PROBLEM OF PAYMENT OF COMPENSATION TO BUSINESS OWNERS DURING THE QUARANTINE PERIOD: ANALYSIS OF DOMESTIC AND FOREIGN EXPERIENCE

Section "Law": Economic and Legal Comparative Research

Abstract

The COVID-19 pandemic has had a significant impact in all areas of human life. Many rights have been restricted to prevent the spread of infection. The restrictions on private property rights during the pandemic were not so obvious, but no less significant. The massive closure of restaurants, cafes, cinemas and other crowded places has resulted in significant losses for business owners. The question arose about the admissibility of such restrictions on the rights of owners, as well as the need to compensate for the losses caused. The purpose of this article is to study the criteria developed by international practice under which the restriction of property rights is allowed, and approaches to resolving issues of compensation for losses caused to owners when it is necessary to ensure a balance of private and public interests in Ukraine. In order to understand whether the owners, whose rights were restricted during the pandemic by depriving them of the opportunity to use their property in business, have the right to compensation, the article analyzes the meaning of "possessions" used in the case law of the European Court of Human Rights. It is concluded that future income within the meaning given by the European Court of Human Rights should also be considered a type of property, so depriving owners of the opportunity to receive income could to some extent be considered as confiscation of property. This approach suggests that during the quarantine the owners were in a sense deprived of property, which raises the question of the need to compensate the owners for the losses incurred during the quarantine measures. The right of owners to compensation is analyzed in the light of the conditions developed in the practice of the European Court of Human Rights for interfering in the peaceful possession of property and the recommendations developed by the United Nations to limit human rights in the context of the COVID-19 pandemic. It is concluded that it is necessary to comply with the principle of legality in case of state intervention in the peaceful possession of property. However, this principle was violated in Ukraine, as the restrictions were introduced not by law, but by the Resolution of the Cabinet of Ministers of Ukraine. This gives grounds to challenge the actions of the state and demand payment of compensation for losses incurred by the owners. The article also analyzes approaches to resolving issues of compensation for losses caused to owners as a result of restrictions on their rights, developed in the case law of the United States and Great Britain.


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Keywords

private property, pandemic COVID-19, restrictions, compensation

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2021-04-15