A landmark decision of the Supreme Court. This is good news for property owners

The Supreme Court has adopted a resolution that may be of significant importance to property owners seeking remuneration for the use of their property without a legal basis. It held that when several people use one property without contract, the owner may demand the entire amount due from one of them. The case concerned a plot of land in Warsaw that was occupied by several people despite the end of a long-term lease.

The owner of half of the property received as a gift from her mother took to court against the people living on the property. She demanded both to leave the property and pay remuneration for the period of using the plot without a legal title.

Non-contractual use of real estate

The plaintiff argued that the people occupying the plot do not pay the owner any remuneration, even though they continue to use the property and pay fees related to its use. It also indicated that the defendants’ liability should be joint and several.

The Warsaw-Praga District Court found that the defendants were owners in bad faith, i.e. they were aware that they were not entitled to the property. As a result, he awarded the owner PLN 56,000. PLN remuneration for the use of the plot.

An important question addressed to the Supreme Court

Doubts arose at the stage of appeal proceedings. The Court of Appeal in Warsaw asked the Supreme Court whether the obligation to pay remuneration by several holders should be treated as an obligation in solidum, or whether each of them should be responsible only for their part of the receivable.

The court pointed out that in the case of divided liability, the creditor would have to conduct proceedings against each person separately. This solution could prove problematic, especially when some debtors do not have the funds to repay the debt.

The owner can sue one of the debtors

The Supreme Court found that the obligation of dependent owners in bad faith to pay remuneration to the owner is in solidum. This means that the owner can recover the entire amount due from one of several debtors.

As indicated in the justification, this solution is more beneficial for the property owner. An obligation in solidum is similar to joint and several liability. In practice, it allows the owner to file a claim against one person and recover the full amount due from him.

According to lawyer Stefan Jacyno, who commented on the case, it does not matter whether the property is occupied by one person or several. In each case, the owner is deprived of the ability to use his property. After settling the debt, the persons using the property can settle accounts among themselves. The resolution of the Supreme Court therefore strengthens the protection of owners and simplifies the pursuit of claims related to illegal occupation of real estate.