Ineffectiveness of waiving compensation for the acquisition of real estate under the Permission for the Implementation of a Road Project (PIRP)

In a judgment dated November 29, 2018. The Court of Appeals in Rzeszow approved in full the position of advocate Małgorzata Wojciechowska, who reasoned before the Court of Second Instance that the municipality, which entered into a contract with the investor for the construction of a road, on the basis of Article 16 of the Act on Public Roads, does not have the right to demand from the investor the reimbursement of compensation worth about PLN 800,000, which the municipality paid to the bank in connection with the discharging mortgages encumbering the ownership of real estate taken over for public roads, despite the fact that in the contract the investor, so to speak, “in advance” waived compensation for deduction of his ownership rights, in connection with the construction of a public road under the PIRP.

This ruling is important for all developers who, in trust for public entities and local governments, as parties to the contract, signed obligations under which they waived any compensation for the property taken, which was previously their property.

This judgment is final. The Law Firm is awaiting for written reasons for the verdict. We will report on its details in the news later.