JUST IN – a groundbreaking court’s decision may pave the way for compensation for state-ordered restrictions

23. 4. 2020
JUST IN – a groundbreaking court’s decision may pave the way for compensation for state-ordered restrictions

On April 23rd, 2020, the Municipal court in Prague has revoked four measures of the Ministry of Health, which have introduced significant restrictions of free movement of persons, retail sales and the provision of services. The measures have been effective since March 22nd, 2020.

According to the court, it is only the government that may order such radical restrictions, not the Ministry. It is now up to the government to re-introduce said restrictions in the form a crisis measure by April 27th 2020, at the latest.

The decision may have fundamental consequences with regard to claims for damages for the state-issued restrictions (including lost profit). The reason is that the state is liable for the damage caused by illegal decisions of the Ministry.

For the duration of the restrictions issued by crisis measures (i.e. between March 12th, 2020 and March 22nd, 2020, and beginning from April 27th, 2020), the state is liable for any damage caused, without regard to the legality of the crisis measure.

Thus, it may be possible for entrepreneurs to claim damages from the state for the whole duration of the state of emergency.

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