Representing Skhovok House Hotel: Prosecutor’s Lawsuit for Land Plot Seizure Left Without Consideration

The Grain Law Firm team is representing the interests of Skhovok House Hotel in a legal dispute initiated by a prosecutor’s lawsuit. State supervisory authorities demanded the return of a land plot to state ownership, arguing that the land allegedly belongs to the Carpathian National Nature Park under the status of lands included in the park without expropriation from land users.

The defense presented evidence to the court demonstrating that the disputed plot historically belonged to the lands of Bystrets village and had been lawfully privatized by a local resident back in 2006 as part of a mass land allocation. Fifteen years later, the property was acquired by a bona fide purchaser who constructed a recreational complex on it. The prosecutor’s claims only emerged after commercial operations expanded on the site.

During the proceedings, the attorneys insisted on the prosecutor’s strict compliance with the provisions of the new Law No. 4292-IX, which significantly strengthens guarantees for the rights of good-faith owners. The law obligates state authorities, prior to initiating any property seizure, to conduct an expert monetary valuation of the asset and deposit the corresponding funds into the court’s escrow account as a guarantee of compensation.

The court of first instance took into account the defense’s legal positioning regarding the prosecutor’s failure to comply with the mandatory statutory requirements. Consequently, the court issued a ruling leaving the prosecutor’s lawsuit for the seizure of the land plot without consideration. This enabled the Client to secure their investments and ensure the uninterrupted operational activities of the hotel.

Lidiya Karpliuk, Partner at Grain Law Firm, worked on the case.