Uncertainty of Valuation in Expropriation Processes -- the Case of Poland

Authors

• Ewa Kucharska-Stasiak

Keywords:

Expropriation, compensation, market value, uncertainty of valuation.

Abstract

In Poland and in many other countries, different laws allow expropriation of property from their owners for public purposes. In such cases, the dispossessed persons must be recompensed for the value of the yielded property to ensure that the total value of assets they held is not diminished. The compensation is calculated using the market value of a specific asset. According to the Polish Legislature, the compensation amount can be established by means of the replacement value only in situations when the market value cannot be found. The article discusses the market value as the compensation basis in expropriation processes and seeks to demonstrate that the value does not ensure just compensation. In an expropriation situation, compensation should exceed the market value that attempts to objectify the market. The valuation figure should take into account the special situation of the expropriated person. The article concentrates on solutions provided in the Polish legislation.