Can a Statutory Easement Exist Concurrently with a Lease Agreement without Mutual Conflict? This article analyses the concurrent validity of statutory easements and lease agreements, as well as their legal consequences, while also addressing the issue of when the right to claim adequate one-off compensation for the restriction of property rights becomes time-barred. It provides an overview of the key aspects that may affect both property owners and tenants.

Statutory Easements

Statutory easements are subject to a specific regime governed by public law provisions (their content is defined directly by statute; if not, the provisions of the Civil Code apply mutatis mutandis). They are established by law, always in the public interest, constitute an easement in rem, and are for consideration. They arise at the moment the law becomes effective or upon the occurrence of other legal facts, such as the finality of a building permit.(1)

Adequate (One-Off) Compensation for the Establishment of a Statutory Easement

If a statutory easement is established over a property, the owner has the right to adequate one-off compensation for the restriction of their ownership rights. This claim may be exercised directly against the entity establishing the easement, particularly in connection with public utility constructions. The claim must be asserted within the period prescribed by the relevant legal regulation.

Judgment of the Supreme Court of the Slovak Republic, Case No. 4Obdo/72/2022, dated 25 September 2024

These issues were addressed in the recent judgment of the Supreme Court of the Slovak Republic (Case No. 4Obdo/72/2022, dated 25 September 2024). The case concerned the claimant’s entitlement to adequate one-off compensation from a telecommunications undertaking for the statutory easement encumbering his land in connection with the installation of an antenna system in 1997(2) and a data cable in 2002(3).

In his appeal, the claimant argued that there had been no forced restriction on the use of the property, since he had entered into a fixed-term lease agreement with the telecommunications undertaking. He subsequently asserted his claim for adequate one-off compensation against the defendant after the expiry of the lease term, or upon the registration of the easement in the Land Register.

Can a Statutory Easement and a Lease Agreement Exist Concurrently?

On this issue, the Supreme Court endorsed the conclusion it had previously reached in its Resolution, Case No. 4Sžrk/14/2018, dated 4 June 2019: ,,26… The registration of a statutory easement is a technical act declaring the existing legal situation…The cassation court points out that the institution of a statutory easement and the institution of a lease agreement may exist concurrently…Therefore, the cassation court disagrees with the appellant´s view that the institution of a statutory easement can only apply where there is no relationship between the property owner and the operator (undertaking) of public networks.“

Under What Circumstances Does the Right to Adequate (One-Off) Compensation Become Time-Barred?

In its judgment, the Supreme Court held that the claimant´s entitlement to adequate (one-off) compensation arose at the moment the relevant telecommunications equipment was installed and was not renewed by subsequent legal amendments, even though the easement was registered in the Land Register only under the later legislation.

The Supreme Court rejected the claimant´s argument, noting: ,,41… In the case of a lease agreement and a statutory easement, it is not possible to speak of a competition between two institutions whose concurrent existence would be mutually exclusive. They are different institutions serving different purposes. The rights restricting the property owner must be held by the defendant regardless of whether a lease agreement has been or will be concluded, precisely in order to ensure the provision of public telecommunication services (now electronic communications services). Therefore, it cannot be concluded that a statutory easement would arise (and expire) depending on whether the property owner enters info a lease agreement…“  

Finally, the Court concluded: ,,42… It is not possible to accept the claimant´s legal opinion that the statutory easement and the restriction of the use of his property, and thus the commencement of the limitation period for asserting adequate compensation, could only arise upon termination of the lease relationship.“

Conclusion

From the judgment of the Supreme Court it follows that:

                  §     The institution of a statutory easement and the institution of a lease agreement are not in mutual conflict and may therefore exist concurrently,

             §    The entitlement of the encumbered party to adequate one-off compensation arising from a statutory easement accrues on the date of implementation of the public utility construction and may be asserted within the statutory period, regardless of whether the easement was entered in the Land Register or whether a lease agreement exists between the parties.

    If statutory easements are a relevant issue for you, please contact us. We will be pleased to provide expert legal advice and support. Or law firm has many years of successful practice in this field, as confirmed by our recognition in the Law Firm of the Year 2024 awards, where we were highly recommended in the category of Telecommunications and Information Technology Law. You can rely on our expertise to help you achieve the best possible outcome.

Autor: Mgr. Adam Nahalka

Junior Associate