Road compensation
The firm’s lawyers have obtained more than 2 million zlotys in compensation for the client under the provisions of the Real Estate Management Law.
The law firm’s client, in connection with a planned investment, has applied for the division of a land property located in Poznan. The property was located in an area where a local zoning plan was in effect, and part of the plot was designated in the plan for public road areas. Thus, the decision approving the subdivision resulted in the separation of a road plot, which, according to Article 98 (1) Law on Real Estate Management passed to the ownership of the City of Poznań by operation of law. In accordance with the provisions of the A.G.N., in such a situation the former owner is entitled to compensation.
We undertook negotiations with the City on behalf of the client to agree on the amount of compensation for the part of the property expropriated for roads. A settlement was reached, and the client received compensation in excess of PLN 2,600,000. A controversial issue in this type of case is the question of taxation of compensation with VAT, especially when appraisal reports prepared by real estate appraisers refer to transaction prices without VAT. One can doctorate on the subject, but case law so far remains unfavorable to expropriated entrepreneurs.