A Lithuanian court has ordered the state to compensate an individual 931 thousand euros due to the demolition of their property, a motel in Neringa. The plaintiff argued that illegal administrative decisions, including improper issuance of a building permit and approval of land-use plans, led to their financial losses. The case involved the Neringa municipality and the state's Territorial Planning and Construction Inspectorate, which all played a role in the judicial process.

The ruling came after the motel was demolished on October 25, 2024, and corroborated by an official report from the State Territorial Planning and Construction Inspectorate. The court found that the plaintiff's losses were legitimate and well-documented, establishing a direct causal link between the actions of the defendants and the damages incurred by the property owner. This decision underscores the court's recognition of property rights and the obligations of public authorities in adhering to legal frameworks regarding property management and urban planning.

The compensation amount was determined based on an independent property valuation report issued on May 9, 2025. This case highlights the importance of due process in administrative decisions and raises questions about the accountability of government institutions when it comes to land use and construction policies in Lithuania.