State Liability for Damages: How Can You Defend Yourself When a Government Agency Makes a Mistake?

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Shrnutí: If a government agency causes you damage through an unlawful decision or improper official procedure, you may, under certain conditions, seek compensation. The state’s liability for such damage is governed by the Act on Liability for Damage Caused in the Exercise of Public Authority. In this article, we’ll explain how to challenge an administrative error, how to seek compensation from the state, and what you must prove to obtain compensation.

Quick Overview

  • The state may be liable for damages caused by an unlawful decision or improper administrative action.
  • In cases of improper administrative action, you generally must prove misconduct, the occurrence of damage, and a causal link between the two.
  • You must first file your claim with the relevant authority. Only if your claim is not fully satisfied may you bring the matter before a court under the conditions provided by law.
  • Be aware of the statutes of limitations—they differ for compensation for property damage and non-property damage.
  • Not every mistake made by a public official automatically entitles you to compensation. The specific impact of the error is decisive.

Therefore, if you’re figuring out how to address an error by a government agency, simply filing a complaint isn’t enough. If you’ve suffered property damage or non-property harm as a result of the error, you can separately file a claim for compensation under the Act on Liability for Damage Caused in the Exercise of Public Authority.

Not sure whether an administrative error gives you grounds to claim damages? Describe your case to us, and we’ll assess whether the conditions for state liability are met and against which authority to file your claim.

Definition of Improper Official Conduct

An “improper administrative procedure” is officially defined as a situation in which a government agency or other public authority fails to fulfill its statutory obligations as required by law. This may include delays in proceedings, erroneous decisions, improper conduct of administrative proceedings, or other administrative errors that can have serious consequences for an individual’s life. Simply put, if a public official fails to act in accordance with the law and does not perform their duties properly, they are committing an administrative error.

You should therefore be aware that public officials are liable for damages incurred in the exercise of public authority, and in the event of a specific error on their part, you have the right to defend yourself and seek compensation.

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What does the law say about liability for damages?

Just as in many other situations, we can be grateful in this instance that we are citizens of the Czech Republic, since liability for damages arising from the exercise of public authority is governed by law. Specifically, this refers to Act No. 82/1998 Coll., on Liability for Damages Caused in the Exercise of Public Authority by a Decision or Incorrect Official Procedure, which allows you to seek compensation for damages if officials act improperly. This law defines when and how you may seek compensation from the state, a region, or a municipality.

According to this law, there are two main situations in which liability for damages arising from the exercise of public authority may arise:

  1. Unlawful decision: This situation arises when an authority issues a decision that violates the law, thereby causing you harm. How does this work in practice? For example, you submit an application for a grant, but the authority erroneously rejects it, causing you to lose money to which you were entitled.
  2. Improper official procedure: This term covers all situations in which an official fails to act in accordance with binding rules and thereby causes you damage. This may involve delays in administrative proceedings, the provision of incorrect information, or, for example, an incorrectly processed application.

Liability for damages arising from the exercise of public authority rests with the state, region, or municipality, depending on which authority caused the error. If an agency has caused you harm, you have the right to seek compensation. However, your claim for compensation will be successful only under the following conditions:

  1. Unlawful conduct: You must prove that the authority did not act in accordance with the law.
  2. Occurrence of damage: You must demonstrate that you actually suffered damage.
  3. Causal link: You must prove that the damage occurred precisely because of the official’s incorrect procedure.

From our legal practice: Clients often focus on the fact that the agency clearly made a mistake, but the mistake itself is not enough to obtain compensation. The most difficult part is usually proving the specific amount of the damage and, above all, the causal link—that is, that the damage would not have occurred without the authority’s error.

What do the courts say? The Supreme Court has repeatedly emphasized that the state’s liability for damages caused by an administrative error is strict liability. However, for a claim to arise, three conditions must be met simultaneously: an improper official procedure, the occurrence of damages, and a causal link between them. It is therefore not enough to simply prove that the government agency made a mistake.

If these conditions are met, you have a chance to receive compensation for the harm suffered. To increase your chances of success with your claim, have a lawyer prepare your documents.

Tip for article

Tip: Did you apply for a grant, but the agency denied it? Have it reviewed to make sure there was no error and that the officials actually acted correctly. Don’t let an incorrect administrative procedure deprive you of what you’re entitled to.

What are the most common mistakes made by government agencies?

A very common example of officials not acting as they should is delays in the administrative process. For example, you submit an application for a building permit, and the agency doesn’t respond for several months. The usual processing time, however, is just a few weeks. If this causes your construction project to be delayed, resulting in financial loss for you, this constitutes improper official conduct.

Another typical case involves erroneous decisions. These are situations where an agency issues a decision that violates the law, causing you to lose money or suffer other damages as a result. In such a case, you are also entitled to compensation. What does an erroneous decision look like in practice? For example, an official may unjustifiably deny your application for social benefits, causing you to fall into financial distress.

Administrative proceedings may also be conducted incorrectly. For example, an official may forget to inform you of your rights or may follow incorrect regulations that are no longer in effect. A typical example is a situation where an official fails to tell you what documents and supporting evidence you must provide, and your application is rejected as a result.

Improper administrative procedures can have serious consequences for both individuals and businesses, which is why it is important to know how to defend yourself and how to seek compensation for damages.

How to File a Claim for Compensation from the Government, Step by Step

If you have suffered damage due to an improper administrative procedure or an unlawful decision, simply filing a complaint with the agency is not enough. You must first assert your claim for compensation in accordance with the Act on Liability for Damage Caused in the Exercise of Public Authority.

1. Determine the Basis of Your Claim

First, you need to determine whether the damage was caused by an unlawful decision or an administrative error. This distinction is important because, in the case of an unlawful decision, the law generally requires that the competent authority rescind or amend it due to its unlawfulness.

2. Gather evidence of the error and the resulting damage

In particular, prepare the decision and other correspondence with the authority, as well as documentation of the resulting damage, such as contracts, invoices, statements, or other documents proving the amount of the damage. It is not enough to simply prove the authority’s error; you must also demonstrate that you suffered damage specifically as a result of that error.

3. File a claim with the appropriate government agency

The claim is not automatically filed with the agency or official who caused the error. The law specifies which agency acts on behalf of the state. For example, in cases of damages arising from civil or criminal court proceedings, this is generally the Ministry of Justice; in other areas of public administration, it is typically the central administrative authority responsible for the relevant matter.

In your claim, describe the nature of the error, the damages or non-pecuniary harm you have suffered, why you believe it is related to the actions of a public authority, and the amount you are seeking. It is advisable to support your claims with specific documents.

4. Wait for the preliminary review of your claim

The preliminary filing of a claim is not merely a formality. It is a prerequisite for you to be able to take the matter to court later.

If the claim is not fully satisfied within six months of its filing, you may seek compensation through the courts, provided the other conditions are met.

5. Be aware of the statute of limitations

Claims for damages generally become time-barred three years from the date you became aware of the damage and of who is liable for it. For compensation for non-pecuniary harm, the law establishes a significantly shorter subjective statute of limitations of six months. In some situations, additional special rules apply.

Therefore, do not delay in filing your claim unnecessarily. If you are unsure when the statute of limitations begins to run in your case, it is advisable to consult an attorney.

What if the authorities deny your claim for damages?

If your claim is denied, you can take your case to court. However, we recommend consulting a lawyer before taking this step to avoid unnecessary court fees in the event that you are not entitled to compensation. On the other hand, if the truth is truly on your side, legal proceedings may be the only possible way to achieve justice.

Did the agency reject your claim or award you only a portion of the compensation you requested? We’ll review their decision and let you know whether it makes sense to pursue the remainder of your claim in court.

What kind of compensation can you receive?

The amount of compensation for damage caused by an improper official act depends on the extent of the harm the improper official act caused you. Under the Act on Liability for Damage Caused in the Exercise of Public Authority, you may claim financial compensation, compensation for non-pecuniary harm, or reimbursement of costs.

In the case of financial compensation, you may claim an amount corresponding to the actual damage. Compensation for non-pecuniary harm applies if the administrative error caused harm to your reputation, health, or other intangible damage. And if you had to incur additional costs (such as for lawyers or expert witnesses) as a result of an improper administrative procedure, you may also request reimbursement for those costs .

Summary

The state’s liability for damages may arise, in particular, as a result of an unlawful decision or an administrative error. In the case of an administrative error, you must prove the error itself, the occurrence of damage, and a causal link between the two. The claim must first be filed with the relevant authority; if it is not fully resolved within six months, you may bring the matter before a court provided the statutory conditions are met. When filing a claim, document not only the agency’s error but also the amount of the damage and its connection to the error. Do not delay in filing the claim itself, as the law sets forth statutes of limitations.

Frequently Asked Questions

When is the government liable for damages caused by a government agency?

The state may be liable, in particular, for damages caused by an unlawful decision or improper official conduct. However, an error alone is not sufficient—the legal requirements for the specific claim must be met.

How Can You Challenge an Administrative Error?

It depends on the type of error. In addition to filing a complaint or seeking legal remedies, you may file a claim for compensation under the Act on Liability for Damage Caused in the Exercise of Public Authority if you have suffered damage.

How do I apply for compensation from the government?

You must first file your claim with the appropriate authority. In your claim, describe the misconduct, the resulting damage or harm, the connection between them, and the amount of compensation you are seeking, and attach the necessary evidence.

How long do I have to file a lawsuit against the government?

If your claim is not fully resolved within six months of being filed with the relevant authority, you may take the matter to court, provided certain additional conditions are met.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague
Author of the article

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

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