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? Has this caused you harm?

In all these cases, it is certainly worth considering seeking damages against the state if maladministration or unlawful 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 as a condition for the successful assertion of a claim:

1) unlawful decision OR maladministration,

2) occurrence of damage (property damage, non-property damage)

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

Each of these conditions has its own specifics, in particular as regard to quantification, proof or limitation periods, after which the right to compensation is substantially weakened. The fulfillment of each ofthese conditions must be carefully examined in each individual case. At the same time, the case-law (decision-making) of the Supreme Court and the Constitutional Court, which is abundant in this area and which makes it possible to better predict the (un)success of a claim, should be examined.. Therefore, it is also worthwhile to secure legal assistance for an effective procedure.

1. Unlawful decision

The right to compensation for damage caused by an unlawful decision is available to the parties to the proceedings (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 may be claimed if the decision has been annulled or changed for illegality after it has become final (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 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).

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.

It is important not to miss the deadline for filing a lawsuit

Any claim or right must be exercised in a timely manner, that is, before the expiration of the limitation period and sometimes even a significantly shorter limitation period. While ordinary civil claims (for performance or damages) usually expire after 3 years, in a number of cases (administrative actions, actions for annulment in employment, rental or corporate matters) these are units of months! In any case, the sooner you seek out a professional, the more chances there will be to exercise the right properly and in a timely manner.

Do I need to be represented by a lawyer in the proceedings?

In general, it is not necessary to be represented by a lawyer in the proceedings before the court. Exceptions are appeal proceedings, cassation complaints, proceedings before the Constitutional Court and cases of so-called necessary defence in criminal cases. However, we recommend representation by a lawyer in the remaining proceedings, especially since the lawyer will recommend the client the most appropriate course of action to protect the client's rights.

What to do if I received an (electronic) payment order?

A duly served payment order becomes legal if you do not file an objection to the payment order within 15 days from the date of delivery, in the court that issued the payment order. In opposition, you express your disagreement with the imposed obligation and the court will therefore cancel the payment order. Subsequently, you will have a period of 30 days, in which you must indicate for what reason you do not agree with the filed lawsuit. If you did not complete such a justification, the court could rule by judgment of recognition.

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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.
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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.
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JUDr. Lukáš Šikel
Lukáš is a lawyer specializing in litigation, both in court and in arbitration proceedings. He has represented clients in simple disputes, debt collection, as well as in complex cases, such as those in construction law. He also has experience representing clients in enforcement proceedings and insolvency cases.
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JUDr. Aleš Linhart, Ph.D.
Aleš specializes in disputes in the areas of real estate, liability for defects in construction, particularly in transportation infrastructure, the automotive industry, damage compensation and insurance, as well as pre-contractual liability. He represents clients in international arbitrations, including investment arbitrations. You can also appoint him as an arbitrator, as he is listed in the register of arbitrators of the Arbitration Court at the Chamber of Commerce and the Agrarian Chamber of the Czech Republic.
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Mgr. Kateřina Obertová
Kateřina has been involved in legal disputes since the beginning of her long-standing legal practice, during which she has dealt primarily with disputes arising from civil and commercial contracts, as well as cases related to family law and real estate ownership. In her legal practice, she places great importance on clarity and empathy, striving to offer clients functional and practical solutions.
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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.
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Mgr. Marie Timoščuková
Marie is an expert in labor law. She has extensive experience representing clients in employment disputes, from both sides of the "barricade" — that is, on behalf of both employers and employees. She has successfully defended the validity of many dismissals and has also helped employees recover numerous unlawfully withheld wages.
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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.
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