CASE OF KARAVAN CITY BT. v. HUNGARY

SECOND SECTION

CASE OF KARAVÁN CITY BT. v. HUNGARY

(Application no. 26859/05)

20 October 2009

20/01/2010

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 Karaván City Bt. v. Hungary,

The European Court of Human Rights (Second Section), sitting as a Chamber composed of:

Françoise Tulkens, President, Vladimiro Zagrebelsky, Danutė Jočienė, Dragoljub Popović, András Sajó, Nona Tsotsoria, Kristina Pardalos, judges, and Sally Dollé, Section Registrar ,

Having deliberated in private on 29 September 2009,

Delivers the following judgment, which was adopted on that date:

PROCEDURE

1 The case originated in an application (no. 26859/05) 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 company, Karaván City Bt. (“the applicant”), on 22 July 2005.

2 The applicant was represented by Mr E. Petruska, a lawyer practising in Budapest. The Hungarian Government (“the Government”) were represented by Mr L. Höltzl, Agent, Ministry of Justice and Law Enforcement.

3 On 24 March 2009 the President of the Second 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

4 The applicant is a limited partnership incorporated under Hungarian law, with its seat in Budapest.

5. A company brought an action in compensation against the applicant before the Pest Central District Court on 10 March 1994. After holding numerous hearings and obtaining the opinions of several experts, the court dismissed the action on 13 February 2003. On 26 January 2005 the Budapest Regional Court upheld the first-instance decision. This decision was served on 10 March 2005.

THE LAW

6 The applicant complained that the length of the proceedings had been incompatible with the “reasonable time” requirement of Article 6 § 1 of the Convention. The Government contested that argument.

7 The Court observes that the period to be taken into consideration lasted eleven years for two levels of jurisdiction. In view of such lengthy proceedings, this complaint must be declared admissible.

8 The Court has frequently found violations of Article 6 § 1 of the Convention in cases raising issues similar to the one in the present application (see, among many other authorities, Frydlender v. France [GC], no. 30979/96, § 43, ECHR 2000-VII). 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 circumstances. Having regard to its case-law on the subject, the Court considers that 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.

9 Relying on Article 41 of the Convention, the applicant claimed 9,600 euros (EUR) in respect of non-pecuniary damage. The Government contested the claim. The Court considers that it should award the full sum claimed.

10. The applicant also claimed EUR 1,500 for the costs of its legal representation before the Court (this sum corresponds to 14,5 hours of legal work) and EUR 240 in respect of miscellaneous clerical and translation expenses, supported by invoices. The Government did not express an opinion on the matter. 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 documents in its possession and the above criteria, the Court finds it reasonable to award EUR 1,240 under this head.

11 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

1 Declares the application admissible;

2 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,

(i) EUR 9,600 (nine thousand six hundred euros), plus any tax that may be chargeable, in respect of non-pecuniary damage,

(ii) EUR 1,240 (one thousand two hundred and forty euros), plus any tax that may be chargeable to the applicant, in respect of costs and expenses,

to be converted into Hungarian forints at the rate applicable at the date of settlement;

(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.

Done in English, and notified in writing on 20 October 2009, pursuant to Rule 77 §§ 2 and 3 of the Rules of Court.

Sally Dollé Françoise Tulkens Registrar President