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FOURTH
SECTION
CASE OF SOFTEL spol. s r.o. v. SLOVAKIA (no. 2)
(Application
no. 32836/06)
JUDGMENT
STRASBOURG
16
December 2008
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 SOFTEL spol. s r.o. v. Slovakia (no. 2),
The
European Court of Human Rights (Fourth Section), sitting as a Chamber
composed of:
Nicolas Bratza,
President,
Giovanni Bonello,
David Thór
Björgvinsson,
Ján Šikuta,
Päivi
Hirvelä,
Ledi Bianku,
Nebojša
Vučinić, judges,
and Lawrence
Early, Section
Registrar,
Having
deliberated in private on 25 November 2008,
Delivers
the following judgment, which was adopted on that date:
PROCEDURE
- The
case originated in an application
(no. 32836/06) against the
Slovak Republic lodged with the Court
under Article 34 of the Convention for the Protection
of Human Rights and Fundamental Freedoms (“the Convention”)
by the company SOFTEL spol. s r.o.
(“the applicant”), on 4 August 2006.
- The
applicant was represented by Mr V. Vidra, the sole owner and managing
director of the company. The Slovak Government (“the
Government”) were represented by their Agent, Mrs M.
Pirošíková.
- On
4 March 2008 the
President of the Fourth Section decided to give notice of the
application to the Government. It was also decided to rule on the
admissibility and merits of the application at the same time (Article
29 § 3).
THE FACTS
THE CIRCUMSTANCES OF THE CASE
- The
applicant is a private limited
liability company with its registered office in Zilina.
A. Proceedings concerning the
action against the applicant
- On
1 February 1995 eight persons filed an action with the Zilina
District Court. They sued the applicant and the Municipality of
Zilina for a sum of money on grounds of unjust enrichment.
- On
24 January 1996 the Zilina District Court delivered a judgment.
On 20 June 1996 the Banská Bystrica
Regional Court, upon the applicant's appeal, quashed the
first-instance judgment and remitted the case for further examination
to the Zilina District Court.
- On
16 December 1998 the case was transferred to the Čadca District
Court and on 10 July 2001 to the Martin District Court upon decisions
of the Zilina Regional Court as to bias on the part of judges.
- On
27 February 2006 the Martin District Court delivered a judgment. The
parties appealed and the file was transferred to the Zilina Regional
Court on 12 May 2006.
- The
plaintiffs' representative lodged their observations on the
applicant's appeal in August 2006. The case file circulated within
the Regional Court until 24 January 2008 when a hearing was scheduled
for 19 February 2008. The hearing was adjourned upon an
objection by the applicant as to bias on the part of judges.
- On
31 March 2008 the file was transferred to the Supreme Court for a
decision on the objection of bias. On 1 April 2008 the Supreme Court
decided not to exclude the challenged judges from hearing and
deciding on the case.
- On
22 April 2008 the Regional Court quashed the first-instance judgment
and remitted the case to the Martin District Court, also because of
the latter's failure to respect the legal opinion of the appellate
court given on 20 June 1996.
- On
12 May 2008 the file was transferred to the Martin District Court. In
August 2008 the applicant informed the Court that the proceedings
were pending.
B. Constitutional proceedings
- The
applicant complained about the length of the proceedings before the
Zilina, Čadca and Martin
District Courts to the Constitutional Court. On 18 January
2006 the Constitutional Court (First Chamber) rejected the
applicant's complaint about unjustified delays in the proceedings
before the District Courts in Zilina and Čadca as being belated
(as those courts no longer dealt with the case and the complaints had
been lodged outside the statutory two-month time-limit).
- On
4 May 2006 the Constitutional Court found that the Martin District
Court had violated the applicant's right under Article 48 § 2 of
the Constitution to a hearing without unjustified delay.
- The
Constitutional Court held that the case was complex from a factual
point of view. However, the Martin District Court had only assessed
the evidence adduced before the District Courts in Zilina and Čadca
and the duration of the proceedings could not be explained by the
complexity of the case. The applicant had not contributed to the
length of the proceedings. The Martin District Court had failed to
proceed in an appropriate manner and it was responsible for delays
totalling 43 months.
- The
Constitutional Court awarded SKK 60,000 (the equivalent of 1,612
euros at that time) to the applicant as just satisfaction in respect
of non-pecuniary damage. It ordered the Martin District Court to
reimburse the applicant's legal costs but did not order it to avoid
further delays in the proceedings, as that court had delivered its
decision on the merits in the meantime.
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 laid
down in 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 did not contest that argument but argued that the
application was inadmissible for the reasons set out below.
A. Admissibility
- The
Government objected that, in respect of the proceedings examined by
the Constitutional Court, the applicant could no longer claim to be a
victim of a violation of its right to a hearing within a reasonable
time. They argued that the Constitutional Court had expressly
acknowledged such a violation and the amount of just satisfaction
awarded was not manifestly inadequate in the circumstances of the
case. As to the period subsequent to the Constitutional Court's
judgment, the applicant had not exhausted domestic remedies by
lodging a fresh complaint with the Constitutional Court.
- The
applicant disagreed and argued that the amount of just satisfaction
granted by the Constitutional Court was disproportionately low in the
circumstances of the case. Moreover, the Constitutional Court had
rejected its complaint in respect of a substantial part of the
proceedings and the proceedings were again pending before the Martin
District Court owing to the latter's failure to respect the legal
opinion given in the first Regional Court's judgment.
- The
Court notes that at the time of the Constitutional Court's judgment
the proceedings had been pending for 11 years, 3 months and 12 days.
Although the applicant complained to the Constitutional Court about
the proceedings before the Zilina, Čadca and Martin District
Courts, the Constitutional Court declared inadmissible its complaint
in respect of a substantial part of the proceedings in issue and
examined only the length of the proceedings before the Martin
District Court, where the proceedings had been pending at the time it
lodged the constitutional complaint. In this context it has to be
noted that in similar proceedings, examined under application no.
32427/06 before the Court, a different chamber of the Constitutional
Court examined also the length of the proceedings before the District
Courts in Zilina and Čadca and did not declare the complaints in
this respect inadmissible. Moreover, it has been the Court's practice
to examine the overall length of the proceedings complained of (see
Bako v. Slovakia (dec.), no. 60227/00, 15 March 2005).
- The
Constitutional Court awarded the applicant the equivalent of EUR
1,612 as just satisfaction in respect of the proceedings examined by
it. The amount awarded by the Constitutional Court cannot be
considered as providing adequate and sufficient redress to the
applicant in view of the Court's established case-law (see Scordino
v. Italy (no. 1) [GC], no. 36813/97, §§ 178-213,
ECHR 2006-..., and Cocchiarella v. Italy [GC], no. 64886/01,
§§ 65-107, ECHR 2006-...).
- In
view of the above, in respect of the proceedings up to the
Constitutional Court's judgment, the Court concludes that the
applicant did not lose its status as a victim within the meaning of
Article 34 of the Convention.
- Since
the effects produced by the decision of the Constitutional Court did
not satisfy the criteria applied by the Court, the applicant was not
required, for the purposes of Article 35 § 1 of the Convention,
to have recourse again to the remedy under Article 127 of the
Constitution in respect of the proceedings subsequent to the
Constitutional Court's judgment (see the recapitulation of the
relevant principles in Becová v. Slovakia (dec.),
no. 23788/06, 18 September 2007).
- In
this context the Court also considers it relevant that the present
application was introduced without substantial delay after the
Constitutional Court's judgment (see Španír v.
Slovakia, no. 39139/05, § 47, 18 December 2007, and
Weiss v. Slovakia, no. 28652/03, § 33, 18 December 2007)
and that the proceedings are still pending before the Martin District
Court. This part of the application, accordingly, cannot be rejected
for non-exhaustion of domestic remedies.
- The
period to be taken into consideration began on 1 February 1995 and
according to the information available the proceedings are pending
before the Martin District Court. The proceedings have thus lasted
more than 13 years and 8 months.
- 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 the
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, ibid.).
30. Having
examined all the material submitted to it and having regard to its
case-law on the subject, the Court considers that the Government have
not put forward any fact or argument capable of persuading it to
reach a different conclusion in the present case. At the time of the
Constitutional Court's judgment the proceedings had been pending for
more than 11 years. Since the Constitutional Court's judgment the
proceedings have continued for more than 2 years and 5 months and
according to the information available they are still pending. During
that period one substantial delay of approximately 17 months (in the
period between August 2006 and January 2008) occurred owing to the
Regional Court's ineffective performance.
- The
Court concludes that the overall length of the period under
consideration has been incompatible with the applicant's right to a
hearing within a reasonable time.
- 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 6,500 euros (EUR) in respect of non-pecuniary
damage.
- The
Government considered the claim overstated and left the matter to the
Court's discretion.
- The
Court considers that the applicant must have sustained non-pecuniary
damage. Ruling on an equitable basis, and having regard to its
case-law on the subject and to the fact that the applicant company
obtained partial redress in the proceedings before the Constitutional
Court, it awards it EUR 4,000 under that head.
B. Costs and expenses
- The
applicant also claimed EUR 546 for the costs and expenses incurred
before the Court.
- The
Government had no objection to the award of a demonstrably incurred
sum.
- According
to the Court's case-law, an applicant is entitled to the
reimbursement of costs and expenses only in so far as it has been
shown that these have been actually and necessarily incurred and were
reasonable as to quantum. In the present case, regard being had to
the information in its possession and the above criteria, the Court
considers it reasonable to award the sum claimed in full, i.e. EUR
546 for the proceedings before the Court.
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;
3. 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, the following
amounts:
(i) EUR 4,000 (four thousand euros), plus any tax that may be
chargeable, in respect of non-pecuniary damage;
(ii) EUR 546 (five hundred and forty-six euros), plus any tax that
may be chargeable to the applicant, in respect of costs and expenses;
(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;
4. Dismisses the remainder of the applicant's claim for
just satisfaction.
Done in English, and notified in writing on 16 December 2008,
pursuant to Rule 77 §§ 2 and 3 of the Rules of Court.
Lawrence Early Nicolas Bratza
Registrar President