Provincial Administrative Court paves the way for compensation for palace

In a case handled by attorney Maciej Obrębski and legal advisor Artur Pietruszka, the Provincial Administrative Court in Warsaw overturned the decision of the Minister of Development and Technology, which refused to invalidate the decision on the basis of which one of the museums in the Łódź Province acquired the right of perpetual usufruct of real estate.

The palace and park complex at the centre of the case was owned by the ancestors of the law firm’s client, who lost possession of it as a result of the entry into force of the 1944 decree regulating agricultural reform. In 1992, the cultural entity managing the palace obtained perpetual usufruct of the property by virtue of law, together with the ownership of the buildings located on it, which was confirmed by a relevant administrative decision. After obtaining a final and binding decision stating that the property was not subject to agricultural reform, the heir of the former owner was faced with the need to invalidate the decision on the acquisition of perpetual usufruct, which, however, was refused by the minister. It took the position that the supervisory authority could not challenge the entry in the land and mortgage register made in 1992 and determine that on that date it was the heirs of the former owner, and not the State Treasury, who were the owners of the property (as evidenced by the decision confirming that it was not subject to agricultural reform). The authority pointed out that this determination falls within the exclusive competence of the civil courts.

In today’s judgment, the Provincial Administrative Court unequivocally rejected the minister’s view and indicated that the presumption of conformity of the entry in the land and mortgage register with the actual legal status may be challenged not only in proceedings before a common court, but also by evidence to the contrary in any other proceedings. Thus, it proved unnecessary to initiate separate civil proceedings to determine that in 1992 the property was owned by the client’s testators.

As a result, the heir is able to obtain compensation corresponding to the current value of the property.

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