State Liability Act: How to defend yourself when the authorities make mistakes?

JUDr. Ondřej Preuss, Ph.D.
13. September 2024
7 minutes of reading
7 minutes of reading
Other legal issues

Who wouldn’t know it – you need to do something at the office and instead of a quick and hassle-free service you encounter unpleasant complications, errors or endless waiting. Not to mention the unpleasant behaviour of some officials (although in our experience it is rather rare). Moreover, what if an incorrect official procedure causes you to lose not only time, but also money or even important opportunities?

If the maladministration affects your life, you can claim compensation for the damage caused by the maladministration. This right is guaranteed by the Law on State Liability for Damages. But what does it actually mean, how can you defend yourself and how can you claim compensation?

Definition of maladministration

Officially, maladministration refers to a situation where an authority or other public authority fails to carry out its statutory duties as it should. This can include delays in proceedings, wrong decisions, mismanagement of administrative procedures or other administrative errors that can have a serious impact on the life of the individual concerned. Simply put, if an official fails to act in accordance with the law and thus fails to do his or her job properly, he or she is committing maladministration.

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

Do you need to make a complaint against an official?

Did you get into a fight with the authorities? Have you lost money, time or a business opportunity because of their procrastination or other misconduct? We can help you make a claim for compensation for damages caused by maladministration.

What does the liability law say?

As in many other situations, we can be thankful that we are citizens of the Czech Republic, as liability for damages in the exercise of public authority is protected by law. Specifically, Act No. 82/1998 Coll., on liability for damage caused in the exercise of public authority by a decision or an incorrect official procedure, thanks to which you can claim compensation if officials act wrongly. This law defines when and how you can claim compensation from the state, region or municipality.

Under this law, there are two main situations where liability for damages may arise in the exercise of public authority:

  1. Unlawful decision: this situation occurs when an authority makes a decision that is contrary to the law and this causes you harm. How to imagine this specifically? For example, you apply for a subsidy but the authority wrongly rejects it and you lose the money you were entitled to.
  2. Maladministration: this includes all situations where an official does not follow the binding rules and causes you harm. This could be delays in the administrative process, giving the wrong information or even handling an application incorrectly.

The state, the county or the municipality, depending on which authority caused the error, is liable for damages in the exercise of public authority. If the authority has caused you damage, you have the right to claim compensation. However, you can only succeed in claiming compensation if you do the following:

  1. You must prove that the authority did not act in accordance with the law.
  2. Damage: You must prove that you have actually suffered damage.
  3. Causal link: you must prove that the damage was caused by the maladministration.

If these conditions are met, you have a chance of getting compensation for the damage you have suffered. To increase your chances of success, have a lawyer prepare the documents.

Tip na článek

Tip: Did you apply for a subsidy but the authorities refused? Have it checked to make sure there was no wrongdoing and that the officials actually acted correctly. Don’t let maladministration deprive you of what you are entitled to.

How do the authorities most often make mistakes?

A very common example of officials not acting as they should is delays in proceedings. For example, you submit an application for a building permit and it takes several months for the authority to respond. The usual time limit is a few weeks. If this delays your building and you lose money as a result, this is maladministration.

Erroneous decisions are another typical case. These are situations where the authority makes a decision that is contrary to the law and you lose money or suffer other damage as a result. Even in this case, you are entitled to compensation. What does a wrong decision look like in practice? For example, if an official wrongly rejects your application for social benefits and you end up in financial hardship because of it.

There may also be administrative mismanagement. For example, an official forgets to inform you of your rights or follows incorrect rules that no longer apply. This is typically the case, for example, if the official does not tell you what documents and supporting evidence you need to provide and your application does not go through.

Misconduct can have serious consequences for individuals and companies, which is why it is important to know how to defend yourself and how to claim compensation.

How to claim compensation for damage caused by maladministration

If you believe that an authority has not acted in accordance with the law and has caused you harm by its actions, you can defend yourself and claim compensation. How to claim? Contact a lawyer who will guide you through the following steps:

  1. Find out if you are entitled to compensation: you cannot do this without this step. First, you need to find out whether the law is really on your side and whether there has been maladministration. We really recommend consulting a lawyer at this step.
  2. Gather evidence: Without evidence, you can’t get anything even in a court case. A lawyer can help you prepare all the documents, witness statements and even expert reports that will prove the damage and its connection to the official procedure.
  3. Filing a claim for compensation: once you have put all the documents together, you can confidently file a claim for compensation with your lawyer. This is filed with the competent authority that you believe is responsible for the damage. In the application, the lawyer will clearly define the damage, describe the maladministration and attach evidence.
  4. Wait for the claim to be processed: once you have submitted your claim, you can wait for the authority to assess your claim and decide whether you are entitled to compensation within the legal time limit.

What if the authority refuses to award compensation?

If it does not, you can take your case to court. However, we recommend that you consult a lawyer even if you are not entitled to compensation to avoid unnecessary court fees. On the other hand, if the truth is really on your side, legal action may be the only way to get justice.

What compensation can I get?

The amount of compensation for damage caused by maladministration depends on how much damage the maladministration caused you. Under the Law on Liability for Damage in the Exercise of Public Authority, you can claim financial compensation, compensation for non-pecuniary damage or reimbursement of costs.

In the case of financial compensation, you can claim an amount corresponding to the actual damage. Non-pecuniary damage is compensation if the maladministration has caused you damage to your honour, health or other non-pecuniary damage. And if you have had to pay other costs (for example, for lawyers or experts) as a result of the maladministration, you may also claim reimbursement for these matters.

Summary

While it is good to know how to defend yourself, it is ideal not to get involved in a situation where the authorities have not acted correctly at all. Therefore, find out as much information as possible before entering into an official hearing. Also, keep everything in writing and keep the documents so that you have any evidence. If the authority still causes you damage, do not hesitate to defend yourself and file a claim for compensation for the damage caused by the maladministration.

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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 10 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

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