Compensation for damage caused by state authorities

Do you feel that the state has failed in solving your problem? Did a court or other public authority make an illegal decision in your case or did it commit any other misconduct? Was this damage done to you?


In all these cases, it is certainly worth considering seeking damages against the state if maladministration or illegal decisions have harmed your interests.

What can be compensated

The State is objectively (that is, without the need to prove its fault) liable for the damage caused by the decision issued (whether in civil proceedings, administrative proceedings, administrative or criminal proceedings) or for damage caused incorrect official procedure.

The relevant Act No. 82/1998 Coll., on State liability for damage as a condition for successful filing of a claim provides for the fulfillment of three prerequisites:

1) unlawful decision OR maladministration,

2) occurrence of damage (property damage, i.e. damage and non-property)

(3) the causal link between an unlawful decision or maladministration and the occurrence of injury.

Each of these conditions has its own specifics, in particular with regard to quantification, proof or limitation periods, after which the right to compensation is significantly weakened. Compliance with the individual requirements must be carefully examined in each specific case. At the same time, it is necessary to examine the jurisprudence (decision-making activity) of the Supreme and Constitutional Court, which is rich in this area and thanks to which the (non) success of the claim can be better predicted. Therefore, it is worthwhile to obtain legal assistance for an effective procedure.

1. Illegal decision

The right to compensation for damage caused by an unlawful decision has the parties (including omissions) in which a decision was issued, as a result of which they suffered property or non-property damage.

However, it is not enough just to disagree with a given decision or to seek its annulment or to declare it incorrect at the next instance. Compensation can only be claimed if the decision has been annulled or changed for illegality after it has become legal (or if the decision is non-final but enforceable).

2. Maladministration

The definition of “maladministration” is quite broad, but in general it can be described as a violation of binding rules prescribed by legal norms for the conduct of a public authority in its activities, to which it is obliged and authorized on the basis of generally binding legislation.

However, in the case of maladministration, this is not an illegal decision, but the procedure of the authority, which was subsequently reflected in its decision. It is often an unreasonable length of proceedings, where, although the decision given is legal in itself, the time until it is issued is contrary to procedural rules or reasonableness and the parties are therefore entitled to compensation for delays in the proceedings.

How to make a claim

Liability for damage to the state is applied in a slightly different procedure than a normal claim. The main difference is mainly in the pre-trial phase — the application is first submitted to the competent authority, often the ministry. Ordinary judicial enforcement comes only when the claim is not fully satisfied by the competent authority within six months of the submission of the application.

However, in these cases, the injured party is partially advantaged, for example, by a reduced court fee and a reduced obligation to reimburse costs in the event of failure.

Deadlines

As in any procedure, care must be taken to monitor and comply with deadlines. Of course, the main ones that need to be paid attention to are the limitation period, after which the defendant's office can successfully raise an objection of limitation, for which the court will dismiss the claim.

A claim for damages generally expires at three years from the date on which the injured party became aware of the damage and who was liable for it. The claim for compensation for non-pecuniary damage shall, however, expire for the liability of the State for the damage already six months from the date on which the injured party became aware of the injury.

At the time of consideration of the claim with the competent authority, the limitation period does not run — it is built and the period continues again after the expiry of the mentioned six-month period for processing the application in vain. However, if the Office indicates before its expiry that it does not recognise the claim, the period shall be renewed by that opinion.

Conclusion

In particular, in cases where there has been a flagrant violation of the law on the part of the state, we recommend that you consider seeking damages against the state. And this is especially considering that the law gives quite effective options for this. In addition, the injured party is greatly advantaged when pursuing his claim against the State compared to standard debt collection (low court fee, reimbursement of the costs of the proceedings in case of failure).

Our many years of experience show that the futile expiration of legal deadlines or the wrong interpretation of the existence or amount of the claim can usually not be remedied additionally. Thanks to the number of cases we have dealt with with our clients, we are able to catch all possible ambiguities in advance and thus effectively prevent protracted disputes.

časté otázky

Co je dobré vědět o této oblasti?

What is maladministration?

The definition of “maladministration” is quite broad, but in general it can be described as a violation of binding rules prescribed by legal norms for the conduct of a public authority in its activities, to which it is obliged and authorized on the basis of generally binding legislation. However, in the case of maladministration, this is not an illegal decision, but the procedure of the authority, which was subsequently reflected in its decision. It is often an unreasonable length of proceedings, where, although the decision given is legal in itself, the time until it is issued is contrary to procedural rules or reasonableness and the parties are therefore entitled to compensation for delays in the proceedings.

What is an illegal decision of the authority?

The right to compensation for damage caused by an unlawful decision has the parties (including omissions) in which a decision was issued, as a result of which they suffered property or non-property damage. However, it is not enough just to disagree with the decision or to seek its annulment or to declare it incorrect at the next instance. Compensation can only be claimed if the decision has been annulled or changed for illegality after it has become legal (or if the decision is non-final but enforceable).

Should I oppose the lawsuit if I recognize the claim?

Even if you accept the claim, it is better to prevent a court decision on it, for example, by paying the debt earlier or by agreeing with the claimant, as the court will usually also impose an obligation on you to pay the costs of the plaintiff's proceedings. However, the plaintiff often has the will to agree to withdraw the action in exchange for at least partial or earlier payment of the debt. It always makes sense to at least attempt an extrajudicial action.

How to claim damage caused by the state?

A claim for compensation for damage caused by the state is applied in a different procedure than a normal claim. The first step is to apply for compensation to the competent authority, often the ministry. If the Office does not grant compensation within 6 months of the submission of the application, judicial enforcement may be initiated. In such proceedings, the injured party is partially advantaged, for example, by a reduced court fee and substantially lower costs in the event of failure.

Where do I file a lawsuit? And where's the appeal?

To file an action, it is necessary to designate a court of substantive and local jurisdiction. The district court (district court in Prague) is usually competent in the case. Local jurisdiction is usually determined according to the defendant's place of residence or domicile in the case of a legal entity.

Do you have other questions or
would you like to discuss your
specific situation?

Arrange a consultation
JUDr. Vít Kučera, MBA
Vít has extensive experience in representing clients before domestic and foreign courts, especially in commercial disputes. He specializes in preliminary measures, which he also deals with in his publishing activities. Since 2013 he also serves as an arbitrator of the Football Association of the Czech Republic.
More information
Mgr. Martin Tůma, Ph.D.
Martin mainly deals with commercial cases, including disputes arising from unfair competition, damages or insurance claims. He likes to look for simple solutions to (seemingly) complex problems. He also deals with construction law, in connection with which he represents clients in negotiations with administrative authorities and before the courts.
More information
Mgr. Kateřina Obertová
Kateřina has been involved in litigation since the beginning of her long legal practice, during which she dealt mainly with disputes arising from civil and commercial law contracts, as well as cases concerning family law or property ownership. In advocacy, he bases himself on clarity and empathy, with which he tries to offer functional and practical solutions to clients.
More information
JUDr. Ing. Vít Švestka
Vít is a lawyer specializing in solving problems in the field of tax law before the tax authorities and the courts. He also acts as a tax advisor and thus can provide additional valuable advice and experience on how to reduce the risk of initiating proceedings at all. Vít also deals with corporate disputes. In addition to his legal education, he also holds a degree from the University of Economics in Prague, where he also participates in teaching and publishing activities.
More information
Mgr. Marie Timoščuková
Marie is an expert in labor law. Therefore, he also has extensive experience in representation in labor disputes in the field of labor law, from both sides of the “barricade”, that is, on the part of both employers and employees. Thus, it has not only successfully defended the validity of the dismissal, but also obtained many illegally withheld bonuses to employees.
More information
Mgr. Vojtěch Adámek
Vojtěch is an experienced lawyer specializing mainly in disputes over claims arising from contracts, including settlement of parties after termination of contracts, debt collection and disputes over compensation for damage (damages). He considers understanding the client's needs and finding effective and pragmatic solutions together, including extrajudicial termination of disputes, as the key to success.
More information
Další oblasti sporu