By Decision no. 37 of February 23, 2026 of the High Court of Cassation and Justice, published in the Official Gazette no. 433 of May 22, 2026, the Court partially admitted the referral regarding the interpretation of Law no. 165/2013 and clarified that, in compensation processes for abusively seized properties, the evaluation can also be done according to the notarial grid from the year prior to the appeal decision, not only that from the first instance.
What does it stipulate?
The High Court of Cassation and Justice (ÎCCJ) has settled an essential issue in disputes regarding compensation for nationalized properties: which notarial grid is used for evaluation when the process reaches the appeal phase. Until this decision, there was uncertainty as to whether the value of compensation was definitively fixed by reference to the grid valid at the time of the first instance judgment or whether it could be updated on appeal, a procedural stage that can last for years.
The decision establishes that the notion of “court decision” in the special law does not refer exclusively to the first instance judgment. Therefore, the appellate court has the possibility to order the evaluation of the property using a more recent notarial grid, specifically the one valid in the year prior to the pronouncement of its own decision. This interpretation is aligned with the jurisprudence of the European Court of Human Rights, which requires that compensation be in a reasonable relationship with the market value of the asset at a time as close as possible to the actual payment.
The application of a newer grid on appeal is not automatic. The appellate court will decide on a case-by-case basis, depending on the limits of its jurisdiction. If the appeal determines a re-judgment on the merits of the compensation amount, then the use of an updated grid is justified. In contrast, if the appeal concerns other aspects, and the evaluation made by the first instance is not directly and thoroughly contested, the initially established value will most likely be maintained. The Court emphasizes that this possibility should not encourage appeals filed exclusively to benefit from a more favorable grid, as such a practice could be sanctioned as an abuse of right.
Who does it apply to?
The decision has a direct impact on the following categories:
- Natural persons and legal entities who are in litigation with the Romanian state (through the National Commission for Real Estate Compensation) to obtain compensation based on Law no. 165/2013, especially those whose cases are in the appeal phase.
- Companies and investment funds that have acquired litigious rights regarding abusively seized properties and are seeking to capitalize on them through judicial procedures.
- Real estate developers who have such claims in their portfolio and whose value may be re-evaluated following this decision.
What should you do?
- Evaluate compensation files under appeal to identify the opportunity to request an update of the compensation value based on a more recent notarial grid.
- Adapt the procedural strategy in future appeals, formulating concrete criticisms that justify a re-analysis on the merits of the compensation amount and allow the court to apply an updated grid.
- Review the accounting value and financial provisions for assets consisting of litigious rights, considering the potential increase in their value as a result of applying more favorable grids.
- Ensure that the grounds for appeal are well-founded and do not exclusively aim to obtain a higher evaluation, to avoid the risk of the court qualifying the action as an abuse of procedural right.
Source: Official Gazette, Part I, no. 433 of May 22, 2026.
Note: This material is strictly for informational purposes and does not constitute legal, tax, or business advice. As the interpretation and application of legal provisions can vary significantly depending on the specific circumstances of each entity, we recommend seeking specialized legal assistance before adopting any operational decisions based on these changes.