolo

Attorney Maurizio Randazzo