Lithuanian Court Rules on Compensation for Illegally Built Structure on Curonian Spit

Lithuania's Supreme Administrative Court (LVAT) has delivered a verdict concerning compensation for a building that was constructed illegally and subsequently demolished on the Curonian Spit, a UNESCO World Heritage site. The ruling addresses the complex issue of financial restitution for unlawful construction.

The court stressed the critical importance of the damage assessment method. It must accurately represent the real losses incurred by the affected parties. This ensures that compensation is not arbitrary but directly tied to demonstrable financial harm.

Furthermore, the LVAT highlighted that the final compensation amount must be determined in accordance with the principles of proportionality and justice. This means the award should be fair, reasonable, and balanced, reflecting both the damage suffered and the circumstances of the case. The decision aims to set a precedent for handling similar cases involving illegal construction and subsequent demolition, ensuring legal and financial fairness.

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The method of damage assessment chosen in a specific case must adequately reflect the actual losses incurred, and the amount of compensation must be determined in accordance with the principles of proportionality and justice.