On December 12, 2017, the Grand Chamber of the European Court of Human Rights adopted its judgments on the compensation awarded to the applicants in the two landmark cases of Chiragov and Others v. Armenia Footnote 1 and Sargsyan v. Azerbaijan.Footnote 2 The Court ruled on the just satisfaction for the pecuniary and nonpecuniary damages incurred by the applicants, following the adoption of the principal judgments of June 16, 2015, on the merits of the cases establishing violations of the rights of families displaced by the Nagorno-Karabakh conflict between Armenia and Azerbaijan in early 1990s.Footnote 3 In these cases, the Court has for the first time dealt with the states' responsibility for violations of rights of hundreds of thousands of individuals forced to flee their homes and leave their property as a result of escalations of the Nagorno-Karabakh conflict, which remains unresolved.Footnote 4 The Court reserved the issue of just satisfaction for a later stage due to the “exceptional nature” of the cases, i.e., their relation to continuous violations in the context of the unresolved conflict over Nagorno-Karabakh and the surrounding territories.Footnote 5
Background
The two cases against Armenia and Azerbaijan stem from the conflict over Nagorno-Karabakh, which was an autonomous province of the Azerbaijan Soviet Socialist Republic under the Soviet system of the territorial administration. Its population was approximately 75 percent ethnic Armenian and 25 percent ethnic Azeri. Growing demonstrations and armed hostilities over Nagorno-Karabakh's incorporation into Armenia in the late 1980s led to a full-scale war. In 1992, the “Nagorno-Karabakh Republic” (NKR) announced its independence from Azerbaijan, and by 1993, Armenian forces had gained control over the area, as well as in seven Azerbaijani surrounding districts. Although a cease-fire agreement was reached in May 1994, no peace treaty has been concluded to date despite negotiations for a peaceful solution under the auspices of the Organization for Security and Co-operation in Europe (OSCE) and its Minsk Group (co-chaired by France, Russia, and the United States).Footnote 6 The conflict forced over one million people out of their homes; they have not been able to return and/or receive compensation for their lost property.
The applicants in the Chiragov case were Azerbaijani Kurds living in the Lachin region located between Nagorno-Karabakh and the Republic of Armenia, which came under repeated attack during the conflict and was captured by forces of Armenian ethnicity shortly after the applicants left. They were subsequently not able to return to the region and therefore lived as internally displaced persons elsewhere in Azerbaijan.
The applicants in the Sargsyan case, ethnic Armenians, lived in the village of Gulistan, north of the Nagorno-Karabakh region, but within the internationally recognized territory of Azerbaijan. In June 1992, Azerbaijani forces heavily bombed the village and the villagers fled to Armenia where they settled as refugees.
In both cases the applicants' complaints about the loss of their homes, land, and property were upheld, with the Court finding continuing violations of their rights under the European Convention on Human Rights (the Convention) under Article 1 of Protocol No. 1 (peaceful enjoyment of property), Article 8 (right to respect for private and family life and home), and Article 13 (right to an effective remedy).
Significance of the Judgments
Recognition of Individual Rights and Call for Property Claims Mechanism
The Nagorno-Karabakh judgments provide a significant legal recognition of the European Convention rights for hundreds of thousands of individuals who were forced to flee their homes as a result of the conflict and the respondent states' unconditional obligation to provide a remedy. Although the claims were brought by a few individuals, the Court examined the cases against the general background of the conflict. Recognizing that the ongoing violations are the direct result of the unresolved conflict over Nagorno-Karabakh between Armenia and Azerbaijan and the inadequacy of the two states' attitudes toward peaceful settlement, the Court ordered both governments “to establish a property claims mechanism, which should be easily accessible and provide procedures operating with flexible evidentiary standards, allowing the applicant and others in his situation to have their property rights restored and to obtain compensation for the loss of their enjoyment.”Footnote 7 In that way, the two judgments indicating specific measures that aimed to address systemic structural issues became the test cases for the two states and for the Court in light of over a thousand other similar cases pending before the Court.Footnote 8
Just Satisfaction
The two states' persistent failure to peacefully resolve the conflict and remedy those affected is central to the Court's findings in its judgments on just satisfaction. The Court established that compensation was the appropriate just satisfaction for the applicants considering that full reparation, i.e., access to the property, was not possible due to safety considerations stemming from the continuous conflict and the absence of any plausible solution.Footnote 9
The Court's decision to rule on just satisfaction in separate judgments at a later stage signifies the importance that the Court gives to the subsidiarity principle in finding an effective solution to the applicants' situation and to the broader Nagorno-Karabakh conflict. Referring to the political commitments of both Armenia and Azerbaijan to find a peaceful solution to the conflict prior to their accession to the Council of Europe (Council) in 2002 and the subsidiarity principle that underpins the Convention system and is enshrined in Article 1 of the Convention, the Court reiterated the importance of the adoption of general measures to remedy all those affected, starting with the establishment of the proposed property claims mechanism.
The Court also emphasized that it is not in a position to act as a court of first instance to establish specific facts, evaluate evidence, or calculate monetary compensation, all of which are matters of the domestic jurisdictions; however, it was obliged to deal with these matters here due to Armenia's and Azerbaijan's failure to comply with their legal and political commitments. In addressing the specific just satisfaction claims of the applicants, the Court has therefore once again reiterated that the unresolved conflict is the primary reason for the continuous violations and the key obstacle to effective reparations for the applicants and for hundreds of thousands of other individuals.
The Court relied on its two central findings in ruling on the award of damages in the two respective cases. Referring to its principal judgments establishing the temporal jurisdiction, the Court noted that any damage suffered by the applicants in the Chiragov and Sargsyan cases during the period of almost ten years before Armenia and Azerbaijan respectively ratified the Convention falls outside the Court's jurisdiction.Footnote 10 Further, in the Sargsyan judgment, the Court ruled that although the applicant is deprived of access to his property, he is not deprived of his property rights and can consequently be compensated for the loss of use of his property, but not for the loss of his house.Footnote 11 The Court indicated that an award of pecuniary damages can be made in respect of the loss of income from the applicants' lands and additional rental and living expenses. However, due to the lack of sufficient valid data, inaccessibility of documentation, and other imponderables, the Court was not in a position to provide precise calculations of the pecuniary damage. Additionally, the Court refuted the government's submissions that the family members of late applicants are not entitled to just satisfaction for the period subsequent to the applicants' deaths. It underlined the continuity of the violations and the status of successors of the family members to the violated rights in reaching its findings on the matter.
Although it found it difficult to measure, the Court recognized the applicants' emotional suffering caused by the protracted and unresolved conflict situation, the uncertainty about the fates of their homes and property, as well as their own fates as internally displaced persons. It considered that a mere establishment of the violations of their rights was insufficient as just satisfaction, further referring to the fact that no property claims mechanism or any other measures had yet been established by the respective governments at the time of adoption of the judgments.
Underlining the two states' duty to provide reparation to the applicants and the responsibility to find a solution to the conflict at the political level, the Court awarded an aggregate sum of EUR 5,000 for both the pecuniary and nonpecuniary damage in both cases.
New Impetus to Peaceful Settlement of the Conflict?
More than twenty-five years after the applicants were forced to leave their homes, these cases mark the first time that they have been offered compensation for their violated rights: for the pecuniary damage relating to the loss of income from their lands, including rental income and farming proceeds, as well as their emotional suffering and distress. Although the Court's indicated award does not compensate for all the damage incurred by the applicants, the recognition of the violations and the establishment of the obligation for the respective states to pay compensation to the applicants is significant.
On a more general level, although the principal judgments deal with the aftermath of the conflict, i.e., the rights of displaced individuals, they carry a strong potential in furthering the current deadlock of political negotiations in the “frozen conflict” that has been pending for over two decades without any tangible results.Footnote 12 The Court took a strong stance against both states' continuous failure to effectively engage in peaceful settlement negotiations and made clear that ongoing negotiations did not release them from the duty to take other measures.Footnote 13
This conflict is not new to the Council of Europe, as both Armenia and Azerbaijan committed to resolving the conflict through peaceful means prior to their accession to the organization in early 2000s. However, the Court's legally binding judgments serve as a new incentive for the international community, through the Committee of Ministers, the Council's political body supervising the implementation of the Court's judgments, to seek effective redress for over a million displaced individuals. Due to the absolute nature of both states' legal obligations to comply with European Court of Human Rights judgments, the rulings may create a new platform for highly politicized negotiation processes if used willfully and determinedly.
This text was reproduced and reformatted from the text available at the European Court of Human Rights website (visited April 30, 2018), http://hudoc.echr.coe.int/eng?i=001-179554.

GRAND CHAMBER
CASE OF CHIRAGOV AND OTHERS v. ARMENIA
(Application no. 13216/05)
JUDGMENT
(Just satisfaction)
STRASBOURG
12 December 2017
This judgment is final but it may be subject to editorial revision.

In the case of Chiragov and Others v. Armenia,
The European Court of Human Rights, sitting as a Grand Chamber composed of:
Guido Raimondi, President,
Angelika Nußberger,
Linos-Alexandre Sicilianos,
Ganna Yudkivska,
Robert Spano,
Luis López Guerra,
Nebojša Vučinić,
Paul Lemmens,
Krzysztof Wojtyczek,
Ksenija Turković,
Egidijus Kūris,
Iulia Motoc,
Branko Lubarda,
Mārtiņš Mits,
Armen Harutyunyan,
Lətif Hüseynov,
Jolien Schukking, judges,
and Johan Callewaert, Deputy Grand Chamber Registrar,
Having deliberated in private on 28 September 2017,
Delivers the following judgment, which was adopted on that date:
PROCEDURE
1. The case originated in an application (no. 13216/05) against the Republic of Armenia lodged with the Court under Article 34 of the Convention for the Protection of Human Rights and Fundamental Freedoms (“the Convention”) by six Azerbaijani nationals, Mr Elkhan Chiragov, Mr Adishirin Chiragov, Mr Ramiz Gebrayilov, Mr Akif Hasanof, Mr Fekhreddin Pashayev and Mr Qaraca Gabrayilov (“the applicants”), on 6 April 2005. The sixth applicant died in June 2005. The application was pursued on his behalf by his son, Mr Sagatel Gabrayilov.
2. In a judgment delivered on 16 June 2015 (“the principal judgment”), the Court held that there had been continuing violations of Articles 8 and 13 of the Convention and Article 1 of Protocol No. 1 to the Convention and that no separate issue arose under Article 14 of the Convention. In particular, with respect to Article 1 of Protocol No. 1, the Court concluded that, as concerned the period under scrutiny, that is, from 26 April 2002, no aim had been indicated which could justify the denial of access of the applicants to their property and the lack of compensation for this interference. The Court found the Republic of Armenia responsible for the breaches of the applicants' rights (Chiragov and Others v. Armenia [GC], no. 13216/05, § 201, ECHR 2015).
3. Under Article 41 of the Convention the applicants sought just satisfaction amounting to several million euros (EUR) in respect of damage sustained and of costs and expenses.
4. Since the question of the application of Article 41 of the Convention was not ready for decision, the Court reserved it and invited the Government and the applicants to submit, within twelve months, their written observations on that issue and, in particular, to notify the Court of any agreement they might reach (§ 222 and point 8 of the operative provisions of the principal judgment).
5. Having failed to reach an agreement, the applicants submitted their observations on 16 June and 28 December 2016 and the Government on 16 September and 30 December 2016.
6. The composition of the Grand Chamber was determined according to the provisions of Article 26 §§ 4 and 5 and Rule 24 of the Rules of Court.
7. In response to a request from the Government, the Court decides that the examination of the issue of just satisfaction does not require it to undertake a fact-finding mission.
THE LAW
8. Article 41 of the Convention provides:
“If the Court finds that there has been a violation of the Convention or the Protocols thereto, and if the internal law of the High Contracting Party concerned allows only partial reparation to be made, the Court shall, if necessary, afford just satisfaction to the injured party.”
A. Preliminary issues
9. The Government maintained that the applicants had failed to prove that they were holders of rights to property. They asserted that the applicants had not given any explanation as to the origin, provenance or legal significance of the technical passports that had been presented in the case and that these documents therefore could not serve as evidence. In addition, no private right to land had been recognised under the law in force when the applicants had left the district of Lachin in May 1992 and there could not have been a legitimate expectation of being granted such a right ten years later. Moreover, there was purportedly no causal link between the alleged loss of access to property and actions attributable to the respondent Government. Finally, the Government argued that issues concerning documentation and compensation, among other matters, could – and should – have been the subject of domestic judicial examination before being brought before the Court.
10. The applicant contested the Government's objections, stating that these issues had already been decided by the Court in the principal judgment.
11. The Court reiterates that, in the principal judgment, it concluded that the applicants' technical passports provided prima facie evidence of title to property (§ 141), and that, taking into account the totality of evidence presented, the applicants had sufficiently substantiated their claims that they were in possession of houses and land at the time of their leaving the district of Lachin (§ 143). Their rights to land and houses constituted “possessions” within the meaning of Article 1 of Protocol No. 1 and had not been extinguished afterwards – legitimately or otherwise – whether before or after Armenia's ratification of the Convention (§ 149). Their land and houses were also considered to have constituted their “homes” for the purposes of Article 8 of the Convention (§ 150). As regards the causal link between the applicants' loss of access to their property and the actions of the respondent Government, the Court found that, as from 26 April 2002, the Republic of Armenia was responsible for breaches of the applicants' rights under Article 1 of Protocol No. 1 (§ 201) and Article 8 of the Convention (§§ 207-208). Furthermore, in so far as the Government argued that the applicants had failed to exhaust domestic remedies in regard to their claims for just satisfaction, the Court notes that it dismissed such an objection in the principal judgment, where it considered that the Government had failed to show the availability to the applicants of a remedy capable of providing redress in respect of their Convention complaints and offering reasonable prospects of success (§ 120). For the same reasons, the Court found the Republic of Armenia responsible for a breach of the applicants' right to an effective remedy under Article 13 of the Convention (§§ 214-215).
Consequently, the issues raised by the Government are res judicata and will not be examined anew in the present judgment. The Government's objections are therefore dismissed.
B. Damage
1. The applicants' submissions
12. The applicants claimed compensation for pecuniary and non-pecuniary damage for the period from 26 April 2002, the date on which Armenia ratified the Convention, until today. They stated that, while they greatly miss their homeland in the district of Lachin, they cannot return due to the ongoing conflict and the lack of security.
13. In respect of non-pecuniary damage, the applicants each sought EUR 50,000 for the emotional suffering and distress caused as a result of the continuing violations of Article 1 of Protocol No. 1 and Articles 8 and 13 of the Convention. They stated that their suffering stemmed both from the nature of the attack in 1992 and the ongoing anxiety over the loss of their livelihood, their poor living conditions as internally displaced persons and their inability to provide effectively for their families.
14. As regards pecuniary damage, the applicants submitted individual claims for compensation dated June 2016, comprising claims for the value of or lost rental income from land and houses, for the value of carpets and other household items, cars, fruit trees and bushes, and livestock, for lost income from farming and stockbreeding, other business activities and employment, and for expenditure for alternative accommodation and other increased living expenses in Baku.
15. Having been denied access to their property and thereby the possibility to use and enjoy it, the applicants referred to the Court's approach in cases of continuing violations for assessing the loss suffered with reference to the annual ground rent, calculated as a percentage of the market value of the property, that could have been earned on the property during the relevant period (see Loizidou v. Turkey (Article 50), 28 July 1998, § 33, Reports of Judgments and Decisions 1998-IV). However, in reality, the applicants claimed, exclusively or additionally, compensation for the full current market value of their land and houses.
16. As proof of their possessions, the applicants submitted technical passports issued between 1985 and 1990, describing their land and houses. Mr Qaraca Gabrayilov also presented a land allocation decision from 1974. Furthermore, they submitted statements by family members, friends, neighbours and co-workers. In support of their claims in relation to land and houses, they presented an evaluation made by the “Working Group on Valuation of Loss and Casualties as a Result of Occupation of Territories of Azerbaijan Republic by Armenian Armed Forces” in Baku on 6 June 2016. No other documentary evidence concerning their possessions and their value was relied upon before the Court.
17. In regard to the condition of their houses, the applicants stated, in their observations on just satisfaction of 9 July 2012 and in their observations on the same issue of 16 June 2016, that, as a result of the military attack in 1992, their properties had been either burnt down or badly damaged. However, annexed to the 2012 submissions were aerial photographs of the town of Lachin and the villages of Chiragli and Aghbulag, obtained from Google in April 2012, with the alleged houses of the applicants or their remaining structures marked. In their reply of 28 December 2016 to the Government's submissions on just satisfaction, the applicants referred to the Google photographs and asserted that their houses were still standing, although they might be derelict or occupied by other persons. Also in their observations on the merits of the case, the applicants had supplied some satellite images of Lachin, Chiragli and Aghbulag as well as Kamalli village, taken by the Azerbaijani Ministry of Defence in April 2010.
18. The individual claims for pecuniary damage were as follows:
(a) Elkhan Chiragov
19. Mr Elkhan Chiragov, born in 1950, who is married and has four children, had two teaching jobs in Chiragli. In the application to the Court, submitted in April 2005, he declared that, following his displacement, he received his teacher's salary and a monthly government supplement of 25,000 manat (presumably Azerbaijani “old” manat, AZM; the amount equalled approximately 5 US dollars (USD)) for each member of his family as well as some assistance in the form of food, tents and warm clothes. He also submitted a copy of his employment record, where it was noted that, on 1 September 1993, he had been hired as a teacher at a school in Baku. In June 2016 he stated that he had not been able to work as a teacher in Baku because the school where he had found a job was located far away and he could not travel that far due to health problems.
20. In his claim for pecuniary damages, Mr Chiragov asserted that the size of the plot of land mentioned in his technical passport in reality was 6,500 sq. m, after enlargements, but that only 1,200 sq. m had been registered. Nevertheless, the value indicated in his claim concerned only the 1,200 sq. m area. In addition, he had a second plot of 10,000 sq. m, for which he claimed the estimated loss of rental income. Further to the dwelling-house and storehouse described in the technical passport, he also owned a cattle shed and a second storehouse. He requested compensation for the full value of the buildings. He also sought compensation for the full value of the household items that his family had left behind in 1992, including five handmade carpets. Mr Chiragov and his family had cultivated the land and kept bees and livestock; in 1992, they had had 70 fruit trees, 55 beehives, 3 horses, 9 cows, 80 sheep, 120 hens, 60 turkeys and 40 geese. He claimed the full value of the trees, horses and poultry as well as lost income from sales of fruit, potatoes, honey, calves, milk, lambs and wool. He also wished to be compensated for lost salary from his teaching jobs and for the family's living expenses in Baku.
21. In total, Mr Chiragov's claim for pecuniary damages for the 14-year period between April 2002 and June 2016 amounted to 1,573,180 Azerbaijani “new” manat (AZN; approximately EUR 790,000), divided into the following amounts per category: land (value and rent income) 100,000; houses (value) 260,000; household items (value) 71,480; farming and stockbreeding (sales income as well as value of fruit trees and livestock) 906,500; teacher's salary 100,800; increased living expenses 134,400.
(b) Adishirin Chiragov
22. Mr Adishirin Chiragov, born in 1947, who is married and has three children, used to work as a teacher in Chiragli. According to the application to the Court, he received the same type of government support as the first applicant, that is, a salary, a government supplement and some material assistance. In June 2016 he submitted that the total monthly amount of salary and pension was approximately AZN 700 for his whole family.
23. In his claim for pecuniary damages, Mr Chiragov alleged that the size of the plot of land mentioned in his technical passport in reality was 7,500 sq. m, after enlargements, but that only 1,200 sq. m had been registered. The value indicated in his claim concerned the full actual area. In addition, he had a second plot of 12,000 sq. m of farmland, for which he claimed the estimated loss of rental income. As described in the technical passport, he had a dwelling-house with a storage area and a separate storehouse. He stated, however, that the size of the latter was 120 sq. m, rather than 90 sq. m as indicated in the passport. He requested compensation for the full value of the buildings. He also sought compensation for the full value of the household items that his family had left behind in 1992, including six handmade carpets, and for the second-hand value of a Niva car. Mr Chiragov and his family had cultivated the land and kept bees and livestock; in 1992, they had had 90 fruit trees, 20 beehives, 9 cows, 2 oxen, 65 sheep, 150 hens, 70 turkeys and 50 geese. He sought compensation for the full value of the trees and poultry as well as lost income from sales of fruit, potatoes, honey, bees, calves, milk, lambs, wool and cheese. He also wished to be compensated for lost salary from his teaching job and for the family's expenditure for renting a flat in Baku in 1992-94.
24. In total, Mr Chiragov's claim for pecuniary damages came to AZN 926,240 (approximately EUR 465,000), divided into the following amounts per category: land (value and rent income) 213,500; houses (value) 129,000; household items (value) 45,950; car (value) 10,000; farming and stockbreeding (sales income as well as value of fruit trees and livestock) 465,390; teacher's salary 50,400; increased living expenses 12,000.
(c) Ramiz Gebrayilov
25. Mr Ramiz Gebrayilov, born in 1960, who is married and has four children, used to work as an engineer in Lachin. In the application to the Court, he stated that he was retired for health reasons and received the equivalent of USD 25 per month in pension and an additional USD 5 per month in government support for each member of his family. In submissions to the Court in June 2010, he mentioned that he had seen a video of Lachin, recorded in 2001, from which he had recognised that his house had been burnt down; according to neighbours, this had occurred a few days after he had left Lachin. In June 2016 he stated that he had continued to work and earned an income in Baku. However, he had since retired, receiving a monthly pension of AZN 115. The family also received about AZN 600 monthly from his children's salaries and government support.
26. In his claim for pecuniary damages, Mr Gebrayilov contended that the size of the plot of land mentioned in his technical passport in reality was 5,000 sq. m, rather than 480 sq. m, as indicated in the passport. Basing himself on an estimated current square metre price of land, AZN 40, he claimed the value of the full actual area. Further to the dwelling-house and storehouse described in the technical passport, he also owned a storehouse, a cattle shed, a garage and a natural spring. He requested compensation for the full value of the buildings and the spring as well as the loss of rental income during the summers when the family used to leave Lachin and rent out the house. He also sought compensation for the full value of the household items that his family had left behind in 1992, including 16 handmade carpets. Mr Gebrayilov and his family had cultivated the land and kept livestock; in 1992, they had had 81 fruit trees, 12 cows, 8 calves, 200 sheep and 170 lambs. He sought compensation for the full value of the livestock as well as lost income from sales of fruit, vegetables, milk and other dairy products, meat and wool. He also requested that he be compensated for the full value of his “Auto Service” business, comprising 5,000 sq. m of land, a building, tools and machinery.
27. In total, Mr Gebrayilov's claim for pecuniary damages for the period between April 2002 and June 2016 amounted to AZN 1,849,555 (approximately EUR 925,000), divided into the following amounts per category: land (value) 200,000; buildings and spring (value and rent income) 222,000; household items (value) 29,455; farming and stockbreeding (sales income as well as value of livestock) 1,168,100; “Auto Service” business (value of land, facilities and machinery) 230,000.
(d) Akif Hasanof
28. Mr Akif Hasanof, who was born in 1959, used to work as a teacher in Aghbulag. In the application to the Court, he stated that he received a teacher's salary and a very small government supplement as well as some material assistance. He could hardly support himself and the five members of his family. In June 2016 he submitted that, after leaving Lachin, he had worked in various jobs with a very low income. He had not been able to find employment as a teacher or a school director in Baku.
29. In his claim for pecuniary damages, Mr Hasanof stated that the size of his land had reached 8,200 sq. m, as opposed to 1,600 sq. m registered in his technical passport. Nevertheless, he sought compensation for only the registered part of the land; as he did not know its current market value, he requested the estimated loss of rental income. Further to the dwelling-house and storehouse mentioned in the technical passport, he also owned a barn and an additional large building with a garage. He requested compensation for the full value of the buildings as well as the loss of rental income for parts of the dwelling-house which were rented out throughout the year. He also sought compensation for the full value of the household items that his family had left behind in 1992, including 20 handmade carpets, and for the second-hand value of a Niva car. Mr Hasanof and his family had cultivated the land and kept bees and livestock; in 1992, they had had 141 fruit trees, raspberry bushes, 50 beehives, 3 horses, 16 cows, 100 sheep, 50 turkeys and 50 geese. He sought compensation for the full value of the bees, horses, cows and sheep as well as lost income from sales of fruit, vegetables, honey, bees, calves, milk, lambs, wool, cheese and goose quill. He also wished to be compensated for lost salary from his teaching job and for the family's living expenses in Baku.
30. In total, Mr Hasanof's claim for pecuniary damages for the period between April 2002 and June 2016 came to AZN 2,621,490 (approximately EUR 1,300,000), divided into the following amounts per category: land (rent income) 84,000; buildings (value and rent income) 320,000; household items (value) 91,440; car (value) 12,000; farming and stockbreeding (sales income as well as value of bees and livestock) 2,017,650; teacher's salary 50,400; increased living expenses 46,000.
(e) Fekhreddin Pashayev
31. Mr Fekhreddin Pashayev, born in 1956, who is married and has three children, used to work as chief engineer for the Ministry of Transport in Lachin. According to the application to the Court, he received a total of 125,000 manat (again, presumably, “old” manat) per month for his family in government support for displaced persons; in addition, his wife received a monthly pension of 170,000 manat. In 2010 he submitted a copy of his employment record where it was noted that, on 1 April 1993, he had been appointed to his previous position as chief engineer which, following the occupation of the district of Lachin, had been relocated to the ministry's winter deposit at Aghjabedi (about 300 km west of Baku). His employment there had been terminated in January 2003. In June 2016 he stated that, after leaving Lachin, he had not been able to find employment as chief engineer in Baku.
32. In his claim for pecuniary damages, Mr Pashayev sought compensation for the full value of his land, as described in the technical passport, based on an estimated current square metre price of AZN 200. He also claimed an amount for the rent that could have been collected for that plot of land during the 14-year period between April 2002 and June 2016. As described in the technical passport, he had a dwelling-house, another small house, used as a “summer house”, and a small storehouse. He requested compensation for the full value of the buildings as well as the estimated rent that could have been collected for the dwelling-house. He also sought compensation for the full value of the household items that his family had left behind in 1992, including ten handmade carpets and jewellery of a value of AZN 96,000. Mr Pashayev and his family had cultivated one hectare of land in his native village of Kamalli and kept bees and livestock; in 1992, they had had 500 fruit trees, 20 beehives and 20 cows. He sought compensation for the full value of the bees and cows as well as lost income from sales of fruit, honey, bees, calves and milk. He also wished to be compensated for lost salary from his job as chief engineer and for the family's living expenses in Baku, including the rent paid for a house during the first three years after their leaving Lachin.
33. In total, Mr Pashayev's claim for pecuniary damages amounted to AZN 2,224,090 (approximately EUR 1,100,000), divided into the following amounts per category: land (value and rent income) 107,860; buildings (value and rent income) 252,000; household items (value) 134,630; farming and stockbreeding (sales income as well as value of bees and livestock) 1,494,800; engineer's salary 201,600; increased living expenses 33,200.
(f) Qaraca/Sagatel Gabrayilov
34. Mr Qaraca Gabrayilov, born in Lachin in 1940, who was married and had five children, died on 19 June 2005. His application was pursued by his son, Mr Sagatel Gabrayilov, born in July 1970.
35. In his claim for pecuniary damages, Mr Sagatel Gabrayilov stated that the farmland in his family's possession in reality had measured 8,000 sq. m, after gradual enlargement, rather than the total of 753.6 sq. m mentioned in the technical passport and the allocation decision submitted to the Court. The value indicated in his claim concerned the full actual area. Further to the dwelling-house described in the technical passport, the family also owned a cattle shed, a storehouse and a water reservoir. He requested compensation for the full value of the buildings and the reservoir as well as the loss of rental income for parts of the dwelling-house which, due to the size of the house, could have been rented out throughout the year. He also sought compensation for the full value of the household items that his family had left behind in 1992, including 26 handmade carpets. The family had cultivated the land and kept bees and livestock; in 1992, they had had 66 fruit trees, 40 beehives, 16 cows, 150 sheep and 80 hens. Mr Gabrayilov claimed the full value of the bees and livestock as well as lost income from sales of fruit, honey, calves and lambs as well as products from the cows, sheep and hens. He also requested compensation for the lost income from the family's carpet-weaving and bread-making businesses. Finally, he wished to be compensated for the living expenses that the family would have had in Lachin. However, since they were not living there during the period in question, this amount must be deducted from the total claim.
36. Thus, in total, Mr Sagatel Gabrayilov's claim for pecuniary damages came to AZN 2,752,835 (approximately EUR 1,400,000), divided into the following amounts per category: land (value) 60,000; buildings and reservoir (value and rent income) 452,000; household items (value) 54,475; farming and stockbreeding (sales income as well as value of bees and livestock) 2,051,960; other business activities (sales income) 134,400.
2. The Government's submissions
37. The Government requested the Court to reject the applicants' claims for non-pecuniary damages on the ground that they were unfounded and excessive. The Government suggested that the suffering allegedly inflicted on the applicants during the years was rather related to the military conflict and its consequences than to the issue in the present case, the denial of access to property and homes. Furthermore, there was no indication that they had suffered permanent emotional pain that had been sustained for over two decades.
38. As regards the applicants' claims for pecuniary damages, they were without merit and should also be rejected. In general, the Government maintained that damage occurring before 26 April 2002 fell outside the Court's competence ratione temporis and could not therefore be compensated. This applied to the destruction of or damage to houses and moveable property (including household items, cars, livestock and crops). In this regard, they referred to the Court's principal judgment in which the Court concluded that it was unclear whether the applicants' houses had been destroyed or were still partly or wholly intact and that their moveable property had likely been destroyed during the military attack in 1992 or in the following years (§ 146).
39. With respect to the houses, the Government pointed out the discrepancy between the applicants' various statements in their observations on just satisfaction, in which they had expressed, inter alia, that their properties had been either burnt down or badly damaged as a result of the military attack. Furthermore, in regard to both houses and moveable property, the applicants had allegedly failed to prove their existence in 2002. In the Government's view, the burden of proof was on the applicants who had to show that pecuniary damage had resulted from the violations found by submitting relevant documents demonstrating not only the existence of property but also the damage and the amount to be compensated. The applicants had failed to submit such evidence and had instead based their claims on unverified speculations. Whereas the Court had found it established by way of prima facie evidence that the applicants were in possession of houses and land at the time of their flight (principal judgment, § 143), it had not mentioned anything about moveable property. Also the applicants' claims regarding lost income were unsubstantiated and of a speculative nature.
40. The Government further submitted that, in addition to being unsubstantiated, the applicants' submissions were inconsistent and contradictory. Among other things, their initial statements in the case and their submissions on just satisfaction differed from the information contained in their technical passports. Even if such discrepancies had not prevented the Court from finding a breach of the Convention in regard to access to property, the Government asserted that they were of key importance in assessing damage. Moreover, the individual amounts claimed for pecuniary damage had varied greatly during the proceedings. For instance, Mr Elkhan Chiragov, as opposed to his claim of AZN 1,573,180 presented in 2016, had claimed AZN 1,583,980 in the just-satisfaction submissions of 9 July 2012 and AZN 2,186,980 in his signed statement attached to the latter submissions. While Mr Ramiz Gebrayilov claimed AZN 1,849,555 in 2016, he had claimed AZN 931,600 in the 2012 submissions and AZN 1,130,000 in the statement attached to these submissions. The other applicants' claims showed similar inconsistencies.
41. Furthermore, by claiming compensation for the current value of their property, the applicants had implied that the violation found by the Court concerned deprivation of property. However, no such deprivation, whether constructive or regulatory, had taken place, and the applicants had retained their title to property. Instead, the violation under Article 1 of Protocol No. 1 concerned a denial of access to and loss of use of property. In such situations, the Court's approach (as laid down in, for instance, the case of Loizidou, cited above) was to assess the loss of the non-use of property with reference to the annual ground rent calculated as a percentage of the value of the property during the relevant period.
42. The Government also maintained that the point of departure for any calculation of damages could not be based on the current market value of the applicants' alleged property but should have regard to the prices and currency relevant at the time of their leaving the district of Lachin in 1992. The Government submitted several Soviet documents listing the official prices for houses and other buildings, household items, cars, fruit trees, livestock and agricultural products which were applicable at that time.
3. The Court's assessment
(a) Introductory remarks
43. When reserving the question of just satisfaction for a later stage in the principal judgment, the Court referred to the exceptional nature of the present case (§ 224).
44. That exceptional nature is owing to a number of features. One is that the present case relates to an ongoing conflict situation. The active military phase in the Nagorno-Karabakh conflict took place in 1992-94 but, despite a ceasefire agreement concluded in May 1994 and negotiations conducted within the framework of the OSCE Minsk Group, no peace agreement has been reached (for a more detailed description of the background and current situation, see §§ 12-31 of the principal judgment). Twenty-three years later, breaches of the ceasefire agreement continue to occur. As both parties have pointed out in their observations on just satisfaction, violence has recently escalated along the Line of Contact, most notably during the military clashes in early April 2016.
45. Another particular aspect of the case is that, whereas the events that led the applicants to flee their property and homes occurred in May 1992, the respondent State, the Republic of Armenia, ratified the Convention ten years later, on 26 April 2002. Having thus no jurisdiction ratione temporis over events pre-dating 26 April 2002, the Court concluded that the applicants still had valid proprietary rights to land and houses in the district of Lachin (§ 149 of the principal judgment). From the date of entry into force of the Convention, it found Armenia responsible for continuing violations of the applicants' rights under Article 1 of Protocol No. 1 as well as Articles 8 and 13 of the Convention (§§ 201, 207-208 and 214-215).
46. The Court is thus dealing with a continuing situation which has its roots in the unresolved conflict over Nagorno-Karabakh and the surrounding territories and still affects a large number of individuals. More than one thousand individual applications lodged by persons who were displaced during the conflict are pending before the Court, slightly more than half of them being directed against Armenia and the remainder against Azerbaijan. The applicants in these cases represent just a small portion of the persons, estimated to exceed one million, who had to flee during the conflict and have since been unable to return to their properties and homes or to receive any compensation for the loss of their enjoyment.
47. In this connection, the Court considers it appropriate to emphasise once more the principle of subsidiarity. In the present case it has both a political and a legal dimension.
48. As to the political dimension, the Court has already referred to the undertakings given by Armenia and Azerbaijan prior to their accession to the Council of Europe, committing themselves to the peaceful settlement of the Nagorno-Karabakh conflict (§ 87 of the principal judgment). By now, some fifteen years have passed since the ratification of the Convention by Armenia and Azerbaijan without a political solution of the conflict being in sight. The Court can only underline that it is the responsibility of the two States involved to find a solution on a political level (see, mutatis mutandis, Kovačić and Others v. Slovenia [GC], nos. 44574/98 and 2 others, §§ 255-256, 3 October 2008; and Demopoulos and Others v. Turkey (dec.) [GC], nos. 46113/99 and 7 others, § 85, ECHR 2010).
49. Coming to the legal dimension, the Court reiterates that the principle of subsidiarity underpins the Convention system (Kurić and Others v. Slovenia (just satisfaction) [GC], no. 26828/06, § 134, ECHR 2014, and the cases cited therein). This principle is embodied in Article 1 of the Convention, according to which the Contracting States shall secure the rights and freedoms guaranteed by the Convention to everyone within their jurisdiction, while, according to Article 19, it is for the Court to ensure the observance of the engagements undertaken by the States in the Convention and the Protocols thereto. Furthermore, the principle underlies the requirement for applicants to exhaust domestic remedies pursuant to Article 35 § 1 and the corresponding obligation for States under Article 13 to provide effective remedies for breaches of the Convention (see Akdivar and Others v. Turkey, 16 September 1996, § 65, Reports of Judgments and Decisions 1996-IV; and Demopoulos and Others, cited above, § 69). The principle of subsidiarity also guides the Court's approach in dealing with systemic violations of the Convention when applying the pilot judgment procedure developed under Article 46 (see, for instance, Ališić and Others v. Bosnia and Herzegovina, Croatia, Serbia, Slovenia and the Former Yugoslav Republic of Macedonia [GC], no. 60642/08, § 143, ECHR 2014).
50. Moreover, as it has done in other cases arising out of unresolved conflict situations or in cases revealing systemic violations, the Court cannot emphasise enough that it is not a court of first instance. It does not have the capacity, nor is it appropriate to its function as an international court, to adjudicate on large numbers of cases which require the finding of specific facts or the calculation of monetary compensation – both of which should, as a matter of principle and effective practice, be the domain of domestic jurisdictions (see, mutatis mutandis, Demopoulos and Others, cited above, § 69; and Ališić and Others, cited above, §§ 142-143).
51. It is precisely the Government's failure to comply with its accession commitments as well as its obligations under the Convention which obliges the Court in the present case to act as a court of first instance, establishing relevant facts some of which date back many years, evaluating evidence in respect of property claims and finally assessing monetary compensation. All this is to be seen against the background that the present application is examined as a leading case while hundreds of similar cases against Armenia are still pending before the Court.
52. Without prejudice to any compensation to be awarded as just satisfaction in the present case, the effective and constructive execution of the principal judgment calls for the creation of general measures at national level. Guidance as to appropriate measures has been given in the principal judgment, where the Court stated, inter alia, that, “pending a comprehensive peace agreement, it would appear particularly important to establish a property claims mechanism, which should be easily accessible and provide procedures operating with flexible evidentiary standards, allowing the applicants and others in their situation to have their property rights restored and to obtain compensation for the loss of their enjoyment” (see further § 199 of the principal judgment).
(b) General principles on just satisfaction
53. The Court reiterates its case-law according to which a judgment where the Court finds a breach generally imposes on the respondent State a legal obligation to put an end to the breach and make reparation for its consequences in such a way as to restore as far as possible the situation existing before the breach (Kurić and Others,cited above, § 79). The Contracting States that are parties to a case are in principle free to choose the means whereby they will comply with a judgment in which the Court has found a breach. The discretion as to the manner of execution of a judgment reflects the freedom of choice attaching to the primary obligation of the Contracting States pursuant to Article 1 of the Convention to secure the rights and freedoms guaranteed. If the nature of the breach allows for restitutio in integrum, it is for the respondent State to effect it, the Court having neither the power nor the practical possibility of doing so itself. If, on the other hand, national law does not allow – or allows only partial – reparation to be made, Article 41 empowers the Court to afford the injured party such satisfaction as appears to it to be appropriate (Papamichalopoulos and Others v. Greece (Article 50), 31 October 1995, § 34, Series A no. 330 B; and Kurić and Others, cited above, § 80, and the cases referred to therein). In this connection, the role of the Committee of Ministers, under Article 46 § 2 of the Convention, to supervise the execution of the Court's judgments should be emphasised (see Verein gegen Tierfabriken Schweiz (VgT) v. Switzerland (no. 2)[GC], no. 32772/02, §§ 84-88, ECHR 2009). Nevertheless, the Court is mindful of the fact that some situations – especially those involving long-standing conflicts – are not, in reality, amenable to full reparation.
54. As regards claims for pecuniary loss, the Court's case-law establishes that there must be a clear causal connection between the damages claimed by the applicant and the violation of the Convention. In appropriate cases, this may include compensation in respect of loss of earnings (Kurić and Others, cited above, § 81).
55. In regard to losses related to real property, where no deprivation of property has taken place but the applicant has been denied access to it and therefore the possibility to use and enjoy it, the Court's general approach is to assess the loss suffered with reference to the annual ground rent, calculated as a percentage of the market value of the property, that could have been earned on the properties during the relevant period (Loizidou, cited above, § 33).
56. A precise calculation of the sums necessary to make reparation in respect of the pecuniary losses suffered by the applicant may be prevented by the inherently uncertain character of the damage flowing from the violation. An award may still be made notwithstanding a large number of imponderables involved in the assessment of losses, though the greater the lapse of time involved, the more uncertain the link becomes between the breach and the damage. The question to be decided in such cases is the level of just satisfaction in respect of pecuniary losses that it is necessary to award to the applicant, the matter to be determined by the Court at its discretion, having regard to what is equitable (Kurić and Others, cited above, § 82).
57. Furthermore, the Court reiterates that there is no express provision for non-pecuniary or moral damage. In Varnava and Others v. Turkey ([GC], nos. 16064/90 and 8 others, § 224, ECHR 2009) and Cyprus v. Turkey ((just satisfaction) [GC], no. 25781/94, § 56, ECHR 2014) the Court confirmed the following principles which were gradually developed in its case-law. Situations where the applicant has suffered evident trauma, whether physical or psychological, pain and suffering, distress, anxiety, frustration, feelings of injustice or humiliation, prolonged uncertainty, disruption to life, or real loss of opportunity can be distinguished from those situations where the public vindication of the wrong suffered by the applicant, in a judgment binding on the Contracting State, is an appropriate form of redress in itself. In some situations, where a law, procedure or practice has been found to fall short of Convention standards, this is enough to put matters right. In other situations, however, the impact of the violation may be regarded as being of a nature and degree as to have impinged so significantly on the moral well-being of the applicant as to require something further. Such elements do not lend themselves to a process of calculation or precise quantification. Nor is it the Court's role to function akin to a domestic tort mechanism court in apportioning fault and compensatory damages between civil parties. Its guiding principle is equity, which above all involves flexibility and an objective consideration of what is just, fair and reasonable in all the circumstances of the case, including not only the position of the applicant but the overall context in which the breach occurred. Its non-pecuniary awards serve to give recognition to the fact that moral damage occurred as a result of a breach of a fundamental human right and reflect in the broadest of terms the severity of the damage.
58. Finally, the Court observes that, depending on the circumstances of the case, it may be appropriate to make an aggregate award for pecuniary and non-pecuniary damage (see Centro Europa 7 S.r.l. and Di Stefano v. Italy [GC], no. 38433/09, § 222, ECHR 2012).
(c) Award of damages in the present case
(i) General considerations
59. In the principal judgment, the Court held that no aim had been indicated which could justify the denial of access of the applicants to their property and the lack of compensation for this interference and that, consequently, there had been and continued to be a breach of their right to property (§ 201). Furthermore, the denial of access to the applicants' homes constituted an unjustified interference with their right to respect for their private and family lives as well as their homes (§ 207). Finally, no effective remedy had been available in respect of these breaches (§ 214). The Court considers that the applicants' return to their property and homes in the district of Lachin and compensation for the loss sustained by them during the period from 26 April 2002, when they were denied such access, would put them as far as possible in a situation equivalent to the one in which they would have found themselves had their rights under the Convention not been breached. However, the Court considers, in agreement with the applicants, that it is evident that there is no realistic possibility for them to return in the prevailing circumstances and that no such possibility has existed during the period under scrutiny (see, for example, §§ 28-31, 67, 69 and 195 of the principal judgment). Thus, an award of compensation is the appropriate just satisfaction in the present case.
60. As has already been mentioned, damage suffered by the applicants before 26 April 2002 is not directly related to the violations found by the Court and therefore cannot be compensated under Article 41. Furthermore, the applicants must provide sufficient proof that they had property which still existed at that time in order to be eligible for pecuniary damages. In the principal judgment, the Court, having regard to the particular circumstances of the case, accepted prima facie evidence as substantiation that they had been in possession of houses and land at the time of their flight (§ 143). In principle, the same degree of proof should be required in regard to the question of their property's continued existence and condition in April 2002.
(ii) Pecuniary damage
61. In the principal judgment, the Court concluded that the applicants, at the time of their leaving Lachin, held rights to land and to houses which constituted “possessions” within the meaning of Article 1 of Protocol No. 1 and that there was no indication that those rights had been extinguished afterwards. Accordingly, they still hold rights to real property in Lachin (§ 149). As the applicants have not been deprived of their property, compensation cannot be given for the loss of land and houses as such, but only for the loss related to the applicants' inability to use and enjoy the property.
62. As regards houses, the Court has accepted that, despite discrepancies between the applicants' technical passports and their statements in the initial application, the passports constitute, together with other documents submitted, prima facie evidence of the applicants' title to property (principal judgment, §§ 141-143). However, in their observations on just satisfaction, all of the applicants except Mr Pashayev claimed to own various buildings and installations that had either not been mentioned in the passports or previous submissions or were alleged to be of a different size than previously stated. Thus, as pointed out by the respondent Government, the applicants' submissions exhibit several inconsistencies.
63. The Court further stated that it was unclear whether the applicants' houses had been destroyed or were still partly or wholly intact (principal judgment, § 146). The applicants' assertions were inconsistent also in this regard: in their observations on the merits of the case, they expressed fear that their property had been destroyed or pillaged soon after their flight (§ 189); in their observations on just satisfaction in 2012 and 2016, they stated both that the properties had been burnt down or badly damaged as a result of the military attack and that their houses were still standing, although they might be derelict.
64. The applicants submitted aerial images from the Azerbaijani Ministry of Defence and from Google to show that their houses were still standing. However, in submissions to the Court in June 2010, Mr Ramiz Gebrayilov stated that he had recognised from a video recorded in 2001 that his house had been burnt down. Moreover, in the applicants' submissions on just satisfaction of 9 July 2012, it was acknowledged that the Goris-Stepanakert highway, which was apparently completed in 1999, passes through the place where Mr Gebrayilov's dwelling-house once stood. Thus, it must be concluded that his house no longer existed in April 2002. As regards the condition of the houses of the other applicants, the images supplied are far from conclusive. First, the images were taken from very far away and show buildings that are difficult to discern. Second, there is no evidence that the structures marked are actually the houses once inhabited by the applicants. Third, most of the marked structures are very badly damaged, with only rough walls or parts of a wall still remaining. The only house that appears to have an intact structure is the one allegedly belonging to Mr Akif Hasanof. However, it is impossible to discern its condition and, as already noted, whether it is actually his house.
65. The evaluation made by the “Working Group on Valuation of Loss and Casualties as a Result of Occupation of Territories of Azerbaijan Republic by Armenian Armed Forces” in June 2016, according to the document submitted by the applicants, has been made on the basis of “the presented evidence, documents and witness statements”. However, the document does not give any details of the evidence examined or of the calculation method used by the Working Group. Nor is it possible to determine whether the evaluation concerns all the buildings that the applicants now claim to own or only the houses mentioned in the technical passports. It is further unclear whether the amounts mentioned for each applicant's land and house(s) represent the value in 1992, 2002 or 2016 or at another point in time. Given, moreover, that the other information submitted in the case demonstrates that one dwelling-house was no longer existent in 2002 and rather strongly suggests that most, if not all, of the other applicants' houses had been very badly damaged before that year, the Working Group's evaluation cannot be given great weight.
66. Having regard to all the imponderables mentioned, the submissions in the case do not sufficiently show that the applicants had houses which, in April 2002, still existed or, if so, existed in such a condition that they could be taken into account for the purposes of an award of compensation. Therefore, no such award can be made.
67. Coming to the applicants' plots of land, their existence has been established in the same manner as their houses, thus mainly through the technical passports submitted in the case (see paragraph 60 above). With the exception of Mr Hasanof and Mr Pashayev, the applicants' compensation claims in regard to land, like those relating to houses, contained assertions of title to large plots of land that had not been described in their passports or supported by any allocation decision or other document. These unsubstantiated claims cannot be considered, and the Court will therefore have regard only to the plots identified in their technical passports.
68. As has been established in the case of Loizidou (cited above, § 33; see further paragraph 55 above), the Court's general approach is to assess the loss suffered due to a denial of access to land and the resultant impossibility to use and enjoy it with reference to the possible rent income, calculated as a percentage of the market value of the land. However, in the present case, it is very difficult to determine the value of the applicants' land. For the reasons described above, no great weight can be attached to the evaluation made by the “Working Group on Valuation of Loss and Casualties as a Result of Occupation of Territories of Azerbaijan Republic by Armenian Armed Forces”. No other evaluation or other data to guide an assessment of the value is available in the case. This can partly be explained by the fact that, at the time when plots were allocated to the applicants, there was no private ownership of land under the Soviet legal system, it being given to them instead with a “right of use” (for a more detailed description on the rights to land at that time, see §§ 145-148 of the principal judgment). The difficulty of establishing a value is also compounded by the fact that, at the start of the period that can be considered by the Court, the applicants' land had been located on occupied and largely ravaged territory for ten years and a further fifteen years, in similar circumstances, have passed since. These circumstances would rather justify the attribution of a very moderate value to the applicants' land.
69. Consequently, while pecuniary damages may be awarded in respect of loss of income from the applicants' land, including possible rent and proceeds from farming and stockbreeding, the Court's general approach to calculating loss, as adopted in Loizidou, does not appear appropriate or useful in the circumstances of the present case.
70. The applicants claimed compensation for pecuniary damage for the loss of household items, cars, fruit trees and bushes, and livestock. No evidence, except for statements of individuals, has been submitted in support of the claims. More importantly, all of these belongings must reasonably be presumed to have been destroyed or to have vanished during the military attack on the district of Lachin or the following ten-year period until April 2002 (as to moveable property, see the Court's conclusions in the principal judgment at §§ 138 and 146). If any items were still in existence at the latter date, they would at least have sustained such damage during years of decay that they were unlikely to have been in a usable state. There is no element in the case which would give reason to draw a different conclusion. Thus, in respect of these items, there is no causal connection between the damages claimed and the continuing violations found in the principal judgment. Consequently, no award of compensation can be made under this head.
71. The applicants further claimed compensation for loss of earnings previously enjoyed in Lachin, either the loss of salary that they had received as teachers or engineers or the loss of income from business activities that they had conducted. In these respects, the Court finds that there is no causal link between the violations found in the principal judgment and the damages claimed. This is so, because the losses are not related to the lack of access to the applicants' property and homes but rather to their displacement from Lachin in 1992. It is not possible to speculate as to what employment or income the applicants could have had in Lachin in 2002, ten years after their flight. Furthermore, with the exception of the business activities of Mr Ramiz Gebrayilov, the loss of income was not part of the applicants' claims until 2016. In sum, no award can be made for loss of salaries or other income.
72. Several applicants also sought reparation for increased living expenses, notably for rent of alternative accommodation. The Court would, in principle, accept that the applicants have incurred certain additional expenses in Baku. It must be emphasised again, however, that compensation therefor can only concern the period from 26 April 2002. Furthermore, no precise amounts can be established, as verifications of the applicants' living expenses, including rental agreements or invoices, have not been supplied.
73. In conclusion, the Court considers that an award of pecuniary damages can be made only in respect of two heads, namely the loss of income from the applicants' land in Lachin and their increased living expenses in Baku. However, the assessment of the damage sustained is dependent on a large number of imponderables, partly because the claims are generally based on limited documentation and partly because no reliable method or data for evaluating the value of the land has been presented. Consequently, the pecuniary damage sustained by the applicants does not lend itself to precise calculation.
(iii) Non-pecuniary damage
74. Turning to the applicants' claims for non-pecuniary damages, the nature of the military attack in 1992, as invoked by the applicants (see paragraph 13 above), cannot be taken into account as it is outside the Court's jurisdiction in the case. However, the Court acknowledges that the circumstances of the case must have caused the applicants emotional suffering and distress due to the protracted and unresolved situation which has separated them from their property and homes in the district of Lachin and constrained them to a life as internally displaced persons in Baku in presumably poorer living conditions.
75. The Court considers that, in the present case, the finding of a violation does not constitute in itself sufficient just satisfaction for the non-pecuniary damage suffered. As was noted in the principal judgment, the assistance provided to hundreds of thousands of Armenian refugees and internally displaced persons does not exempt the respondent Government from its obligations towards another group, namely Azerbaijani displaced persons like the applicants. It appears that, so far, no property claims mechanism or other measures have been put in place by the Government which could benefit persons in the applicants' situation (see paragraph 52 above as well as the considerations in the principal judgment, §§ 199-200). Consequently, the case differs from the case of Doğan and Others v. Turkey ((just satisfaction), nos. 8803/02 and 14 others, § 61, 13 July 2006), where the Court considered that, in view of the measures taken by the authorities of the respondent State to remedy the situation of the applicants and other internally displaced persons, the principal judgment in itself constituted sufficient just satisfaction for any non-pecuniary damage arising from the violations of Articles 8 and 13 of the Convention and Article 1 of Protocol No. 1.
(iv) Entitlement of family members to compensation
76. The Court reiterates that family members who are entitled to pursue an application following the applicant's death may also take the applicant's place as regards claims for just satisfaction, with regard to both pecuniary damage (see Malhous v. the Czech Republic [GC], no. 33071/96, §§ 67-68, 12 July 2001) and non-pecuniary damage (see, for instance, Ječius v. Lithuania, no. 34578/97, § 109, ECHR 2000-IX; and Avcı and Others v. Turkey, no. 70417/01, § 56, 27 June 2006; contrast, however, with the case of Malhous, § 71, where the violation was not considered to have affected the successor personally). Furthermore, the Court has granted nonpecuniary damages to the son of an applicant in a case pursued by him concerning unreasonable length of pension proceedings, not only for the period when the applicant was alive but also for the period after her death when the domestic proceedings had been continued by the son as the applicant's heir (Ernestina Zullo v. Italy [GC], no. 64897/01, §§ 115-116 and 148-149, 29 March 2006).
77. The sixth applicant in the present case, Mr Qaraca Gabrayilov, died in June 2005, shortly after having introduced his application before the Court. The application has been pursued by his son, Mr Sagatel Gabrayilov. The question therefore arises whether the applicant's son may be awarded compensation for the full period examined in the present case. In view of the particular nature of the violations at stake, namely continuing violations of the applicant's rights under Article 1 of Protocol No. 1 and of Articles 8 and 13 of the Convention, the Court considers that it would be unduly formalistic to exclude from the award of compensation the period subsequent to the applicant's death. As has been shown above, in a case concerning the unreasonable length of proceedings, and thus a violation which has an element of continuity, the award of just satisfaction is not necessarily limited to the period before the applicant's death. The position may be different where the application is not pursued by the late applicant's next of kin but by the administrator of his estate (Solomonides v. Turkey (just satisfaction), no. 16161/90, §§ 42-43 and 47, 27 July 2010) or where the applicant's next of kin, who pursues the application, is not personally affected by the violation found (see Malhous, cited above, § 71).
78. In the case at hand, the Court notes that the Gabrayilov family lived in Lachin where they cultivated crops and bred livestock on their land. They thus formed a household economic unit. In May 1992, when the son was 21 years of age, the family fled together. Consequently, the applicant's son was in the same situation as the applicant and was personally affected by the loss of enjoyment of the property and home in Lachin and the lack of effective remedies in that regard. Moreover, in finding that there had been and continued to be breaches of the Convention rights of all six applicants, the Court included, in respect of Mr Qaraca Gabrayilov, the period subsequent to his death (principal judgment, § 201). In coming to that conclusion, it also found that all six applicants had existing rights to their plots of land (§ 192). In the absence of any indication to the contrary, the applicant's son must be considered as successor to the property rights of his father. Having regard to all these factors, the Court finds that Mr Sagatel Gabrayilov may be awarded compensation for the full period examined in the present case.
(v) Overall conclusion
79. As follows from the above considerations, the applicants are entitled to compensation for certain pecuniary losses and for non-pecuniary damage. The pecuniary and non-pecuniary damage are, in the Court's view, closely connected. For the reasons set out above, the damage sustained does not lend itself to precise calculation (see paragraphs 57, 68, 72 and 73). Further difficulties in the assessment derive from the passage of time. As has been acknowledged by the Court (see paragraph 56 above), the time element makes the link between a breach of the Convention and the damage less certain. This consideration is particularly prominent in the present case where, as has already been mentioned, the period over which the Court has jurisdiction ratione temporis started fifteen years ago in April 2002, that is, ten years after the military attack and the applicants' flight in May 1992, which are the underlying events leading to the applicants' continuing displacement from their property and homes. An award may still be made, notwithstanding the large number of imponderables involved. For these reasons, the compensation to be awarded to the applicants must be determined at the Court's discretion, having regard to what it finds equitable.
80. In conclusion, the Court has regard to the respondent State's primary duty to make reparation for the consequences of a breach of the Convention and underlines once more the responsibility of the two States concerned to find a plausible resolution to the Nagorno-Karabakh conflict (see paragraphs 48-53 above). Pending a solution on the political level, it considers it appropriate in the present case to award the applicants aggregate sums for pecuniary and non-pecuniary damage. Making its assessment on an equitable basis, it awards each of the applicants EUR 5,000 covering all heads of damage, plus any tax that may be chargeable on that amount.
C. Costs and expenses
81. The applicants claimed reimbursement of 29,910 pounds sterling (GBP) for legal fees for 200 hours' work carried out by three of their eight lawyers in the proceedings before the Court. However, the timesheets submitted listed fees amounting to GBP 26,850 for 179 hours' work. The applicants' other five counsel had provided their advice and assistance on a pro-bono basis, for which reason no fees were claimed for their work. The applicants also sought reimbursement of GBP 1,792.87 for expenses incurred for telephone, postage, translation fees as well as photocopying and stationery.
82. The Government asserted that the costs and expenses claimed by the applicants did not in any material way relate to the violations found by the Court. Moreover, no documents had been presented which showed that the costs and expenses had been actually and necessarily incurred. Also, the amounts claimed were not reasonable. In the latter respect, the Government questioned why the same hourly rate (GBP 150) had been applied for each member of the team of counsel when some of the tasks performed by two of them had had the character of the work of an associate lawyer.
83. The Court reiterates that only legal costs and expenses that have been necessarily and actually incurred can be reimbursed under Article 41 of the Convention. In this connection, it observes that the proceedings in the present case lasted for more than ten years and involved two public hearings. The case raised complex issues of fact and law and the submissions were very voluminous. The Court therefore finds that the costs and expenses were necessarily and actually incurred. Also, noting that several counsel did not ask for remuneration for their work, the amounts, including the hourly rate applied, must be considered reasonable. However, the work itemised in the supplied timesheets only came to 179 hours, giving a total of GBP 26,850 in legal fees. The Court awards this sum together with the amount claimed for expenses, thus GBP 28,642.87 in total for costs and expenses.
D. Default interest
84. The Court considers it appropriate that the default interest rate should be based on the marginal lending rate of the European Central Bank, to which should be added three percentage points.
FOR THESE REASONS, THE COURT, UNANIMOUSLY,
1. Holds
(a) that the respondent State is to pay Messrs Elkhan Chiragov, Adishirin Chiragov, Ramiz Gebrayilov, Akif Hasanof, Fekhreddin Pashayev and Sagatel Gabrayilov, within three months, the following amounts:
(i) EUR 5,000 (five thousand euros) to each one of them, plus any tax that may be chargeable, in respect of pecuniary and non-pecuniary damage;
(ii) GBP 28,642.87 (twenty-eight thousand six hundred and forty-two pounds sterling and eighty-seven pence), plus any tax that may be chargeable to them, in respect of costs and expenses;
(b) that from the expiry of the above-mentioned three months until settlement simple interest shall be payable on the above amounts at a rate equal to the marginal lending rate of the European Central Bank during the default period plus three percentage points;
2. Dismisses the remainder of the claim for just satisfaction.
Done in English and in French, and notified in writing on 12 December 2017, pursuant to Rule 77 §§ 2 and 3 of the Rules of Court.
Johan Callewaert Guido Raimondi
Deputy to the Registrar President
This text was reproduced and reformatted from the text available at the European Court of Human Rights website (visited April 30, 2018), http://hudoc.echr.coe.int/eng?i=001-179555.

GRAND CHAMBER
CASE OF SARGSYAN v. AZERBAIJAN
(Application no. 40167/06)
JUDGMENT
(Just satisfaction)
STRASBOURG
12 December 2017
This judgment is final but it may be subject to editorial revision.

In the case of Sargsyan v. Azerbaijan,
The European Court of Human Rights, sitting as a Grand Chamber composed of:
Guido Raimondi, President,
Angelika Nußberger,
Linos-Alexandre Sicilianos,
Ganna Yudkivska,
Robert Spano,
Luis López Guerra,
Nebojša Vučinić,
Paul Lemmens,
Krzysztof Wojtyczek,
Ksenija Turković,
Egidijus Kūris,
Iulia Motoc,
Branko Lubarda,
Mārtiņš Mits,
Armen Harutyunyan,
Lətif Hüseynov,
Jolien Schukking, judges,
and Johan Callewaert, Deputy Grand Chamber Registrar,
Having deliberated in private on 28 September 2017,
Delivers the following judgment, which was adopted on that date:
PROCEDURE
1. The case originated in an application (no. 40167/06) against the Republic of Azerbaijan lodged with the Court under Article 34 of the Convention for the Protection of Human Rights and Fundamental Freedoms (“the Convention”) by an Armenian national, Mr Minas Sargsyan (“the applicant”), on 11 August 2006. The applicant died in 2009. Subsequently, the application was pursued by his widow, Ms Lena Sargsyan, born in 1936, and by his son Mr Vladimir Sargsyan and his daughters Ms Tsovinar and Nina Sargsyan, born in 1957, 1959 and 1966, respectively. Ms Lena Sargsyan died in 2014. Mr Vladimir Sargsyan and Ms Tsovinar Sargsyan pursued the proceedings on the applicant's behalf.
2. The applicant, who had been granted legal aid, was represented by Ms N. Gasparyan and Ms K. Ohanyan, lawyers practising in Yerevan, and by Mr Philip Leach, director of the European Human Rights Advocacy Centre. The Azerbaijani Government (“the Government”) were represented by their Agent Mr Ç. Asgarov.
3. In a judgment delivered on 16 June 2015 (“the principal judgment”), the Grand Chamber dismissed the respondent Government's preliminary objections of non-exhaustion of domestic remedies, lack of jurisdiction and responsibility, lack of the Court's competence ratione temporis and lack of the applicant's victim status in respect of his complaints relating to his relatives' graves. The Grand Chamber held that there had been a continuing violation of Article 1 of Protocol No. 1. It also found continuing violations of Articles 8 and Article 13 of the Convention and held that no separate issue arose under Article 14 of the Convention. In particular, in respect of Article 1 of Protocol No. 1, the Court found as regards the period falling within its temporal jurisdiction, that is, from 15 April 2002, that although the impossibility for the applicant to have access to his property in Gulistan was justified by safety considerations, the respondent Government's failure to take any alternative measures in order to restore his property rights or to provide him with compensation for the loss of their enjoyment placed a disproportionate burden on him (Sargsyan v. Azerbaijan [GC], no. 40167/06, ECHR 2015).
4. Under Article 41 of the Convention the applicant sought just satisfaction in respect of pecuniary and non-pecuniary damage resulting from the violations found in the present case, as well as reimbursement of the costs and expenses incurred in the proceedings before the Court.
5. Since the question of the application of Article 41 of the Convention was not ready for decision, the Court reserved it and invited the Government and the applicant to submit, within twelve months, their written observations on that issue and, in particular, to notify the Court of any agreement they might reach (§ 283 and point 9 of the operative provisions of the principal judgment).
6. The parties having failed to reach an agreement, the applicant submitted his observations on 16 June and 13 December 2016 and the Government on 16 September and 24 October 2016.
7. The composition of the Grand Chamber was determined according to the provisions of Article 26 §§ 4 and 5 and Rule 24 of the Rules of Court.
THE LAW
8. Article 41 of the Convention provides:
“If the Court finds that there has been a violation of the Convention or the Protocols thereto, and if the internal law of the High Contracting Party concerned allows only partial reparation to be made, the Court shall, if necessary, afford just satisfaction to the injured party.”
A. Damage
1. The parties' submissions
(a) The applicant
9. The applicant, an ethnic Armenian, born in 1929, was married and had four children. The family lived in Gulistan, in the Shahumyan region of the Azerbaijan Soviet Socialist Republic (present-day Goranboy region of the Republic of Azerbaijan), where the applicant had a two-storey house, outhouses and 2,160 sq. m of land of which 1,500 sq. m was a fruit and vegetable garden. He derived his income from his salary as a secondary school teacher and from farming and stock-breeding on his land. His wife, Lena Sargsyan, worked at the village's collective farm. The applicant and his wife had lived in Gulistan for most of their lives and their four children grew up there. They had to flee in June 1992 when the village came under attack during the military phase of the Nagorno-Karabakh conflict. Subsequently, the applicant and his wife lived as refugees in Yerevan. The applicant obtained Armenian citizenship in 2002. He died on 13 April 2009 (see §§ 29 and 34-40 of the principal judgment).
10. In his submissions of 21 May 2012, prior to the hearing on the merits, the applicant had requested restitution of his property, including the right to return to his property and home in Gulistan, compensation for pecuniary and non-pecuniary damage and reimbursement of costs and expenses incurred in the proceedings before the Court (see § 281 of the principal judgment). In his observations following the delivery of the principal judgment he maintained his claims for compensation but noted the practical impossibility of a return to the village on account of the recent fighting and fragile ceasefire. He added that amounts calculated in American Dollars (USD) had been converted into euros (EUR) at the rate applicable when the initial submissions were made and asked the Court to take the considerable evolution of the exchange rate between these two currencies into account when making its final assessment.
11. The applicant claimed a total amount of EUR 374,814 as compensation in respect of pecuniary damage suffered as a result of his forced displacement from Gulistan in June 1992 and his inability to return to his property.
12. The claim for pecuniary damage was composed of compensation for the loss of his house and auxiliary buildings (EUR 16,654), loss of furniture (EUR 12,824), loss of livestock and fruit trees (EUR 1,644), loss of savings deposited in the Savings Bank of Azerbaijan on his and his wife's accounts (EUR 1,564), loss of income (EUR 151,260 for the years 1992 to 2012, namely loss of his and his wife's salaries and his pension of EUR 3,388 per year and loss of income derived from his land in Gulistan of EUR 4,175 per year) and reimbursement of additional rental and living expenses incurred (in a total amount of EUR 99,447 for the years 1992 to 2012), offset against the monies received in pension and family allowance from the Armenian Government. Furthermore he claimed loss of future income and future living costs of his wife Lena Sargsyan (EUR 91,421).
13. In respect of the house, the applicant referred to the Court's findings in the principal judgment according to which his house still existed (ibid., §§ 197-198). He provided three different valuations: firstly, the valuation in USSR roubles contained in the technical passport of the house dated May 1991, converted into USD at June 1992 rates; secondly, an estimation provided by Lena Sargsyan based on the argument that owing to the devaluation of the USSR rouble in 1991, the cadastral value in the technical passport converted into USD at June 1992 rates did not accurately reflect the house's value and thirdly, a valuation by the Real Estate Cadastre at the Government of Armenia provided in April 2012 comparing the applicant's house with similar houses in a comparable village in Armenia estimating its value at USD 21,403 (or EUR 16,654 at the time of submission of the claim in May 2012).
14. In respect of the loss of income derived from his land in Gulistan, the applicant indicated that he used to keep livestock and to grow fruit and vegetables on his land. Part of the produce was for the family's own consumption and part of it was sold. He estimated the loss under this head at EUR 4,175 per year by converting the value of the produce from USSR roubles to USD and then to EUR. In respect of additional rental and living expenses incurred, he submitted a number of receipts for the payment of housing fees for an apartment in a dormitory in Yerevan. According to the statement of Lena Sargsyan, attached to the submissions of 21 May 2012, that apartment had been allocated to the applicant and her in 2001 by the Armenian Refugee Committee and they had later been able to privatise it. In addition the applicant submitted bills for electricity and water and a list provided by the Armenian social services concerning the payment of pension and family allowance from 2003 to 2012. In respect to other heads of pecuniary damage, the applicant also provided details as to the method of calculation and a number of supporting documents.
15. Furthermore, the applicant noted that the Court had also provided guidance as to the method and principle for redressing the pecuniary damage suffered by individuals in his situation by referring to relevant international standards, in particular the “United Nations Principles on Housing and Property Restitution for Refugees and Displaced Persons” (“the Pinheiro principles”) and Resolution No. 178 (2010) of the Parliamentary Assembly of the Council of Europe on “Solving property issues of refugees and displaced persons” (§ 238 of the principal judgment).
16. In respect of non-pecuniary damage, the applicant's next of kin, who are pursuing the application after his death, stated that that claim was made on their own behalf and on behalf of the applicant. They claimed a total amount of EUR 190,000, referring to anguish and feelings of helplessness and frustration experienced by themselves and by the applicant over the many years during which they were unable to enjoy their property and home in Gulistan and to visit the graves of their relatives there.
17. Finally, the applicant contested the Government's view that the impossibility to have access to his property and home was due to the occupation by Armenia of significant parts of Azerbaijani territory, noting that this view was at variance with the Court's findings in the principal judgment (ibid., §§ 134-137 and 151).
(b) The Government
18. For their part, the Government argued that restitution was not possible. They referred to the Court's finding that the applicant still had a house in Gulistan (§§ 197-198 of the principal judgment) but underlined that according to the Court's assessment the refusal to grant the applicant, or any civilian, access to the village was justified by the security situation (ibid., § 233). They could therefore not provide restitution of the applicant's property but had to take alternative measures to secure his property rights (ibid., § 234).
19. The Government, referring to the Court's finding in the principal judgment according to which the practical difficulties in exercising their authority in Gulistan had to be taken into account when assessing the proportionality of the acts and omissions complained of (ibid., § 150), argued that a similar approach should be taken in respect of just satisfaction. Compensation sums awarded should be in a reasonable proportion to the degree of their responsibility in regard to the infringement of the applicant's property rights. In addition, the measures taken by the Azerbaijani authorities in favour of a huge number of internally displaced persons had to be taken into account in the assessment of the applicant's claims.
20. In respect of pecuniary damage the Government submitted that part of the applicant's claims related to facts which fell outside the Court's competence ratione temporis. In particular, they argued that they could not be held responsible for the applicant's displacement in June 1992 or any damage to the house or to his other belongings during the armed conflict.
21. On the basis of these main propositions, the Government contested the applicant's claims under the various heads of pecuniary damage in detail. They argued in particular that the applicant had claimed compensation for the value of the house itself but, in their view, he had failed to submit claims in respect of the continuing violation of his property rights due to the loss of use of his property in Gulistan.
22. As to the claim for loss of income, the Government noted that Lena Sargsyan, the applicant's widow, had not herself been an applicant before the Court. Consequently, the loss of her income could not be validly claimed. Moreover, the claims for loss of the applicant's income could not be pursued beyond his death. The Government also contested the claim for reimbursement of additional rental and living expenses and future living expenses, pointing out that according to Lena Sargsyan's statement which was attached to the applicant's submissions of 21 May 2012, she and the applicant had been provided with an apartment in Armenia in 2001 and had received a pension and family allowance from the Armenian Government.
23. In respect of non-pecuniary damage, the Government considered that the finding of a violation constituted in itself sufficient just satisfaction. They conceded that refugees suffered non-pecuniary damage due to the impossibility to have access to their property, their homes and their relatives' graves. However, in the present case, that impossibility was intrinsically linked to the occupation of a significant part of Azerbaijani territory and to the resumption, in April 2016, of hostilities along the Line of Contact, involving heavy shelling of towns and villages inter alia in the Goranboy region, in which Gulistan is situated.
24. In addition, they questioned the surviving family members' standing to seek an award in respect of non-pecuniary damage on their own behalf and expressed the view that any claim for non-pecuniary damage on the applicant's behalf had become extinguished with his death.
2. The Court's assessment
(a) Introductory remarks
25. When reserving the issue of just satisfaction for a later stage in the principal judgment, the Court referred to the exceptional nature of the present case (ibid., § 283).
26. That exceptional nature is owing to a number of features. One is that the present case relates to an ongoing conflict situation. The active military phase in the Nagorno-Karabakh conflict took place in 1992-94 but, despite a cease-fire agreement concluded in May 1994 and negotiations conducted in the framework of the OSCE Minsk Group, no peace agreement has been reached (for a more detailed description of the background and current situation, see §§ 14-28 of the principal judgment). Twenty-three years later, breaches of the ceasefire agreement continue to occur. As both parties have pointed out in their observations on just satisfaction, violence has recently escalated along the Line of Contact, most notably during the military clashes in early April 2016.
27. Another particular aspect of the case is that, whereas the events which led the applicant to flee his property and home occurred in June 1992, the respondent State, the Republic of Azerbaijan, ratified the Convention ten years later, on 15 April 2002. Having thus no jurisdiction ratione temporis over events pre-dating 15 April 2002, the Court concluded that the applicant still has valid proprietary rights to a house and land in Gulistan (§§ 198 and 205 of the principal judgment). From the date of entry into force of the Convention, it found Azerbaijan responsible for continuing violations of the applicant's rights under Article 1 of Protocol No. 1 and Articles 8 and 13 of the Convention (ibid., §§ 241-242, 260-261 and 273-274).
28. The Court is thus dealing with a continuing situation which has its roots in the unresolved conflict over Nagorno-Karabakh and the surrounding territories and still affects a large number of individuals. More than one thousand individual applications lodged by persons who were displaced during the conflict are pending before the Court, slightly more than half of them being directed against Armenia and the remainder against Azerbaijan. The applicants in these cases represent just a small portion of the persons, estimated to exceed one million, who had to flee during the conflict and have since been unable to return to their properties and homes or to receive any compensation for the loss of their enjoyment.
29. In this connection, the Court considers it appropriate to emphasise once more the principle of subsidiarity. In the present case it has both a political and a legal dimension.
30. As to the political dimension, the Court has already referred to the undertakings given by Armenia and Azerbaijan prior to their accession to the Council of Europe committing themselves to the peaceful settlement of the Nagorno-Karabakh conflict (§ 76 of the principal judgment). By now, some fifteen years have passed since the ratification of the Convention by Armenia and Azerbaijan without a political solution of the conflict being in sight. The Court can only underline that it is the responsibility of the two States involved to find a solution on a political level (see, mutatis mutandis, Kovačić and Others v. Slovenia [GC], nos. 44574/98, and 2 others, §§ 255-256, 3 October 2008, Demopoulos and Others, v. Turkey (dec.) [GC], nos. 46113/99 and 7 others, § 85, ECHR 2010).
31. Coming to the legal dimension, the Court reiterates that the principle of subsidiarity underpins the Convention system (Kurić and Others v. Slovenia (just satisfaction) [GC], no. 26828/06, § 134, ECHR 2014, and the cases cited therein). This principle is embodied in Article 1 of the Convention, according to which the Contracting States shall secure the rights and freedoms guaranteed by the Convention to everyone within their jurisdiction, while according to Article 19, it is for the Court to ensure the observance of the engagements undertaken by the States in the Convention and the Protocols thereto. Furthermore, the principle underlies the requirement for applicants to exhaust domestic remedies pursuant to Article 35 § 1 and the corresponding obligation for Contracting States under Article 13 to provide effective remedies for breaches of the Convention (Akdivar and Others v. Turkey, 16 September 1996, § 65, Reports of Judgments and Decisions 1996-IV; Demopoulos and Others, cited above, § 69). The principle of subsidiarity also guides the Court's approach in dealing with systemic violations of the Convention when applying the pilot judgment procedure developed under Article 46 (see, for instance, Ališić and Others v. Bosnia and Herzegovina, Croatia, Serbia, Slovenia and the Former Yugoslav Republic of Macedonia [GC], no. 60642/08, § 143, ECHR 2014).
32. Moreover, as it has done in other cases arising out of unresolved conflict situations, or in cases revealing systemic violations, the Court cannot emphasise enough that it is not a court of first instance. It does not have the capacity, nor is it appropriate to its function as an international court, to adjudicate on large numbers of cases which require the finding of specific facts or the calculation of monetary compensation – both of which should, as a matter of principle and effective practice, be the domain of domestic jurisdictions (see mutatis mutandis, Demopoulos and Others, cited above, § 69, and Ališić and Others, cited above, §§ 142-143).
33. It is precisely the Government's failure to comply with its accession commitments as well as with its obligations under the Convention which obliges the Court in the present case to act as a court of first instance, establishing relevant facts some of which date back many years, evaluating evidence in respect of property claims and finally assessing monetary compensation. All this is to be seen against the background that the present application is examined as a leading case while hundreds of similar cases against Azerbaijan are still pending before the Court.
34. Without prejudice to any compensation to be awarded as just satisfaction in the present case, the effective and constructive execution of the principal judgment calls for the creation of general measures at national level. Guidance as to appropriate measures has been given in the principal judgment, where the Court stated, inter alia, that “pending a comprehensive peace agreement, it would appear particularly important to establish a property claims mechanism, which should be easily accessible and provide procedures operating with flexible evidentiary standards, allowing the applicant and others in his situation to have their property rights restored and to obtain compensation for the loss of their enjoyment” (ibid. § 238).
(b) General principles on just satisfaction
35. The Court reiterates its case-law according to which a judgment where the Court finds a breach generally imposes on the respondent State a legal obligation to put an end to the breach and make reparation for its consequences in such a way as to restore as far as possible the situation existing before the breach (Kurić and Others,cited above, § 79). The Contracting States that are parties to a case are in principle free to choose the means whereby they will comply with a judgment in which the Court has found a breach. The discretion as to the manner of execution of a judgment reflects the freedom of choice attaching to the primary obligation of the Contracting States pursuant to Article 1 of the Convention to secure the rights and freedoms guaranteed. If the nature of the breach allows for restitutio in integrum, it is for the respondent State to effect it, the Court having neither the power nor the practical possibility of doing so itself. If, on the other hand, national law does not allow - or allows only partial - reparation to be made, Article 41 empowers the Court to afford the injured party such satisfaction as appears to it to be appropriate (Papamichalopoulos and Others v. Greece (Article 50), 31 October 1995, § 34, Series A no. 330-B; Kurić and Others, cited above, § 80, and the cases referred to therein). In this connection, the role of the Committee of Ministers, under Article 46 § 2 of the Convention, to supervise the execution of the Court's judgments should be emphasised (see Verein gegen Tierfabriken Schweiz (VgT) v. Switzerland (no. 2)[GC], no. 32772/02, §§ 84-88, ECHR 2009). Nevertheless, the Court is mindful of the fact that some situations – especially those involving long-standing conflicts – are not, in reality, amenable to full reparation.
36. As regards claims for pecuniary loss, the Court's case-law establishes that there must be a clear causal connection between the damage claimed by the applicant and the violation of the Convention. In appropriate cases this may include compensation in respect of loss of earnings (Kurić and Others, cited above, § 81).
37. In regard to losses related to real property, where no deprivation of property has taken place but the applicant has been denied access to it and therefore the possibility to use and enjoy it, the Court's general approach is to assess the loss suffered with reference to the annual ground rent calculated as a percentage of the market value of the property, that could have been earned during the relevant period (Loizidou v. Turkey (Article 50), 28 July 1998, § 33, Reports 1998-IV).
38. A precise calculation of the sums necessary to make reparation in respect of the pecuniary losses suffered by the applicant may be prevented by the inherently uncertain character of the damage flowing from the violation. An award may still be made notwithstanding the large number of imponderables involved in the assessment of future losses, though the greater the lapse of time involved, the more uncertain the link becomes between the breach and the damage. The question to be decided in such cases is the level of just satisfaction, in respect of both past and future pecuniary losses, that it is necessary to award to the applicant, the matter to be determined by the Court at its discretion, having regard to what is equitable (Kurić and Others, cited above, § 82).
39. Furthermore the Court reiterates that there is no express provision for non-pecuniary or moral damage. In Varnava and Others v. Turkey ([GC], nos. 16064/90 and 8 others, § 224, ECHR 2009) and Cyprus v. Turkey ((just satisfaction) [GC], no. 25781/94, § 56, ECHR 2014) the Court confirmed the following principles which were gradually developed in its case-law. Situations where the applicant has suffered evident trauma, whether physical or psychological, pain and suffering, distress, anxiety, frustration, feelings of injustice or humiliation, prolonged uncertainty, disruption to life, or real loss of opportunity can be distinguished from those situations where the public vindication of the wrong suffered by the applicant, in a judgment binding on the Contracting State, is an appropriate form of redress in itself. In some situations, where a law, procedure or practice has been found to fall short of Convention standards this is enough to put matters right. In other situations, however, the impact of the violation may be regarded as being of a nature and degree as to have impinged so significantly on the moral well-being of the applicant as to require something further. Such elements do not lend themselves to a process of calculation or precise quantification. Nor is it the Court's role to function akin to a domestic tort mechanism court in apportioning fault and compensatory damages between civil parties. Its guiding principle is equity, which above all involves flexibility and an objective consideration of what is just, fair and reasonable in all the circumstances of the case, including not only the position of the applicant but the overall context in which the breach occurred. Its non-pecuniary awards serve to give recognition to the fact that moral damage occurred as a result of a breach of a fundamental human right and reflect in the broadest of terms the severity of the damage.
40. Finally, the Court observes that, depending on the specific circumstances of the case, it may be appropriate to make an aggregate award for pecuniary and non-pecuniary damage (Centro Europa 7 S.r.l. and Di Stefano, v. Italy [GC], no. 38433/09, §§ 218-222, ECHR 2012).
(c) Award of damages in the present case
(i) General considerations
41. In finding that there has been a continuing violation of Article 1 of Protocol No. 1 the Court accepted that refusing civilians, including the applicant, access to Gulistan was justified by safety considerations given that it was situated in an area of military activity. However, it considered that as long as access to the applicant's property was not possible, the State had a duty to take alternative measures in order to secure his property rights (§§ 233-234 of the principal judgment). It noted that the respondent Government had to provide for a large community of internally displaced persons but found that the protection of this group did not exempt the Government entirely from its obligations towards another group, namely Armenians like the applicant who had to flee during the conflict (ibid., §§ 239-240). The Court concluded that the impossibility for the applicant to have access to his property in Gulistan without the Government taking any alternative measures to provide him with compensation for the loss of their enjoyment, placed and continued to place an excessive burden on him (ibid., § 241). The Court relied on the same considerations in finding that there has been a continuing violation of Article 8 of the Convention given the impossibility for him to have access to his home and to his relatives' graves in Gulistan without the Government taking any alternative measures to address his rights or to provide him at least with compensation for the loss of their enjoyment (ibid., §§ 259-261). Finally, there had been and continued to be no available effective remedy in respect of these violations (§ 273).
42. The applicant had initially requested restitution of his property, including the right to return to his property and home in Gulistan, but has not upheld this claim following the principal judgment, noting the impossibility of a return to the village on account of the prevailing security situation (see paragraph 10 above). Thus, an award of compensation is the appropriate just satisfaction in the present case.
43. The Court reiterates that it is the finding that the applicant still has valid property rights in respect of his house and land in Gulistan that brought the case within the Court's competence ratione temporis (§§ 205 and 215 of the principal judgment) from 15 April 2002. It follows, firstly, that a period of almost ten years during which the continuing situation complained of existed, falls outside the Court's temporal jurisdiction and that any damage suffered by the applicant before 15 April 2002 is not directly related to the violations found by the Court and therefore cannot be compensated under Article 41 of the Convention. Secondly, as the applicant has not been deprived of his property rights, compensation cannot be awarded for the loss of his house and land as such, but only for the loss of use of his property.
(ii) Pecuniary damage
44. Regarding the applicant's house, the Court notes that according to its findings in the principal judgment it still existed in April 2002 when the Convention entered into force in respect of Azerbaijan but in a badly damaged state (ibid., §§ 197-198). The applicant claims compensation for the value of the house as it stood when he had to flee from Gulistan in June 1992. However, the Court cannot award the applicant compensation for the damage to the house that occurred prior to the entry into force of the Convention (contrast, Doğan and Others v. Turkey (just satisfaction), nos. 8803/02 and 14 others, §§ 52-53, 13 July 2006, in which the Convention was in force at the time of the applicants' eviction from their village in south-east Turkey and the Court awarded them compensation for the deterioration of the houses in subsequent years during which they were prevented from returning). Therefore, no award can be made under this head.
45. Insofar as the applicant claims compensation for loss of furniture, and for the loss of livestock and fruit trees, the Court observes that almost ten years elapsed between the applicant's flight from Gulistan in June 1992 and the entry into force of the Convention in April 2002. During such a considerable period, any furniture would at the very least have been badly damaged if it had not become unusable at all. The same goes for livestock which must have perished long before the entry into force of the Convention and fruit trees which must have suffered considerably from ten years of neglect. There is no element in the case which would give reason to draw a different conclusion. Thus, in respect of these items, there is no causal connection between the damage claimed and the continuing violations found in the principal judgment. Consequently, no award can be made under this head.
46. Furthermore, the applicant claimed compensation for loss of income from salaries and pensions since 1992. No award can be made for the period pre-dating 15 April 2002. As regards the period after the entry into force of the Convention, the Court considers that there is no causal link between the violations found in the principal judgment and the damage alleged. The losses claimed are not directly related to the impossibility for the applicant to have his property rights restored or to obtain compensation for the loss of their enjoyment, but are rather linked to his displacement from Gulistan in 1992 and to the overall consequences of the conflict. Similarly, a causal link between the loss of savings deposited in the Savings Bank of Azerbaijan and the violations found in the principal judgment is missing. Moreover, these losses were not the object of the application. They were mentioned for the first time in the applicant's submissions on just satisfaction of 21 May 2012. In sum, no award can be made for loss of salaries, pensions and savings.
47. The Court considers that compensation for pecuniary damage may, in principle, be awarded in respect of loss of income from the applicant's land for the period after the entry into force of the Convention in respect of Azerbaijan. It would also accept, again in respect of that period, that the applicant incurred certain additional rental and living expenses, although these would have to be offset against the monies received in Armenia. Nonetheless, the Court notes that the assessment of pecuniary damage under these heads is also burdened with many uncertainties and difficulties.
48. Some of these difficulties are linked to the fact that the underlying conflict is still unresolved and to the particular situation of Gulistan. Since the entry into force of the Convention until the present date, Gulistan has been a deserted village in which most buildings have been dilapidated. It is situated between the opposing forces of Azerbaijan and the “NKR” (§§ 134 and 197 of the principal judgment). In these circumstances it is not possible to obtain any valid data for the loss of use of the applicant's property. It does not appear appropriate either to assess the loss of use with reference to the annual ground rent, calculated as a percentage of the market value of the property, that could have been earned in the period after the entry into force of the Convention (contrast, Loizidou v. Turkey (Article 50), cited above, § 33).
49. Another difficulty, closely linked to the first one, concerns the lack or inaccessibility of documentation. The main document submitted by the applicant in respect of his house and land in Gulistan is the technical passport of the house established in May 1991 (see §§ 154 and 192 of the principal judgment), that is, still at the time of the Soviet Union. The technical passport contains no valuation in respect of the land. This can partly be explained by the fact that, at the time when the plot of land was allocated to the applicant, there was no private ownership of land under the Soviet legal system, it being given to him instead with a “right of use” (for a more detailed description of the rights to land at that time see §§ 201-203 of the principal judgment). Concerning the period falling within the Court's competence ratione temporis, there is no documentation relating to the value of the property or any income to be derived from it.
50. In conclusion, the Court considers that some award of pecuniary damages can be made only in respect of two heads, namely the loss of income from the applicant's land and additional rental and living expenses. While the Court accepts that the applicant, who had lived in his house in Gulistan and derived part of his income from farming his land, must have incurred additional living expenses in Armenia, the uncertainty as to the assessment of the loss of income from the applicant's land also prevents any precise calculation of the difference in living expenses. The assessment is further complicated by the fact that it involves comparing economic conditions in two different countries which must, moreover, have evolved considerably over time. Having regard to all these elements, the Court considers that the pecuniary damage sustained by the applicant does not lend itself to precise assessment.
(iii) Non-pecuniary damage
51. The Court considers that the applicant must have sustained non-pecuniary damage as a result of the protracted, unresolved situation, the insecurity about the fate of his house and other property and the graves of his relatives in Gulistan, and the ensuing emotional suffering and distress.
52. The Court considers that, in the present case, the finding of a violation does not constitute in itself sufficient just satisfaction for the non-pecuniary damage suffered. As was noted in the principal judgment, the measures taken by the respondent Government to provide assistance to hundreds of thousands of internally displaced persons do not exempt the respondent Government from its obligations towards another group, namely Armenians like the applicant who had to flee during the conflict. It appears that, so far, no property claims mechanism or other measures have been put in place by the Government which could benefit persons in the applicant's situation (see paragraph 34 above as well as the considerations in the principal judgment, §§ 238-240). Consequently, the case differs from the case of Doğan and Others (cited above, § 61), where the Court considered that, in view of the measures taken by the authorities of the respondent State to remedy the situation of the applicants and other internally displaced persons, the principal judgment in itself constituted sufficient just satisfaction for any non-pecuniary damage arising from the violations of Articles 8 and 13 of the Convention and Article 1 of Protocol No. 1.
(iv) Entitlement of family members to compensation
53. In reply to the Government's submissions, the Court reiterates that family members who are entitled to pursue the application following the applicant's death may also take the applicant's place as regards claims for just satisfaction, with regard to both pecuniary damage (see, Malhous v. the Czech Republic [GC], no. 33071/96, §§ 67-68, 12 July 2001) and non-pecuniary damage (see, for instance, Ječius v. Lithuania, no. 34578/97, §§ 41 and 109, ECHR 2000-IX; Avcı and Others v. Turkey, no. 70417/01, § 56, 27 June 2006; contrast, however, with the case of Malhous, cited above, § 71, where the violation was not considered to have affected the successor personally). Furthermore, the Court has granted non-pecuniary damages to the son of an applicant in a case pursued by him concerning unreasonable length of pension proceedings, not only for the period when the applicant was alive but also for the period after her death when the domestic proceedings were continued by the son as the applicant's heir (Ernestina Zullo v. Italy [GC], no. 64897/01, §§ 115-116 and 148-149, 29 March 2006).
54. The Government appear to argue that the late applicant's family members cannot claim compensation for the period subsequent to his death in April 2009. In view of the particular nature of the violations at stake, namely continuing violations of the applicant's rights under Article 1 of Protocol No. 1 and of Articles 8 and 13 of the Convention, the Court considers that it would be unduly formalistic to exclude from the award of compensation the period subsequent to the applicant's death. As has been shown above, in a case concerning the unreasonable length of proceedings, and thus a violation which has an element of continuity, the award of just satisfaction is not necessarily limited to the period before the applicant's death. The position may be different where the application is not pursued by the late applicant's next of kin but by the administrator of his estate (Solomonides v. Turkey (just satisfaction), no. 16161/90, §§ 42-43 and 47, 27 July 2010) or where the applicant's next of kin, who pursue the application, are not personally affected by the violation found (see Malhous, cited above, § 71).
55. In the present case, the Court reiterates that the applicant and his family lived in Gulistan where the applicant derived his income from his salary as a secondary school teacher and from farming and stock-breeding on his land and his wife worked at the village's collective farm. They thus formed a household economic unit. The applicant and his wife had lived in Gulistan for most of their lives until their forced displacement in June 1992. Consequently, the applicant's wife was in exactly the same situation as the applicant and was personally affected by the loss of the enjoyment of the applicant's property and home in Gulistan and the lack of effective remedies in that regard. To a lesser extent this also applies to the applicant's adult children. Moreover, in finding that there had been and continued to be breaches of the applicant's Convention rights, the Court included the period subsequent to his death (principal judgment, §§ 241-242, 260-261 and 273). In coming to that conclusion, it found that the applicant still held valid property rights in respect of his house and land (ibid., § 205). In the absence of any indication to the contrary, the applicant's widow and, after her death in 2014, their children must be considered successors to these rights. Having regard to all these factors, the Court finds that the applicant's next of kin who pursued the application on his behalf may be awarded compensation for the full period examined in the present case.
(v) Overall conclusion
56. As follows from the above considerations, the applicant is entitled to compensation for certain pecuniary losses and for non-pecuniary damage. The pecuniary and non-pecuniary damage are, in the Court's view, closely connected. For the reasons set out above, the damage sustained does not lend itself to precise calculation (see paragraphs 39, 48-50). Further difficulties in the assessment derive from the passage of time. As has been acknowledged by the Court (see paragraph 48 above), the time element makes the link between a breach of the Convention and the damage less certain. This consideration is particularly prominent in the present case, concerning a continuing violation of the applicant's property rights, in which almost ten years had already elapsed between the applicant's displacement from Gulistan and the entry into force of the Convention and some fifteen years have elapsed thereafter. An award may still be made notwithstanding the large number of imponderables involved. The level of just satisfaction to be awarded must be determined at the Court's discretion, having regard to what it finds equitable.
57. In conclusion, the Court has regard to the respondent State's primary duty to make reparation for the consequences of a breach of the Convention and underlines once more the responsibility of the two States concerned to find a plausible resolution to the Nagorno-Karabakh conflict. Pending a solution on the political level, it considers it appropriate in the present case to award an aggregate sum for pecuniary and non-pecuniary damage. Making its assessment on an equitable basis, the Court awards the applicant EUR 5,000 covering all heads of damage, plus any tax that may be chargeable on that amount.
B. Costs and expenses
1. The parties' submissions
58. The applicant claimed the following amounts for costs incurred in the proceedings before the Court: 37,062.50 pounds sterling (GBP) for 247 hours and 5 minutes of work at a rate of GBP 150/hour performed by his London lawyers and EUR 38,500 for 384 hours and 20 minutes of work at a rate of EUR 100/hour performed by his Armenian representatives. He submitted detailed time-sheets in respect of each of the lawyers concerned. In addition he claimed compensation for cash expenses of his London lawyers of GBP 348.33 and of his Armenian representatives of EUR 1,737. In respect of the expenses claimed, he submitted supporting documents.
59. The applicant argued that according to the Court's case-law representation by more than one lawyer, and also representation by lawyers practising in different jurisdictions could be justified. In such cases the Court had also accepted that fee levels differed from one Contracting State to another and that instructing lawyers from different jurisdictions could involve the need to translate key documents of the case file.
60. The Government considered that the applicant's claims were excessive. While recognising the need for representation by at least one Armenian lawyer and a human rights lawyer familiar with the proceedings before the Court, they contested that the applicant's representation by a team of lawyers located both in London and in Armenia was necessary. They requested the Court to carry out a careful assessment of the applicant's claims under the head of costs and expenses.
2. The Court's assessment
61. According to the Court's case-law, an applicant is entitled to the reimbursement of costs and expenses found to have been actually and necessarily incurred and to be reasonable as to quantum (see, among many others, Centro Europa 7 S.r.l. and Di Stefano, cited above, § 223, and Ališić and Others, cited above, § 158).
62. In view of the nature of the present case, the Court accepts the need for representation by two Armenian lawyers and a United Kingdom lawyer specialising in the international protection of human rights (Kurt v. Turkey, 25 May 1998, § 179, Reports 1998-III). It further notes that it is not unusual that counsel for the parties are assisted by advisors at the public hearing or for carrying out research.
63. Furthermore, the Court acknowledges that the case raised complex issues of fact and law. It observes in particular that it required the collection of evidence, the holding of two public hearings before the Grand Chamber and the submission of several sets of observations. It also raised important legal issues and served as a leading case for hundreds of follow-up cases. Nonetheless, the Court considers that the total amount claimed in respect of costs is excessive. Finally, the Court notes that the applicant received EUR 3,940.64 by way of legal aid.
64. Having regard to the information in its possession and the above criteria, the Court considers it reasonable to award the sum of EUR 30,000 to cover all the applicant's costs and expenses.
C. Default interest
65. The Court considers it appropriate that the default interest rate should be based on the marginal lending rate of the European Central Bank, to which should be added three percentage points.
FOR THESE REASONS, THE COURT, UNANIMOUSLY,
1. Holds
(a) that the respondent State is to pay Mr Vladimir Sargsyan and Ms Tsovinar Sargsyan jointly, within three months, the following amounts,
(i) EUR 5,000 (five thousand euros), plus any tax that may be chargeable, in respect of pecuniary and non-pecuniary damage;
(ii) EUR 30,000 (thirty thousand euros), plus any tax that may be chargeable to them, in respect of costs and expenses;
(b) that from the expiry of the above-mentioned three months until settlement simple interest shall be payable on the above amounts at a rate equal to the marginal lending rate of the European Central Bank during the default period plus three percentage points;
2. Dismisses the remainder of the applicant's claim for just satisfaction.
Done in English and in French, and notified in writing on 12 December 2017, pursuant to Rule 77 §§ 2 and 3 of the Rules of Court.
Johan Callewaert Guido Raimondi
Deputy to the Registrar President
In accordance with Article 45 § 2 of the Convention and Rule 74 § 2 of the Rules of Court, the separate opinion of Judge Hüseynov is annexed to this judgment.
G.R.
J.C.
CONCURRING OPINION OF JUDGE HÜSEYNOV
While I disagree with the findings of the Grand Chamber in its principal judgment in this case, this is not an issue under review at this stage of the proceedings. Not having been part of the judicial formation that adopted the principal judgment, I am bound by it as a matter of law. Considering Article 41 under those circumstances, I have to vote in favour of the present judgment.
