Government action can cause damage in numerous ways, and this may result in the government being held liable. In this respect, there is a difference between lawful and unlawful government action.
Unlawful government action
One example of unlawful government action is if the
government refuses to grant a company building permission and the
administrative court subsequently rules that this refusal was
unjustified. The ensuing losses can be considerable, such as higher
construction costs or lost turnover. Losses can also be incurred if
the government provides incorrect information.
Lawful government action
Even lawful government action can result in losses. A
zoning plan may be changed, a railway line might be constructed or
an airport expanded. This can lead to depreciation of homes or the
possibilities for use being limited. Under certain circumstances,
such losses are eligible for compensation. The new Article 6.1. on
planning blight in the Spatial Planning Act provides a basis for
concessions in the event of loss resulting from government planning
decisions, and there are also innumerable compensation schemes for
loss resulting from administrative acts.
Comprehensive advice and assistance in a complex legal
area
There are many ways in which the government can be held
legally responsible. At the same time, however, it is important to
go about this in the right way, since government liability is a
complex legal area that is also undergoing considerable changes. If
you need clear and comprehensive advice and assistance, you can
rely completely on AKD's expertise. Our specialists are at the top
of the tree in this area and are acknowledged as leading
experts.