Facts
The estate of M., the holder of the individual business name "Pension X Home for the Elderly", later "Medical-Social Establishment (EMS) X", concluded an affiliation agreement with the Collective Foundation of Neuchâteloise-vie for occupational pension provision on 10 and 13 October 1988. This agreement provided for a duration of ten years, tacitly renewable from year to year unless terminated six months before the expiry date.
By registered letter dated 6 June 1991, M. informed the foundation that it was terminating the contract as of 31 December 1991. The foundation refused to terminate the agreement on that date, invoking the contractual notice period. The parties were unable to reach an agreement.
The estate of M. then filed an action before the Administrative Court of Neuchâtel, concluding that the termination was valid as of 31 December 1991. The court dismissed the claim. The estate appealed to the Federal Insurance Court.
Considerations
The Federal Court dismissed the appeal. It considered that the affiliation agreement concluded between the employer and the collective foundation was a sui generis contract in the strict sense, and not a mixed contract. Being a contract of fixed duration, Article 404 paragraph 1 of the Code of Obligations, invoked by the appellant, was not applicable.
The court held that a duration of ten years was not excessive for this type of…