Limitation and preclusion of claims for compensation for planning damage

The legislator has provided for three claims for compensation for planning damage, namely a claim for compensation for the actual damage suffered, a claim for the redemption of the property or part of it and a claim for compensation for the reduction in the value of the property. The realisation of each of these claims is limited in time. After the expiry of the time provided by the legislature for the assertion of the claims, they cannot be effectively realised. There is no consensus in legal science and case law as to the time limits for pursuing these claims.

Time limit for pursuing a claim for compensation for actual damage suffered or for redemption of the property

A claim for compensation for actual damage suffered or for redemption of the real property or a part thereof is time-barred six years from the date which follows six months from the date of entry into force of the local spatial development plan. However, the case law sometimes simplifies the calculation of the limitation period for these claims by taking the date of entry into force of the local plan or even the date of adoption or amendment of the local plan as the beginning of the period. This is not correct, however, as a time limit of six months has been reserved in favour of the municipality from the date on which it was summoned by the aggrieved party to perform the planning liability benefit. Even if a summons has not been submitted, we assume on the basis of Article 120 § 1 of the Civil Code that the limitation period starts to run from the day on which the claim could have become due if the creditor had acted at the earliest possible time. A call for performance can be made as early as the date of entry into force of the local plan. The period of six months for the performance of the liable party should be counted from that time. In fact, performance before the lapse of six months from the date of the notice would be timely. However, due to divergences in interpretation emerging in case law, it is recommended to adopt the least favourable interpretation for the entitled party in practice in order to avoid the risk of dismissal of the action due to the obliged party raising a plea of limitation of the claim.

Time limit for claiming compensation for reduction in value of property

Even more difficult in practice is the question of the time limit for exercising a claim for compensation for a reduction in the value of real estate. The dispute concerns, among other things, the question of whether this claim is limited by a limitation period or – preclusion. At the level of the spatial law, there is only a regulation in Article 37(9) of the Act of 27 March 2003 on spatial planning and development. A large part of the legal science and jurisprudence recognises that this claim is limited by a preclusion period of five years from the date on which the local plan or its amendment became effective. According to another view, the time limit of five years from the date on which the local plan or its amendment became effective was only reserved for the filing of a request for performance, i.e. a call for performance. According to the proponents of this view, if the summons was addressed to the liable entity within five years of the date on which the local plan became effective, the six-year limitation period for the claim starts to run six months after the date on which the summons was issued. As above, however, it is advisable to take the least favourable position to avoid losing the claim. With regard to a claim for compensation for a reduction in the value of a property in practice, it is therefore worth taking the first position.
Legal status as at 24.07.2024