The European Court of Human Rights has heard a case concerning property expropriation, specifically focusing on the approach applied by the Czech authorities in fixing compensation for expropriated property and the proportionality of its amount. The applicants in this case, the Pálka family and others, claimed that the compensation they received for their expropriated land was not proportionate to its market value, amounting to only 13% of the market price.
The court examined whether the interference with the applicants’ right to peaceful enjoyment of their possessions was lawful, in the public interest, and proportional to the aim sought. The court ultimately found a violation of Article 1 of Protocol No. 1, which protects the right to property. The Czech authorities’ approach to calculating compensation based on administrative prices rather than market value was deemed unfair and disproportionate.
This case highlights the importance of ensuring fair compensation in property expropriation cases. The court’s judgment emphasizes the need for a procedure that ensures an overall assessment of the consequences of expropriation, including the award of an amount of compensation that maintains a reasonable relation between the amount and the value of the expropriated property.
