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      {
        "title": "Front matter",
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          "para_12",
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          "para_14",
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        "title": "Judgment",
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      {
        "title": "Legal context",
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        "title": "Hungarian law",
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          "para_31",
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          "para_35",
          "para_36",
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      {
        "title": "Consideration of the questions referred",
        "paragraphs": [
          "para_76"
        ],
        "kind": "questions"
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      {
        "title": "Admissibility",
        "paragraphs": [
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          "para_78",
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      {
        "title": "Substance",
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          "para_98",
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        "kind": "assessment"
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        "title": "Costs",
        "paragraphs": [
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          "para_108"
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        "kind": "costs"
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      {
        "title": "On those grounds, the Court (Third Chamber) hereby rules:",
        "paragraphs": [
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    "paragraphs": [
      {
        "text": "Provisional text",
        "paragraph_id": "para_1"
      },
      {
        "text": "JUDGMENT OF THE COURT (Third Chamber)",
        "paragraph_id": "para_2"
      },
      {
        "text": "13 May 2026 ( * )",
        "paragraph_id": "para_3"
      },
      {
        "text": "( Reference for a preliminary ruling – Liability of a Member State in the event of infringement of EU law – Cancellation, by operation of law, of rights of usufruct over properties contrary to Article 63 TFEU and Article 17 of the Charter of Fundamental Rights of the European Union – Restoration of …",
        "paragraph_id": "para_4"
      },
      {
        "text": "In Case C‑286/25,",
        "paragraph_id": "para_5"
      },
      {
        "text": "REQUEST for a preliminary ruling under Article 267 TFEU from the Győri Törvényszék (Győr High Court, Hungary), made by decision of 3 April 2025, received at the Court on 15 April 2025, in the proceedings",
        "paragraph_id": "para_6"
      },
      {
        "text": "BRANDL Mezőgazdasági, Kereskedelmi és Szolgáltató Kft.",
        "paragraph_id": "para_7"
      },
      {
        "text": "v",
        "paragraph_id": "para_8"
      },
      {
        "text": "Agrárminisztérium,",
        "paragraph_id": "para_9"
      },
      {
        "text": "THE COURT (Third Chamber),",
        "paragraph_id": "para_10"
      },
      {
        "text": "composed of C. Lycourgos (Rapporteur), President of the Chamber, O. Spineanu-Matei, S. Rodin, N. Piçarra and N. Fenger, Judges,",
        "paragraph_id": "para_11"
      },
      {
        "text": "Advocate General: J. Kokott,",
        "paragraph_id": "para_12"
      },
      {
        "text": "Registrar: A. Calot Escobar,",
        "paragraph_id": "para_13"
      },
      {
        "text": "having regard to the written procedure,",
        "paragraph_id": "para_14"
      },
      {
        "text": "after considering the observations submitted on behalf of:",
        "paragraph_id": "para_15"
      },
      {
        "text": "–        BRANDL Mezőgazdasági, Kereskedelmi és Szolgáltató Kft., by T. Szendrő-Németh, ügyvéd,",
        "paragraph_id": "para_16"
      },
      {
        "text": "–        the Hungarian Government, by M.Z. Fehér and K. Szíjjártó, acting as Agents,",
        "paragraph_id": "para_17"
      },
      {
        "text": "–        the European Commission, by M. Mataija, A. Tokár and G. von Rintelen, acting as Agents,",
        "paragraph_id": "para_18"
      },
      {
        "text": "having decided, after hearing the Advocate General, to proceed to judgment without an Opinion,",
        "paragraph_id": "para_19"
      },
      {
        "text": "gives the following",
        "paragraph_id": "para_20"
      },
      {
        "text": "Judgment",
        "paragraph_id": "para_21"
      },
      {
        "text": "1         This request for a preliminary ruling concerns the interpretation of Article 63 TFEU and of Article 17 of the Charter of Fundamental Rights of the European Union (‘the Charter’).",
        "paragraph_id": "para_22"
      },
      {
        "text": "2         The request has been made in proceedings between BRANDL Mezőgazdasági, Kereskedelmi és Szolgáltató Kft. (‘Brandl’) and the Agrárminisztérium (Ministry of Agriculture, Hungary) concerning the amount of financial compensation provided for by Hungarian legislation enacted to implement the judgment of 21 May 2019, Commission v Hungary (Usufruct over agricultural land) (C‑235/17, EU:C:2019:432).",
        "paragraph_id": "para_23"
      },
      {
        "text": "Legal context",
        "paragraph_id": "para_24"
      },
      {
        "text": "European Union law",
        "paragraph_id": "para_25"
      },
      {
        "text": "3         Article 63(1) TFEU provides:",
        "paragraph_id": "para_26"
      },
      {
        "text": "‘Within the framework of the provisions set out in this Chapter, all restrictions on the movement of capital between Member States and between Member States and third countries shall be prohibited.’",
        "paragraph_id": "para_27"
      },
      {
        "text": "4         Article 17(1) of the Charter provides:",
        "paragraph_id": "para_28"
      },
      {
        "text": "‘Everyone has the right to own, use, dispose of and bequeath his or her lawfully acquired possessions. No one may be deprived of his or her possessions, except in the public interest and in the cases and under the conditions provided for by law, subject to fair compensation being paid in good time for their loss. The use of property may be regulated by law in so far as is necessary for the general interest.’",
        "paragraph_id": "para_29"
      },
      {
        "text": "Hungarian law",
        "paragraph_id": "para_30"
      },
      {
        "text": "5         On 12 December 2013, the Hungarian legislature adopted the Mező- és erdőgazdasági földek forgalmáról szóló 2013. évi CXXII. törvénnyel összefüggő egyes rendelkezésekről és átmeneti szabályokról szóló 2013. évi CCXII. törvény (Law No CCXII of 2013 laying down various provisions and transiti …",
        "paragraph_id": "para_31"
      },
      {
        "text": "6         Paragraph 108(1) of that law provided:",
        "paragraph_id": "para_32"
      },
      {
        "text": "‘Any right of usufruct or right of user existing on 30 April 2014 and created, for an indefinite period or for a fixed term expiring after 30 April 2014, by a contract between persons who are not close members of the same family shall be extinguished by operation of law on 1 May 2014.’",
        "paragraph_id": "para_33"
      },
      {
        "text": "7         Under the 2021 Law No CL amending certain agricultural laws, which entered into force on 1 January 2022, a chapter 20/F was inserted into the 2013 Law on Transitional Measures. That chapter, which includes inter alia the new Paragraphs108/B, 108/K, 108/L et 108/N, is entitled ‘Specific provisions to implement [the judgment of 21 May 2019, Commission v Hungary (Usufruct over agricultural land) (C‑235/17, EU:C:2019:432)]’.",
        "paragraph_id": "para_34"
      },
      {
        "text": "8         Paragraph 108/B of the 2013 Law on Transitional Measures, as amended by the 2021 Law No CL amending certain agricultural laws (‘the 2013 Law, as amended in 2021’), provides:",
        "paragraph_id": "para_35"
      },
      {
        "text": "‘(1)      Any natural or legal person whose right of usufruct has been deleted from the land register by virtue of the provisions of Paragraph 108(1) hereof in force on 30 April 2014 …, or a successor in title to that person, may apply under this chapter to have the deleted right of usufruct reinstated in the land register and for any compensation to which that person is entitled under this chapter.",
        "paragraph_id": "para_36"
      },
      {
        "text": "(2)      The usufructuary whose right has been deleted may rely on his or her rights as against the State or State bodies in relation to the deletion of the right of usufruct only under the procedures provided for in chapter 20/F of the [2013] Law on Transitional Measures.’",
        "paragraph_id": "para_37"
      },
      {
        "text": "9         Paragraph 108/K of that law provides:",
        "paragraph_id": "para_38"
      },
      {
        "text": "‘(1)      ‘The basis for the compensation consists in the annual value of the deleted right of usufruct. The annual value equates to 1/20 of the market value, at the time of the deletion of the right of usufruct, of the property over which the right of usufruct had previously been created.",
        "paragraph_id": "para_39"
      },
      {
        "text": "…",
        "paragraph_id": "para_40"
      },
      {
        "text": "(4)      Where the right of usufruct is reinstated, the amount of the compensation is calculated by multiplying the annual value by the number of years elapsed between deletion and reinstatement.",
        "paragraph_id": "para_41"
      },
      {
        "text": "…’",
        "paragraph_id": "para_42"
      },
      {
        "text": "10       Paragraph 108/L(2) of that law provides:",
        "paragraph_id": "para_43"
      },
      {
        "text": "‘Where … the applicant files an application in which he or she states that he or she can rely on other rights in addition to the amount determined in accordance with Paragraph 108/K, [the competent authority] may set the amount of compensation at an amount different from that calculated in accordanc …",
        "paragraph_id": "para_44"
      },
      {
        "text": "(a)      profile, shape, size of the plot of land;",
        "paragraph_id": "para_45"
      },
      {
        "text": "(b)      position;",
        "paragraph_id": "para_46"
      },
      {
        "text": "(c)      location;",
        "paragraph_id": "para_47"
      },
      {
        "text": "(d)      accessibility, roads;",
        "paragraph_id": "para_48"
      },
      {
        "text": "(e)      topography and gradient;",
        "paragraph_id": "para_49"
      },
      {
        "text": "(f)      watercourse development;",
        "paragraph_id": "para_50"
      },
      {
        "text": "(g)      engineering structures that hinder crop growth;",
        "paragraph_id": "para_51"
      },
      {
        "text": "(h)      crop conditions;",
        "paragraph_id": "para_52"
      },
      {
        "text": "(i)      higher than usual risk of damage caused by frost, ice and wildlife;",
        "paragraph_id": "para_53"
      },
      {
        "text": "(j)      irrigation, potential for irrigation;",
        "paragraph_id": "para_54"
      },
      {
        "text": "(k)      fences;",
        "paragraph_id": "para_55"
      },
      {
        "text": "(l)      buildings used for agricultural purposes;",
        "paragraph_id": "para_56"
      },
      {
        "text": "(m)      nutrient management, agrochemical treatment;",
        "paragraph_id": "para_57"
      },
      {
        "text": "(n)      environmental pollution and permanent environmental damage;",
        "paragraph_id": "para_58"
      },
      {
        "text": "(o)      nature conservation in the area;",
        "paragraph_id": "para_59"
      },
      {
        "text": "(p)      land improvement.’",
        "paragraph_id": "para_60"
      },
      {
        "text": "11       Paragraph 108/N of that law provides:",
        "paragraph_id": "para_61"
      },
      {
        "text": "‘Interest shall be payable on the amount determined in accordance with Paragraphs 108/K to 108/M, from the date on which the right of usufruct is cancelled until the date of payment. The interest rate shall be equal to the central bank’s base rate plus two percentage points. For the purposes of calculating interest, the interest rate in force on the first day of the relevant calendar half-year shall apply throughout that half-year.’",
        "paragraph_id": "para_62"
      },
      {
        "text": "The dispute in the main proceedings and the questions referred for a preliminary ruling",
        "paragraph_id": "para_63"
      },
      {
        "text": "12       Brandl is the usufructuary of agricultural land in Hungary, registered in the Hungarian land register under numbers 0159/3 and 0160.",
        "paragraph_id": "para_64"
      },
      {
        "text": "13       Under Paragraph 108(1) of the 2013 Law on Transitional Measures, those rights of usufruct have been extinguished by operation of law. They were deleted from the land register on 2 October 2014.",
        "paragraph_id": "para_65"
      },
      {
        "text": "14       After holding, in the judgment of 6 March 2018, SEGRO and Horváth (C‑52/16 and C‑113/16, EU:C:2018:157, paragraphs 62 to 66, 94, 107 and 126), that Article 63 TFEU precluded a provision such as Paragraph 108(1) of the 2013 Law on Transitional Measures, the Court clarified, in its judgment o …",
        "paragraph_id": "para_66"
      },
      {
        "text": "15       Following that judgment, the Hungarian legislature amended the 2013 Law on Transitional Measures in order to permit, under certain conditions, the reinstatement of rights of usufruct in the land register that had been deleted pursuant to Paragraph 108(1) of that law and for compensation to be paid to the holders of those rights.",
        "paragraph_id": "para_67"
      },
      {
        "text": "16       Under Paragraph 108/B(1) of the 2013 Law on Transitional Measures, as amended in 2021, Brandl applied for and obtained reinstatement of its rights of usufruct in the land register.",
        "paragraph_id": "para_68"
      },
      {
        "text": "17       By way of compensation for the financial loss arising from the deletion of those rights, the Nemzeti Földügyi Központ (National Land Centre, Hungary), which is, in the area, the legal predecessor of the Ministry of Agriculture, awarded Brandl compensation in the amounts of 10 940 000 forint …",
        "paragraph_id": "para_69"
      },
      {
        "text": "18       Taking the view that that compensation does not amount to adequate compensation for the damage suffered by it due to the unlawful deprivation of its rights of usufruct, Brandl brought an action before the Győri Törvényszék (Győr High Court, Hungary), which is the referring court. In support of that action, Brandl argues that the compensation must take account of the loss of profit.",
        "paragraph_id": "para_70"
      },
      {
        "text": "19       In that regard, Brandl states that, before its rights of usufruct were deleted, it operated the plots of land in question and that, following that deletion, those plots of land were leased out. The rent amounts stipulated in those contracts are relevant for the calculation of the loss of profit.",
        "paragraph_id": "para_71"
      },
      {
        "text": "20       According to the Győri Törvényszék (Győr High Court), all of the pecuniary damage suffered by the usufructuary due to the unlawful deletion thereof must be compensated. Loss of profit must accordingly be taken into account. Paragraph 108/K of the 2013 Law on Transitional Measures, as amende …",
        "paragraph_id": "para_72"
      },
      {
        "text": "21       In those circumstances, the Győri Törvényszék (Győr High Court) decided to stay the proceedings and to refer the following questions to the Court of Justice for a preliminary ruling:",
        "paragraph_id": "para_73"
      },
      {
        "text": "‘(1)      Must Article 63 [TFEU] and Article 17 of the [Charter] be interpreted as meaning that the legislation of a Member State which, following the restoration of a right of usufruct over a plot of agricultural land, which was previously cancelled contrary to EU law, awards the usufructuary finan …",
        "paragraph_id": "para_74"
      },
      {
        "text": "(2)      Does the legislation of a Member State which, following the restoration of a right of usufruct over a plot of agricultural land, which was previously cancelled contrary to EU law, awards the usufructuary financial compensation that does not take into consideration the significant increase i …",
        "paragraph_id": "para_75"
      },
      {
        "text": "Consideration of the questions referred",
        "paragraph_id": "para_76"
      },
      {
        "text": "Admissibility",
        "paragraph_id": "para_77"
      },
      {
        "text": "22       In its observations lodged with the Court, the European Commission emphasises that the only cross-border element mentioned in the request for a preliminary ruling relates to the fact that the manager of Brandl, which is a company governed by Hungarian law, is a national of a Member State other than Hungary. The Commission argues that, in those circumstances, the admissibility of the request for a preliminary ruling is questionable.",
        "paragraph_id": "para_78"
      },
      {
        "text": "23       It is true that the provisions of the FEU Treaty on the freedom of establishment, the freedom to provide services and the free movement of capital do not apply to a situation which is confined in all respects within a single Member State (judgment of 15 November 2016, Ullens de Schooten , C‑268/15, EU:C:2016:874, paragraph 47, and order of 27 January 2026, OMW Petrom Marketing , C‑439/25, EU:C:2026:82, paragraph 36).",
        "paragraph_id": "para_79"
      },
      {
        "text": "24       Moreover, the scope of the Charter, in so far as the action of the Member States is concerned, is defined in Article 51(1) thereof, according to which the provisions of the Charter are addressed to the Member States only when they are implementing EU law. That provision confirms the Court’s …",
        "paragraph_id": "para_80"
      },
      {
        "text": "25       In the present case, the possibility cannot be ruled out that the dispute in the main proceedings, the resolution of which, according to the referring court, requires an interpretation of Article 63 TFEU and, in that context, of Article 17 of the Charter, is a situation which is confined in …",
        "paragraph_id": "para_81"
      },
      {
        "text": "26       However, even if the main proceedings are confined in all respects within Hungary, that does not automatically mean that the request is inadmissible.",
        "paragraph_id": "para_82"
      },
      {
        "text": "27       In that regard, it should be borne in mind that the interpretation of the fundamental freedoms provided for in Article 49, 56 or 63 TFEU may prove to be relevant in a case confined in all respects within a single Member State inter alia where national law requires the referring court to gra …",
        "paragraph_id": "para_83"
      },
      {
        "text": "28       It is apparent from the order for reference that the compensation scheme introduced by the 2013 Law on Transitional Measures, as amended in 2021, applies, under Paragraph 108/B thereof, in respect of ‘any natural or legal person’, irrespective of his or her nationality, ‘whose right of usuf …",
        "paragraph_id": "para_84"
      },
      {
        "text": "29       In view of the specific information contained in the request for a preliminary ruling, it seems that the principles of EU law relating to compensation for damage caused by a Member State’s infringement of EU law, in this case Article 63 TFEU and Article 17 of the Charter, highlighted in the …",
        "paragraph_id": "para_85"
      },
      {
        "text": "30       It follows from the foregoing that the questions referred for a preliminary ruling are admissible.",
        "paragraph_id": "para_86"
      },
      {
        "text": "Substance",
        "paragraph_id": "para_87"
      },
      {
        "text": "31       By its judgment of 21 May 2019, Commission v Hungary (Usufruct over agricultural land) (C‑235/17, EU:C:2019:432), the Court held that the cancellation, by operation of law, of rights of usufruct, effected by the 2013 Law on Transitional Measures, was incompatible with Article 63 TFEU and Ar …",
        "paragraph_id": "para_88"
      },
      {
        "text": "32       In that context, the present request for a preliminary ruling is aimed at determining whether a compensation scheme, such as that provided for by the 2013 Law on Transitional Measures, as amended in 2021, ensures adequate compensation for damage arising as a result of that cancellation by operation of law.",
        "paragraph_id": "para_89"
      },
      {
        "text": "33       The Court accordingly finds that, by its questions, the referring courts asks, in essence, whether EU law must be interpreted as precluding national rules providing for compensation for damage suffered by the usufructuary over properties, following cancellation, by operation of law, of thos …",
        "paragraph_id": "para_90"
      },
      {
        "text": "34       According to settled case-law, individuals who have been harmed by an infringement of EU law attributable to a Member State have a right to compensation where three conditions are met: the rule of EU law infringed must be intended to confer rights on them; the infringement of that rule must …",
        "paragraph_id": "para_91"
      },
      {
        "text": "35       In a situation such as that intended by the compensation scheme provided for in the 2013 Law on Transitional Measures, as amended in 2021, those conditions are met. The Court has held previously that Article 63 TFEU and Article 17 of the Charter constitute rules of law intended to confer ri …",
        "paragraph_id": "para_92"
      },
      {
        "text": "36       Since those conditions are met, EU law requires that the damage caused to the individuals concerned must be commensurate with the damage suffered, so as to ensure effective protection of their rights (see judgments of 5 March 1996, Brasserie du pêcheur and Factortame , C‑46/93 and C‑48/93, EU:C:1996:79, paragraph 82, and of 25 March 2021, Balgarska Narodna Banka , C‑501/18, EU:C:2021:249, paragraph 125).",
        "paragraph_id": "para_93"
      },
      {
        "text": "37       It is for the domestic legal system of each Member State to set the criteria for determining the extent of compensation, but those criteria cannot be less favourable than those applying to similar claims or actions based on domestic law and must in any event not be such as in practice to ma …",
        "paragraph_id": "para_94"
      },
      {
        "text": "38       Whilst allowing the Member States broad discretion, the Court has clarified that total exclusion of loss of profit as a head of damage for which compensation may be awarded in the case of a breach of EU law cannot be accepted since, especially in the context of economic or commercial litiga …",
        "paragraph_id": "para_95"
      },
      {
        "text": "39       In the case of a cancellation, by operation of law, of rights of usufruct over agricultural land, such as that referred to in Paragraph 108(1) of the 2013 Law on Transitional Measures, followed by reinstatement of those rights, the Court finds, subject to verification by the referring court …",
        "paragraph_id": "para_96"
      },
      {
        "text": "40       Although, in a situation such as that present in Hungary following the judgment of 21 May 2019, Commission v Hungary (Usufruct over agricultural land) (C‑235/17, EU:C:2019:432), it is possible, for the purposes of compensating the damage suffered by the interested parties due to the infring …",
        "paragraph_id": "para_97"
      },
      {
        "text": "41       Yet as is apparent from the order for reference, the compensation scheme provided for in Paragraph 108/K of the 2013 Law on Transitional Measures, as amended in 2021, is based, for the determination of the amount of compensation, on the market value of the agricultural land in question at the time of the unlawful deletion of the rights of usufruct.",
        "paragraph_id": "para_98"
      },
      {
        "text": "42       As concurred in by the interested parties who lodged observations with the Court, that value corresponds to the sale price the owner of those lands could obtain depending on the interplay of supply and demand at the time of that deletion.",
        "paragraph_id": "para_99"
      },
      {
        "text": "43       The criterion laid down thusly in Paragraph108/K of the 2013 Law on Transitional Measures, as amended in 2021, to calculate the amount of compensation does not per se enable a calculation to be made of the loss of profit of the usufructuary whose right has been deleted. The income that usuf …",
        "paragraph_id": "para_100"
      },
      {
        "text": "44       Although, in a situation such as that at issue in the main proceedings, where the loss of profit constitutes the entirety or, at the very least, the largest portion of the damage suffered by the usufructuary, such a compensation scheme may nevertheless, in practice, give rise to a compensat …",
        "paragraph_id": "para_101"
      },
      {
        "text": "45       As a result, a compensation scheme such as that provided for in Paragraph 108/K of the 2013 Law on Transitional Measures, as amended in 2021, makes it excessively difficult in practice to obtain compensation for the damage suffered and is accordingly incompatible with the requirement of adequate compensation for the damage suffered, referred to in paragraphs 36 to 38 of the present judgment.",
        "paragraph_id": "para_102"
      },
      {
        "text": "46       That conclusion is not affected by the fact, emphasised by the Hungarian Government, that Paragraph 108/L of the 2013 Law on Transitional Measures, as amended in 2021, allows injured parties to apply for the grant of additional compensation on grounds of certain characteristics of the prope …",
        "paragraph_id": "para_103"
      },
      {
        "text": "47       Nor is the conclusion set out in paragraph 45 of the present judgment affected by the fact that Paragraph 108/N of the 2013 Law on Transitional Measures, as amended in 2021, provides for the payment of interest to compensate for the lapse of time between the cancellation of the rights of us …",
        "paragraph_id": "para_104"
      },
      {
        "text": "48       In the present case, without prejudice to the discretion of the Member State concerned to devise a calculation formula giving rise to adequate compensation for the damage, the Court notes, as regards the assessment of the damage that the referring court must carry out in the main proceeding …",
        "paragraph_id": "para_105"
      },
      {
        "text": "49       In the light of the foregoing, the answer to the questions referred is that EU law must be interpreted as precluding national rules providing for compensation for damage suffered by the usufructuary over properties, following a cancellation, by operation of law, of those rights which is inc …",
        "paragraph_id": "para_106"
      },
      {
        "text": "Costs",
        "paragraph_id": "para_107"
      },
      {
        "text": "50       Since these proceedings are, for the parties to the main proceedings, a step in the action pending before the national court, the decision on costs is a matter for that court. Costs incurred in submitting observations to the Court, other than the costs of those parties, are not recoverable.",
        "paragraph_id": "para_108"
      },
      {
        "text": "On those grounds, the Court (Third Chamber) hereby rules:",
        "paragraph_id": "para_109"
      },
      {
        "text": "European Union law must be interpreted as precluding national rules providing for compensation for damage suffered by the usufructuary over properties, following a cancellation, by operation of law, of those rights which is incompatible with Article 63 TFEU and Article 17 of the Charter of Fundament …",
        "paragraph_id": "para_110"
      },
      {
        "text": "[Signatures]",
        "paragraph_id": "para_111"
      },
      {
        "text": "*       Language of the case: Hungarian.",
        "paragraph_id": "para_112"
      }
    ],
    "operative_part": "On those grounds, the Court (Third Chamber) hereby rules:\n\nEuropean Union law must be interpreted as precluding national rules providing for compensation for damage suffered by the usufructuary over properties, following a cancellation, by operation of law, of those rights which is incompatible with …",
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