Damages for an unlawful decision

A decision quashed by the court has usually done its damage already: a building project halted, a permit that came too late, a subsidy wrongly withdrawn. Title 8.4 of the General Administrative Law Act provides a route of its own for that loss.

Legal basis

Article 8:88 empowers the administrative court to order an authority to compensate loss suffered through an unlawful decision, through another unlawful act preparing it, or through failure to decide in time. The unlawfulness must be established: the decision has been quashed, withdrawn or otherwise found unlawful. Article 8:89 divides jurisdiction: for decisions in tax and civil service matters the administrative court has exclusive competence, and in other cases it may award up to twenty-five thousand euros, above which the civil court comes into play. Article 8:93 sets a limitation period of five years.

How it works in practice

The claim is brought by petition and can be made together with the appeal against the decision or separately afterwards. On the merits the standards of civil liability law apply: causation, attribution and the extent of the loss. The authority almost invariably argues that a lawful decision would have produced the same outcome, and that argument tends to decide the case.

Where it goes wrong

Three points recur. First, causation, which is hard to establish for lost contracts or business interruption. Second, the choice between the administrative and the civil court, where the twenty-five thousand euro threshold is overlooked. Third, the documentary support, gathered only years after the events.

Related terms

This claim connects to compensation for lawful government action, to appeal to the administrative court and to the costs order.

Has an unlawful decision cost you money? Our administrative law specialists assess the route and the evidence.