Important decision
The Civil and Commercial Division of the Supreme Court has approved for publication a legal principle regarding compensation for the expropriation of land. Judgment No. 24 Cdo 2813/2024 addresses whether the so-called “contractual bonus” under the Linear Act should be taken into account when determining compensation for land expropriation.
The Supreme Court confirmed that a distinction must be made between the voluntary purchase of land prior to the initiation of expropriation proceedings and the actual decision on compensation for expropriation. The contracting bonus is intended to motivate the owner to quickly conclude a purchase agreement and voluntarily transfer the land needed for infrastructure construction. However, if no agreement is reached and expropriation proceedings follow, this bonus cannot automatically be reflected in the compensation for expropriation.
The court also noted that, in proceedings under Part Five of the Civil Procedure Code, the civil court assesses the amount of compensation for an expropriation that has already taken place. It cannot reopen issues concerning the legality of the expropriation itself or prior negotiations between the expropriating authority and the owner; these fall within the jurisdiction of administrative courts. An extraordinary increase in compensation under the Expropriation Act is only possible under conditions specified by law and cannot substitute for failure to meet the conditions for a contractual bonus.
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