KIPS DOO AND DREKALOVIC v. MONTENEGRO - 28766/06 (Judgment : Pecuniary damage - award : Second Section) [2019] ECHR 760 (22 October 2019)

KIPS DOO AND DREKALOVIC v. MONTENEGRO - 28766/06 (Judgment : Pecuniary damage - award : Second Section) [2019] ECHR 760 (22 October 2019)

The Court found that the applicant suffered loss of profits only for 2006 and 2007, as the alternative shopping centre (TC Cijevna) was built and operative from late 2007. The Court used the average annual profit of TC Cijevna as the basis for calculating lost profits, without adjustments for size or location, resulting in an award of EUR 4,535,595.20 for pecuniary damage. No award was made for other forms of pecuniary damage as the applicant renounced those claims.

Citation
[2019] ECHR 760
Parties
Applicant: KIPS DOO; Applicant: Risto Drekalović; Respondent: Montenegro
Jurisdiction
European Union
Judgment Date
22 October 2019
Procedural Posture
Application Under Article 34 of the European Convention on Human Rights / Just Satisfaction Judgment Following Principal Judgment on Merits
Outcome
Pecuniary damages awarded to the first applicant; remainder of claim dismissed.
Legal Topics
Pecuniary Damage, Loss of Profits, Refusal of Building Permit, Article 1 of Protocol No. 1 to the Convention, Just Satisfaction Under Article 41
Human Rights Law Property Law Pecuniary Damage Loss of Profits Refusal of Building Permit Article 1 of Protocol No. 1 to the Convention Just Satisfaction Under Article 41

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Parties

KIPS DOO

Applicant

Risto Drekalović

Applicant

Montenegro

Respondent

Procedural Posture

Application Under Article 34 of the European Convention on Human Rights / Just Satisfaction Judgment Following Principal Judgment on Merits

Legal Issues

  1. 1 Assessment of pecuniary damage for loss of profits due to refusal to issue building permit
  2. 2 Appropriate method for calculating lost profits
  3. 3 Entitlement to default interest

Ratio Decidendi

The Court found that the applicant suffered loss of profits only for 2006 and 2007, as the alternative shopping centre (TC Cijevna) was built and operative from late 2007. The Court used the average annual profit of TC Cijevna as the basis for calculating lost profits, without adjustments for size or location, resulting in an award of EUR 4,535,595.20 for pecuniary damage. No award was made for other forms of pecuniary damage as the applicant renounced those claims.

Court Disposition

Pecuniary damages awarded to the first applicant; remainder of claim dismissed.

Orders

  • Respondent State to pay the first applicant EUR 4,535,595.20 in respect of pecuniary damage, plus any tax chargeable, within three months from the date the judgment becomes final.
  • From expiry of three months until settlement, simple interest payable at the marginal lending rate of the European Central Bank plus three percentage points.