Important changes to the State and Municipal Liability for Damages Act regarding unlawful and invalid sublegislative acts

With the recent amendments the National Assembly determined that the state and municipalities would be liable for damages caused to citizens and legal entities as result of the adoption and implementation of unlawful and invalid sublegislative acts (decrees, regulations, ordinances and instructions).

The amendments also envisage procedure for holding the state and municipalities liable for damages from material breach of EU legislation. According to the case-law of the Court of Justice of the European Union, material breach of the EU legislation is considered to be action or inaction of a public authority which has been committed with an evident disregard for the EU legislation or the binding interpretations of law by the Court of Justice of the European Union.

When the damages are caused as a result of the administrative activity or the judicial activity of the administrative courts and the Supreme Administrative Court, the claims shall be brought in accordance with the Administrative Procedure Code. In all other cases the proceedings shall be conducted under the Civil Procedure Code.

The Act on Amendment and Supplementation of the State and Municipal Liability for Damage Act also introduces an important change in the procedures for appealing of penal decrees in court proceedings. It is now possible to award attorneys’ fees in favour of the appellant when penal decrees are revoked by the court. Until now, attorneys’ fees could only be claimed after the annulment of the penal decrees in separate proceedings under the State and Municipal Liability for Damage Act.

The full version of the Act on Amendment and Supplementation of the State and Municipal Liability for Damage Act can be found here.

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