The case concerns the invalidation of a Ukrainian company’s title to a property (café) in Odesa, which was built without proper authorization on municipal land. The European Court of Human Rights found a violation of Article 1 of Protocol No. 1 to the Convention (protection of property).The Court established that while the café was an unauthorized construction built on municipal land without proper permits, the applicant company had acquired it legally and in good faith. The company’s title was registered by authorities and it owned the café for at least two years before the prosecutor challenged its ownership.Key provisions of the decision:
- The Court recognized that the café constituted the applicant company’s ‘possession’ despite its unauthorized status, as the company acquired it legally and in good faith
- The interference with property rights was found disproportionate, as the authorities failed to provide compensation or other appropriate reparation to the bona fide holder
- The Court emphasized that the risk of mistakes made by state authorities must be borne by the state itself, not by individuals acting in good faith
- The Court awarded the company €3,000 in non-pecuniary damages and €400 in costs and expenses, while reserving the question of pecuniary damage for further consideration
The decision establishes important principles regarding protection of property rights of bona fide purchasers, even in cases where the original construction was unauthorized. It emphasizes that state authorities cannot correct their past mistakes at the expense of individuals or companies who acted in good faith when acquiring property.
