Claim for Compensation Against the Greek State for an Unlawful Act or Omission of a Public Authority — Legal Framework and Procedure
When the State makes an error — when a public authority issues an unlawful administrative act, unjustifiably delays responding, or fails to act as legally required — the person who suffers damage is not obliged to accept it silently. Greek law, through Article 105 of the Introductory Law to the Greek Civil Code, provides the main legal basis for compensation against the Greek State. In practice, however, pursuing such a claim requires knowledge of the legal conditions, procedural steps and deadlines that leave no room for delay.
The Legal Basis — Article 105 of the Introductory Law to the Greek Civil Code
Article 105 of the Introductory Law to the Greek Civil Code is the main legal basis for the civil liability of the Greek State. It provides that, for unlawful acts or omissions of State organs in the exercise of the public authority entrusted to them, the State is liable to pay compensation, unless the act or omission was committed in breach of a provision established exclusively in the general public interest.
As a rule, the following basic conditions must be met:
Unlawful act, omission or material action of a public organ: The public organ must have acted in breach of a legal obligation or failed to take action that it was legally required to take. Proof of intent or gross negligence is not always necessary in order to establish the liability of the State; what matters is the unlawfulness of the administrative conduct. Examples include unlawful refusal to grant a licence, unjustified delay in administrative action, an incorrect certificate issued by a public authority, or defective maintenance of public infrastructure.
Damage: There must be specific and provable damage. Damage may consist of actual loss, such as expenses, loss of property or material damage, but also loss of profit or income. Under certain conditions, monetary satisfaction for moral damage may also be claimed.
Causal link: The damage must be causally connected with the unlawful act or omission. If the damage would have occurred in any event, independently of the conduct of the Administration, the claim is weakened.
Therefore, general dissatisfaction with a public authority is not enough. There must be specific unlawful conduct, specific damage and a clear connection between the two.
Typical Cases in Practice
The application of Article 105 is broad and may cover many forms of unlawful administrative conduct. Indicatively:
Licensing delays: A business or professional who applies for a licence and the Administration unlawfully or unjustifiably delays its issuance may, under certain conditions, claim compensation for the damage suffered.
Incorrect certificates and official documents: If a public authority issues an incorrect certificate, document or piece of information on which the citizen relied and suffered damage, liability of the State or the competent public legal entity may arise.
Damage caused by public works or infrastructure: Defective construction, supervision or maintenance of a road, drainage network, municipal work or other public infrastructure may give rise to a compensation claim, provided that unlawfulness and causation are proven.
Unlawful seizures or asset freezes: Acts of tax or other administrative authorities imposing a freeze on bank accounts or assets without a legal basis may give rise to liability, subject to the applicable tax and procedural rules.
Unlawful police conduct or detention: Bodily harm, violation of personality rights or unlawful deprivation of liberty by law enforcement authorities may give rise to a claim for compensation and moral damages, provided that the legal conditions are met.
Medical errors in public hospitals: Damage suffered by a patient due to negligent medical acts or omissions in a public hospital may establish liability of the relevant public entity, depending on the facts and the medical evidence.
Competent Courts and Procedure
Compensation claims against the Greek State for unlawful acts or omissions of public organs are, as a rule, heard by the regular administrative courts. The claim is brought against the State or the competent public law legal entity that bears responsibility.
Step 1 — Extrajudicial request or compensation application: A prior request to the Administration is not always mandatory before filing a claim. However, it may be practically useful, especially where recognition or payment of a specific claim is sought. It must be drafted carefully, because in certain cases it may also have consequences regarding limitation periods.
Step 2 — Filing the claim: The claim is filed before the competent administrative court. The pleading must clearly describe the unlawful act, omission or material action, the legal basis of the claim, the damage suffered and the amount sought.
Step 3 — Parallel challenge of the administrative act, where necessary: A compensation claim may, under certain conditions, be brought without prior annulment of the administrative act, as the court may review the unlawfulness of the act incidentally. However, where the act continues to produce legal effects, a separate challenge through the appropriate legal remedy may be necessary or strategically advisable.
Step 4 — Evidence: The burden of proof lies with the claimant. Required evidence may include documents, the administrative file, financial records, expert reports, medical reports, technical reports or other evidence, depending on the nature of the case.
Limitation Period — The Time Limit
The limitation period for compensation claims against the Greek State requires particular attention. It is not safe to refer simply to the Greek Civil Code, because monetary claims against the State are governed by special public accounting rules.
As a rule, monetary claims against the State are subject to a five-year limitation period, unless a special provision provides otherwise. Under the current framework, the starting point of limitation is connected with the end of the financial year in which the claim arose and became capable of being pursued before the courts, subject to any special rules.
Key practical points:
- If the damage evolves over time, it must be carefully assessed when each individual claim arose.
- Submitting a payment request to the competent public authority may, under certain conditions, interrupt the limitation period, but it should not be used casually or assumed to resolve every deadline issue.
- The court claim must be filed within the applicable time limit and with full procedural care.
- In tax, public accounting or other special categories of disputes, special rules, time limits or procedures may apply.
Accordingly, in compensation claims against the Greek State, limitation must be assessed individually and not on the basis of general assumptions.
What Courts Award — Case Law Trends
The administrative courts and the Council of State have developed important principles regarding the civil liability of the Greek State.
Compensation for unlawful refusal or delay of administrative action: Compensation may be awarded where it is proven that the Administration had a legal duty to act and that its unlawful inaction caused specific financial damage.
Loss of profit: Loss of profit may be compensated, but it requires serious evidentiary support. A hypothetical expectation is not enough; the claimant must prove the likelihood of the profit according to the ordinary course of events and the specific circumstances of the case.
Moral damage: Monetary satisfaction for moral damage against the Greek State is recognised, particularly in cases involving infringement of personality rights, health, dignity or liberty. The amount depends on the specific circumstances.
Contributory fault of the citizen: If the citizen contributed to the occurrence or extent of the damage, compensation may be reduced proportionately. This may occur, for example, where incomplete, inaccurate or misleading information was submitted to the Administration.
Compensation without prior annulment: In many cases, a compensation claim may be brought independently, without prior annulment of the administrative act. This does not mean, however, that a parallel challenge of the act is always unnecessary. The proper strategy depends on whether the act continues to produce legal effects.
FAQ — Frequently Asked Questions
Do I have to annul the administrative act first and then claim compensation?
Not always. A compensation claim may be brought independently, and the court may examine the unlawfulness of the act incidentally. However, if the act remains in force and continues to produce legal effects, it may be necessary to challenge it in parallel through the appropriate legal remedy.
What if the damage was caused by a municipality, region or public law legal entity?
The rules on State liability also apply to the liability of municipalities, communities and other public law legal entities through Article 106 of the Introductory Law to the Greek Civil Code. The claim must be brought against the correct legal entity, namely the one responsible for the act or omission.
Can I also sue the public employee personally?
In most practical cases, the claim is brought against the State or the competent public law legal entity. Special rules apply to the personal and recourse liability of public employees, particularly where intent or gross negligence is involved. The personal liability of the public organ should not be treated simplistically and requires separate legal assessment.
How long does the court case take?
The duration of a claim against the State depends on the competent court, the court’s caseload, the complexity of the case, the need for expert evidence and the existence of appeals. It is not safe to provide general time estimates without reviewing the specific case.
Can I claim compensation for delay by a public authority even if I have no written reply?
Yes, under certain conditions. The Administration’s failure to act within the legal time limit may give rise to liability, provided that there was a legal duty to act, unlawful inaction, damage and a causal link. The absence of a written reply does not exclude the claim, but it requires careful proof of the request, the lapse of the deadline and the damage.
The Greek State does not enjoy absolute immunity when its organs act unlawfully in the exercise of public authority. Any unlawful act or omission of a public authority that causes specific and provable damage may, under certain conditions, give rise to a compensation claim against the Greek State. Success, however, depends on timely action, proper documentation and precise legal substantiation of the case.
This article is for general informational purposes only and does not constitute legal advice. Each case requires an individual assessment based on its specific facts and the applicable legal framework. For tailored legal advice, please contact our law firm.
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