By decree № 2 / 19.05.2015 on interpretative case № 2/2014 the General Assembly of the Civil Divisions, the Supreme Court of Cassation and First and Second Division of the SAC decided that the expenses for the appeal of unlawful penal decrees are subject to compensation under Art. 1, para. 1 of Act on the Liability for Damage Incurred by the State and the Municipalities (ALDISM). Despite the mandatory nature of the document, a year later the practice of the administrative courts continues to be controversial on the question whether attorney fees on appeal constitute a damage subject to compensation. A key point is whether the interpretation of this expense of the state represents a direct and immediate consequence of the damage within the meaning of Art. 4 ALDISM.
Based on the request of the Prosecutor General of the Republic of Bulgaria lodged in the beginning of April 2016, by order of 09.06.2016, the Supreme Administrative Court initiated interpretative case № 2/2016 on the adoption of an interpretative decision on the question: “When claims under Art. 1 of ALDISM for damages from unlawful penal decrees are brought before the administrative courts, are the attorney fees paid on appeal, the direct and immediate consequence within the meaning of art. 4 of the quoted above Act.
If the SAC answers positively, a huge gap in the legislation will be overcome.
author: Vesela Velinova, attorney-at-law
Member of the “Velinov and partners” Consulting House
