CASE OF VISTIŅŠ AND PEREPJOLKINS v. LATVIA
Pecuniary damage - award (Article 41 - Pecuniary damage);Non-pecuniary damage - award (Article 41 - Non-pecuniary damage)
András Sajó;André Potocki;Angelika Nußberger;Dean Spielmann;Elisabeth Steiner;Françoise Tulkens;Ján Šikuta;Julia Laffranque;Karel Jungwiert;Kristina Pardalos;Lech Garlicki;Linos-Alexandre Sicilianos;Nicolas Bratza;Nona Tsotsoria;Peer Lorenzen
6. At the time of the expropriation of the applicants’ land, the cadastral value of real estate within the perimeter of a town or city was determined in accordance with regulation no. 94 of 12 April 1994 concerning the valuation of urban land (Noteikumi “Par pilsētu zemes vērtēšanu”), which was in force until 12 June 1998. To the extent that it is pertinent in the present case, the preamble to the text contained the following definitions: “... Cadastral value of a plot of land – the urban-planning and economic value of a plot of land, formulated in pecuniary terms. ... Model value of a plot of land [zemes paraugvērtība] – maximum value of a square metre of urban land situated in a value zone [vērtību zona] for the purposes of its exploitation for a specific aim. De facto model value of a plot of land [zemes faktiskā paraugvērtība] – maximum value of a square metre of urban land situated in a specific territory of a value zone [vērtību zona] for the purposes of its exploitation for a specific aim. ... Value zone – a portion of urban territory corresponding to a constant set of data characterising the value of real estate. ...” 7. Article 5 stipulated that the regulation was inapplicable to the determination of the market value of urban land. For the purposes of valuation, urban territory was to be divided into value zones based on the general land-use plan. The capital, Riga, was to be divided into seven or more zones (Article 7). Under Article 8, the main zoning criteria were as follows: “... 1. position [of land] in relation to the city centre; 2. level of development of public-works infrastructure and social services; 3. attractiveness of territory; 4. ecological conditions and consequences of negative factors; 5. local geological conditions; ...” 8. Article 24 of the regulation laid down the methodology for the calculation of the model value (paraugvērtība) of a plot of land. For cities such as Riga, the model value did not have to be specially calculated because it corresponded to a scale in annex no. 2 to the regulation. In order to establish the de facto model value (faktiskā paraugvērtība), it was necessary to calculate the difference between the model value of the zone in question and the adjacent zone, multiply it by the distance from the next zone, then divide the result by the width of the zone in question, and, lastly, add the corresponding model value from the fixed scale (Article 25). The de facto model value then had to be adjusted to take account of any buildings erected on the land (Article 26). 9. The de facto model value had to be multiplied by the surface area of the plot of land for its cadastral value to be obtained. It was then subject to adjustment within a limit of 20% to take account of certain positive or negative factors (Articles 30-34). The calculation of the cadastral value of land was the responsibility of the State Land Authority (Valsts Zemes dienests). 10. The relevant provisions of the Civil Code (Civillikums) read as follows: “Where the contract provides for the payment of interest, its percentage shall be fixed, failing which it shall be presumed that the statutory rate (see Article 1765) has been tacitly agreed.” “The interest rate shall be clearly established in the deed or contract. Failing that, as in cases where the payment of statutory interest is required by law, the rate shall be six per cent per annum. Interest may be calculated only on the capital itself. However, should the interest not be paid within the allotted time in respect of one year or more, from that time onwards, at the creditor’s request, statutory interest shall be calculated on the interest then accruing”. “The interest rate shall be clearly established in the deed or contract. Failing that, as in cases where statutory interest is required by law, the rate shall be six per cent per annum. The interest rate for late payment of a pecuniary debt provided for under a contract as consideration for the delivery or purchase of a good or service, shall be eight per cent [“seven per cent” before 26 June 2013] above the base rate (Article 1765, third paragraph) per annum; as to contractual relations to which a consumer is party, [the base rate shall be] six per cent per annum. The interest base rate shall be four per cent. The said rate shall be modified on 1 January and 1 July every year by the percentage corresponding to the increase or decrease in the most recent rate fixed for refinancing operations by the Bank of Latvia before the first day of the half-year in question. After 1 January and 1 July every year, the Bank of Latvia shall immediately publish in the [Official Gazette] information on the applicable interest rate for the coming half-year. Interest may be calculated only on the capital itself. However, should the interest not be paid within the allotted time in respect of one year or more, from that time onwards, at the creditor’s request, statutory interest shall be calculated on the interest then accruing.” “The interest shall cease to increase: 1. when the amount of the interest still unpaid reaches the amount of the capital; ...” 11. According to the calculator of inflation rates of the Latvian Central Bureau for Statistics (Centrālā Statistikas pārvalde), the rate of inflation between 25 November 1997 (date of the entry into force of the relevant law on expropriation; see paragraphs 23 and 54 of the principal judgment) and 25 October 2012 (date of the principal judgment) was 94.3%.