Introduction
If you believe that the compensation amount granted by the expropriator is too low, you have the legal right to challenge it before the courts. Below is how this is done and what rules apply.
Procedure for Contesting Compensation in Court
According to Article 22 of Law 255/2010, the expropriated person dissatisfied with the compensation amount may go to the competent court within the general prescription period, which runs from the date the decision setting the compensation is communicated. This must be done without losing the right to challenge, and one cannot contest the transfer of property under expropriation. The exercise of appeal remedies does not suspend the effects of the compensation decision or the property transfer.
Thus, the prescription term for contesting compensation is 3 years from the date of communication of the compensation decision.
The court claims for contesting compensation are exempt from court fees (stamp duty). The competent court is the tribunal in whose area the property is located. For example, for expropriations related to the Cluj ring road or Cluj metro, the action is filed at Cluj Tribunal, civil section.
When deciding the case, the court appoints a commission of judicial experts: one expert chosen by lot by the court, one appointed by the expropriator, and one by the expropriated person. The claimant (expropriated) pays a deposit for the fee of the court-appointed expert and covers costs of their own expert — these are recoverable as legal costs at the end of the case.
How Courts Determine Compensation in Contestation
The compensation awarded by the court cannot be lower than what the expropriator initially offered. Therefore, contesting is advantageous: you may still collect that initial amount and also seek extra via court. The court cannot award less than the administrative compensation.
By Decision no. 14/2019 of the High Court, it was clarified that in judicial expropriation, courts must consider not only the expert appraisals updated by notaries, but also the criteria in Article 26(2) of Law 33/1994: the common sale price of similar properties in the same area, and any additional damages suffered by the owner, based on evidence provided.
In other words, experts and courts must look beyond minimal notarial grid values and account for real market value and demonstrable damages.
In practice, expert valuations often produce much higher values than what the expropriator initially awarded. Thus, many property owners secure significantly larger compensation amounts by contesting in court.
Additionally, through court, one may claim extra damages such as:
- Decrease in value of the remaining land due to irregular shape or lack of access
- Loss of value in areas under road protection or building prohibition zones
- Inflation adjustment of the awarded compensation and indexation of the difference obtained judicially
- Other prejudices depending on the specifics
What If the Compensation Decision Is Not Issued?
As mentioned above, contestation right starts when the compensation decision is communicated. But in practice, there can be excessive delays (sometimes over 5 years) between expropriation and issuing that decision.
By High Court Decision 14/2019, the court held that one can bring a legal action even if the decision has not been issued, asking the court to both determine the compensation and order the expropriator to pay, in case of unjustified delay. In other words, the courts are empowered to sanction the delay and order issuance within the lawsuit.
In such a case, an expropriated person can go directly to court to demand compensation even before or instead of waiting for the administrative decision. The key is showing that the delay is unjustified and that legal criteria for value must then be applied by judicial expertise.