Case Study: Law 10/2001 and Law No. 165/2013 – Obtaining a Final Judgment to Oblige the National Commission for Real Estate Compensation (CNCI) to Issue a Compensation Decision Amounting to 586,556 Points (1 point = 1 leu)

Summary of Judicial Rulings

The Timiș Tribunal obliged CNCI to issue a Compensation Decision in favor of our clients, for the abusive taking by the communist regime of an intra-urban land of 764 sqm and a building of 36.20 sqm in Timișoara.

The Timișoara Court of Appeal determined that CNCI must issue a Compensation Decision in favor of our clients for the amount of 586,556 points. According to art. 21 para. (6) of Law no. 165/2013, one point has the value of one leu.

To reach this favorable outcome, the Timiș Tribunal and Timișoara Court of Appeal validated the arguments of our lawyers, specialized in real estate law and restitution cases for properties abusively taken by the Romanian state. Below are the main arguments invoked:

  • The possibility to empower the court with a request to resolve the substantive issue and, consequently, to oblige CNCI to issue a Compensation Decision
    Given that CNCI unjustifiably refused to resolve the compensation file, our specialized ANRP compensation lawyers filed an action before the Timiș Tribunal by which they requested the defendant CNCI be obliged to issue a Compensation Decision in favor of our clients.
  • The Timiș Tribunal validated our arguments based on the ECHR jurisprudence in the Stancu vs Romania case, in which the Court found a violation of the Convention in situations where courts refuse to acknowledge the existence of the right to obtain a Compensation Decision.
  • Thus, the Timiș Tribunal did not limit itself to obliging CNCI merely to resolve the compensation file, but went further, examined the case on its merits, recognized our clients’ right to compensation and consequently obliged CNCI to issue a Compensation Decision.
  • Proposal to resolve the compensation file is not equivalent to resolution of the file
    With regard to this argument, the Timiș Tribunal rejected CNCI’s defense that the action should be dismissed because “the case is to be proposed for resolution,” establishing that this statement does not equate to a true resolution of the file. Therefore, it is necessary to decide the action and oblige CNCI to issue a Compensation Decision.
  • Request by CNCI to complete the file does not justify dismissing the action in court
    The Timiș Tribunal also rejected the defendant’s contentions concerning alleged discrepancies in the compensation file, validating our lawyers’ argument that CNCI had had sufficient time since 2009 (the year the file was registered) to request any clarifications or additional documentation. Thus, the first instance court proceeded to resolve the action, determining that CNCI’s claims did not justify prolonging the proceedings.
  • Courts must establish the number of points for which CNCI is obliged to issue a Compensation Decision
    The Timișoara Court of Appeal admitted our appeal and corrected the omission of the first instance court in establishing a concrete number of points with respect to which CNCI must issue the Compensation Decision. Essentially, although the first instance court fully granted the action in favor of our clients, our lawyers decided to file the appeal in order to fix the precise number of compensation points, so as to avoid possible difficulties in execution of the judgment pronounced by the Timiș Tribunal.
  • As a result, the Timișoara Court of Appeal definitively obliged the defendant CNCI to issue a Compensation Decision in favor of our clients, in the amount of 586,556 points. According to Article 21 para. (6) of Law no. 165/2013 one point has the value of one leu.

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