Lietuviškai

                   THE CONSTITUTIONAL COURT OF                   
                    THE REPUBLIC OF LITHUANIA                    
  
                           R U L I N G                           

        On the compliance of Article 2 of the Law of the         
           Republic of Lithuania "On the Procedure and           
         Conditions of the Restoration of the Rights of          
        Ownership to the Existing Real Property" with the        
            Constitution of the Republic of Lithuania            

                      20 June 1995, Vilnius                      

     The  Constitutional  Court  of  the  Republic  of Lithuania,
composed  from  Justices  of  the  Constitutional  Court Algirdas
Gailiūnas,    Kęstutis   Lapinskas,   Zigmas   Levickis,   Vladas
Pavilonis,   Pranas   Vytautas  Rasimavičius,  Stasys  Stačiokas,
Teodora Staugaitienė, Stasys Šedbaras and Juozas Žilys,
     the secretary of the hearing - Rolanda Stimbirytė,
     representatives   of   the   party  concerned  -  Pranciškus
Vitkevičius,  member  of the Seimas of the Republic of Lithuania,
and   Ričardas   Piličiauskas,  Advisor  to  the  State  and  Law
Committee   of   the   Seimas   of  the  Republic  of  Lithuania,
representatives of the Seimas,
     pursuant  to  Part  1  of Article 102 of the Constitution of
the  Republic  of Lithuania and Part 1 of Article 1 of the Law on
the  Constitutional  Court  of  the Republic of Lithuania, in its
public  hearing  of  7  June  1995 conducted the investigation of
Case  No  25/94 subsequent to the petition submitted to the Court
by  Vilkaviškis  District  Court  requesting  to  investigate  if
provision  of  Article  2  of  the  Law  "On  the  Procedure  and
Conditions  of  Restoration  of  the  Rights  of Ownership to the
Existing   Real   Property"   establishing  that  the  rights  of
ownership  to  the  existing  real  property shall be restored to
the  citizen  of  Lithuania,  who is "a permanent resident of the
Republic  of  Lithuania",  is in compliance with the Constitution
of the Republic of Lithuania.
  
     The Constitutional Court
                        has established:                         

                                I                                
     The  petitioner  - Vilkaviškis District Court - requests the
Constitutional   Court   to  investigate  if  Article  2  of  the
Republic  of  Lithuania  Law  "On the Procedure and Conditions of
the  Restoration  of the Rights of Ownership to the Existing Real
Property",  18  June  1991, (Official Gazette "Valstybės Žinios",
No.21-545,  1991;  No.3-40, 7-155, 11-278, 15-405, 1992; No.5-83,
32-725,   1993;   No.7-100,   14-229,   1994)   of  which  it  is
determined,  that  citizens  of the Republic of Lithuania seeking
to   restore   the  right  of  ownership  to  the  existing  real
property,  shall  be  permanently residing in Lithuania, does not
contradict  Articles  18,  23  and 32 and Part 1 of Article 47 of
the Constitution.
     The  Court  grounds  its  request  on  the  fact  that it is
established  in  Article 18 of the Constitution that individual's
right  to  ownership  shall  be natural, and thus, inviolable, as
stipulated  in  Article  23 of the Constitution, and protected by
law.  Implementation  of  these  rights  is  not  related  to the
choice  of  the place of residence by the citizen of the Republic
of  Lithuania.  Moreover,  Article 32 of the Constitution applies
no  restrictions  on  the  citizen's of Lithuania right to freely
choose his place of residence.
     The  petitioner,  on  the basis of these arguments, requests
the  Constitutional  Court  to  resolve  if  this  requirement of
permanent  residence  on  the territory of Lithuania set forth in
Article  2  of  the  Law  "On the Procedure and Conditions of the
Restoration  of  the  Rights  of  Ownership  to the Existing Real
Property"  for  the citizens of the Republic of Lithuania seeking
to  restore  and  to  protect their rights of ownership which had
been violated previously does not contradict the Constitution.
  
                               II                                
     The  representatives  of  the  party  concerned, the Seimas,
have  explained  during  the  preliminary  investigation  of  the
case,  that  upon  the  restoration  of  the independent state of
Lithuania  it  was  not  possible  to  adopt  a  law  which would
provide  for  the  unconditional restoration of property that had
been  seized  illegally  due to the objective reasons, therefore,
such  a  law  was  not  adopted.  The  Law  of  the  Republic  of
Lithuania  "On  the  Procedure  and Conditions of the Restoration
of  the  Rights  of  Ownership  to  the  Existing  Real Property"
adopted  on  the  18 June 1991 established not only the procedure
for  the  restoration  of the rights of ownership to the property
which  had  been nationalised or otherwise unlawfully socialised,
but  also  the conditions for the restoration of the said rights.
One   of  the  main  purposes  of  determining  in  the  Law  the
necessary  conditions  which  shall  be met by persons seeking to
restore  their  rights  of  ownership  to  the property which had
been   nationalised   of   otherwise  unlawfully  socialised  was
protection  of  the rights of citizens which are not to be blamed
for  nationalisation  or  other unlawful socialisation of private
property,  also  inviolability  of  the  interests of society and
satisfaction of its needs.
     The   Seimas   representatives   maintained   that   equally
important   is   the  fact  that  under  the  laws  of  the  USSR
(Lithuanian  SSR)  socialisation  of  private  property  had been
carried  out  in  two  ways:  it  had been either nationalised or
transferred   to   the   ownership  of  state  as  ownerless.  It
therefore  sometimes  appears  problematic  to  establish  due to
what  reasons  the  property  was lost and socialised afterwards.
Provision  of  Article  2  of  the  Law  "On  the  Procedure  and
Conditions  of  the Restoration of the Rights of Ownership to the
Existing   Real   Property"   establishing   that  the  right  of
ownership  shall  be  restored to the citizens of the Republic of
Lithuania  only  permanently  residing  therein, provided for the
possibility   to   achieve  a  partial  resolution  of  the  said
problem.   According   to   the   petitioner,   this  requirement
established  in  the  Law  did  not  violate  Article  32  of the
Constitution,  it  even provided for the possibility to implement
provisions  established  in  this  Article entitling the citizens
to  the  right  to  choose  their place of residence in Lithuania
and to settle there.
     Refusal  to  meet the conditions prescribed by the Law, i.e.
to  move  to  the  Republic of Lithuania for permanent residence,
should  in  this  case  be  evaluated as unwillingness to reclaim
the  property  that  had  been formerly possessed by the right of
property  ownership  from  unlawful  alien management, since even
pursuant  to  Article  142 of the Civil Code the owner shall have
just  a  right,  not  obligation,  to  reclaim  his property from
unlawful  alien  management. In pursuit of this purpose he has to
meet  the  requirements prescribed by the Law, i.e. prove that he
is  the  owner  of  the property, that management of the property
had been terminated without his will etc.
     Representatives  of  the party concerned have also explained
that   the   petitioner's   statement   ,   that   the   disputed
"requirement   of   permanent   residence   on  the  Republic  of
Lithuania   for   the   citizens"   is  not  in  compliance  with
provisions  of  Articles  18  and 23 of the Constitution, may not
be  accepted,  because  the  rights  of ownership to the property
may  arise,  also, a person may become an owner only in the event
when  he  meets  the  conditions  prescribed  by  the Law "On the
Procedure  and  Conditions  of  the  Restoration of the Rights of
Ownership  to  the  Existing Real Property", one of which is that
of   permanent   residence   on   the   Republic   of  Lithuania.
Established  in  Part  1 of Article 47 of the Constitution is the
general  provision  which  entitles the citizens and the State of
the  Republic  of  Lithuania  to  possess  land, internal waters,
forests,  and  parks  by the right of ownership. However, it does
not  mean  that  there  may  not be certain objectively necessary
conditions    and   even   limitations   regarding   acquisition,
management,  use  and  disposal  of  such property established in
laws  and  pertaining  both  to the subject and the object of the
right  of  ownership  provided  such  limitations do not infringe
upon the constitutional rights of citizen.

                               III                               
     In  the  court  hearing,  the  representatives  of the party
concerned   have   also   submitted   the   following  additional
arguments.
     The  main  institute  in the case of dispute is citizenship.
Citizenship  is  a  legal relation of citizen to a certain state,
and  in  a  legal  relation  both  parties  have their rights and
obligations.   Every  state  establishes  its  relations  to  its
people  and  their  rights  and  obligations.  No person may be a
citizen  of  Lithuania  and  another state at the same time. This
is  due  to  the  fact  that  the same individual cannot properly
perform    his    civil    obligations   to   two   states.   The
representatives  have  maintained  that  the Law has not deprived
the  persons  who  are  not  permanently residing in Lithuania of
the  right  to  the real property either, it has just established
certain   obligations   that   must   be  met  by  them.  Similar
requirement  of  permanent residence on the Republic of Lithuania
is  set  forth  even in the Constitution in two cases: in Article
56  it  is  applied  to  the  candidates  for  the members of the
Seimas  and  in  Article  78 - to the candidates to the President
of  the  Republic.  Thus,  realisation  of  special rights may be
related to the afore mentioned condition.
     In   the   opinion  of  the  representatives  of  the  party
concerned,   another  significant  moment  is  the  fact  that  a
considerable    period    of    time   has   passed   since   the
nationalisation  of  the  property  was  begun. Article 46 of the
Constitution  establishes  that the State shall regulate economic
activity  so  that  it  serves the general welfare of the people.
In  fact,  in  a  number  of cases the property to be returned in
kind  has  not  survived,  therefore a due compensation should be
paid  out  in  such  cases  which would be done at the expense of
other  individuals.  This would contradict the property interests
of  the  people residing in Lithuania, and, consequently, welfare
of the people.
     Due  to  the  existence  of  such concrete circumstances the
State  therefore  had  a  right  to  determine the conditions for
restoration  of  the  property  as  are set forth in Article 2 of
the Law in dispute.

     The Constitutional Court
                           holds that:                           
  
     1.  In  the  rulings  of the Constitutional Court concerning
compliance  of  provisions  of  the  Law  "On  the  Procedure and
Conditions  of  the Restoration of the Rights of Ownership to the
Existing   Real  Property"  (Case  No.12/93,  27  May,1995;  Case
No.11/1993-9/1994,  15  June,1994;  Case  No.1/94, 15 July, 1994;
Case  No.10/94,  19 October, 1994; Case No.4/95, 1 June, 1995) it
had  been  ruled  that  in  accordance  with  this  Law a limited
restitution  is  being  implemented  in  Lithuania.  In  the said
rulings  also  the  reasons,  conditions  and  procedure  of such
restitution are being investigated.
     Nationalisation   and   other   unlawful   socialisation  of
property  in  Lithuania  was started by the occupation government
more  than  50  years ago. Neither the Supreme Council elected by
the  people  in  1990, nor the executive authorities formed by it
were  responsible  for  the occupation of Lithuania executed half
a  century  ago  and  its  consequences.  Nevertheless,  upon the
restoration   of  the  independent  state  and  reinstatement  of
validity  of  the  Constitution  of  Lithuania  of 1939 the steps
were  taken  towards  actual  restoration of the rights of people
of   Lithuania   which   had  been  violated  by  the  occupation
government,  as  right  also  originates  on the basis of certain
norms  and  imperatives  of  morality.  Law "On the Procedure and
Conditions  of  the Restoration of the Rights of Ownership to the
Existing Real Property" was one of such steps.
     Various  solutions  to  the  said  problem are possible; for
example,  a  complete restitution, i.e. unconditional restoration
of  all  the  property  which  had been nationalised or otherwise
unlawfully   socialised   or   just  introduction  of  a  certain
compensation for it etc.
     The  Supreme  Council  had an unquestionable right to choose
a   concrete  variant  of  the  solution.  It  has  already  been
indicated,  that  it  had chosen a limited restitution. It should
be  taken  into account that the choice was also predetermined by
hard political and social conditions of that period.
     All  people  of  Lithuania had suffered from the occupation:
both  those  who  had  remained  in  Lithuania  and those who had
emigrated:  their  real  property  if  larger  above  average  in
amount,  securities  and  bank accounts had been seized from them
(by  nationalisation  or other unlawful ways). However, it should
also  be  noted,  that  individuals who had remained in Lithuania
and  other  parts of the Soviet Union throughout the occupational
period  were  being  subjected  to discrimination in that respect
that  they  could  not  acquire  any private property in general.
Besides,  during  the  50  years  of  occupation, new generations
came  into  existence  and new property and other social-economic
relations  arose  which could not be ignored resolving the issues
of restitution of the right to property.
     Taking  into  account  the  said  circumstances  the  Law in
dispute  is  to  be  evaluated  as a compromise solution aimed at
elimination  of  consequences  of the occupation in the sector of
economic  relations  and stemming from the necessity to take into
consideration   the  social-economic  relations  that  have  been
formed   in   Lithuania.  Besides,  the  adopted  Law  is  to  be
evaluated  also  as  an  act,  by  promulgation of which attempts
were  made  to  return  to  the  economy  based  on the rights of
private  ownership  and  to  reconstruct  the  system  of  former
property relations which had existed before the occupation.
     2.  The  Law  in  dispute  is  an  ad hoc special legal act,
which  operates  in  this  particular stage of restoration of the
state,  i.e.  it has a limited validity. Its special legal nature
is  first  of all derived from the fact that it is applied not to
all  property  relations,  but  only  to those which arise on the
basis  of  restoration of the rights of ownership to the existing
real   property   which   had   been  nationalised  or  otherwise
unlawfully  socialised  during the occupation. Thus, this act has
a  special  subject of regulation. Secondly, it is applied not to
all  former  owners  and  their  descendants who are residents of
Lithuania,  but  only  to  the  former  owners  of the property -
citizens  of  Lithuania who meet the conditions prescribed by the
Law.  Upon  the  death  of a former owner, the right of ownership
to  the  existing  real  property is restored not under the norms
of  succession  law  of  general nature, but only under a special
procedure  to  the  children  (or  adopted children), parents (or
foster  parents)  and  spouse of the former owner. Upon the death
of  a  child  (adopted  child)  of  a  former owner, the right of
ownership  to  his  portion  of  existing  real property shall be
restored   to   his   spouse  and  children  (adopted  children),
provided  they  are certified citizens in accordance with the Law
on  Citizenship  of  the  Republic of Lithuania and are permanent
residents  of  the  Republic  of  Lithuania. The ad hoc nature of
the   Law  in  dispute  in  essence  also  means  its  relatively
terminated  and  limited  application  -  it  is  applied only in
cases  of  restoration of the above mentioned rights of ownership
during  this  particular  stage  of  state's  existence. This Law
helps   to  restore  the  rights  of  ownership  which  had  been
violated  during  the  occupation,  therefore,  there is no legal
ground  to  maintain  that this Law in general infringes upon the
inborn  rights  established  in  Article  18 of the Constitution.
Another  issue  is  that due to the afore mentioned circumstances
the  legislator  found  no  possibilities  to  apply  a  complete
restitution,  i.e.  to  implement  an  overall restoration of the
rights of ownership that had been violated.
     The  Constitutional  Court  notes  that  until the rights of
ownership  are  restored  to  the former owners and other persons
seeking  to  restore  their  rights  of ownership to the existing
real  property  in  accordance  with the conditions and under the
procedure  prescribed  by a special law, the said persons are not
considered  owners  of  the  property  prior  to that. Therefore,
they   do   not  acquire  subjective  ownership  rights  to  this
property  before  that  (Ruling  of  the Constitutional Court, 27
May  1994.  -  Official  Gazette  "Valstybės  žinios", No.42-771,
1994).   Thus,  norms  of  the  civil  law,  regulating  property
relations  and  protecting rights of ownership may not be applied
for  the  protection of subjective rights of ownership which have
not  been  restored  yet, but are the subject of the restoration.
It  is  the  special  laws  that  are  applied  to  specific, non
traditional  situations.  When the right of ownership is restored
on  the  basis  of  such  a  law,  norms  of  Article  23  of the
Constitution  and  those  of  the Civil Code are applied in their
full scope for protection of the said rights.
     3.  The  method  of  limited  restitution has been chosen as
well  as  conditions  and procedure for restitution of the rights
of   ownership  have  been  determined  in  order  to  take  into
consideration  social  and  legal realities that had changed, and
to  ensure,  that  upon restoration of the rights of one group of
persons,  rights  of  other  persons are not being violated. Such
standpoint  has  been  formulated  already  in  the  Law  "On the
Provisional  Basic  Law  of the Republic of Lithuania" adopted by
the  Supreme  Council  on 11 March 1990, in the preamble of which
the  necessity  to  bring  the  provisions of the Constitution of
Lithuania  of  1938 into accord with changing political, economic
and other social relations is stipulated.
     The   legislator  while  defining  the  subjects  which  are
eligible  for  the  restoration of their rights of ownership have
chosen  clear  legal  criteria: subjects eligible for restoration
of  the  rights  of  ownership  to  the property must possess the
citizenship  of  Lithuania  and a document certifying to that and
be  permanent  residents  of Lithuania. The Law does not deny the
citizens  of  Lithuania  residing  abroad the possibility to take
part  in  the  process of restoration of the rights of ownership,
thus  there  is no ground to maintain that this group of citizens
is  subjected  to discrimination pertaining to the restoration of
the  rights  of ownership. The Law treats them in the same manner
as   the   citizens  of  Lithuania  residing  therein.  The  same
conditions  are  set  forth  to  all  the  citizens  of Lithuania
seeking  to  restore  their  rights  of ownership to the existing
real  property.  The  supposition  that  harder  requirements are
applied   to   the  citizens  of  Lithuania  residing  abroad  is
sometimes  made  on  the basis of the fact that they are residing
elsewhere.  This  point  of  view  has  been  formulated  by  the
petitioner.  This  is  not  so  in  fact.  The  Law  sets forth a
condition  which  can  to  be  met  in  reality  -  residence  in
Lithuania.  Moreover,  that  this  possibility  is  guaranteed by
provisions of Parts 3 and 4 of Article 32 of the Constitution:
     "A   citizen   may  not  be  prohibited  from  returning  to
Lithuania.
     Every Lithuanian person may settle in Lithuania."
     The  condition  pertaining  to the restoration of the rights
of  ownership  to  the  existing  real property prescribed by the
Law  to  the  citizen of Lithuania and maintaining that he "shall
be  permanently  residing  in  the Republic of Lithuania", is not
of   universal,  general  nature,  it  is  applied  only  in  the
implementation  of  a concrete special right - restoration of the
right  of  ownership  to  the  existing  real property. Thus, the
citizens  may  freely  choose  in  this  case: either to meet the
conditions  set  forth by the Law and to realise their subjective
right  to  restore  the  right  of ownership to the existing real
property,  or  not  realise  this  specific subjective right. The
said  condition  therefore  may not be interpreted as a violation
of  the  principle  of  equality  of  citizens  or restriction of
their freedom to move freely.

     Conforming  to  Article  102  of  the  Constitution  of  the
Republic  of  Lithuania  as  well as Articles 53,54, 55 and 56 of
the   Law   on  the  Constitutional  Court  of  the  Republic  of
Lithuania,   the   Constitutional   Court   of  the  Republic  of
Lithuania has taken the following
                             ruling:                             

     To  recognise  that provision of Article 2 of the Law of the
Republic  of  Lithuania  "On  the Procedure and Conditions of the
Restoration  of  the  Rights  of  Ownership  to the Existing Real
Property"   stipulating  that  the  right  of  ownership  to  the
existing  real  property  is restored to citizen of Lithuania who
is  "permanently  residing  in  the  Republic of Lithuania", does
not contradict the Constitution of the Republic of Lithuania.

     This  Constitutional  Court  ruling is final and not subject
to appeal.
     The  ruling  is  promulgated  on  behalf  of the Republic of
Lithuania.