FOURTH SECTION

DECISION

Application no. 65187/10 Anton Antonov BALAKCHIEV and Others against Bulgaria

The European Court of Human Rights (Fourth Section), sitting on 18 June 2013 as a Chamber composed of:

Ineta Ziemele, President , Päivi Hirvelä, George Nicolaou, Ledi Bianku, Zdravka Kalaydjieva, Krzysztof Wojtyczek, Faris Vehabović, judges , and Françoise Elens ‑ Passos, Section Registrar ,

Having regard to the above application lodged on 20 October 2010,

Having regard to this Court’s pilot judgments in the cases of Finger v. Bulgaria (no. 37346/05, 10 May 2011) and Dimitrov and Hamanov v. Bulgaria (nos. 48059/06 and 2708/09, 10 May 2011),

Having regard to the observations submitted by the respondent Government and the observations in reply submitted by the applicants,

Having deliberated, decides as follows:

THE FACTS

2. The applicants were represented before the Court by Mr Y. Yordanov, a lawyer practising in Veliko Tarnovo.

3. The respondent Government (“the Government”) were represented by their Agent, Ms K. Radkova, of the Ministry of Justice.

A. The circumstances of the case

4. The facts of the case, as submitted by the parties, may be summarised as follows.

5. All of the applicants are heirs of shareholders in a company which owned a chocolates factory in Sofia. In 1950 the factory was nationalised under a 1947 statute providing for the nationalisation of private enterprises. After that the property was used by a State enterprise, which in 1991 was transformed into a limited liability company fully owned by the State.

6. A statute providing for the restitution of certain nationalised immovable properties by operation of law came into force in February 1992. Finding that the property fell within the statute’s ambit, on 3 August 1993 the Mayor of Sofia decided to strike it out of the register of State properties and to surrender its possession to the applicants, with the exception of three storeys added to one of the pre ‑ existing buildings after nationalisation and of three other buildings that had also been erected after nationalisation.

7. In 1993 the applicants brought a claim against the State in relation to those buildings. It was rejected by the Sofia City Court in 1994.

8. On 2 September 1993 the company surrendered possession of the property to the applicants, with the exception of the three additional storeys and the three buildings.

9. On 22 April 1994 the applicants made an agreement with the company. The company agreed to transfer them possession of the three additional storeys and the three buildings in return for the applicants not claiming from the company compensation in respect of the period during which it had continued to use the rest of the property even though it had already been restituted to the applicants by operation of law. The agreement also said that from the date of transfer of possession the applicants were to be regarded as owners of the property. The parties stipulated that the amount of that compensation, which they put at thirteen and a half million old Bulgarian levs, was equal to the value of the three additional storeys and the three buildings. Lastly, the parties agreed to waive any claims that they might have against each other in connection with those matters. The agreement was to take effect following its approval by the Minister of Industry.

10. In June 1994 the State sold seventy per cent of the shares in the company to a foreign investor. On 21 October 1994 the company held a general meeting of shareholders. The meeting resolved to approve the April 1994 agreement and instructed the company’s director to transfer possession of the three additional storeys and the three buildings to the applicants and to execute the requisite conveyancing deeds.

11. However, the transaction was not carried out for several years, and in June 1998 the applicants brought a claim against the company, the Ministry of Industry and the Sofia Municipality. Considering that the April 1994 agreement, as confirmed on 21 October 1994, in effect amounted to a preliminary contract to convey the property, they sought a court order that the contract was to become definitive. The company and the municipality did not appear in court to defend the claim, and the Ministry argued that it was not a proper defendant to it because it was only a shareholder in the company.

12. Between 1999 and 2006 the proceedings in the case were suspended a number of times for various reasons.

13 . In a judgment of 2 June 2007 that court dismissed their claim. It started by holding that only the company and the Ministry were proper defendants to the claim and that, in as much as directed against the municipality, the claim was inadmissible. The court went on to find that the April 1994 agreement did not constitute a preliminary contract for the conveyance of property because the parties to it had spoken only of possession and had not stipulated such conveyance in terms. Moreover, two essential elements of such a preliminary contract – a specific description of the property and a specific price – were missing from the agreement. It had not set out the property or the price in a sufficiently clear way. Nor had the applicants provided evidence that the purported seller – the company – was indeed the owner of the property in issue.

14. On 17 July 2007 the sixth applicant appealed, arguing that the Sofia City Court’s findings in relation to the terms of the April 1994 agreement were erroneous.

15 . On 19 June 2009 the Sofia Court of Appeal upheld the lower court’s judgment. It held that the April 1994 agreement, when seen in its proper context, had amounted to a preliminary contract, and had set out the property and the price in a sufficiently clear way. However, it went on to find that the applicants had not put forward sufficient proof that the company was indeed the owner of the property. Their claim had therefore been rightly dismissed in relation to the company. As for the Ministry, it was only a shareholder in the company, and as such could not incur liability for agreements to which the company was party. The claim against it was ill-founded as well.

16. On 30 September 2009 the sixth applicant appealed on points of law, arguing that it was evident that the company, which had received title to the three additional storeys and the three buildings from the State, was their owner.

17 . In a final decision of 11 May 2010 the Supreme Court of Cassation refused to take the appeal for examination, holding that the point raised in it had not been decisive for the determination of the applicants’ claim.

B. Relevant domestic law

1. The Inspectorate attached to the Supreme Judicial Council

19 . The manner of election and dismissal of the inspectors is laid down in sections 42 ‑ 53 of the Judiciary Act 2007 (“the 2007 Act”). They must be lawyers having high professional and moral qualities (section 42(1)). The Chief Inspector must have at least fifteen years of professional experience, and the inspectors at least twelve years of professional experience (section 42(2) and (3)). They cannot engage in a number of activities – such as business or being member of a political party – that might prejudice their independence (section 43 read in conjunction with section 18(1)). They may be dismissed before the expiry of their term of office only if they resign, are finally convicted of a criminal offence, are unable to carry out their duties for more than one year, are deprived of the right to exercise as a lawyer, heavily or systematically breach their duties or commit acts which tarnish the prestige of the judiciary, or do not cease activities that they are prohibited from pursuing while in office (section 48(1)). The proposal for dismissal must be made by at least one ‑ fifth of the members of Parliament (section 48(2)). The remuneration of the Chief Inspector is equal to that of a section president of the Supreme Court of Cassation, and the remuneration of the inspectors is equal to that of a judge of that court (section 51).

2. The amendments to the 2007 Act

20 . On 6 April 2012 the Government laid before Parliament a bill for the amendment of the 2007 Act. The explanatory notes to the bill said the following:

“Slow judicial proceedings lead to an enormous amount of judgments of the European Court of Human Rights against Bulgaria. In its judgments concerning the right to a fair trial within a reasonable time the European Court of Human Rights (‘the ECtHR’) emphasises the need for the introduction of an effective domestic remedy in respect of such breaches. With a view to securing the effective exercise of the right to a fair trial within a reasonable time, in its case-law the ECtHR points to the need to introduce a remedy capable of providing compensation for damage resulting from delays in proceedings (compensatory remedy).

The systemic problem found by the ECtHR in relation to the excessive duration of criminal and civil cases in the Republic of Bulgaria calls for urgent legislative measures to introduce the remedies suggested by the European Court.

With a view to the effective use of the available resources, it is expedient to give the power to find a breach and set compensation to an existing authority with similar competences. In view of the constitutional function of the Inspectorate attached to the Supreme Judicial Council to check the work of the judiciary (Article 132a § 6 of the Constitution) and more specifically its power under section 54(1)(2) of the Judiciary Act [2007] to check the processing of court, prosecutors’ and investigation cases and their completion within the prescribed time-limits, the bill envisages the creation of a special unit attached to the Inspectorate. That special unit will examine and decide complaints relating to breaches concerning the unreasonable length of completed civil, administrative and criminal cases, as well as discontinued pre-trial proceedings. An important premise for laying down the procedure in such a way is the Inspectorate’s constitutional obligation to carry out checks pursuant to reports by private individuals and legal persons (Article 132a § 7 of the Constitution).

The right to complain is open to all persons who may suffer damage as a result of delays in proceedings: parties to judicial proceedings (civil, administrative and criminal) or persons subjected to the pre-trial phase of criminal proceedings (accused, victims and wronged legal persons).

The envisaged procedure will be a light (simple) way of obtaining redress. The complainant will not have to produce evidence – it will be gathered by the checking panel of their own motion; no fees will be due; the proceedings will finish in six months with a settlement, which will ensure fast payment of the compensation.

Since the proposed procedure envisages a light and fast mode of redress, there is a cap on the maximum amount of compensation. This cap conforms with the ECtHR’s case-law on the amount of compensation awarded in past cases.

The transitional and concluding provisions allow the procedure to be applied in respect of complaints already lodged through the ECtHR.

The compensatory remedy has to have retrospective effect, so as to be available to persons who have become victim of excessive length of proceedings even before the coming of the Act into force, including those who have lodged applications with the ECtHR, if that court has not yet ruled on the admissibility of those applications.

The creation of an effective domestic remedy will ensure a drastic reduction of the number of applications to the ECtHR and will thus lead to less judgments finding a breach of Article 6 § 1 of the Convention for the Protection of Human Rights and Fundamental Freedoms.”

21 . The bill underwent its first reading on 10 May 2012, and its second reading on 7 June 2012, when it was adopted. The Act was published in the State Gazette on 3 July 2012. It inserted a new Chapter 3a in the 2007 Act. The Chapter is entitled “Examination of applications against breaches of the right to examination and determination of the case within a reasonable time” and consists of twelve sections. The newly introduced provisions, the bulk of which came into force on 1 October 2012, read as follows:

Subchapter I – General Provisions

60a. (1) This chapter applies to applications by individuals and legal persons against decisions, actions or omissions of judicial authorities which infringe their right to have their cases examined and decided within a reasonable time.

(2) Applications under subsection 1 shall be lodged by individuals and legal persons who are:

1. parties to finished civil, administrative or criminal proceedings;

2. accused, victims or wronged legal persons in discontinued pre ‑ trial proceedings;

(3) This chapter set out the manner of determining and paying compensation in line with the case-law of the European Court of Human Rights not amounting to more than 10,000 levs.

(4) Applications under subsection 1 shall be lodged within six months after the conclusion of the proceedings at issue with a final decision, though the Inspectorate attached to the Supreme Judicial Council to the Minister of Justice.

(5) A special register shall be created for the applications, and it shall be published on the internet site of the Inspectorate attached to the Supreme Judicial Council.

(6) No fees shall be due for the examination of applications under this chapter.

Subchapter II – Contents and Verification of the Application

60b. (1) The application must be written in Bulgarian and set out:

1. for Bulgarian nationals – their names as featuring in the identification documents; uniform citizen number and address; telephone, fax and electronic address, if any;

2. for foreigners – their names as featuring in the identification documents; uniform foreigner number and address; telephone, fax and electronic address, if any;

3. the commercial firm of the trader or the name of the legal person, written in Bulgarian; the seat and the latest registered address and electronic address;

4. the decision, action or omission alleged to amount to a breach by the respective authority;

5. the authority to which the application is addressed;

6. the request for relief;

7. the applicant’s signature.

(2) Applicants shall submit a declaration that they have not sought or obtained compensation in respect of the same breach in other proceedings.

Subchapter III – Manner of Examination of the Applications

60c. (1) Applications under section 60a(1) shall be examined by the Inspectorate attached to the Supreme Judicial Council, which shall set up a special unit for this purpose.

(2) The experts staffing the unit shall be lawyers who have at least five years of professional experience. Their remuneration shall be equal to that of a district court judge.

(3) The chief inspector shall allocate incoming applications to panels consisting of one inspector and two experts, randomly selected, and one of the experts shall be appointed as rapporteur.

(4) If the application does not meet the requirements of section 60b(1) or (2), the applicant shall be given notice to rectify the deficiencies within seven days of receiving the notice.

(5) If the applicant does not rectify the deficiencies, the application and the supporting documents shall be returned.

60d. (1) The results of the examination shall be noted down in a record of findings.

(2) That record shall be signed by the members of the panel and shall contain information about:

1. the time and place where and when it has been drawn up;

2. the applicant;

3. the panel which has examined the application;

4. the case in respect of which it is being drawn up;

5. the overall duration of the proceedings; the period of delay attributable to the competent authority; the period of delay attributable to actions or omissions of the complainant or his legal or procedural representative;

(3) The record of findings shall also set out the view of the panel as to whether the time-limit under section 60a(4) has been met.

60e. The record of findings under section 60d shall be drawn up within four months of receipt of the application or the rectification of its deficiencies, as the case may be. The record, along with the application and all supporting documents, shall be sent immediately to the Minister of Justice.

60f. (1) Based on the findings of the panel, the Minister of Justice or a person authorised by him or her shall reject the application as unfounded if

1. the length of the proceedings has not exceeded a reasonable time;

2. the delay is due to actions or omissions of the applicant or his legal or procedural representative.

(2) If the right of the applicant to have his or her case examined and decided within a reasonable time has been breached, the Minister of Justice or a person authorised by him or her shall fix the amount of compensation in line with the case ‑ law of the European Court of Human Rights and shall propose the conclusion of a settlement with the applicant.

60g. The underlying circumstances shall be examined and the application shall be determined within six months of the application’s receipt.

Subchapter IV – Payment of Compensation

60h. Compensation shall be paid on the basis of the concluded settlement.

60i. The funds required for the payment of sums under concluded settlements shall be covered by the republican budget.

60j. (1) Compensation due under this chapter shall be paid out of the budget of the Ministry of Justice.

(2) Each quarter the Minister of Finance shall make available to the budget of the Ministry of Justice funds matching the compensations actually paid under subsection 1 during that quarter through a modification of the budgetary arrangements with the central State budget.

60k. Persons who have received compensation under this chapter may not seek compensation in respect of the same matter by way of civil proceedings.

Subchapter V – Measures to Eliminate the Causes of Breaches

60l. (1) Every quarter the chief inspector shall send to the Supreme Judicial Council information about breaches found, and Minister of Justice – about compensations paid out.

(2) Every six months the Supreme Judicial Council shall analyse the reasons for the breaches and shall take measures to eliminate them.

(3) The Supreme Judicial Council shall publish on its internet site the information under subsections 1 and 2.

(2) Applications under subparagraph 1 shall be examined within eighteen months of their receipt.

35. To ensure the application of Chapter 3a in 2012 the Council of Ministers shall make available additional funds in the budgets of the Judiciary and the Ministry of Justice.

23 . In a decision of 11 September 2012 that came into effect on 18 September 2012 ( Постановление № 209 от 11 септември 2012 г. за одобряване на допълнителни бюджетни кредити по бюджета на съдебната власт и по бюджета на Министерството на правосъдието за 2012 г. ), the Council of Ministers increased the budget of the judiciary with 300,000 Bulgarian levs earmarked for the creation, in the Inspectorate attached to the Supreme Judicial Council, of the special unit dealing with applications under Chapter 3a of the 2007 Act (point 1(1) of the decision).

24 . In September 2012 the Inspectorate appointed a number of officials and assigned them to the special unit dealing with applications under Chapter 3a of the 2007 Act. On 1 October 2012 the Inspectorate published on its website an application form and a sample declaration under section 60b(2) of the 2007 Act (see paragraph 21 above). It later put on its website software allowing applicants to lodge applications electronically and track their progress on ‑ line.

3. The amendments to the State and Municipalities Liability for Damage Act 1988

25 . On 23 July 2012 the Government laid before Parliament a bill for the amendment of the State and Municipalities Liability for Damage Act 1988 (“the 1988 Act”). The explanatory notes to the bill said the following:

“An analysis of the judgments in which the European Court of Human Rights has found violations in respect of Bulgaria shows that there are repetitive violations due to the lack of an effective domestic remedy allowing those concerned to obtain redress. More specifically, there is a need to create a domestic remedy allowing those concerned to obtain compensation for damage resulting from a breach of the [Convention] made by the State or its authorities or officials. The Court’s finding that the law of the Republic of Bulgaria does not make provision for such a remedy calls for its creation through an expansion of the ambit of the State and Municipalities Responsibility for Damage Act [1988]. This will overcome the prior approach – to provide for liability only in specific circumstances – which has led to many violation judgments of [the Court] against Bulgaria.

For that purpose, it is proposed to make the following amendments and additions to the Act:

...

2. The proposal to insert a new section 2b seeks to broaden the ambit of the Act, so that it embrace also cases of ‘delayed justice’. Under the pilot judgments of the European Court of Human Rights in the case of Finger [cited above] (which concerns civil cases) and the joined cases of Dimitrov and Hamanov [cited above] (which concern criminal cases), which find breaches of Article 6 § 1 of the Convention, the Bulgarian authorities must, within twelve months (until 10 August 2012) put in place a mechanism to resolve the systemic problem concerning the ‘reasonable time’ of proceedings. The envisaged amendments create a mechanism for the compensation of damage.

Individuals and legal persons whose right to have their cases examined and decided within a reasonable time been breached may bring claims under section 2b only if they have exhausted the administrative procedure for obtaining compensation under Chapter 3a of the Judiciary Act [2007] but have not reached a settlement.

At the same time, in cases of separate breaches occurring in one and the same proceedings, the fact that a person has brought a claim in respect of one breach does not prevent him or her from seeking compensation in respect of a breach of the right to a trial within a reasonable time in cases where the overall length of the proceedings has been excessive.

3. ... As regards claims for compensation in respect of breaches of the right to have one’s case examined and decided within a reasonable time, [the amendments] envisage that such claims, in view of their character and subject matter, shall be examined by the court having local jurisdiction in the place where the aggrieved person has his or her current address or its seat.

4. It is proposed to insert transitional provisions under which, within six months of the entry into force of the Act or of notification by the Registry of the European Court of Human Rights, persons whose applications to [that Court] have been rejected due to failure to exhaust the newly created domestic remedies, and whose proceedings are still pending before the national courts, may also bring claims for compensation under section 2b.

In respect of proceedings which have already ended at the national level, within six months of the entry into force of the Act or of notification by the Registry of the European Court of Human Rights, persons whose applications to [that Court] have been rejected due to failure to exhaust the newly created domestic remedies may lodge applications for compensation under Chapter 3a of the Judiciary Act [2007].

Persons whose national pre ‑ trial or judicial proceedings have ended at the time when the Act comes into force, and less than six months have elapsed since the final decision, shall also have the right to lodge applications for compensation under Chapter 3a of the Judiciary Act [2007] within six months of the Act’s entry into force.

The bill reflects the proposals of non ‑ governmental organisations, the European Court of Human Rights’ case ‑ law, and the recommendations of the Council of Europe’s Committee of Ministers, and with it the Republic of Bulgaria shall fulfil its duties of State Party to the [Convention].”

26 . The bill underwent its first reading on 26 September 2012 and its second reading on 28 November 2012, when it was adopted. The amending Act was published in the State Gazette on 11 December 2012 and came into force on 15 December 2012. It amended a number of provisions of the 1988 Act. In particular, it inserted a new section 2b, which is entitled “Liability of the judicial authorities for breaches of the right to have one’s case examined and decided within a reasonable time” and reads as follows:

“1. The State shall be liable for damage caused to individuals or legal persons by breaches of the right to have one’s case examined and decided within a reasonable time, in accordance with Article 6 § 1 of the Convention.

2. Claims under subsection 1 shall be examined in the manner provided by the Code of Civil Procedure [2007], and the court shall take into account the overall duration and the subject matter of the proceedings, their factual and legal complexity, the conduct of the parties and their procedural or legal representatives, the conduct of the other participants in the proceedings and of the competent authorities, as well as other facts which have a bearing on the proper determination of the dispute.

3. The bringing of a claim for damages in respect of pending proceedings shall not preclude the bringing of a fresh claim after the proceedings have come to end.”

27 . A new section 7(2) provides that claims for compensation under section 2b are to be brought in the court in whose region the aggrieved person has his or her current address or seat.

28 . A new section 8(2) provides that individuals or legal persons may bring claims under section 2b(1) in respect of proceedings which have ended only if they have already exhausted the administrative procedure under Chapter 3a of the 2007 Act (see paragraph 21 above) but that procedure has not resulted in a settlement.

29 . Paragraphs 8 and 9 of the transitional and concluding provisions of the amending Act provide as follows:

“8. (1) Within six months of the entry into force of this Act or of notification by the Registry of the European Court of Human Rights, persons whose applications to the European Court of Human Rights have been rejected due to failure to exhaust the newly created domestic remedies, and whose proceedings are still pending before the national courts, may also bring claims for compensation under section 2b.

(2) Within six months of the entry into force of this Act or of notification by the Registry of the European Court of Human Rights, persons whose applications to the European Court of Human Rights have been rejected due to failure to exhaust the newly created domestic remedies, and whose proceedings at national level have already ended, may lodge applications for compensation under Chapter 3a of the [2007 Act].

9. Persons whose national pre ‑ trial or judicial proceedings have ended at the time when this Act comes into force, and less than six months have elapsed since the final decision, shall also have the right to lodge applications for compensation under Chapter 3a of the [2007 Act] within six months of this Act’s entry into force.”

4. Other relevant provisions of the 1988 Act

30 . Section 4 of the 1988 Act provides that the State is liable for all pecuniary and non ‑ pecuniary damage which is a direct and proximate result of the impugned act, action or omission. However, the Supreme Court of Cassation and the Supreme Administrative Court have held that legal persons, such as commercial companies, cannot suffer non ‑ pecuniary damage and are not entitled to compensation for such damage (see опр. â„– 271 от 19 март 2010 г. по гр. д. â„– 8/2010 г., ВКС, III г. о., and реш. â„– 7861 от 6 юни 2011 г. по адм. д. â„– 3689/2011 г., ВАС, III о.).

31 . Section 9a(1) of the Act, which was inserted in April 2008 and came into force in May 2008, provides that the fee due in respect of cases under the Act is flat and is to be fixed in a tariff adopted by the Government. Under the Tariff of fees collected by the courts under the Code of Civil Procedure, as currently in force, the fee is BGN 10 in respect of first ‑ instance proceedings, BGN 5 in respect of appellate proceedings, and BGN 5 in respect of cassation proceedings. The fee is payable up ‑ front (see опр. â„– 12420 от 4 октомври 2011 г. по адм. д. â„– 12302/2011 г., ВАС, III о.).

32 . Section 10(2) of the Act, as worded after May 2008, provides that if the claim is rejected in full, the court must order the claimant to pay the costs of the proceedings. The claimant must also pay those costs if he or she withdraws the claim in its entirety.

33 . Section 10(3) of the Act, which was also inserted in April 2008 and came into force in May 2008, provides that if a claim under the Act is allowed fully or in part, the court is to order the defendant to pay the costs of the proceedings and to reimburse the court fee paid by the claimant. The defendant must also pay the claimant the fee of one counsel, if the claimant had retained counsel, pro rata the allowed part of the claim.

34 . In their case ‑ law under section 10(2) and (3), the Supreme Court of Cassation and the Supreme Administrative Court have held that it is a lex specialis in relation to the general rules on costs in the Code of Civil Procedure, and that in the case of a partly rejected claim the defendant authority is not entitled to costs (see опр. â„– 12023 от 18 октомври 2010 г. по адм. д. â„– 11620/2010 г., ВАС, I о.; реш. â„– 785 от 2 март 2011 г. по гр. д. â„– 556/2010 г. ВКС, III г. о.; and опр. â„– 525 от 13 октомври 2011 г. по ч. гр. д. â„– 531/2011 г., ВКС, III г. о.).

5. Relevant provisions of the Code of Civil Procedure

35 . Article 172 § 2 of the Code of Civil Procedure 1952, superseded on 1 March 2008 by Article 216 § 2 of the Code of Civil Procedure 2007, which is couched in identical terms, provided that when on account of the character of the right in dispute the court’s ruling had to be the same in relation to all co ‑ claimants or co ‑ defendants, they were regarded as mandatory co ‑ claimants or co ‑ defendants ( необходими другари ) and the procedural steps taken by one of them produced effects in respect of all of them.

36 . Article 519 of the Code of Civil Procedure 2007 provides as follows:

“1. The enforcement of money claims against State bodies and municipalities is not allowed.

2. Money claims against State bodies and municipalities shall be paid out of funds allotted for that purpose in their budgets. For this purpose, the writ of execution shall be presented to the financial department of the [State] body in issue. If no funds have been allocated, the higher [State] body shall take the necessary measures to provide such funds at the latest in the next budget.”

C. Relevant Council of Europe documents

38 . The Committee of Ministers examined the amendments to the 2007 and the 1988 Acts at its 1150th meeting, held on 24 ‑ 26 September 2012. Based on an information document drawn up by the Department for the Execution of Judgments of the European Court of Human Rights (CM/Inf/DH(2012)27), the Committee adopted the following decision:

“The Deputies

1. took note with interest of the revised action report submitted by the authorities on 30/07/2012 presenting the introduction of an administrative compensatory remedy in the field of excessive length of proceedings, as well as of a draft bill for the introduction of a judicial compensatory remedy in this field;

2. approved the assessment of the administrative remedy and of the draft judicial remedy contained in information document CM/Inf/DH(2012)27 and invited the Bulgarian authorities to provide clarifications as concerns outstanding questions identified in this information document;

3. invited the Bulgarian authorities to adopt rapidly the proposed judicial remedy and to amend the provision governing the retrospective effect of the administrative remedy in order to take into account the requirements of the Court in this respect;

4. decided to declassify information document CM/Inf/DH(2012)27;

5. decided to resume consideration of these cases, including the question of the measures aimed at reducing the length of the judicial proceedings, during one of their next Human Rights meetings and invited the authorities to provide additional information also on this question.”

39. The Committee of Ministers again examined the amendments at its 1157th meeting, held on 4 ‑ 6 December 2012. Based on an information document drawn up by the Department for the Execution of Judgments of the European Court of Human Rights (CM/Inf/DH(2012)36), the Committee adopted the following decision:

“The Deputies

As regards the effective remedies required in this field:

1. recalled their decision adopted during their 1150th meeting (DH) (September 2012) according to which the administrative compensatory remedy recently adopted by the authorities and the judicial compensatory remedy proposed in the field of length of proceedings, taken together, seem capable of meeting the main requirements of the case ‑ law of the Court;

2. noted with satisfaction the adoption by the Bulgarian Parliament, on 28 November 2012, of the legislative amendments aimed at introducing the above ‑ mentioned judicial remedy; noted in this respect that according to the information submitted, the adopted provisions are identical to those already assessed by the Committee, except for those relating to the competent courts; invited the authorities to keep the Committee informed about the entry into force of the adopted provisions and to provide it with their translation;

3. noted with interest the explanations provided by the Bulgarian authorities in relation to some outstanding questions identified in Information document CM/Inf/DH(2012)27, in particular their intention to modify the provision governing the retrospective effect of the administrative remedy in order to ensure its compliance with the requirements of the Court in this respect; invited them to reply to the other outstanding questions contained in Information document CM/Inf/DH(2012)36, namely as concerns the functioning of the administrative compensatory remedy;

...

7. invited the authorities to reply to the other outstanding questions identified in Information document CM/Inf/DH(2012)36 and decided to declassify it.”

40 . The information document forming the base for this decision (CM/Inf/DH(2012)36) was drawn up on 27 November 2012 and reads as follows:

“...

I. Compensatory remedies elaborated in response to the pilot judgments

A. Presentation of the adopted administrative compensatory remedy

1. Positive aspects of the administrative compensatory remedy

1. The [2007] Act provides that applications for compensation in respect of excessive length of proceedings are to be addressed to the Minister of Justice through the Supreme Judicial Council’s Inspectorate. When examining these claims, the Minister (or a person authorised by him or her) is assisted by a panel made up of an Inspector and two experts working in a special unit of that Inspectorate. The time ‑ limit for the examination of applications is six months. The procedure is free of charge for the claimants.

2. The applications are to be directed ‘against acts, actions or omissions of judicial authorities’, breaching the right to have a case heard and decided within a reasonable time. The authorities have indicated that this wording would not preclude the examination of applications concerning delays that do not stem from omissions by individual judges or judicial officers but, for instance, from an overburdening of the judicial system as a whole.

3. The criteria which must be taken into account when examining applications are the overall length of the proceedings, the delays attributable to the authorities, as well as the delays attributable to the applicant and his representative ([s]ection 60d(2)(5)). The merits of the application and the amount of compensation are to be determined in light of the Court’s case ‑ law.

4. The compensation is to be paid out of the budget of the Ministry of Justice. The Ministry of Finance must then restore to the budget of the Ministry of Justice the funds paid as compensation each quarter.

Assessment:

5. The law governing the administrative remedy imposes on the authority competent to examine applications for compensation the obligation to take into account the overall length of the proceedings and the conduct of the parties and of the competent authorities, in line with the Court’s case ‑ law. The legal or factual complexity of the case and the stakes involved in the dispute are not mentioned explicitly, but the general reference to the Court’s case-law should be enough to cause them to be taken into account as well. The new provisions also seem to take into account the case ‑ law of the Court as to, inter alia, the promptness of the examination, the absence of charges for the introduction of a claim and the existence of specific budgetary provisions. In conclusion, this administrative remedy takes into account, to a very large extent, the criteria used by the Court for the assessment of the excessive length of proceedings.

2. Questions raised by the administrative compensatory remedy

6. The administrative remedy put in place raises a number of questions, namely: (a) the fact that it does not apply to proceedings which are pending, (b) the wording of the provision governing the retrospective effect of the remedy and (c) the compliance of the remedy with the institutional requirements of Article 13 of the Convention, (d) the compensation ceiling and (e) the payment of compensation. In this respect, it should be recalled that the Court has constantly indicated in its case ‑ law that even if a particular remedy does not fully satisfy the requirements of Article 13, the aggregate of remedies under domestic law may satisfy these requirements. Therefore, the questions raised by this remedy and its weaknesses may be examined also in the light of the judicial compensatory remedy adopted at first reading by the Bulgarian Parliament (for a detailed presentation of the judicial remedy, see paragraphs 22 ‑ 37 below).

(a) Inapplicability of the administrative remedy to proceedings which are still pending

7. The administrative remedy provides that only parties to completed judicial and pre-trial proceedings are entitled to introduce applications for compensation within six months of the end of the proceedings in question. If the proceedings are still pending, the parties have to wait for them to end in order to submit a claim to the Minister of Justice, whatever the delays already accumulated. In contrast, it appears from the information presented by the Bulgarian authorities that the proposed judicial remedy for length of proceedings would also be applicable to proceedings which are still pending.

Assessment:

8. It should be recalled that the Court has already held that the impossibility to use a remedy against the excessive length of proceedings which are still pending may render such a remedy ineffective. It should also be recalled that the pilot judgments require the introduction, within the time ‑ limit set in the operative part of the judgments, of a remedy that fully complies with the Court’s case ‑ law. It thus appears that the introduction of just an administrative remedy with limited scope is not sufficient to ensure the full execution of the pilot judgments. This lacuna could, however, be overcome by the introduction, without delay, of a judicial remedy which fully complies with the requirements of the Court’s case ‑ law, as the Bulgarian authorities seem to have foreseen.

(b) Wording of the provision governing the retrospective effect of the remedy

9. Paragraph 34(1) of the transitional provisions of the [2007 Act], which concerns the retrospective effect of the new remedy, is worded as follows (emphasis added):

‘Within six months of the entry into force of Chapter 3a or notification by the Registry of the European Court of Human Rights, persons who have lodged with the European Court of Human Rights applications concerning breaches of their right to have their cases examined and decided within a reasonable time may submit applications under Chapter 3a, except in cases where the Court has already given judgment on the merits of the application or has rejected the application as inadmissible .’

Assessment:

10. The current wording of paragraph 34 suggests that the new remedy will not be available to applicants whose applications are declared inadmissible by the Court, and this without making the distinction between the different grounds of inadmissibility. This provision should therefore be amended in order to indicate clearly that it will be available to persons whose applications, introduced before its adoption, are declared inadmissible for non ‑ exhaustion of the domestic remedies. Thus, if the Court confirms the effectiveness of the new remedy or of the aggregate of new remedies, it will be able to declare inadmissible the applications pending before it for non ‑ exhaustion of this remedy/these remedies and the applicants concerned will be able to introduce their applications for compensation at the domestic level. The authorities have indicated that this provision will be amended in the near future in order to ensure that applicants whose applications have been declared inadmissible for non ‑ exhaustion of the domestic remedies will be able to use effectively this new remedy at the domestic level. Information is awaited on the time ‑ table for the adoption of this amendment.

(c) Compliance of the remedy with the institutional requirements of Article 13 of the Convention

11. The new provisions of the [2007] Act describe in considerable detail the procedure for the examination of applications for compensation for excessive length of proceedings. The relevant facts for the examination of a complaint concerning excessive length of proceedings are to be established by a panel of one Inspector from the Supreme Judicial Council’s Inspectorate and two experts working in a special unit of this Inspectorate. This panel communicates its findings to the Minister or to the person whom he or she has authorised to act on his or her behalf.

12. If the Minister of Justice or the person designated by him or her finds that the reasonable-time requirement has not been breached, he or she has to reject the application. If the Minister or the person designated by him or her finds, on the contrary, that the reasonable-time requirement has been breached, he or she has to fix the amount of compensation in line with the Court’s case-law and propose a settlement to the claimant. Claimants who have accepted the settlement and have obtained compensation under that procedure cannot claim compensation in judicial proceedings.

13. The [2007] Act does not contain specific provisions concerning a possible judicial review of the decisions rejecting applications or proposing a settlement.

Assessment:

14. It should be recalled that the authority to which Article 13 refers does not need to be a judicial one for a remedy to be considered effective under the Court’s case ‑ law. However, the effectiveness of the remedy before that authority is assessed by reference to the guarantees that it affords (see, among other authorities, Leander [v.] Sweden, 26 March 1987, § 77, Series A No. 116). In particular, the decision ‑ making body needs to have a ‘sufficiently independent standpoint’ (see, among other authorities, Silver and [O]thers [v.] the United Kingdom, 25 March 1983, § 116, Series A No. 61). It should also be noted that the Court requires in principle that the authority in charge of the implementation of a domestic remedy be able to come up with a ‘legally binding decision’, some element of enforceability being generally required (see, among other authorities, Leander, cited above, § 82). As said above, the case ‑ law also indicates that even if a single remedy does not fully satisfy the requirements of Article 13, the aggregate of remedies under domestic law may do so (see, among other authorities, Leander, cited above, § 77).

15. In the light of the information currently available, it is not clearly established whether the new administrative procedure under the [2007] Act can be regarded as providing alone the required ‘element of enforceability’ and sufficient ‘independence’. However, for the reasons set out below, if an effective judicial remedy is introduced without delay, the aggregate of remedies could in principle meet the institutional requirements of Article 13.

16. According to the authorities, the settlements proposed by the Minister of Justice should be considered as legally binding decisions, because under the [2007]Act, as amended, the Minister of Finance has to guarantee to the Ministry of Justice funds up to the amounts paid in compensation to claimants. However, a question remains whether the decision of the Minister of Justice taken on applications for compensation, whether positive or negative, can be considered to have itself a legally binding effect in cases in which no settlement has been concluded. In any event, according to the draft bill for the amendment of the [1988 Act] (aiming at the introduction of a judicial remedy), unsuccessful claimants in the procedure before the Minister of Justice and claimants who have refused to conclude a settlement, will have the right to request compensation in the context of judicial proceedings (see paragraphs 29 and 30 below).Thus, it seems that – if the foreseen judicial remedy is adopted – in the absence of a settlement the claim could be resolved by a final and legally binding decision in the context of judicial proceedings.

17. As to the issue of independence of the decision ‑ making body, it should be recalled that, in a case against the Czech Republic, the Court accepted that an administrative remedy was effective because the persons who were not satisfied with the decision of the Ministry of Justice on their applications for compensation could seek compensation in the context of judicial proceedings (see Vokurka [v.] the Czech Republic (dec.), No. 40552/02, § 60, 16 October 2007). Thus, if only an administrative remedy is introduced, the availability of judicial review of the decisions of the Minister of Justice may prove crucial for the remedy to meet the institutional requirements of the Court’s case ‑ law. By contrast, if an effective judicial remedy is introduced without delay as foreseen by the Bulgarian authorities, the aggregate of the two remedies could in principle meet the institutional requirements of Article 13, even in the absence of judicial review of the minister’s decisions.

(d) Compensation ceiling

18. The [2007 Act] provides that compensation cannot exceed 10,000 Bulgarian levs (BGN) (5,112.92 euros (EUR)).

Assessment:

19. As concerns the above ‑ mentioned compensation ceiling, there may be situations in which that sum will fall short of the amounts awarded in compensation by the Court. That said sums of up to EUR 5 112.92 appear sufficient, in the light of the Court’s judgments against Bulgaria concerning length of proceedings, to compensate adequately the non ‑ pecuniary damage arising in the majority of cases concerning excessive length of proceedings in Bulgaria. Moreover, if an effective judicial remedy is introduced without delay as foreseen by the Bulgarian authorities, the aggregate of newly introduced remedies would normally be sufficient to provide an adequate level of compensation in all situations, as the draft law concerning the introduction of judicial remedy does not provide for a compensation ceiling.

(e) Time ‑ limit and procedure for payment of compensation

Assessment:

21. The Court’s case ‑ law requires that payment should normally be made not later than six months after a judgment or a decision in that respect has become enforceable. Given the importance attached by the Court to this requirement, it seems useful to provide the Committee with detailed information on the payment procedure and on the time ‑ limits in which the payments are made in practice.

B. Presentation of the proposed judicial remedy

22. The following presentation is based on the translation of the draft bill for the amendment of the 1988 Act presented by the Bulgarian authorities on 30/07/2012 (see DH ‑ DD(2012)732). The judicial remedy adopted at first reading by the Bulgarian Parliament seems to comply in principle with the main requirements of the Court’s case-law in the field of compensatory remedies for excessive length of proceedings. However, some clarifications still seem necessary.

(a) Scope of the remedy

23. Section 2b of the draft bill for the amendment of the [1988 Act] provides that the State is responsible for damages caused to persons and legal entities through breaches, by the judicial authorities, of the right enshrined in Article 6 § 1 of the Convention to have their cases examined and resolved within a reasonable time. The claims have to be examined under the rules of the Code of Civil Procedure. The court have to take into account the legal and factual complexity of the case, the conduct of the claimant, the conduct of the other parties and participants in the proceedings and the conduct of the competent authorities, the stakes involved in the dispute, as well as the overall length of the proceedings. The introduction of a claim for damages while the proceedings are still pending is not an obstacle to introducing a claim for damages after the end of these proceedings. The authorities have confirmed that the scope of the judicial remedy comprises the actions of the prosecutors and the investigating magistrates, as well as the actions of the police investigators (to which makes reference paragraph 9 of the transitional and final provisions of the draft bill for the amendment of the [1988 Act]).

24. As concerns the question of the applicability of the judicial remedy to the procedures concerning execution of court decisions, it should be noted that the majority of the execution proceedings in Bulgaria are conducted by private bailiffs whose civil responsibility can be engaged in a case of damage caused by their activity. As far as the public bailiffs are concerned, although their status is governed by the [2007] Act, they are not magistrates. Therefore, it is not clear whether their actions are covered or not by the scope of the proposed judicial remedy.

Assessment:

25. The scope of the proposed judicial remedy seems to comply with the relevant requirements of the Court’s case ‑ law. The draft Section 2b refers to breaches of the reasonable time requirement attributable to the judicial authorities. Although this provision does not mention explicitly the delays caused by the police investigators, the Bulgarian authorities have indicated that the delays which have occurred at the stage of the preliminary investigation and are attributable to the police investigators will fall within the scope of the judicial remedy. It would be useful to clarify whether this is so also in respect of the actions of the public bailiffs responsible for the execution of a court decision.

(b) Procedure according to which a claim should be examined: length and applicable court fees

26. The draft bill for the amendment of the [1988 Act] provides that claims will be examined under the rules of the Code of Civil Procedure [2007]. Under Bulgarian law, a civil dispute can be examined by three levels of jurisdiction.

27. Under the provisions of [s]ection 10 of the [1988 Act], a flat ‑ rate court fee is due to file a claim under the Act which is either BGN 10 for physical persons or BGN 25 for legal persons (EUR 5.12 or EUR 12.82). The claimants must pay all the costs incurred in the proceedings only if their claim has been entirely rejected or if they withdraw or waive their claim entirely. If the court decides in favour of the claim, in whole or in part, the defendant should be ordered to pay the costs relating to the proceedings, as well as the claimant’s court fees. If a claim is granted only in part, the claimant receives only partial reimbursement of the lawyer’s fees. The authorities have specified that according to domestic case ‑ law, if a claim is partially rejected, the claimant should not be required to pay the part of the lawyer’s fees incurred by the defendant.

Assessment:

28. One of the principles set out in the pilot judgments is that a claim for compensation must be examined within a reasonable time. The Court suggested in this respect that ‘consideration may be given to subjecting the examination of such claims to special rules that differ from those governing ordinary claims for damages, to avert the risk that, if examined under the general rules of civil procedure, the remedy may not be sufficiently swift’. However, the introduction of such special rules was not set out as a requirement for the effectiveness of the future remedy or aggregate of remedies. Therefore, the absence of such special rules does not per se put into question the efficiency of the proposed judicial remedy. Moreover, the adopted administrative remedy, if correctly implemented, could provide swift redress to many potential claimants.

29. As concerns the requirement set out in the pilot judgments that the rules governing costs must not place an excessive burden on litigants where their claim is justified, it seems that, even if a claim has been partly rejected, successful claimants could not be required to pay costs relating to the proceedings and the part of the lawyer’s fees incurred by the defendant and that their court fees are to be reimbursed.

(c) Need to exhaust the administrative remedy in some situations

30. Parties to completed judicial proceedings will need to exhaust the administrative remedy before introducing a judicial claim. According to [s]ection 8(2) of the draft bill for the amendment of the 1988 Act, the judicial remedy is not available to claimants who have concluded a settlement in the administrative procedure.

Assessment:

31. As said above, one of the principles set out in the pilot judgments is that a claim for compensation must be examined within a reasonable time. It seems that the requirement for a certain category of claimants to exhaust the administrative remedy before introducing a judicial remedy will not have a considerable impact on the promptness of the compensation process as a whole, because it seems that the administrative phase could be very short (cf. the six ‑ month’ time ‑ limit for the examination of applications, paragraph 1 above).

(d) Retrospective effect

32. Paragraph 8(2) of the transitional and final provisions of the draft bill for the amendment of the [1988 Act] provides that persons whose applications have been rejected by the Court on the ground of non ‑ exhaustion of the newly introduced domestic remedies and who have been parties in completed judicial proceedings will be able to introduce administrative applications for compensation within six months of the entry into force of the amendments or within six months of the notification by the Registry of the Court. Under the same conditions, applicants to the Court who have seen their application rejected for non ‑ exhaustion of the domestic remedies and who are parties in pending proceedings at the domestic level will be able to introduce judicial claims for compensation.

33. According to paragraph 9 of the transitional and final provisions of the draft bill for the amendment of the [1988 Act], parties to proceedings which have been completed less than six months before the entry into force of the draft bill will also have access to the judicial remedy.

Assessment:

34. The provisions concerning the scope of the retrospective effect of the proposed judicial remedy seem to comply with the recommendations given by the Court under Article 46 in the pilot judgments.

(e) Time ‑ limit and procedure for payment of compensation

35. Unlike the [2007] Act, the draft bill for the amendment of the [1988 Act] does not seem to provide for specific budgetary provisions concerning the payment of compensations for excessive length of proceedings. In their response to the questions identified in the memorandum CM/Inf/DH(2012)27 (see DH ‑ DD(2012)977), the authorities indicated that it is foreseen that the amendments to the [1988 Act] will be accompanied by the provision of budgetary funds to the institutions concerned.

36. It seems that according to the relevant budgetary rules, the payment of compensation granted in the event of successful claim against a court/the prosecution should be made out of the budget of the court in question/of the prosecution. Likewise, Article 250 of the Code of Civil Procedure provides that persons who have financial claims against public institutions have to submit the writ of execution to the institution’s financial department in order to receive payment. Payments are made out of the funds earmarked for that purpose in the institution’s budget. If there are no funds available, a budgetary provision for this purpose should be made available the following year.

Assessment:

37. As said above in paragraph 21, the Court’s case ‑ law requires that payment should normally be made not later than six months after a judgment or a decision in that respect has become enforceable. Given the importance attached by the Court to this requirement, it seems useful to provide the Committee, in due time, with information on the exact content of the budgetary provisions taken by the authorities in order to ensure the funding of compensations for excessive length of proceedings and on any other measure aimed at avoiding late payment of compensation.

...

Conclusion

65. In the light of the information available, it seems that the administrative remedy which entered into force on [1 October 2012] represents a very positive step forward towards the execution of the pilot judgments of the Court. This remedy does not in itself comply with all the requirements of the Convention, but most of the outstanding questions could be addressed by the proposed judicial remedy in the field of excessive length of proceedings, if the latter is adopted without delay. Thus, it seems that the aggregate of these two remedies could in principle comply with the main requirements of the Court’s case ‑ law. Therefore, it seems useful to invite the Bulgarian authorities to adopt without delay the judicial remedy proposed and to encourage them to take the necessary measures in order to ensure for themselves that the new remedies will be applied in compliance with this case-law. Likewise, it seems useful to encourage the authorities to continue with their works regarding the introduction of a remedy which allows requesting the acceleration of the criminal proceedings. ...”

COMPLAINTS

41. The applicants complained under Article 6 § 1 of the Convention that the proceedings against the company, the Ministry of Industry and the Sofia Municipality had been unreasonably lengthy.

42. The applicants complained under the same provision that the courts dealing with their case had not properly established the facts, had not indicated to them what evidence they needed to put forward in order to prove their claims, had not themselves gathered such evidence, and had decided the case erroneously and therefore unfairly.

43. Lastly, the applicants complained under Article 1 of Protocol No. 1 that although the company had agreed to convey to them title to the three additional storeys and the three buildings, as a result of the dismissal of their claim for a court order that the preliminary contract was to become final, they had not been able to enjoy those possessions. Moreover, having stood by their commitment not to seek compensation for the use of the property in 1992 ‑ 93, they had allowed the applicable limitation period to lapse.

THE LAW

A. The length of the proceedings

44 . In respect of their complaint concerning the length of the proceedings the applicants relied on Article 6 § 1 of the Convention, which provides, in so far as relevant:

“In the determination of his civil rights and obligations ..., everyone is entitled to a fair ... hearing within a reasonable time ...”

1. The parties’ submissions

(a) The Government’s initial observations

45. The Government submitted that the applicants had not exhausted domestic remedies. They pointed out that following this Court’s pilot judgments in the cases of Finger (cited above) and Dimitrov and Hamanov (cited above) new legislation had been enacted, making provision for two remedies in respect of the unreasonable length of proceedings. The first remedy, governed by newly inserted provisions of the 2007 Act, had been designed to operate retrospectively, so that persons who had already applied to this Court but had not yet obtained a decision on the admissibility of their applications could make use of it. The second remedy, governed by the new section 2b of the 1988 Act, was also retrospective. Both of those remedies were fully in line with the Court’s pilot judgments and with the Committee of Ministers’ recommendations. The first one was being actively used, with fifty ‑ two applications for compensation already lodged and under consideration. The applicants in the present case could likewise avail themselves of that opportunity and obtain adequate compensation for the allegedly excessive length of the proceedings in their case.

(b) The applicants’ observations

46. The applicants submitted that the above ‑ mentioned remedies had been put in place about two years after they had lodged their application, whereas under the Court’s prevailing case ‑ law the availability of effective domestic remedies was to be assessed by reference to the time of lodging of the application. Paragraph 34 of the transitional and concluding provisions of the Act for the amendment of the 2007 Act allowed but did not require persons who had already applied to this Court to apply for compensation to the Inspectorate of the Supreme Judicial Council. The applicants preferred to have their length complaint to be examined by this Court, especially because their application contained two other complaints that could not be addressed in proceedings under section 60 et seq. of the 2007 Act. Since they were not bound to lodge an application for compensation under those provisions, they could not have recourse to a claim for damages under section 2b of the 1988 Act.

47. Even if the Court were to accept that the new remedies were to be regarded as relevant, they were not sufficiently effective. They could not be used to accelerate proceedings or to provide rapid redress to persons who had become victim of unreasonably lengthy proceedings. The procedure under sections 60 et seq. of the 2007 Act was not judicial, contrary to the requirement of Article 6 § 1 of the Convention for adversarial proceedings in cases concerning civil rights. There were no sanctions in case of failure to observe the time-limit for the examination of applications for compensation. The procedure was not clearly laid down. For instance, applicants were required to specify the decision, action or omission alleged to amount to a breach of their right to a hearing within a reasonable time, whereas in most cases that breach flowed from a multitude of such decisions, actions or omissions. It was unclear which heads of damage were to be compensated, and by reference to what criteria. The amount of compensation was capped at BGN 10,000, which in some cases, such as theirs, would be too low, especially if that sum was intended to make good all pecuniary and non ‑ pecuniary damage. Since the compensation would be paid out of the budget of the Ministry of Justice, the Minister could not be relied on to fix its amount impartially. It was not possible to enforce awards of compensation against the Ministry if it did not pay them voluntarily. It was also not possible to challenge the decision of the Minister, and if the parties did not conclude a settlement, the only avenue open to the person concerned was to bring a claim of damages under section 2b of the 1988 Act, which would mean starting the whole procedure afresh. The requirement to exhaust the administrative procedure under the 2007 Act before bringing a claim under section 2b the 1988 Act would unduly protract the proceedings, whose sole purpose was to provide compensation for delays in other proceedings. No time ‑ limits had been fixed for the examination of claims under section 2b of the 1988 Act. Such claims were to be examined in normal three ‑ instance proceedings, which in most cases would be too slow. That could lead to a situation where the compensation proceedings would be lengthier than the proceedings in respect of whose length compensation was being sought. The issue of delay was illustrated by the fact that out of the fifty ‑ two applications for compensation to which the Government referred, not one had yet been finally determined. It was also unclear how to proceed when delays were attributable to the conduct of several judicial or other authorities, each of which had separate legal personality.

(c) The Government’s additional observations

48. The Government also submitted that the two new remedies had already been found effective by the Committee of Ministers. The level of compensation, governed by internal rules of the authority in charge of administering the remedy under the 2007 Act, was intended to be fully in line with the Court’s case ‑ law. By 14 May 2013, one hundred and twenty ‑ one applications for compensation had been lodged, and twenty ‑ five settlements had either already been concluded or were in the process of being concluded.

2. The Court’s assessment

(a) General considerations

50. Article 35 § 1 (former Article 26) of the Convention provides, in so far as relevant:

“The Court may only deal with the matter after all domestic remedies have been exhausted, according to the generally recognised rules of international law ...”

52. Under the rule of exhaustion of domestic remedies, normal recourse should be had by applicants to remedies which are available and sufficient to afford redress in respect of the breaches alleged. The existence of those remedies must be sufficiently certain not only in theory but also in practice, failing which they will lack the requisite accessibility and effectiveness (ibid., § 70, with further references). However, the existence of mere doubts as to the prospects of success of a particular remedy which is not obviously futile is not a valid reason for failing to exhaust domestic remedies (see, as a recent authority, Uzun , cited above, § 38 in fine ).

(b) Availability and effectiveness of the new remedies

(a) the procedural rules governing the examination of claims concerning the length of proceedings must conform to the principle of fairness enshrined in Article 6 of the Convention;

(b) the rules governing costs must not place an excessive burden on litigants where their claim is justified;

(c) a claim for compensation must be heard within a reasonable time. In that connection, consideration may be given to subjecting the examination of such claims to special rules that differ from those governing ordinary claims for damages, to avert the risk that, if examined under the general rules of civil procedure, the remedy may not be sufficiently swift;

(d) the level of compensation must not be unreasonable in comparison with the awards made by the Court in similar cases. In relation to this criterion, it should be noted that the domestic authorities or courts are clearly in a better position than the Court to determine the existence and quantum of pecuniary damage. In relation to non ‑ pecuniary damage, there exists a strong but rebuttable presumption that excessively lengthy proceedings will cause such damage. Although in some cases the length of proceedings may result in only minimal non ‑ pecuniary damage or no non ‑ pecuniary damage at all, the domestic authority or court dealing with the matter will have to justify its decision to award lower or no compensation by giving sufficient reasons, in line with the criteria set out in this Court’s case ‑ law. In this context, it should additionally be pointed out that the presumption that excessively lengthy proceedings will cause non ‑ pecuniary damage applies to both individuals and legal persons;

(e) the compensation must be paid promptly and generally no later than six months from the date on which the decision that awards it becomes enforceable.

55. The Court went on to say that, to be truly effective and compliant with the principle of subsidiarity, a compensatory remedy needs to operate retrospectively and provide redress in respect of delays which predate its introduction, both in proceedings which are still pending and in proceedings which have been concluded but in which the persons charged with a criminal offence have already applied to the Court or may do so (see Finger , § 131, and Dimitrov and Hamanov , § 126, both cited above).

56. In response, Bulgaria put in place two compensatory remedies: an administrative one, governed by the new sections 60a et seq. of the 2007 Act, and a judicial one, governed by the new section 2b of the 1988 Act.

57. The Court notes at the outset that States can choose to introduce a solely compensatory remedy in respect of undue length of proceedings without that remedy being automatically regarded as ineffective (see Mifsud v. France (dec.) [GC], no. 57220/00, § 17, ECHR 2002 ‑ VIII; Žunič v. Slovenia (dec.), no. 24342/04, 18 October 2007; and Fakhretdinov and Others v. Russia (dec.), nos. 26716/09, 67576/09 and 7698/10, § 28, 23 September 2010).

(i) Procedural guarantees

59. The administrative remedy under the 2007 Act does not follow a contentious procedure, and it cannot therefore be expected that applications for compensation made to the Inspectorate of the Supreme Judicial Council will be examined fully in line with the requirements of Article 6 § 1 of the Convention. However, since the powers and procedural guarantees an authority possesses are relevant in determining whether the remedy before it is effective (see Klass and Others v. Germany , 6 September 1978, § 67, Series A no. 28; Silver and Others v. the United Kingdom , 25 March 1983, § 113 (b), Series A no. 61; Leander v. Sweden , 26 March 1987, § 77 (b), Series A no. 116; and, more recently, Hirsi Jamaa and Others v. Italy [GC], no. 27765/09, § 197, ECHR 2012), it should be observed that the Inspectorate enjoys considerable independence (see paragraphs 18 and 19 above). However, it is questionable whether the same could be said of the authority involved in the second stage of the procedure – the Minister of Justice or a person authorised by the Minister. It is also open to doubt whether the Minister’s decision to grant compensation is enforceable. That said, it cannot be overlooked that the administrative remedy is only the first limb of the system of remedies put in place by the Bulgarian authorities, and that there is a second, fully judicial procedure, which can result in a legally binding decision by a court. The situation is therefore fully akin to that obtaining in Vokurka v. the Czech Republic ((dec.), no. 40552/02, § 60, 16 October 2007), where the Court was satisfied that the system of remedies created under Czech law was effective. Indeed, this was noted by the Department for the Execution of Judgments in paragraphs 16 ‑ 17 of its memorandum, quoted in paragraph 40 above.

60. As for claims under section 2b of the 1988 Act, they will benefit from the full panoply of the normal judicial procedure applicable to the examination of civil actions (see, mutatis mutandis , De Souza Ribeiro v. France , no. 22689/07, § 92, ECHR 2012).

61. It is true that an issue might arise in relation to the impartiality of the courts hearing such claims in the – by definition rare – situation where the claim is directed against the court dealing with it. Indeed, in one of the pilot judgments the Court noted, by reference to its earlier ruling in Mihalkov v. Bulgaria (no. 67719/01, §§ 45 ‑ 51, 10 April 2008), that claims under the 1988 Act may come for hearing before the courts against which they are directed, and that any awards that the courts make pursuant to such claims must be paid out of their budget. Based on that, the Court expressed misgivings about the objective impartiality of the courts hearing such claims (see Dimitrov and Hamanov , cited above, § 97). However, as explained by the Government in their observations in Valcheva and Abrashev v. Bulgaria (nos. 6194/11 and 34887/11), the sums to be paid out as compensation under section 2b of the 1988 Act would come from a distinct line item in the budget of each court. In those circumstances, the Court is satisfied that this factor will not call into question the impartiality of the courts hearing such claims or the effectiveness of the remedy.

(ii) Costs

62. No issue appears to arise in relation to costs or fees.

64. It does not appear that there are any costs in the administrative procedure under the 2007 Act, and claimants under the 1988 Act have to meet the defendant authority’s costs only if their claims are rejected in full (see paragraphs 32 ‑ 34 above). On the other hand, successful claimants under 1988 Act are able to recoup their own costs (see paragraph 33 above).

(iii) Speediness

65. The speediness of the remedy under the 2007 Act does not give rise to any general concern. The Act lays down two concurring time ‑ limits: (a) the authority dealing with the applications must draw up its record of findings not more than four months after the moment when the application has been lodged or rectified, as the case may be (see section 60e, quoted in paragraph 21 above), and (b) the application must be finally determined by the Minister of Justice not more than six months after its receipt (see section 60g, also quoted in paragraph 21 above). An extended time ‑ limit of eighteen months has been laid down for the examination of applications for compensation by persons who have already applied to this Court (see paragraph 34(2) of the transitional and concluding provisions of the Act amending the 2007 Act, quoted in paragraph 21 above). However, it cannot be presumed that the authorities dealing with those applications will wait until the end of that time ‑ limit and will not be able to determine them speedily.

66. It is true that applications for compensation under the 2007 Act may not be made while the underlying proceedings are still pending (see section 60a(2), quoted in paragraph 21 above). As noted by the Department for the Execution of Judgments (see paragraph 8 of its memorandum, quoted in paragraph 40 above), such a limitation may in some cases undermine the effectiveness of a compensatory remedy (see also Dimitrov and Hamanov , cited above, § 97, citing Robert Lesjak v. Slovenia , no. 33946/03, §§ 52 ‑ 53, 21 July 2009). However, as also noted by the Department, that limitation will be largely offset by the possibility of bringing claims under section 2b of the 1988 Act while the underlying proceedings are still pending.

67. The Court is further satisfied that no issue arises in relation to the speediness of the judicial remedy under the 1988 Act. It is true that when the underlying proceedings have come to an end, such claims may be brought only after exhaustion of the administrative remedy under the 2007 Act (see paragraph 28 above). It is also true that those claims will be heard in normal three ‑ instance judicial proceedings, under the general rules of civil procedure. That is why in one of the pilot judgments the Court expressed some misgivings about such a remedy (see Dimitrov and Hamanov , cited above, § 97). However, it cannot be ruled out of hand as failing to meet the requirements of Article 35 § 1 of the Convention. The Court has consistently held that Contracting States are afforded some discretion as to the manner in which they conform to their obligations under Article 13 of the Convention – which has a close affinity with Article 35 § 1 – to put in place effective domestic remedies (see, among other authorities, KudÅ‚a , cited above, § 154; Scordino v. Italy (no. 1) [GC], no. 36813/97, § 188, ECHR 2006 ‑ V; Žunič , cited above; and Taron v. Germany (dec.), no. 53126/07, § 41, 29 May 2012). It is in addition reasonable to expect that in practice the vast majority of grievances will be resolved through the administrative procedure under the 2007 Act, which, except in the case of proceedings that are still pending, needs to be exhausted before recourse could be had to a claim for damages under section 2b of the 1988 Act. This procedure appears, as noted above, sufficiently speedy. Thus, only persons who are unable to obtain adequate redress in that procedure are likely to resort to claims under section 2b of the 1988 Act. Lastly, it is speculative to say that the courts dealing with such claims will not act with due diligence – this is a question of judicial administration and case management (see, mutatis mutandis , Demopoulos and Others , cited above, § 125). It is true that the effectiveness of the remedy will depend on those courts’ ability to handle such cases with special diligence in terms of the length of time taken for their determination. Nevertheless, mere doubts about the effective functioning of a newly created statutory remedy do not dispense applicants from having recourse to it (see Krasuski v. Poland , no. 61444/00, § 71, ECHR 2005 ‑ V (extracts)).

68. The Bulgarian authorities and courts must however take appropriate measures to avoid the clogging up of that avenue of redress (see Grzinčič , cited above, § 109), as the effectiveness of a domestic remedy can be undermined by its excessive duration (see Golha v. the Czech Republic , no. 7051/06, § 49, 26 May 2011, with further references). In this context, the Court observes that several States have chosen to limit compensatory proceedings to one or two judicial instances (ibid., with further references, as well as Taron , cited above, §§ 26 and 43 in fine ). Delays in the compensation proceedings may also be made good by an increase of the amount of compensation (see Sartory v. France , no. 40589/07, § 26, 24 September 2009).

(iv) Amount of compensation

69. No issue appears to arise in relation to the amount of compensation.

70. The criteria for the examination of the applications under sections 60a et seq. of the 2007 Act, as set out in its section 60d(1)(5), appear analogous to those laid down in the Court’s case ‑ law under Article 6 § 1 of the Convention (see, mutatis mutandis , Grzinčič , § 97, and Vokurka , § 63, both cited above). As noted by the Department for the Execution of Judgments (see paragraph 5 of its memorandum, quoted in paragraph 40 above), the 2007 Act does not specifically mention the legal or factual complexity of the case and the stakes involved in the dispute, but contains, in sections 60a(3) and 60f(2), general references to the Court’s case ‑ law, which should be sufficient to cause the Inspectorate and the Minister to take those factors into account as well, both in determining the merits of the applications and in fixing the amount of compensation. This will be a question of interpretation and practice. It is true that the level of compensation awarded at domestic level may constitute an important element for the assessment of the adequacy of the remedy. However, as already noted, mere doubts about the effective functioning of a newly created statutory remedy do not dispense applicants from having recourse to it (see also Taron , cited above, § 40). It cannot be assumed that the Bulgarian authorities and courts will not give proper effect to the new provisions (see Krasuski , cited above, § 71).

71. The cap on the amount of compensation, laid down in section 60a(3) of the 2007 Act, does not present a problem. An upper limit of BGN 10,000 (EUR 5,112.92) will allow ample room for complying with the Court’s criteria in respect of compensation (see, mutatis mutandis , Grzinčič , cited above, § 90). Moreover, those concerned will be able to seek higher compensation by way of a claim for damages under section 2b of the 1988 Act, which does not envisage any cap on the amount that may be awarded (see, mutatis mutandis , Charzyński , cited above, § 38).

72. The criteria for the examination of claims for damages under section 2b of the 1988 Act, as set out in its subsection 2 (see paragraph 26 above), appear to be fully in line with those laid down in the Court’s case ‑ law under Article 6 § 1 of the Convention (see, mutatis mutandis , Taron , § 39, and Fakhretdinov and Others , § 26, both cited above).

73. It is true that in cases under the 1988 Act the Bulgarian courts have held that legal persons are not entitled to compensation for non ‑ pecuniary damage (see paragraph 30 above). However, this does not automatically call into question the remedial effectiveness of claims under the new section 2b of that Act. First, the alleged impossibility for legal persons to obtain compensation for non ‑ pecuniary damage flowing from the excessive length of proceedings does not affect individuals, such as the applicants in the present case. Moreover, it is far from certain that this limitation will be applied in cases under section 2b. It cannot be overlooked in this connection that in the explanatory notes to the bill for the amendment of the 1988 Act the Government specifically said that the intention was for both individuals and legal persons to be able to bring claims under section 2b, with a view to obviating the need for them to apply to this Court (see paragraph 25 above). Furthermore, the text of the section itself refers to “damage caused to individuals or legal persons” without distinguishing between pecuniary and non ‑ pecuniary damage. As already noted, it cannot be assumed that the Bulgarian courts will not give proper effect to that provision.

74. In this connection, attention should be drawn to the fact that section 2b was enacted following a pilot procedure intended to enable the Bulgarian authorities and courts to deal domestically, and in line with the criteria flowing from this Court’s case ‑ law, with grievances relating to the unreasonable length of proceedings. The Bulgarian authorities and courts should therefore take particular care to ensure that the above ‑ mentioned provisions are applied in conformity with the Convention and the Court’s case ‑ law (see Grzinčič , cited above, § 109). Under that case ‑ law, legal persons, including commercial companies, are in principle entitled to compensation for non ‑ pecuniary damage flowing from the unreasonable length of proceedings (see Comingersoll S.A. v. Portugal [GC], no. 35382/97, §§ 31 ‑ 37, ECHR 2000 ‑ IV; Římskokatolická Farnost Obříství v. the Czech Republic , no. 65196/01, § 38, 24 May 2005; and Provide S.r.l. v. Italy , no. 62155/00, §§ 10, 24 and 46, 5 July 2007).

(v) Prompt payment of compensation

75. As noted by the Department for the Execution of Judgments (see paragraph 21 of its memorandum, quoted in paragraph 40 above), the 2007 Act does not lay down a time ‑ limit for the payment of compensation. However, the Act contains, in section 60j(1) and (2), specific budgetary provisions which should enable the authorities to pay compensation in time (see, mutatis mutandis , Demopoulos and Others , § 125, and Grzinčič , § 90 in fine , both cited above). The 1988 Act does not lay down a time ‑ limit either, and does not contain budgetary provisions. Although proceedings under that Act result in final and binding judicial decisions, Bulgarian law does not allow the enforcement of judicially determined money claims against State bodies (see paragraphs 36 and 37 above). However, this problem is not necessarily systematic and it would be speculative at this stage to say that compensation granted in administrative proceedings section 60a et seq. of the 2007 Act or damages awarded under section 2b of the 1988 Act will not be paid in due time.

(vi) Scope

76. The administrative remedy under the 2007 Act covers civil, administrative and criminal proceedings, including pre ‑ trial proceedings (see section 60a(2), quoted in paragraph 21 above). It is open to persons who are aggrieved by the length of proceedings which have come to an end (ibid.).

77. The judicial remedy under the 1988 Act appears to cover all sorts of judicial proceedings (see section 2b, quoted in paragraph 26 above). It is open to persons who are aggrieved by the length of proceedings which are still pending (see section 2b(3), quoted in paragraph 26 above), as well as to persons who are aggrieved by the length of proceedings which have come to an end but who have not obtained adequate redress through the administrative remedy under the 2007 Act (see section 8(2), quoted in paragraph 28 above). The Department for the Execution of Judgments expressed misgivings about whether that remedy covers delays attributable to police investigators, who in Bulgaria are not regarded as “judicial authorities” (see paragraph 25 of its memorandum, quoted in paragraph 40 above). Those misgivings were based only on the title of section 2b of the 1988 Act, which speaks of “[l]iability of the judicial authorities”. However, the section’s text refers to “the competent authorities” (see paragraph 26 above), which may be interpreted as covering all authorities, judicial or other, whose conduct might cause delay. Again, this will be a question of interpretation and practice; it cannot be assumed that the Bulgarian courts will not give proper effect to the new provisions (see Krasuski , cited above, § 71).

(vii) Retrospective effect

78. As regards retrospective effect, it should be observed that both the administrative remedy under the 2007 Act and the judicial remedy under the 1988 Act were enacted with transitional provisions that enable the domestic authorities and courts to deal with applications – such as the one at hand – pending before this Court, and even with grievances concerning unreasonably lengthy proceedings that may come before this Court (see paragraphs 22 and 29 above, as well as, mutatis mutandis , Vokurka , § 62, and Taron , § 43, both cited above). The wording of paragraph 34(1) of the transitional and concluding provisions of the Act amending the 2007 Act was, as noted by the Department for the Execution of Judgments in paragraph 10 of its memorandum (see paragraph 40 above), somewhat infelicitous, but this problem can be regarded as resolved with the subsequent enactment of paragraph 8(2) of the transitional and concluding provisions of the Act amending the 1988 Act. No issue arises in relation to the time ‑ limit (contrast, mutatis mutandis , Ratajczyk v. Poland (dec.), no. 11215/02, ECHR 2005 ‑ VIII, and Grzinčič , cited above, §§ 65 ‑ 66) because it is alternative: the six ‑ month time ‑ limit under the two new remedies runs either from the moment when the amendments came into force – 1 October 2012 and 15 December 2012, respectively – or from the moment when the applicants are notified that their applications to the Court have been declared inadmissible for non-exhaustion of domestic remedies. Under paragraph 34(2) of the transitional and concluding provisions of the Act amending the 2007 Act, the Inspectorate attached to the Supreme Judicial Council and the Minister of Justice will have to deal with their applications for compensation within eighteen months (see paragraph 22 above). If that procedure does not afford adequate redress, the persons concerned will be able to turn to the judicial remedy under the 1988 Act.

(viii) Conclusion on the effectiveness of the new remedies

79. Having regard to the foregoing, and basing its conclusion on an assessment of the legislative provisions as they stand, the Court finds that, taken together, an application for compensation under sections 60a et seq. of the 2007 Act and a claim for damages under section 2b of the 1988 Act can be regarded as effective domestic remedies in respect of the allegedly unreasonable length of proceedings before the civil, criminal and administrative courts in Bulgaria.

81. The remedies under examination appear to be available not only to persons who were party to proceedings which ended after they became operational – 1 October and 15 December 2012, respectively – but also to persons who were party to proceedings which ended less than six months before 15 December 2012, and to persons, such as the applicants in the present case, who lodged applications with this Court before those dates.

(c) Are the applicants required to have recourse to the newly introduced remedies?

82. It remains to be established whether the applicants are required to have recourse to the new remedies.

(d) Conclusion on the admissibility of the complaint

84. There is no indication that the applicants have brought proceedings under section 60a et seq. the 2007 Act or section 2b the 1988 Act, which appear to operate retrospectively, or that there exist special circumstances which absolve them from doing so.

85. It follows that their complaints concerning the length of the proceedings must be rejected under Article 35 §§ 1 and 4 of the Convention for non ‑ exhaustion of domestic remedies.

B. The alleged unfairness of the proceedings

86. In respect of their complaint that the proceedings were not fair the applicants again relied on Article 6 § 1 of the Convention, whose text has, in so far as relevant, been set out in paragraph 44 above.

87. The Court finds that the applicants essentially challenge the domestic courts’ findings of fact and their approach to the kind of proof required to obtain a court order finalising a preliminary contract for the conveyance of property. However, the Court emphasises that it is not a court of appeal from the national courts (see, as a recent authority, Yordanova and Toshev v. Bulgaria , no. 5126/05, § 65, 2 October 2012), and it is not its function to deal with errors of fact or law allegedly committed by those courts unless and in so far as they may have infringed rights and freedoms protected by the Convention (see, among many other authorities, CsÅ‘sz v. Hungary , no. 34418/04, § 33, 29 January 2008, and Stoyanova ‑ Tsakova v. Bulgaria , no. 17967/03, § 26, 25 June 2009).

88. It follows that this complaint is manifestly ill ‑ founded and must be rejected in accordance with Article 35 §§ 3 (a) and 4 of the Convention.

C. The alleged interference with the applicants’ possessions

89. In respect of their complaint that as a result of the dismissal of their claim the applicants were not able peacefully to enjoy their possessions, the applicants relied on Article 1 of Protocol No. 1, which provides as follows:

“Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law.

The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties.”

91. It follows that this complaint is manifestly ill ‑ founded and must be rejected in accordance with Article 35 §§ 3 (a) and 4 of the Convention.

For these reasons, the Court unanimously

Declares the application inadmissible.

Françoise Elens-Passos Ineta Ziemele Registrar President