Strasbourg Court flings doors open to higher expropriation compensation

The European Court of Human Rights awarded Maltese national Victoria Vassallo from Żebbuġ the sum of €50,000, as pecuniary damage, after ruling that she was not duly compensated by government for land expropriated in 1974.

In its judgement of October 11, 2011, the European Court of Human Rights had held that there had been a violation of Article 1 of Protocol No 1, regarding the protection of property, concerning the expropriation of land that Vassallo co-owned in Birkirkara.

The land had been expropriated for a social housing project. 37 years later she had still not been compensated for the land.

The judgment handed in Strasbourg  focused on the way computation of compensation is calculated in Malta regarding aquisition orders. 

The Court held that: "compensation as established by Maltese law, amounting to a sum equal to the price of the land at the time when the declaration had been served, plus interest at 5%, was not sufficient to offset failure to pay compensation decades previously".

Assisted by lawyers Josè Herrera and David Camilleri, Vassallo had filed for redress before the European Court of Human Rights after a tract of land in Tal-Qattus, in Birkirkara, which belonged to her family, was expropriated by the government in 1974 for a social housing project.

Remaining untouched for almost 25 years, in 1999, the government offered Vassallo and her family about €13,023 in compensation. However, they turned down the offer and took the case to the land arbitration board.

In 2000, the government returned part of the land, which was still undeveloped, to Vassallo. Two years later, the government started building maisonettes, which were left unfinished in May 2003.

In a Constitutional Court case, the family argued there was no public interest behind the expropriation and that the government had no real and concrete plan for a housing project. In fact, the government started developing the housing project only after the Vassallo's launched proceedings 25 years later, they argued in court.

The Constitutional Court ruled in their favour, saying the Vassallo's  fundamental human rights were breached and ordered the Land Department to pay them €50,000 damages.

However, the Vassallo's and the Land Department both filed an appeal.

The Court upheld the government's case and ordered it to pay the Vassallo's €15,000 in compensation.

Vassallo said her fundamental human rights were breached and sought redress before the European Court to order the Maltese government to pay her €127,057 in compensation.

While settling compensation of €50,000 in pecuniary damage, the European Court of Human Rights decreed that the amount liquidated by the State for expropriated land is a far cry from what should be compensated.

As a rule it usually takes 25 years for the Maltese government to pay any type of compensation. 

The procedure is that once the President of the Republic issues a requisition order, there is the issue of a Notice to Threat.  If the person does not agree with the compensation offered, then the matter is referred before the Land Arbitration Board. 

For years this Board was not functioning, until it was reconvened under the Chairmanship of Magistrate Giovanni Grixti, which according to a recent parliamentary question, this board has decided 37 cases.

In those instances where compensation was substantial, government filed an appeal, due to issues related to funds.

To date, government has appealed to 24 cases out of 37 and are valued at an estimated €2.5 million.