The purpose of this article is to analyze in depth a topic of special relevance in the field of commercial law and leases in Malaga: the compensation for clientele derived from the termination of a lease of commercial premises. This concept, regulated in article 34 of the Urban Leases Law (LAU), is of great importance for both lessors and lessees, especially in sectors such as the hotel and catering industry, where customer loyalty adds considerable economic value.

Context and Legal Requirements for Customer Indemnification

In accordance with current legislation, Article 34 of the LAU establishes that, upon termination of a lease of business premises, the lessee is entitled to receive compensation if certain requirements are met. In general terms, this indemnity is justified when the commercial activity carried out by the lessee has generated a stable clientele, which provides the premises with an additional economic value that can be taken advantage of by whoever continues to operate the business in the same premises.

Key Requirements of Article 34 LAU:

Non-housing lease: The lease must have been for commercial or professional, non-residential activities.Commercial activity with the public during the last 5 years: The business must have generated a stable clientele throughout this period, which translates into an economic value for the premises. 3.Expiration of the contractual term: The lease must have come to an end, without a voluntary extension agreed by both parties. 4.Manifestation of renewal: The lessee must have manifested its willingness to renew the contract at least four months prior to its expiration.

Case Study: Indemnification in the Hospitality Industry

In the Supreme Court, a recent case (SC 19-6-24, EDJ 598802) analyzed a situation in which the lessee of a hotel premises requested compensation after the termination of his lease. The lease was initially agreed for a term of 10 years, extended for two additional years. Following the return of the premises and the delivery of the deposit, the lessee demanded compensation of EUR 96,000, pursuant to article 34 of the LAU, arguing that it had generated a clientele that would be taken advantage of by the new lessee. The court determined that the compensation was appropriate, since the new occupant of the premises continued the hotel business with the same commercial name and part of the previous staff, taking advantage of the previously generated clientele. This situation met the requirements established by the LAU for the right to compensation to be recognized.

Key Aspects of the Ruling

1.Economic value of the clientele: The Supreme Court emphasized that the regular clientele of the premises adds significant value to the business, especially in the hospitality sector, where customer loyalty is crucial. 2.Non-agreed renewal: Despite the tenant’s expressed interest in renewing the lease, the parties did not reach an agreement, which reinforced the tenant’s right to claim compensation. 3.Quantification of the indemnity: The amount of the indemnity was determined as one month’s rent for each year of the term of the contract, resulting in a total of €96,000.

Implications for Landlords and Tenants in Malaga

This type of indemnity can have a large economic impact for landlords and tenants of commercial premises in Malaga, especially in sectors that depend on a stable clientele such as the hotel and catering or retail trade. It is essential that both parties understand the rights and obligations deriving from article 34 of the LAU, and adjust their contracts accordingly, including or excluding clauses related to customer indemnity.

Conclusion

Customer indemnification in leases is a key right for commercial tenants, particularly in businesses with an established clientele. For landlords, it is essential to consider this aspect when drafting or renegotiating leases. At Tecem Abogados y Asesores, our team of experts in commercial law and leases in Malaga is prepared to advise both landlords and tenants, ensuring that their rights and obligations are fully respected in accordance with the law.