Vymáhání bezdůvodného obohacení za užívání cizí nemovitosti při absenci smluvního vztahu

Your Property, Another's Gain: When Are You Entitled to Compensation?

To speak of unjust enrichment, four basic conditions must be met: there must be an enrichment on the part of one person, a proprietary loss on the part of another, a causal link between the two, and, above all, a lack of a just cause for such enrichment.

A Specific Case: Unlawful Use of Another's Asset

For real estate owners, the key legal definition is found in Section 2991(2) of the Czech Civil Code, described as the unlawful use of another's asset. In practice, these are typical situations encountered by developers, property managers, and landowners:

• A commercial tenant fails to vacate the premises after the lease ends and continues to occupy them, preventing you from leasing them to someone else.

• A construction company, without your consent, creates a temporary access road across your land for its construction site.

• A contractor fails to remove their equipment from your property after a project is completed.

Who Is Obliged to Pay? Not Just the Actual User!

This is where a crucial insight from current judicial practice comes in. The obligation to surrender unjust enrichment does not lie solely with the person who actually uses your property. According to the case law of the Czech Supreme Court, the person who enabled such unauthorized use by a third party is also liable. Therefore, if, for example, your former tenant unlawfully "sublets" the premises to someone else after the contract has ended, you can demand the surrender of enrichment directly from this former tenant with whom you originally had a contractual relationship.

This option is a strategic advantage for the owner. They do not have to go through the complex process of identifying the actual user and their solvency (the user is only obliged to surrender unjust enrichment if they are not acting in good faith), but can direct their claim against the original partner. At this stage, it is crucial to correctly identify whether a claim has arisen at all and against whom to assert it.

The lawyers at ARROWS assess similar situations daily for our clients, who include developers, property management companies, and over 50 municipalities in our portfolio. This allows us to quickly and accurately determine the most effective strategy.

How Much Can You Recover? Determining Compensation According to Current Case Law

If someone uses your property without legal grounds, you are entitled to monetary compensation. However, its amount is not determined by the profit or loss the user generated on your property. The decisive factor is the value of the right of use itself.

The Gold Standard: Customary Rent

Judicial practice is entirely settled in this regard. The amount of monetary compensation is almost always based on the amount the user would normally have to pay to rent a comparable property in the given location and time. This amount is called customary rent. It is not relevant whether the user conducted a profitable business on the property or, conversely, incurred a loss.

How Is "Customary Rent" Proven in Practice?

Determining the amount of customary rent is a matter for an expert witness and often represents a key battleground in court proceedings. Courts rely on expert reports that analyze comparable lease agreements in the locality, taking into account the condition of the property and, above all, its actual purpose of use. It is not uncommon for each party to submit its own report with different conclusions, and the court must then carefully evaluate their methodology and persuasiveness.

The Trap of an Old Contract: Does the Original Rent Apply?

Although the Czech Civil Code states in Section 2999(2) that if performance was previously provided for a fee (e.g., under a now-terminated lease agreement), compensation shall be provided in the amount of that fee, caution is needed here.

Despite this provision, in many cases, courts still lean towards established case law and set compensation at the level of the current customary rent, which may be significantly higher than the originally agreed-upon amount. This conclusion is supported, for example, by the Czech Constitutional Court's resolution, file no. I. ÚS 530/22.

Exceptions You Need to Know

There are exceptions to every rule. If a property were in such a dilapidated state that the owner could not realistically rent it to anyone, a court might conclude that no loss, and therefore no unjust enrichment, occurred. A different regime also applies to residential leases, where after the lease ends, compensation is paid at the amount of the previously agreed rent, not the customary rent (as confirmed, for example, by the Czech Supreme Court's decision, file no. 26 Cdo 42/2024).

Correctly quantifying the claim is the foundation of success. Our Prague-based legal team at ARROWS has extensive experience in litigation where expert reports play a key role. We prepare legal opinions for clients and cooperate with vetted experts to maximize the amount of compensation awarded and successfully defend its amount in court.

Time Is Against You: Key Risks in Enforcement and How to Manage Them

Enforcing a claim is not without risk. Inaction or improper procedure can lead to a permanent loss of money. Let's look at the biggest threats and how to prevent them.

The Biggest Enemy: The Statute of Limitations

For unjust enrichment, there is a complex system of limitation periods, and missing them means the claim becomes unenforceable.

• Subjective period: Lasts 3 years and begins from the moment you learn that the enrichment occurred and who was enriched at your expense.

• Objective period: Lasts 10 years (15 years for intentional enrichment) and begins from the day the enrichment actually occurred.

Crucially, these periods run independently of each other, and the expiration of just one is enough for the right to become statute-barred. Your claim can thus be time-barred even if you are not yet aware of it. Furthermore, in the case of continuous use, each month of use becomes statute-barred separately, which requires constant vigilance.

Burden of Proof: Who Must Prove What in Court?

The distribution of the burden of proof is clearly defined:

• You as the owner (claimant): You must prove that the use of your property without legal grounds occurred and that you suffered a loss as a result. It is absolutely essential to have everything meticulously documented.

• The user (defendant): If you prove your claims, the burden of proof shifts to them. They must prove they had a just cause for the use (e.g., a valid contract, consent, etc.).

The following table summarizes the most common problems our clients face and shows how we at ARROWS help them.

When Borders Don't Matter: Enforcing Claims with an International Element

In a global economy, it is common for a foreign company to use property in the Czech Republic or for a foreign entity to own it. How is it determined where to litigate and under which law? Fortunately, European law provides clear and very favorable rules for property owners.

Where to Sue? The Brussels I bis Regulation and the Power of the Property's Location

The international jurisdiction of courts within the EU is governed by the regulation known as Brussels I bis. For disputes concerning real estate, it contains a key rule: Article 24(1) grants exclusive jurisdiction to the courts of the Member State in which the property is located. This rule, known as lex rei sitae, cannot be changed by agreement of the parties.

In practice, this means that if, for example, a German company is unlawfully using your land in Brno, you have the right (and obligation) to file a lawsuit in a Czech court. The foreign entity cannot evade this and is forced to submit to Czech jurisdiction. This gives you a huge strategic advantage—you conduct the dispute on "home turf," in your own language, and with knowledge of local conditions.

Under Which Law? The Rome II Regulation and Its Rules

The question of which state's law will govern the dispute is addressed by the Rome II Regulation. For unjust enrichment, Article 10 establishes a clear hierarchy of rules:

1. Existing relationship: If the enrichment is related to a previous contract (e.g., a terminated lease), it is governed by the law of that contract.

2. Common residence/seat: If both parties have their seat in the same country, the law of that country applies.

3. Place of enrichment: In other cases, the law of the country where the enrichment occurred decides—which is again the law of the country where the property is located.

These cases are our daily practice. Thanks to the ARROWS International network, built over ten years, we are able to effectively resolve disputes with an international element. We provide clients not only with representation in Czech courts but also with service of documents abroad, communication with foreign counterparties, and potential enforcement of Czech judgments abroad. Our experience with more than 150 joint-stock companies and 250 limited liability companies gives us a unique insight into cross-border business relationships.

From Problem to Solution: Your Strategic Plan with ARROWS

Protecting property rights requires timely and expert action. Waiting does not pay off and can lead to the permanent loss of a claim. Success depends not only on being in the right but on a strategic and procedurally flawless approach from the very beginning. At ARROWS, we provide comprehensive services that cover the entire life cycle of your property and protect your investments.

• Prevention: The best dispute is one that never starts. We will help you prepare or review lease and other contracts to minimize the risk of future ambiguities.

• Internal Processes: For larger property portfolios, we will draft internal guidelines and conduct expert training for employees, including certification, so your managers know how to proceed at the end of a lease and how to properly document the situation for a potential dispute.

• Claim Assessment: Not sure if you have a claim? We will prepare a detailed legal opinion for you that assesses your position, quantifies the potential compensation, and proposes the next steps.

• Enforcement and Representation: We will handle the entire enforcement process, from out-of-court demands to effective representation before courts and administrative authorities.

• Protection and Permits: We will prepare all documentation to protect you from fines and penalties and secure the necessary licenses or permits if the situation requires them.

Whether you are dealing with a specific problem of unauthorized use of your property or want to proactively protect your investments for the future, we are here for you. We pride ourselves on speed, high quality, and building long-term relationships with our clients.

Our work for clients often goes beyond the legal framework. We are happy to listen to your business ideas and, if it makes sense, connect you with other clients from our portfolio who are looking for interesting investment or business opportunities.

Contact us to arrange an initial consultation. Together, we will find the best solution for your situation.