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KHO:1998:55 AI generated

Court rules contract termination due to sale requires pro-rata payment adjustment for future periods.

Case Number KHO:1998:55
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Supreme Administrative Court allowed the state to recover overpaid subsidies after a farm contract was terminated due to the sale of the land to a third party. The court held that the subsidy paid for the entire six-year term must be adjusted to reflect only the farmer's relative share of the remaining period, despite the payments being front-loaded in the first three years. Consequently, the excess amount, including interest, was ordered to be returned to the state by the rural industry district.

Legislator headnote

AI generated

Act on the Balancing of Agricultural Production s. 1; Council Decision on Natural Farming Contracts 1993 s. 1, 3, 4, 9, 11(2): When a contract is terminated before its end due to the sale of the subject property, the subsidy paid must be reduced pro-rata to the remaining period's share of the total contract duration.

Keywords

AI generated
agricultural contract termination subsidy pro-rata adjustment land sale third party overpaid subsidy recovery rural industry district decision

Cited Legislation

AI generated
Act on the Balancing of Agricultural Production s. 1
L maataloustuotannon tasapainottamisesta 19 § 1 mom
Act on the Balancing of Agricultural Production s. 12
Act on the Balancing of Agricultural Production s. 19(1)
Act on the Balancing of Agricultural Production s. 20(1)
Act on the Balancing of Agricultural Production s. 25(2)
Act on the Balancing of Agricultural Production s. 26
Council Decision on Natural Farming Contracts 1993 s. 1
L maataloustuotannon tasapainottamisesta 19 § 1 mom
Council Decision on Natural Farming Contracts 1993 s. 3
Council Decision on Natural Farming Contracts 1993 s. 4
Council Decision on Natural Farming Contracts 1993 s. 9
Council Decision on Natural Farming Contracts 1993 s. 11(2)
Act on the Procedure to be followed in handling Rural Industry Support Tasks s. 1
L maataloustuotannon tasapainottamisesta 19 § 1 mom
Act on the Procedure to be followed in handling Rural Industry Support Tasks s. 7(3)
AI generated
kho-precedent_1997_135
Partial payment of agricultural subsidy contract termination compensation must reflect proportional time share of original agreement period.
admin_1996_oulu-county__531
Farmers who voluntarily terminated a production reduction agreement early received compensation for the entire original term, not just the remaining period.
kko-precedent_2015_80
Supreme Court voids a land purchase preliminary contract due to lack of statutory form under Land Code. Verdict: dismissed.
labour_2022_71
Trustee dismissal claim allowed for unpaid severance; legal costs awarded to plaintiff union.
appeal_1980_eastern-finland__639
Court allows immediate contract termination due to trust breakdown despite agreed notice periods.

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Full text

Kun maataloustuotannon tasapainottamisesta annetun lain (1261/1989) 1 ja 12 §:ssä sekä luonnonmukaista maataloustuotantoa koskevista sopimuksista vuonna 1993 annetussa valtioneuvoston päätöksessä (242/1993) tarkoitettu sopimus oli purettu sen vuoksi, että sopimuksessa tarkoitettu tila oli kesken sopimuskauden myyty kolmannelle henkilölle, toteutuneelta sopimuskaudelta maksettavan palkkion tuli vastata määrältään sen suhteellista osuutta alkuperäisestä kuuden vuoden sopimusajasta ja kokonaispalkkiosta, vaikka palkkio oli maksettu etupainotteisesti kolmena ensimmäisenä vuotena. Liikaa maksettu määrä korkoineen velvoitettiin maksamaan silloisen maaseutuelinkeinopiirin päätöksellä takaisin valtiolle.

L maataloustuotannon tasapainottamisesta 1 § (1261/1989)

L maataloustuotannon tasapainottamisesta 12 §

L maataloustuotannon tasapainottamisesta 19 § 1 mom

L maataloustuotannon tasapainottamisesta 20 § 1 mom

L maataloustuotannon tasapainottamisesta 25 § 2 mom

L maataloustuotannon tasapainottamisesta 26 §

VNp. luonnonmukaista maataloustuotantoa koskevista sopimuksista vuonna 1993 (242/1993) 1 §, 3 §, 4 §, 9 § ja 11 § 2 mom

L_maaseutuelinkeinojen_tukitehtäviä_hoidettaessa_noudatettavasta_menettelystä_1_§ (1336/1992)

L_maaseutuelinkeinojen_tukitehtäviä_hoidettaessa_noudatettavasta_menettelystä_7_§_3_mom