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SECOND
SECTION
CASE OF BÍRÓ v. HUNGARY
(Application
no. 15652/04)
JUDGMENT
STRASBOURG
18
July 2006
This
judgment will become final in the circumstances set out in Article 44
§ 2 of the Convention. It may be subject to editorial
revision.
In the case of Bíró v. Hungary,
The
European Court of Human Rights (Second Section), sitting as a Chamber
composed of:
Mr J.-P. Costa, President,
Mr A.B.
Baka,
Mr I. Cabral Barreto,
Mr R. Türmen,
Mr M.
Ugrekhelidze,
Mrs A. Mularoni,
Ms D. Jočienė,
judges,
and Mrs S. Dollé, Section Registrar,
Having
deliberated in private on 27 June 2006,
Delivers
the following judgment, which was adopted on that date:
PROCEDURE
- The
case originated in an application
(no. 15652/04) against the
Republic of Hungary lodged with the Court
under Article 34 of the Convention for the Protection
of Human Rights and Fundamental Freedoms (“the Convention”)
by a Hungarian national, Mrs Istvánné
Bíró (“the applicant”), on 24 February
2004.
- The
Hungarian Government (“the Government”) were represented
by their Agent, Mr L. Höltzl, Deputy State-Secretary, Ministry
of Justice.
- On
15 September 2005 the
Court decided to communicate the application. Applying Article 29 §
3 of the Convention, it decided to rule on the admissibility and
merits of the application at the same time.
THE FACTS
- The
applicant was born in 1950 and lives in Budapest.
- On
28 February 1995 the Budapest Regional Court ordered the liquidation
of a co-operative, of which the applicant was a shareholder.
- On
1 March 1995 the Regional Court appointed a liquidator and invited
the creditors, including the applicant, to submit their exact claims.
- On
19 May 1995 the shareholders established a “creditors’
group” in order to enforce their claims jointly.
- On
26 July 1995 the applicant and other creditors challenged the
liquidator’s decision to quash an earlier resolution of the
co-operative’s president to terminate, in extraordinary
dismissal proceedings, certain employment contracts with the
co-operative. The proceedings concerning this problem were later
separated.
- On
20 January 1996 the court issued a decision on the classification of
certain securities or claims held by the members. The creditors’
group appealed. On 4 July 1996 the Supreme Court quashed the
decision. The subsequent re-classification was accepted by 485
creditors and refused by 157, and was finally confirmed by the
Supreme Court on 18 June 1997.
- On
30 March 1998 the liquidator submitted his final report. It was
upheld by the court on 28 July 1999. The report dealt with altogether
1,253 claims, of which 581 were accepted.
- On
7 October 1999 the creditors’ group appealed against the
decision upholding the final report. The court rejected this
objection. However, on 21 June 2001 the Supreme Court quashed this
decision and remitted the question to the Regional Court. In the
resumed proceedings, hearings were held on 10 October 2002 and 6
November 2003.
- On
5 December 2003 the objection against the final report was dismissed
by the Regional Court. On 12 July 2004 the Supreme Court quashed this
decision in its part concerning the closing balance sheet and
remitted this issue to the Regional Court.
- A
further hearing took place on 5 May 2005.
- On
18 May 2005 the court rejected various objections concerning the
liquidator’s decisions. On 9 December 2005 an appeal against
this decision filed by the applicant – who had in the meantime
become president of the creditors’ group – had not yet
been adjudicated.
- Meanwhile,
a new final report was filed on 14 July 2005 and a legal-aid lawyer
was appointed for the applicant.
- The
liquidation proceedings are apparently still pending.
THE LAW
I. ALLEGED VIOLATION OF ARTICLE 6 § 1 OF THE
CONVENTION
- The
applicant complained that the length of the proceedings had been
incompatible with the “reasonable time” requirement of
Article 6 § 1 of the Convention, which reads as follows:
“In the determination of his civil rights and
obligations ..., everyone is entitled to a ... hearing within a
reasonable time by [a] ... tribunal...”
- The
Government contested that argument.
- The
period to be taken into consideration began on 28 February 1995 and
on 9 December 2005 had not yet ended. It had already lasted on that
date more than ten years and nine months for two levels of
jurisdiction.
A. Admissibility
- The
Court notes that the application is not manifestly ill-founded within
the meaning of Article 35 § 3 of the Convention. It further
notes that it is not inadmissible on any other grounds. It must
therefore be declared admissible.
B. Merits
- The
Court reiterates that the reasonableness of the length of proceedings
must be assessed in the light of the circumstances of the case and
with reference to the following criteria: the complexity of the case,
the conduct of the applicant and the relevant authorities and what
was at stake for the applicant in the dispute (see, among many other
authorities, Frydlender v. France [GC], no. 30979/96, §
43, ECHR 2000-VII).
- The
Court has frequently found violations of Article 6 § 1 of the
Convention in cases raising issues similar to the one in the present
case (see Frydlender, cited above).
- Having
examined all the material submitted to it, the Court considers that
the Government have not put forward any fact or convincing argument
capable of persuading it to reach a different conclusion in the
present case. Having regard to its case-law on the subject, the Court
considers that in the instant case the length of the proceedings was
excessive and failed to meet the “reasonable time”
requirement.
There
has accordingly been a breach of Article 6 § 1.
II. APPLICATION OF ARTICLE 41 OF THE CONVENTION
- Article
41 of the Convention provides:
“If the Court finds that there has been a
violation of the Convention or the Protocols thereto, and if the
internal law of the High Contracting Party concerned allows only
partial reparation to be made, the Court shall, if necessary, afford
just satisfaction to the injured party.”
A. Damage
- The
applicant claimed 7,994,900
Hungarian forints (HUF) in respect of pecuniary and HUF 9,732,800
in respect non-pecuniary damage.
- The
Government contested these claims.
- The
Court does not discern any causal link between the violation found
and the pecuniary damage alleged; it therefore rejects this claim.
However, it considers that the applicant must have sustained some
non-pecuniary damage. Ruling on an equitable basis, it awards her
10,000 euros (EUR) under that head.
B. Costs and expenses
- The
applicant also claimed HUF 52,654
for the costs and expenses incurred before the domestic courts and
the Court.
- The
Government contested the claim.
-
The Court considers that the sum claimed should be awarded in full
(EUR 200 – the approximate equivalent of HUF 52,654).
C. Default interest
- The
Court considers it appropriate that the default interest should be
based on the marginal lending rate of the European Central Bank, to
which should be added three percentage points.
FOR THESE REASONS, THE COURT UNANIMOUSLY
- Declares the application admissible;
- Holds that there has been a violation of Article
6 § 1 of the Convention;
- Holds
(a) that
the respondent State is to pay the applicant, within three months
from the date on which the judgment becomes final in accordance with
Article 44 § 2 of the Convention, EUR 10,000 (ten
thousand euros) in respect of non-pecuniary damage and EUR 200 (two
hundred euros) in respect of costs and expenses, to be converted into
the national currency of the respondent State at the rate applicable
at the date of settlement, plus any tax that may be chargeable;
(b) that
from the expiry of the above-mentioned three months until settlement
simple interest shall be payable on the above amounts at a rate equal
to the marginal lending rate of the European Central Bank during the
default period plus three percentage points;
- Dismisses the remainder of the applicant’s
claim for just satisfaction.
Done in English, and notified in writing on 18 July 2006, pursuant to
Rule 77 §§ 2 and 3 of the Rules of Court.
S. Dollé J.-P. Costa
Registrar President