How Mr Martin won compensation for false accusations
Mr Martin was wrongly accused of embezzlement. His former business partner filed a criminal complaint against him. However, it later turned out that it was a false accusation. The police launched a criminal prosecution that lasted almost a year. During this time, Mr. Martin had to hire a lawyer, cut back on his business, lost several contracts, and struggled with significant mental discomfort.
After nearly 12 months, the prosecution was dropped because the acts he was accused of had not been proven to have occurred.
Martin contacted us with the question: “Am I entitled to compensation for the prosecution if the police eventually stopped it?” Yes, and not a small one. You may find through his story that we can also help you recover legal costs, attorney’s fees and financial compensation for unreasonable length and interference with personal rights.
When does a claim for damages for a criminal prosecution arise?
Under the Public Liability Act, anyone who has been unlawfully prosecuted is entitled to full compensation. The decisive factor is not whether you have actually done something, but how the prosecution turned out and whether the actions of the prosecuting authorities were lawful.
The claim typically arises:
- if you have been acquitted or
- the prosecution was dropped for reasons that would otherwise have led the court to acquit (e.g. the act did not happen/is not a crime/you did not commit it).
Conversely, a claim does not normally arise on a conditional discontinuance or settlement.
In practice, the most common situation is that the police stop the prosecution for lack of evidence – as in Martin’s case. It is in these situations that people often have the mistaken feeling that “it just happened” and justice cannot be done. The opposite is true.
While the state bears responsibility for the prosecution as a whole, it also has a duty to compensate anyone whose rights have been affected by the prosecution. And it is not just the criminal proceedings themselves; the impact on life, mental health, reputation or business can be far more tangible than the formal outcome of the proceedings.
In Martin’s case, we immediately judged that he met all the conditions. We prepared a claim for damages and non-pecuniary harm and submitted it to the Ministry of Justice.
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What can be claimed as compensation for unlawful prosecution?
Compensation does not only cover moral satisfaction. The law provides for a wide range of financial damages and mental harm. Typically, you can claim:
The costs of the criminal proceedings
This includes mainly defence costs, expert reports or travel costs. In the case of our client Martin, this item was one of the highest – his lawyer charged over CZK 70,000.
Legal costs as compensation for damages
It is quite standard to pay the fees of the lawyer who represented you in criminal proceedings. It does not matter whether the lawyer was ex officio or your chosen lawyer.
Lost earnings and financial losses
If, for example, you have had to attend interviews, postponed business meetings, lost contracts or jobs, you may be entitled to compensation. Martin lost a one-off contract worth £180,000 – we have included this in the claim.
Non-pecuniary damage
This component is often the most underestimated. The law also takes into account psychological consequences, loss of reputation, disruption of personal relationships or long-term stress. The amount of compensation for an unlawful prosecution can be very high if the proceedings have lasted an unreasonably long time or have had a major impact on your life.
Compensation for false accusations
If the prosecution was triggered by a demonstrably false report, this may support higher compensation for non-pecuniary damage in some cases. At the same time, action against the whistleblower himself may also be an option.
Tip for article
Tip: Even the state makes mistakes. If you suffer damage because of a court decision, delays in proceedings or inaction by the authorities, you have the right to claim compensation. We can help you with that too, just read our article on compensation for state mistakes.
What is the compensation procedure and how much can you get?
The claim is submitted to the Ministry of Justice, which has 6 months to process the claim. If the Ministry rejects the claim or does not fully uphold it, you can go to court – and this is where representation by a lawyer can be essential.
There is no fixed table for the amount of compensation for unlawful prosecution. However, the length of the prosecution, the intensity of the interference with life, the financial impact, the damage to reputation and psychological harm, or the conduct of the prosecuting authorities are decisive.
In common cases, the amounts range from tens of thousands to hundreds of thousands of crowns. However, amounts in excess of one million crowns are no exception in long-term or highly publicised cases.
In Martin’s case, we documented the extent of the damage (more than CZK 250,000) and added a claim for non-pecuniary damage. The Ministry eventually accepted most of the items and we successfully recovered the rest in subsequent court proceedings.
How can we help you? The process we take over for you
Criminal compensation is a legally challenging process. It requires the gathering of evidence, proper quantification of damages, argumentation, knowledge of case law and often litigation against the state.
Our law firm provides a comprehensive A to Z service that includes:
- Initial assessment of the claim: Simply send us the order of dismissal of prosecution or judgment of acquittal. We will let you know within 48 hours whether you have a claim and the expected amount.
- We will quantify all claims – we will not forget anything: We can also identify damages that clients often don’t even know they can claim – lost opportunities, impact on business, costs of travel, consultancy or psychological harm.
- Preparing and submitting a claim: We will submit a full proposal to the Department and monitor the case on an ongoing basis.
- Representation in court: if the Ministry does not comply, we will recover the remainder in court. For our client Martin, it was the court that was key to obtaining the full amount.
- Transparent communication and fair pricing: we handle most of the work online and without the need for personal visits. You know in advance how much the service costs.
Tip for article
Tip: Have you or someone close to you been prosecuted? It may just be a mistake and there may not be a conviction at all, but it is still good to know your rights and what principles law enforcement must follow to preserve your rights.
Summary
If the criminal prosecution against you has been dropped or you have been acquitted, you are entitled to compensation for unlawful prosecution under the law, which includes not only the costs of the criminal proceedings and legal representation, but also loss of earnings, financial loss, non-pecuniary damage or enhanced compensation for false accusations. A typical example is our client Martin, who was wrongfully prosecuted for a year on the basis of a false accusation, which caused him considerable psychological and financial damage; thanks to a properly prepared application, we have already obtained most of his claims for him with the Ministry of Justice and the rest subsequently in court. A claim arises particularly where the prosecution has been discontinued, the court has acquitted you or the illegality of the original proceedings has been upheld. The amount of compensation depends on the length of the proceedings, the interference with your life, your reputation and the financial impact and can range from tens of thousands to millions of crowns. The application is submitted to the Ministry of Justice, which has 6 months to process the application; if it does not comply, compensation can be successfully sought in court. Our law firm provides complete legal assistance – from free assessment of the claim, to quantification of damages, preparation and submission of the application, to representation in court proceedings – and helps clients obtain the maximum possible compensation.
Frequently Asked Questions
Am I entitled to compensation even though I was not in custody?
Yes. Binding is not a requirement. It’s enough that you were prosecuted and the proceedings ended in your favour.
Do I have to have an attorney to get my legal fees paid?
No. Counsel is not a condition of entitlement. However, if you paid for the defense, these reasonable costs may be claimed.
What if someone deliberately filed a criminal complaint falsely?
You can claim compensation for false accusations and, if necessary, seek compensation from a specific person.
How long does it take to process an application?
If the Ministry does not pay everything within 6 months of the claim, you can go to court. Beware of the statute of limitations: property claims are typically time-barred within 3 years, non-pecuniary damage within 6 months of becoming aware of it.
Can the state deny me compensation?
Yes, if, for example, the prosecution ended with a conditional dismissal or a plea bargain. But in other cases, the claim is strong – we will be happy to assess it for you free of charge.