Constraction Scam

May ECHR to Rescue Deceived Investors?

Within the last several years the  mass media has provided a lot of  information that some persons pursued with claims to the European Court of Human Rights about uncharged pensions, illegal criminal proceedings, violation of social guarantees and etc. Unfortunately, the vast majority of investors, who made investments in construction of facilities, having all chances to get in a row of  “lifelong incomplete construction”, haven’t even thought of appealing behind the protection of the violated   court rights. We will also talk about it.

The Lawyer Daily models a situation when the deceived investor turned to domestic courts and law enforcement agencies. However, he didn’t achieve the justice and  invested funds returning.

Pay attention to the lack of practice of the European Court of Human Rights (ECHR) in the protection of investors interests   who made the investments in a construction object,  doesn’t mean at all that the rights of the deceived investors aren’t violated.

What are investments?

At first, let  grapple with terms. Investments as a money or property rights on  of  incomplete construction object are the subject of  article comprehension  of Article 1 of Protocol 1 of the Convention on human rights and fundamental freedoms.

Also, property is admitted assets which could appear on the base of   the litigation for compensation of damage which occurred in connection with improper execution of authorities of their powers on protection of the rights of foreign investors  (“Pressos Company of S.A. Navier and others vs Belgium, the statement No. 17849/91, the solution since 28.10.1995 “). It means that formally any investor can appeal to ECHR with requirements to the Ukraine to compensate the lost investments.

However, if everything was so simply and conveniently, the European Court of Human Rights would be literally “filled up” with statements from the citizens of Ukraine.

How  does ECHR work?

The European Court of Human Rights doesn’t consider a question of a legality or  Ukrainian court decision justification. It only checks the judgments or actions of other  state authorities on the subject of Convention provisions  implementations on human rights protection and fundamental freedoms. At the same time in “property” disputes,  the court always researches behaviour of the indemnitee and in what measure his behaviour promoted that the person loses the property.

To the attention of investors!

Remember that the positive result of the case consideration in this instance in most cases depends on the behaviour of the investor. By the way, the attention was focused on it on the V International forum on a practice of the European Court of Human Rights. The mentioned conditions for case effectiveness are equivalent.
Considering tendencies of the last 25 years of independence, civil society in Ukraine needs to learn about the legal literacy. To the point at issue is about:

change of approaches to the solution of problems. It is necessary to distinguish from the principles of “arrangement” and to transfer to the principles of  disputes settlement within the legal framework

  • At first sight, it will seem absolutely “uneconomically”.However, the person who undertook to resolve all issues in the legal field finally will understand that he saved much more money, time and nerves.
  • The similar principle of “dispute resolution” equally extends both to business structures and to ordinary citizens.
  • Prevalence in the society of “arrangements” principle over the principle of the “legal framework” creates in the country such the high level of corruption which we see today and which so prevents business to increase the profit.

In conclusion, we remind the instruction on which Lawyers Daily informed the readers within a “Construction swindles” special project,  what should do investor if the builder doesn’t fulfil the liabilities.


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