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Protected tenants in private apartments in Croatia: Implementation of the ECHR judgments
30.04.2024The Croatian parliament has adopted a solution to the problem of protected tenants in private apartments, based on the rulings of the European Court of Human Rights (ECHR). This means that owners can receive compensation and reclaim their apartments. The deadlines for this expire in April 2025. The Ecovis experts in Zagreb explain the details of the decision.
On 14 March 2024, the Croatian parliament passed a law to implement the ECHR rulings in the group of cases Statileo v. Croatia and the decisions of the Constitutional Court of the Republic of Croatia.
The problem of protected tenants in private apartments has been around for more than 70 years. These tenants were given occupancy rights in privately owned apartments by the Yugoslavian communist government. These rights ended in 1996 and were replaced by the then newly introduced instrument of protected tenancy (s. box).
Entitlement to ownership vs protected tenancy
The issue centres around the fact that the former state of Yugoslavia previously confiscated private real estate and handed it to random people to live in. From 1996, the government began returning the property but it could not simply move out thousands of families. Owners were required to maintain the properties but were unable to live in, rent or sell them, while the tenants were required to pay a protected, symbolic rent of ca. EUR 100/month.
In 2014, the European Court of Human Rights (ECHR) decided that property owners must be compensated and paid the difference between the market value and the protected rent. The state was also required to resolve the issue once and for all. Previously, compensation was only given to owners if they sued the state individually. The act provides compensation without the need to sue, as well as providing options to tenants.
Who exactly are the protected tenants and the owners?
The dilemma of whether owners could obtain any kind of compensation for the restriction of their property rights was resolved on several occasions by the ECHR, who ruled in favour of the owners. The most important such judgment was passed in 2014 in the case of Statileo v. Croatia.
In 2018, the law on renting apartments was amended. The amendment provided a transitional period after which protected tenants would have to leave the apartments. However, the disputed provisions of that law were annulled by Croation Constitutional Court. The situation has remained unresolved until now.
We support you to regain your property back or asserting your claims.Ema Kalogjera Juranić, Attorney at law, HAČIĆ & KALOGJERA JURANIĆ Law Firm Ltd.*, Zagreb, Croatia
The significance of the law for the rights of owners
This act provides a final solution to the problem of protected tenants and enables the owners to regain their property.
The act foresees three possible ways for owners to regain their property:
- If the owners and tenants agree, the tenant waives the protected tenant status and becomes a regular tenant who pays the market rent.
- The state pays the protected tenant a fee, they waive the protected tenant status, vacate the property and return it to the owner.
- The owner can sell the property to the state for the market value. The State then grants the protected tenant the right to buy the property at favourable price.
In addition, property owners are entitled to compensation for the non-material damage suffered since 1996. This compensation is EUR 0.01 EUR (1 eurocent) per square metre of property used by the tenants per day, starting from 1996 until 1 January 2025, after which the owners will be entitled to the market rent.
It is important to note that the deadline for owners to submit notification of the chosen method of return expires on 30 April 2025.
The deadline for applying for compensation for non-material damage expires on 15 April 2025 and this deadline is preclusive.
For further information please contact:
Ema Kalogjera Juranić, Attorney at law, HAČIĆ & KALOGJERA JURANIĆ Law Firm Ltd.*, Zagreb, Croatia
Email: ema.kalogjera@hkj-legal.hr
*In cooperation with ECOVIS L+C Rechtsanwaltsgesellschaft mbH
How employee and contractor AI use can create liability for employers: A guide for navigation
03.04.2024Corporate employees and contractors are increasingly using generative tools based on artificial intelligence (AI) in their work. Since legislation around the use of AI is still in its infancy, AI users are exposing companies to potential liability and, in turn, financial and reputational damage.
Areas of application of AI
Areas poised for significant adoption of (and disruption by) AI tools include media and entertainment, marketing and advertising, design, coding and engineering, graphic design, architecture, video games, and publishing, among countless others. The media, entertainment, video game, and marketing industries in particular face significant disruption as new tools and workflows allow financiers to cut costs, while the use of “digital replicas” in theory creates new avenues for talent to monetise their name and likeness and creative works.
While there remains some dissent as to just how quickly AI will disrupt traditional industries, there is consensus around one thing: The approaching tsunami of lawsuits arising from the use of artificial intelligence. Such suits will require intense scrutiny of contracts (particularly relating to representations and warranties, indemnification, and insurance provisions), website and app terms and conditions, and emerging new state and federal legislation as parties struggle to allocate liability for AI-related losses.
Do you need legal advice concerning AI’s impact on insurance? We have insight into this complex intersection of law.Christopher C. Loeber, Partner, Pryor Cashman LLP*, New York, USA
What companies should consider – a guide for navigation
The potential liability and legal risk for companies from the use of AI tools is a clear and present danger, and it is imperative that they act now. The experts at Pryor Cashman LLP* share tips on several best practices that all businesses should adopt immediately:
- Develop a clear understanding of how AI impacts your business
- Engage counsel to assist in mitigating AI-related risks, creating internal AI policies, and conforming existing business contracts to minimise AI-associated losses
- Engage insurance counsel to audit existing insurance policies and advise on future policy purchases and renewals
Would you like to find out more about the topic?
See full article…
For further information please contact:
Christopher C. Loeber, Partner, Pryor Cashman LLP*, New York, USA
Email: cloeber@pryorcashman.com
Simon Pulman, Partner, Pryor Cashman LLP*, New York, USA
Email: spulman@pryorcashman.com
*Ecovis cooperates with Pryor Cashman LLP (www.pryorcashman.com), a full-service, US-based law firm with offices in New York, Los Angeles and Miami.
International human rights law: Ecovis represents clients before the ECHR
03.04.2024The decisions of the highest national courts in individual states do not always result in a case being brought to a fair conclusion. In order to ultimately receive justice, those affected can appeal to the European Court of Human Rights (ECHR). The experts from the Ecovis international human rights law firm in Strasbourg explain how this can help.
The ECHR has long been seen as a model of justice and the last resort against state arbitrariness. At the same time, recently published ECHR statistics for 2023 show that a huge number of applications (10,600) were rejected at the preliminary stage because they did not comply with content requirements or deadlines. And of the 38,260 cases reviewed, only 1/5 were decided on their merits (6,931), while the vast majority were declared inadmissible or removed from the list of cases.
Since the Convention for the Protection of Human Rights and Fundamental Freedoms is a living organism and ECHR case law is constantly evolving, proper understanding and application can help avoid such problems.
The ECHR is empowered to consider applications from states party to the Convention, as well as applications from individuals or complaints from legal entities (e.g. associations) and non-governmental organisations.
The tasks of the ECHR
Only the conduct of a state which has violated fundamental rights and freedoms or failed to ensure their protection is subject to appeal. The ECHR does not consider applications against individuals or non-governmental organisations and is not a court of the “4th instance”.
In addition, the Court can only consider a case after all domestic options have been exhausted, and the time limit for filing an application is just four months from the date of the final decision in the case by the national judicial authorities. International human rights law firms can support clients in submitting complaints correctly by the relevant deadlines.
We have been representing clients before the European Court of Human Rights for many years and would be happy to advise you.Roland Giebenrath, lawyer, Dr. Giebenrath Rechtsanwälte/Avocats – Member of ECOVIS International, Strasbourg, France
Typical cases dealt with by the ECHR
And although a significant proportion of cases pending before the ECHR are complaints by individuals, more and more legal entities (or their associations) that have suffered violations of their property rights are appealing to Strasbourg, for example in the case of:
- protection of their rights, including the confiscation of goods (AKPAZ Limited v. Türkiye, No. 6800/09, 2022)
- non-recognition by the state of property acquired in good faith (ATIMA Limited v. Ukraine No. 56714/11, 2023)
- non-enforcement of an arbitral award made by the International Chamber of Commerce (BTS Holding, A. S. v. Slovakia, no. 55617/17, 2022)
- failure of the state to fulfil its positive obligations to protect property rights even in disputes between individuals or companies (SOVTRANSAVTO Holding v. Ukraine no. 48553/99, 2002)
To have a better chance of success in obtaining fair treatment, reaching an amicable settlement or recognition of the violation of rights, those affected should have their interests represented by experts from human rights law firms with many years of experience in representing clients before the ECHR.
Would you like to find out about current cases?
Some of the cases dealt with by Dr. Giebenrath Rechtsanwälte/Avocats – Member of ECOVIS International, Strasbourg – can be found here.
For further information please contact:
Roland Giebenrath, lawyer,
Dr. Giebenrath Rechtsanwälte/Avocats – Member of ECOVIS International, Strasbourg, France
Email: strasbourg-law@ecovis.com