Concept and Fundamentals of Compensation Payments in Public Law
Compensation payments in public law are a central instrument for compensating legal disadvantages or burdens that arise for individuals, companies, or institutions due to sovereign acts. They serve as financial compensation for interventions or disadvantages that are caused within the scope of legal regulations, administrative decisions, or other sovereign measures. In contrast to private law claims for damages, compensation payments are characterized by public law and are based on statutory or jurisprudential foundations.
Legal Foundations
Constitutional Framework
The granting of compensation payments is often to be viewed in light of the Basic Law (Grundgesetz, GG). In particular, the fundamental right to property pursuant to Art. 14 GG plays a significant role. Interventions in property—such as expropriation or equivalent measures—require appropriate compensation according to the Constitution. Other fundamental rights can also trigger compensation claims, such as the principle of equal treatment (Art. 3 GG) or the social state principle (Art. 20 para. 1 GG).
Statutory Regulations
In addition to constitutional law, there are numerous statutory regulations providing for compensation payments. Important examples include:
- BauGB: The Construction Code (BauGB) provides for compensation and compensation payments in various cases, in particular with regard to planning measures.
- PolG: State police laws govern compensation payments, such as when private property or individuals are used for police measures (§ 39 PolG NRW).
- Environmental Protection Law: Laws such as the Federal Nature Conservation Act (BNatSchG) establish compensation arrangements for impairments to nature and landscape.
- Infection Protection Act (IfSG): If protective measures result in loss of earnings or business closures, compensation payments ordered by authorities are possible (§ 56 IfSG).
Types of Compensation Payments in Public Law
Compensation payments can vary according to type and reason. The most important forms include:
Compensation for Interventions in Property Rights
If the state intervenes in property (expropriation, content and limitations under Art. 14 GG), there is generally a claim to financial compensation, the amount of which must be based on the actual reduction in value.
Compensation for Special Sacrifices
If individuals are affected by sovereign action in a special way and beyond the usual measure compared to the general public, this is referred to as a “special sacrifice.” The classic case is an expropriating or expropriation-like measure, where there is an impairing intervention requiring compensation, even though there is no statutory basis (e.g., a formal expropriation law) for it.
Compensation Claims for Lawful and Unlawful Measures
Compensation payments can be triggered by both lawful and unlawful interventions:
- Lawful Interventions: For example, in the case of so-called “emergency-like” measures taken in the overriding public interest, financial compensation is granted (e.g., use of private property in disaster cases).
- Unlawful Interventions: In such cases, in addition to a claim for damages, a public law compensation claim may also exist (compensation for damages arising from provisional measures subsequently found unlawful).
Requirements and Distinctions
Prerequisites for Entitlement
For a claim to compensation payment to arise, the following requirements typically must be met:
- Sovereign Action: The measure must be attributable to a public authority.
- Disadvantage/Damage: The affected party must suffer a financial loss.
- Causality: The financial disadvantage must be directly attributable to the sovereign measure.
- No Alternative Compensation: No other compensation claim has priority.
- Special Sacrifice Character: As a rule, the burden must affect not the general public but only an individual or a clearly definable group.
Distinction from Other Legal Concepts
- Damages in Private and Administrative Law: Damages typically require a breach of duty or unlawfulness; compensation payments often have to be made even in the absence of fault or unlawfulness.
- Expropriation Compensation: In the case of formal expropriation according to legal provisions, this is known as expropriation compensation, while broader compensations can be considered compensation payments.
- Social Law Benefits: Distinction from welfare or support benefits, which are intended as assistance rather than compensation.
Procedure for Asserting Compensation Payments
Application and Jurisdiction
Compensation payment is generally to be asserted by application to the competent administrative authority. The specific jurisdiction arises from the relevant law. Deadlines and formal requirements must be strictly observed.
Determining the Amount of Compensation
The assessment of the compensation amount is carried out according to statutory requirements or, if such are lacking, according to the general principle of value adjustment. The market value at the time of the intervention or the occurrence of the damage is usually decisive.
Legal Recourse and Judicial Review
If there are disputes regarding the existence or amount of the compensation payment, recourse can be made to administrative courts. The administrative courts (sometimes also social courts, e.g., in infection protection law) decide on relevant claims.
Significance and Function in Public Law
Compensation payments fulfill an important steering and justice function within the framework of public law. They enable the public sector to react flexibly to acute or ongoing situations and to mitigate hardship cases through compensation. At the same time, they provide those affected with planning security and ensure acceptance of state interventions.
Outlook
Given the increasing complexity of state interventions, for example in environmental and climate protection or during pandemics, the regulation of appropriate compensation payments is becoming increasingly important. The further development of the statutory framework remains an ongoing issue for legislators and administrative practice.
See also:
- Expropriation
- Equivalent to Expropriation
- Claim for Sacrifice
- Compensation Law
- Administrative Law
Further Reading:
- Cf. Federal Constitutional Court (BVerfG), Judgment of 17 December 2013 – 1 BvL 5/08
- Maurer, General Administrative Law, 20th Edition 2020
- Dreier, Basic Law Commentary, Art. 14 GG
Weblinks:
- Legal texts online – BauGB, IfSG, BNatSchG
- Federal Ministry of Justice – Compensation and Adjustment Regulations
Frequently Asked Questions
What legal requirements must be met for a compensation payment in public law?
In order for a compensation payment to be granted in public law, certain legal requirements generally must be met. First, a legal basis is required, which may arise depending on the application from special legislation, general administrative law, or constitutional law. Typically, the granting of a compensation payment requires that, through a sovereign measure—such as an intervention in property rights, the imposition of damages within the context of hazard prevention, or due to special regulations such as equivalent to expropriation or compensable special sacrifices—a non-justified impairment of protected legal interests of private persons or companies has occurred. Furthermore, the person concerned must be entitled to claim, that is, be directly and individually affected by the measure. Finally, there must not be any grounds for exclusion or refusal, such as gross contributory negligence on the part of the claimant.
How do compensation payments differ from compensation services in public law?
Although the terms are often used synonymously, there are legally precise differences between compensation payments and compensation services. Compensation payments serve to financially compensate unreasonable burdens or disadvantages that arise from lawful administrative action or the implementation of legislation and should not be borne by the general public. Often, these involve so-called special sacrifices imposed on individual citizens. Compensation services, in contrast, are usually based on unlawful state behavior, such as an expropriation without a legal basis or an unlawful interference with property rights. While compensation is aimed at restoration or value replacement for unlawful interventions, compensation payments are intended for the assumption of a special burden without the administrative action being unlawful.
What claims can affected parties assert if a sovereign measure leads to disadvantages?
Depending on the circumstances, those affected by a sovereign measure can assert various claims. In the event of a lawful but unreasonable intervention—such as compensable special sacrifices—a claim to financial compensation payment may exist according to the principle of sacrifice, derived from the general principle of equality (Art. 3 para. 1 GG). In the case of unlawful interventions, a claim for official liability pursuant to § 839 BGB in conjunction with Art. 34 GG may also arise. In addition, there are specific legal bases for claims, such as in police or regulatory law, under the Infection Protection Act, or in emission control law. Which claims are relevant in an individual case depends on the specific situation and the applicable special legislation.
How is the amount of a compensation payment calculated?
The calculation of compensation payments in public law depends on the disadvantage or damage suffered, which must be directly and causally attributable to the sovereign measure. Generally, the common value loss of the affected legal interest or the additional financial burden caused by the measure is the basis, with lost income or increased costs also being includable. Depending on special statutory regulations—for example, in construction or environmental law—relevant criteria and calculation methods are defined in the respective laws or administrative provisions. Where applicable, the affected party may bear the burden of proof for the extent and amount of the damage, and in case of dispute, the administrative courts can review the calculation as part of official investigations.
Are there deadlines for asserting compensation payments and what are they?
Certain limitation and exclusion periods regularly apply to compensation payments in public law. These are determined by the relevant statutory provisions, such as the specific legal basis for the claim or, subsidiarily, the general civil law regulations, particularly §§ 195 ff. BGB. For example, the standard limitation period for public law claims is three years from knowledge or grossly negligent ignorance of the circumstances giving rise to the claim and the debtor’s identity. However, shorter or longer periods may apply according to special provisions, e.g., in police law or for claims arising from unlawful expropriation. Failure to comply with such deadlines generally leads to loss of the claim.
Under what circumstances is the right to a compensation payment excluded?
A claim to a compensation payment can be excluded under various circumstances. This is the case, for example, if the affected party is responsible for the disadvantage themselves, i.e., there is contributory negligence (§ 254 BGB analogously). Claims are also excluded if expressly stipulated by law, for instance, in the case of intentional causation of damage or lack of causal connection between the measure and the disadvantage. If alternative compensation (e.g., insurance payments) is already provided, cumulation may also be excluded. A claim is also excluded if the disadvantage is to be borne by the general public or does not have a individualized special sacrifice character.
What legal remedies are available if an application for compensation payment is rejected?
If an application for compensation payment is denied, the affected party may file an appeal against the rejecting administrative act. Typically, the first step is to file an administrative objection, if this remedy is available (§ 68 ff. VwGO). If no positive decision is obtained after the objection, the affected party can file an action for annulment or an action for a mandatory decision (commitment action) pursuant to § 42 VwGO before the competent administrative court. In the judicial proceedings, entitlement, legal basis, and the amount of the compensation payment are comprehensively examined. Further appeals may be lodged if the straightforward legal recourse does not provide a solution.
