French Court Upholds Legislation Barring Water Shut-offs
A recent judicial decision in France is of particular significance in the U.S. given efforts to challenge the legality of Detroit’s water shut-offs. Public Services International reports that on Friday, May 29, France’s Constitutional Court rejected claims from a large French water multinational corporation that an April 2013 law violated its “freedom to engage in contracts and its freedom to do business.” The law stipulates that no water provider may cut-off or disconnect service from a primary residence, even if the bills have not been paid.
The case was initiated by a client of SAUR, a large multinational water provider. After the client fell into arrears, SAUR cut off the client’s water for 20 months.
SAUR’s lawyer argued that cut-offs are necessary so that SAUR can ensure lower tariffs and higher quality service. SAUR also argued that, since the right to water does not exist in France, the relations between water provider and user fall under private law and that the contractual relationship is binding. Further, a ban on water cut-offs would substantially alter the balance of power between the user and provider would in fact encourage users not to pay.
The plaintiff’s lawyer argued that contract law does not apply, given that the user has no opportunity to choose between different water service providers, nor can the user negotiate the terms or the price of the contract.
The Court accepted the plaintiff’s arguments, concluding that the “interference with freedom of contract and freedom of enterprise resulting from the prohibition of interrupting the water supply is not manifestly disproportionate to the objective pursued by the legislature.” The decision is final, without appeal.
More information concerning the case is available here.