New Supreme Court resolution: Do you own property in restricted use areas? You are entitled to compensation!

What is a limited use area?

A limited use area (OOU) is a special zone established to protect people and the environment from nuisances such as noise, emissions or vibrations. Within an OOU there may be restrictions on the use of real estate such as:.

• prohibitions on the construction of new residential buildings,
• the need to adapt existing facilities to certain standards.

New resolution of the Supreme Court

In a seven-judge resolution of 6 November 2024 (Case No. III CZP 27/24), the Supreme Court resolved an important legal issue concerning compensation claims of owners of real estate located in restricted use areas (OOUs).

Owners of Real Estate, the value of which was reduced as a result of the establishment of OOUs, are entitled to compensation under Article 129(2) of the Environmental Protection Law. Importantly, the Court held that this claim is available even if the decrease in the value of the real estate is not directly attributable to the restrictions on its use provided for in Article 135(3a) of the Act.

Extended protection for real estate owners

The previous legislation required the owner of the real estate to show that the decrease in its value was directly related to the restrictions imposed, such as the prohibition of development or the need for acoustic insulation.

A new Supreme Court resolution changes this approach, recognising that the mere introduction of a limited use area – regardless of the extent of the actual restrictions – can justify a decrease in the value of the real estate and the right to compensation.

What does this mean in practice?

This decision is of key importance for owners of real estate located in the vicinity of airports, industrial plants or other facilities generating environmental nuisance . It opens the way for broader claims related to the impact of OOUs on property values.

Conditions for obtaining compensation

Pursuant to Article 129(2) of the Environmental Protection Act, a property owner may claim compensation if:

1. The introduction of the OOU has reduced the value of the property or restricted the use of the property.
2. The claim shall be notified within three years of the entry into force of the act establishing the OOU.

The Supreme Court’s resolution emphasises that the right to compensation also exists if the decrease in the value of the real estate is due to the mere fact of the establishment of the OOU and the decrease in the value of the real estate, regardless of the extent of the actual restrictions on the use of the real estate. This decision strengthens the protection of owners and provides important support for those affected by environmental regulation.

Do you need support in obtaining compensation?

If your property has lost value due to the creation of an OOU and you want to apply for compensation? Feel free to contact us! Our lawyers will be happy to assist you throughout the process.

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