GRAND CHAMBER

CASE OF VILHO ESKELINEN AND OTHERS v. FINLAND

(Application no. 63235/00)

JUDGMENT

STRASBOURG

19 April 2007

This judgment is final but may be subject to editorial revision.

VILHO ESKELINEN AND OTHERS v. FINLAND JUDGMENT1

In the case of Vilho Eskelinen and Others v. Finland,

The European Court of Human Rights, sitting as a Grand Chambercomposed of:

Mr J.-P. Costa,President,

Mr L. Wildhaber,

Mr C. Rozakis,

Sir Nicolas Bratza,

Mr P. Lorenzen,

Mrs F. Tulkens,

Mr G. Bonello,

Mr R. Türmen,

Mr M. Pellonpää,

Mr K. Traja,

Mr M. Ugrekhelidze,

Mr A. Kovler,

Mr L. Garlicki,

Mr J. Borrego Borrego,

MsL. Mijović,

Mr E. Myjer,

Mrs D. Jočienė, judges

and MrE.Fribergh, Registrar,

Having deliberated in privateon 20 September 2006 and on 21February2007,

Delivers the following judgment, which was adopted on the lastmentioned date:

PROCEDURE

1.The case originated in an application (no. 63235/00) against the Republic of Finland lodged with the Court under Article 34 of the Convention for the Protection of Human Rights and Fundamental Freedoms (“the Convention”) by eightFinnish nationals (“the applicants”), Senior Constable VilhoEskelinen, Senior Constable ArtoHuttunen, Sergeant MarkkuKomulainen, Office Assistant Lea Ihatsu, MrToivo Pallonen (apolice officer who retired on 1 January 1993) and Mrs Päivi Lappalainen, Mr Janne Lappalainen and MrJyrki Lappalainen, who are the heirs of MrHannuMatti Lappalainen (a police officer who died on 22August1995),(“the applicants”) on 19 October 2000.

2.The applicants, two of whom had been granted legal aid, were represented by Mr Paavo M. Petäjä and by MrPasiOrava, both lawyers practising in Haapajärvi. The Finnish Government (“the Government”) were represented by their Agent, Mr Arto Kosonen of the Ministry for Foreign Affairs.

3.The applicants alleged, in particular, that they were denied an oral hearing in the proceedings concerning their salaries and that the proceedings were excessive in length.

4.The application was allocated to the Fourth Section of the Court (Rule52 §1 of the Rules of Court). On 29 November 2005 it was declared admissible by a Chamber of that Section, composed of Judges Bratza, Bonello, Pellonpää, Traja, Garlicki, Borrego Borrego and Mijović, together with the Section Registrar Mr M. O'Boyle. The Chamber joined to the merits the question of the applicability of Article 6 of the Convention. On21 March 2006 the Chamberrelinquished jurisdiction in favour of the Grand Chamber, neither of the parties having objected to relinquishment (Article 30 of the Convention and Rule 72).

5.The composition of the Grand Chamber was determined according to the provisions of Article 27 §§ 2 and 3 of the Convention and Rule 24 of the Rules of Court.Mr L. Wildhaber, whose term of office expired after presiding over the hearing, continued to participate in the examination of the case (Article 23 § 7). Mr B.M. Zupančič, who was unable to attend the deliberations on 21February 2007, was replaced by Mrs F. Tulkens, substitute judge (Rule 24 § 3).

6.The applicants and the Government each filed a memorial on the merits. The parties replied in writing to each other's observations.

7.A hearing took place in public in the HumanRightsBuilding, Strasbourg, on 20 September 2006 (Rule 59 § 3).

There appeared before the Court:

(a)for the Government
MrA. Kosonenof the Ministry for Foreign Affairs,Agent,
MrsA. Mannerof the Ministry of Justice,
MrsT. Eränkö, of the Ministry of the Interior,Advisers;

(b)for the applicants
MrP. Orava,Counsel,

8.The Court heard addresses by Mr Kosonen and Mr Orava and their replies to questions put by judges.

THE FACTS

I.THE CIRCUMSTANCES OF THE CASE

9.The applicants were born in 1955, 1953, 1954, 1956, 1937, 1957, 1983 and 1981 respectively and live in Sonkakoski and Sonkajärvi.

A.The incorporation of the Sonkajärvi Police District

10.The first five applicants and the late Mr Hannu Matti Lappalainen worked in the Sonkajärvi Police District. Under a collective agreement concluded in 1986, they were entitled to a remote-area allowance, which was added to their salaries as a bonus for working in a remote part of the country. The amounts of the allowance were calculated on the basis of a given area's remoteness. By a collective agreement concluded on 15March1988, the remote-area allowance was abolished.This would have resulted in a reduction of the salary payable to civil servants whose duty station was Sonkajärvi. In order to prevent such a reduction, the collective agreement granted them monthlyindividual wage supplements from 1March 1988.

11.On 1 November 1990 the Sonkajärvi Police District was incorporated into the Iisalmi Police District by a decision of the Ministry of the Interior (sisäasiainministeriö, inrikesministeriet). Following the incorporation, the applicants' duty station changed. They also lost their individual wage supplements and the length of their commute allegedly increased by up to 50 kilometres per dayas they had to travel from Sonkajärvi to Iisalmi.

12.According to the applicants, following their request of 17October1990 to that effect, the Kuopio Provincial Police Command (läänin poliisijohto, länspolisledningen) promised that their loss would be compensated.

13.On 25 March 1991 the Police Department of the Ministry of the Interior, at the request of the Provincial Police Command, submitted a request for authorisation for the payment of monthly individual wage supplements, amounting to 500-700 Finnish marks (FIM) (84-118 euros (EUR)) per person, to those police officers and other personnel whose duty station had been changed from Sonkajärvi to Iisalmi. The request referred to an allegedly analogous case (the Mäntyharju case) in which the Ministry of Finance (valtiovarainministeriö, finansministeriet) had granted a request for individual wage supplementson 29 December 1989. On 3 July 1991 the Ministry of Finance replied that it could not grant such authorisation. It gave no reasons for its refusal.

14.On1 October 1992 competence to decide on wage supplements in respect of local police forces was transferred to the County Administrative Boards (lääninhallitus, länsstyrelsen).

B.The proceedings before the KuopioCounty Administrative Board

15.On 19 March 1993 the applicants lodged an application requesting that they be compensated for their loss. They referred to the above decision in the Mäntyharju case. They also relied on the principle of equality as laid down in Article 5 of the Constitution then in force (Suomen hallitusmuoto, Regeringsform för Finland; Act no. 94/1919).

16.Four years later, on 19 March 1997, the request was rejected by the Kuopio County Administrative Board. It reasoned:

“The civil servants of the former Sonkajärvi Police District ... have ...requested compensation for the losses arising from the incorporation of police districts, in response to which the Provincial Police Command, endorsing the request, submitted documents to the Police Department of the Ministry of the Interior. By a letter of 25March 1991 the Ministry of the Interior recommended to the Ministry of Finance the retroactive payment from 1 November 1990 of individual wage supplements to those civil servants whose duty station,after the incorporation,is Iisalmi.

By a letter of 3 July 1991 [the Ministry of Finance] informed the Ministry of the Interior that it had found that it could not grant the request.

Following the [Ministry of Finance's] decision, competence to decide on individual wage supplements was transferred to the County Administrative Boards. On 28January 1993, in a negotiation meeting held by the Provincial Police Command at which the applicants were represented by Mr Lappalainen, it was noted that negotiations were pending with regard to the Askola Police District in the UusimaaCounty, which was a corresponding case. As [the Ministry of Finance], which had the relevant competence, had already decided the claims concerning the Sonkajärvi Police District, it was concluded that, on grounds of fairness, the decision in Uusimaa would be adhered to in the Kuopio County were it to depart from the view of the Ministry of Finance. The Uusimaa County Administrative Board rejected the application and the decision was upheld by the Supreme Administrative Court. No new grounds have been presented in the letter of 19 March 1993, or in Mr Pallonen's [further and] separate claim of 17 August 1994, to support the claims which have already been decided [by the Ministry of Finance].

The County Administrative Board has not learned of any positive decisions regarding compensation in corresponding cases as regards the incorporation of police districts anywhere in the country following the afore-mentioned [Ministry of Finance's] decision.

In 1990, when the incorporation took place, the Provincial Police Command lacked competence to make any binding promises as regards the compensation of costs. Its view had been shown through its support of the application.

The County Administrative Board, using its discretion and basing itself on the earlier decision by the competent authority, considers that the decision has acquired a certain res judicata effect. Emphasizing the principles of equality and fairness, the County Administrative Board also bases itself on the prevalent practice throughout the country.”

17.Meanwhile, in December 1996 one of the applicants lodged a complaint with the Chancellor of Justice (oikeuskansleri, justitiekanslern) who, in his decision of 24 January 1997, drew attention to the fact that the applicants had still not received any answer to their application.

C.The proceedings before the Kuopio County Administrative Court

18.On 25 April 1997 the applicants appealed against theCounty Administrative Board's decision and requested an oral hearing which, they asserted, would make it possible to establish the facts of the case, in particular that a promise had been made by the Provincial Police Command. The Kuopio County Administrative Court (lääninoikeus, länsrätten) received replies to the appeal from the Provincial Police Command and the Provincial State Attorney (lääninasiamies, länsombudet), and these were communicated to the applicants for comment.

19.In its decision of 8 June 1998, the County Administrative Courtreasoned:

“Rectification of wage increases affecting pensionsfalls outside the County Administrative Court's competence.

It is not necessary to receive oral testimony from the parties as regards the Provincial Police Command of the County Administrative Board's promises concerning the incorporation of police districts,or on how the case has been otherwisehandled, in order to clarify the case.

In its letter of 25 March 1991, the Ministry of the Interior proposed to the Ministry of Finance that the Sonkajärvi Police District be incorporated into the Iisalmi Police District from 1 November 1990 [rightly: the Ministry of the Interior recommended payment, not incorporation] and that the inconvenience caused by the change of duty station be compensated in the form of a wage supplement of FIM 500-700 per month, retroactively from 1 November 1990. In its letter of 3 July 1991 the Ministry of Finance considered that it could not grant the request. Negotiations were held between the Police Department of the Ministry of the Interior and the Police Association (in Finnish Suomen Poliisiliitto ry) on 3 September 1992 and between the Provincial Police Command of the Kuopio County Administrative Board and the applicants'representative on 28 January 1993.

Pursuant to section 9(2) of the State Collective Agreement Decree (as amended on 18September 1992) the County Administrative Board has competence to decide on wage supplements in respect of ... civil servants in the local police forces.

The County Administrative Board must be considered to have examined the applicants'... submission dated 19 March 1993 as a rectification request, referred to in section 84 of the State Civil Servants Act. The rectification request has been lodged within the time laid down by section 95(1) of the State Civil Servants Act, if calculated from the Ministry of Finance's decision of 3 July 1991.

In 1990 the Provincial Police Command of the County Administrative Board lacked competence to give any binding promises pertaining to compensation. Competence to decide the matter lay at that time with the Ministry of Finance, which in its letter of 3July 1991 had stated that it considered that it could not accede to the request. Since 1October 1992 the Country Administrative Board has had competence to decide on the wages of local police.

The County Administrative Board has in its decision, subject to appeal, based itself on the decision by the former competent authority and on the fact that after 3July1991 no compensation had been awarded to personnel in other cases in which incorporation had taken place. The decision is therefore based on the prevalent practice at that time in the entire country. The decision cannot be considered unreasonable in those circumstances. It has been possible to dismiss the request for rectification.”

D.The proceedings before the Supreme Administrative Court

20.On 7 July 1998 the applicants appealed further, requesting an oral hearing and emphasising that similar wage supplements had been granted to personnel from other police districts in corresponding situations. They relied, for example, on a decision of 10 January 1997 by the Pohjois-Karjala County Administrative Board, granting a police officer an individual wage supplement from 1 December 1996 following incorporation of the Valtimo Police District into the Nurmes Police District.

21.On 27 April 2000 the Supreme Administrative Court (korkein hallinto-oikeus, högsta förvaltningsdomstolen), having received observations from the Provincial Police Command and the Provincial State Attorney and having communicated them to the applicants for comment, upheld the lower court's decision. It reasoned:

“The Supreme Administrative Court has examined the case.

The promises made by the Provincial Police Command of the Kuopio County Administrative Board as regards compensation for costs arising from the incorporation of police districts have no legal relevance to the case. Thus, the holding of an oral hearing is manifestly unnecessary. Accordingly, the Supreme Administrative Court, having regard to section 38(1) of the Administrative Judicial Procedure Act, refuses [the appellants'] request for an oral hearing.

In their letter of 19 March 1993 [the appellants] requested compensation in the form of individual wage supplements of costs arising from the incorporation of their police district. On 1 October 1992 competence to decide on wages in respect of local police forces was transferred to the County Administrative Board pursuant to section 9(2) of the State Collective Agreement Decree (as amended on 18 September 1992).

[The appellants] have no statutory right to the individual wage supplement in question. The Kuopio County Administrative Board has not overstepped its margin of appreciation. The County Administrative Board's decision is not in breach of the law. Therefore, the Supreme Administrative Court, having regard to section 7(1) of the Administrative Judicial Procedure Act, finds that there is no reason to amend the outcome of the County Administrative Board's decision, which accordingly remains final.”

II.RELEVANT DOMESTIC LAW AND PRACTICE

A.Individual wage supplements

22.The implementing instruction of 26 April 1988 onthe application of the collective agreement with regard to the payment of a cold-area allowance to civil servants provided:

“Acivil servant working (before 29February 1988) in a municipality not covered by the new collective agreement is entitled to an individual wage supplement ... as long as he or she is working in the municipality giving rise to an entitlement to such an allowance. Where a civil servant entitled to an individual wage supplement is ordered, temporarily or as a substitute, to perform the duties of another civil servant, or where his or her duty station is transferred to a municipality in which the previous remote-area allowance hasnot been paid, the said civil servant will not be paid the individual wage supplement during the period he or she is performing those other duties because, in order to receive the wage supplement, the civil servant has to performhis or her duties in amunicipality giving rise to entitlement to the wage supplement.”

According to the applicants, this instruction was not relevant to the present case, in that it allegedly concerned only temporary transfers, whereas the transfer of the applicants' place of duty had been of a permanent nature.

23.In its request of 25 March 1991 the Police Department of the Ministry of the Interior referred to an allegedly analogous case in which the Ministry of Finance had on 29 December 1989 granted a request for individual wage supplements following the incorporation of the Pertunmaa Police District into that of the Mäntyharju Police District (the Mäntyharju case).

24.On 3 July 1991 the Ministry of Finance refused a request for compensation for commute costs lodged by a civil servant, whose duty station had changed following the incorporation of the Askola Police District into that of the Mäntsälä and Porvoo Police District. The decision was upheld by the Uusimaa County Administrative Board and the Supreme Administrative Court on 7 April 1993 and 7 December 1994 respectively.

25.By a decision of 10 January 1997 the Pohjois-Karjala County Administrative Board granted a police officer a cold-area allowance at level1 plus an individual wage supplement compensating for the difference between level 2 (Valtimo) and level 1 (Nurmes) of the cold area allowance following the incorporation of the Valtimo Police District into the Nurmes Police District (the Nurmes case).

B.Oral hearings

26.Section 38 (1) of the Administrative Judicial Procedure Act (hallintolainkäyttölaki, förvaltningsprocesslagen; Act no. 586/1996) provides that an oral hearing must be held if requested by a private party. An oral hearing may however be dispensed with if a party's request is ruled inadmissible or immediately dismissed or if an oral hearing would be clearly unnecessary due to the nature of the case or other circumstances.

27.The explanatory report on the Government Bill (no. 217/1995) for the enactment of the Administrative Judicial Procedure Act examinesthe right to an oral hearing as provided by Article 6 of the Convention and the possibility in administrative matters to dispense with the hearing when it would be clearly unnecessary, as stated in section 38(1) of the said Act. It notes that an oral hearing contributes to a focussed and immediate procedure but since it does not always bring any added value, it must be ensured that the flexibility and cost-effectiveness of the administrative procedure is not undermined. An oral hearing is to be held when it is necessary for the clarification of the issues and the hearing can be considered beneficial for the case as whole.

III.RELEVANT INTERNATIONAL LAW AND PRACTICE

28.The international law and practice from which the Court sought guidance in the case of Pellegrin v. France([GC], no. 28541/95, ECHR1999VIII) has been outlined in that judgment (see §§ 37-41).

29.Article 47of the Charter of Fundamental Rights of the European Union, proclaimed on 7 December 2000, on the right to an effective remedy and a fair trial, provides:

“Everyone whose rights and freedoms guaranteed by the law of the Union are violated has the right to an effective remedy before a tribunal in compliance with the conditions laid down in this Article.

Everyone is entitled to a fair and public hearing within a reasonable time by an independent and impartial tribunal previously established by law. Everyone shall have the possibility of being advised, defended and represented.

Legal aid shall be made available to those who lack sufficient resources insofar as such aid is necessary to ensure effective access to justice.”