The Supreme Court Has Unified the Approach to the Calculation of Inflation Losses

The Supreme Court, sitting as part of the Second Judicial Chamber of the Civil Cassation Court, has considered a case concerning the methodology for determining inflation losses and the application of limitation periods in long-term monetary obligations. The legal uncertainty arose due to differing interpretations of liability for breach of obligations, in particular regarding the treatment of changes in inflation indices throughout the entire period of default.

Earlier case law allowed a certain degree of flexibility in approaches to assessing individual time periods, which in turn affected the final amount of monetary recoveries. In contrast, the Supreme Court has formulated an approach according to which the calculation of inflation losses must be based on a comprehensive analysis of the entire period of delay without excluding individual components of inflation indices.

Separately, the Court clarified its approach to the application of mechanisms for extending limitation periods, taking into account the effect of special legal regimes introduced in previous years.

The legal position established by the Court is aimed at unifying judicial practice and minimizing discrepancies in financial and legal calculations, establishing a single methodology for determining the inflationary devaluation of monetary obligations. This, in turn, requires legal practitioners to review their approach to formulating claims in property disputes in light of the updated calculation standards and procedural time limits.