Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
16 December 2010 [shall
come into force on 1 January 2011];
1 July 2011 [shall come into force on 1 October
2011];
6 June 2012 (Constitutional Court Judgment) [shall come
into force on 7 June 2012];
18 October 2012 [shall come into force on 1 November
2012];
12 September 2013 [shall come into force on 1 January
2014];
15 February 2018 [shall come into force on 1 March
2018].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
|
The Saeima1
has adopted and
the President has proclaimed the following law:
Law on
Compensation for Losses Caused by State Administration
Institutions
Chapter I
General Provisions
Section 1. Purpose of the Law
(1) The purpose of the Law is to ensure for a private
individual the right laid down in the Constitution and the
Administrative Procedure Law to commensurate compensation for a
material loss or non-material damage (hereinafter - the
compensation for loss) caused thereto due to an unlawful
administrative act or an unlawful actual action of a State
administration institution (hereinafter - the institution).
(2) [15 February 2018]
[18 October 2012; 15 February 2018 / See Paragraph 8
of Transitional Provisions]
Section 2. Application of the
Law
(1) The Law prescribes the following:
1) the conditions for determining the basis and amount of the
compensation for loss;
2) the procedures by which the institution shall:
a) assess the cases of the compensation for loss;
b) take the decision to compensate a loss;
c) ensure the execution of a decision of the institution
directed at a monetary payment or enforcement of a court ruling
on the compensation for loss.
(2) The Law shall not apply to the procedures by which the
compensation for loss caused to a private individual is disbursed
in accordance with other laws.
(3) Within the meaning of this Law, a loss shall include a
material loss and non-material damage.
[1 July 2011; 15 February 2018 / See Paragraph 8 of
Transitional Provisions]
Section 2.1 Procedures
for the Compensation for Losses in Administrative Offence
Cases
[15 February 2018]
Section 3. Sources of Financing for
the Compensation for Loss
A loss shall be compensated from:
1) the State basic budget;
2) a local government budget;
3) a budget of another derived legal person governed by public
law;
4) funds of an institution with an autonomous budget if such
funds do not form part of the budget of any legal person governed
by public law referred to in Clause 1, 2, or 3 of this Section
and the relevant institution has caused loss in the field where
it operates within the scope of its own budget.
[15 February 2018]
Chapter
II
Determination of the Basis and Amount of the Compensation for
Loss
Section 4. Action and Omission
(1) The institution may cause a loss by its action when
issuing an unlawful administrative act or when engaging in an
unlawful actual action, or also due to omission if the
institution had the obligation to take action, but it had
unlawfully failed to take action.
(2) Henceforth in this Law the concepts "activity" and
"action" shall also mean omission in cases where the institution
has the obligation to take action.
Section 5. Victim
(1) A victim, i.e. a private individual who is the addressee
of an unlawful administrative act or a third person within the
meaning of the Administrative Procedure Law, and also a private
individual against whom an unlawful actual action of the
institution is directed directly or who is directly affected
thereby, has the right to the compensation for loss.
(2) A relative of a natural person who has died due to an
unlawful action of the institution may be also a victim.
Section 6. Causal Link
(1) The right to the compensation for loss shall arise if
there is a direct causal link between an unlawful action of the
institution and the loss caused to a victim - an objective link
between the action of the institution and the consequences
causing the loss which follow later in terms of time, i.e. the
abovementioned action causes and determines a realistic
possibility of the occurrence of such consequences and is the
main factor which has inevitably caused such consequences.
(2) Such casual link shall not exist in cases where the same
loss would have arisen also if the action of the institution
would have been lawful.
Section 7. Material Loss
(1) Within the meaning of this Law, a material loss is a
deprivation which can be materially assessed and which has been
caused to a victim due to an unlawful administrative act or an
unlawful actual action of the institution.
(2) When calculating a material loss, the unearned profit
shall also be taken into account if a victim can prove that the
profit would have been earned in the course of normal course of
events.
(3) A material loss is also a loss which is related to the
setting aside of an administrative act, prevention of an actual
action of the institution, or elimination of the consequences
thereof, reduction or elimination of the loss. A material loss
shall also cover the costs related to legal aid. The maximum
amount of such costs shall be determined by the Cabinet.
(4) The time and effort devoted by a private individual to
resolve a certain case shall not be considered a material
loss.
[1 July 2011]
Section 8. Non-material Damage
Within the meaning of this Law, non-material damage shall be
the following caused by an unlawful administrative act or an
unlawful actual action of the institution:
1) violation of life, health, freedom, dignity and respect,
personal or family secret of a natural person, other non-material
rights or interests thereof protected by law as a result of which
adverse non-material consequences have been caused;
2) violation of transaction reputation, commercial secret of a
legal person, its copyright or other non-material rights or
interests protected by law as a result of which adverse
non-material consequences have been caused.
[15 February 2018 / See Paragraph 8 of Transitional
Provisions]
Section 9. Non-pecuniary Damage
[15 February 2018 / See Paragraph 8 of Transitional
Provisions]
Section 10. Co-responsibility
(1) A victim is not entitled to receive the compensation for
loss in whole or in part if he or she has not, using his or her
knowledge, skills, and practical possibilities, made every effort
to prevent or reduce the loss.
(2) A victim is not entitled to receive the compensation for
loss if, by means of an intentional action, he or she has
contributed to the occurrence of the loss caused to him or her or
to an increase in the amount thereof.
Section 11. Means of Evidence
(1) Legal basis and amount for the compensation for a material
loss is proven by the means of evidence specified in the
Administrative Procedure Law.
(2) The facts which confirm that non-material damage has been
caused shall be proven by the means of evidence indicated in the
Administrative Procedure Law. A private individual has the
obligation to indicate how the infringement of his or her
non-material rights and interests protected by law manifested and
to justify the amount of the compensation.
(3) If private individual has suffered a significant
infringement of rights by an unlawful administrative act or an
unlawful actual action, the existence of non-material damage
shall be considered to have been proved.
[15 February 2018 / See Paragraph 8 of Transitional
Provisions]
Section 12. Determination of the
Amount of a Material Loss
(1) The amount of loss shall be determined by means of
evidence (Section 11).
(2) If, in determining the amount of loss, the institution or
court establishes co-responsibility of a victim (Section 10), the
amount of loss is reduced accordingly.
(3) In determining the amount of unearned profit, the
institution or court shall take into account general risks and
the circumstances of the particular case which affect the
probability of unearned profit.
(4) If it is not possible to ascertain the exact amount of
loss, the institution or court shall estimate the overall loss or
separate components thereof. In ascertaining the loss, the
institution or court shall reasonably take into account the
overall experience and the circumstances of the particular
case.
(5) If the compensation for loss to be disbursed to a private
individual consists of the non-received remuneration, the amount
of the compensation for loss determined by the institution or
court shall include taxes calculated in accordance with the
procedures laid down in laws and regulations.
[1 July 2011]
Section 13. Determination of the
Compensation for a Material Loss
(1) In determining a corresponding amount of the compensation
for loss, the lawful and actual justification and motives of the
action by the institution, and also the action by a victim shall
be taken into account.
(2) In determining the amount of the compensation for loss, in
addition other circumstances of significance in the particular
case, if they can be objectively proven, may be taken into
account.
(3) A material loss of the amount calculated in accordance
with Section 12 of this Law is usually reimbursed in the
following amount:
1) if the calculated amount does not exceed EUR 145 000 - in
the amount of 100 per cent of the amount;
2) if the calculated amount exceeds EUR 145 000 but does not
exceed EUR 1 450 000 - EUR 145 000 plus in the amount of 50 to
100 per cent of the amount which exceeds EUR 145 000;
3) if the calculated amount exceeds EUR 1 450 000, a
corresponding compensation may be less than 50 per cent of the
amount.
(4) The institution may, at its discretion, compensate the
material loss caused to the victim in such a manner that the
actual condition of the property of the victim before causing the
loss is restored instead of the disbursement of the compensation
for loss.
[12 September 2013; 15 February 2018 / See Paragraph
8 of Transitional Provisions]
Section 14. Determination of the
Compensation for Non-material Damage
(1) The compensation for non-material damage shall be
determined in conformity with the significance of the infringed
rights and interests protected by law and severity of the
particular infringement, taking into account the lawful and
actual justification and motives of the action by the
institution, the action by and co-responsibility of the victim,
and also other circumstances of significance in the particular
case.
(2) Non-material damage shall be compensated by restoring the
condition which existed before causing damage, or, if it is not
possible or is not completely possible, or it is not adequate, by
apologising or paying a corresponding compensation.
(3) If the institution or court, in assessing the
circumstances of the particular case, establishes that the
infringement of the rights or interests protected by law of a
private individual is not severe, a written or public apology may
be an independent or additional compensation for non-material
damage.
(4) The compensation for non-material damage shall be
determined in the amount up to EUR 7000. If severe non-material
damage has been caused, the compensation may be determined up to
the amount of EUR 10 000, but if the damage to life or especially
severe damage to health has been caused, the maximum amount of
the compensation may be up to EUR 30 000.
[15 February 2018 / See Paragraph 8 of Transitional
Provisions]
Chapter
III
Procedures for the Examination of the Submission for the
Compensation for Loss
Section 15. Institution Having
Jurisdiction for the Examination of a Submission
A private individual shall submit the submission for the
compensation for loss to the institution which has caused the
loss.
Section 16. Submission for the
Compensation for Loss
(1) The following shall be indicated in the submission for the
compensation for loss:
1) the name of the institution to which the submission has
been submitted;
2) the given name, surname, personal identity number, and
place of residence of the submitter, but for a legal person - the
name, registration number, and legal address;
3) the claim;
4) the facts which, according to the submitter, justify the
right to the compensation for loss;
5) the bank account to which the compensation for loss is to
be transferred.
(2) The submission may also include evidence of the fact of
the loss caused and the amount of the loss and copies of the
relevant documents shall be appended to the submission,
presenting either the originals of such documents or copies
certified in accordance with the specified procedures. If the
submission is sent by post, true copies or copies certified in
accordance with the specified procedures shall be appended
thereto.
(3) The submission may specify the legal grounds of the case
and other information which may be relevant to the examination of
the case.
(4) The claim shall specify the total amount of the
compensation for loss claimed. If the compensation is claimed for
several types of loss, the submission may specify the amount of
the compensation claimed for each type of loss.
Section 17. Time Period for the
Submission of a Submission
(1) A private individual shall submit the submission for the
compensation for loss within one year from the day on which he or
she became aware or ought to have become aware of the loss, but
not later than within five years from the date on which an
unlawful administrative act of the institution entered into
effect or an unlawful actual action was committed thereby.
(2) If a private individual has missed the deadlines referred
to in Paragraph one of this Section, the institution, court, or
judge may renew them upon a reasoned request of the private
individual, if the reason for the missed deadline is recognised
as justifiable.
[18 October 2012]
Section 18. Procedures for the
Examination of the Submission for the Compensation for Loss
Caused by an Institution of Direct Administration
(1) An institution of direct administration which receives the
submission for the compensation for loss from a private
individual shall immediately forward it to a higher institution
or to another institution (decision-making institution) specified
in laws and regulations. If there is no higher institution or it
is the Cabinet and no other institution has been specified in
laws and regulations, the submission shall be examined by the
relevant institution of direct administration.
(2) The decision-making institution shall, within one month
after receipt of the submission, examine the legal grounds for
the compensation for loss and take the decision on the allocation
of the compensation for loss and the amount of the compensation
or on the rejection of the submission.
(3) If, due to objective reasons, this cannot be done within a
month, the decision-making institution may, by taking a reasoned
decision, extend the deadline by up to four months, informing the
submitter thereof in writing. This decision may not be contested
or appealed.
Section 19. Procedures for the
Examination of the Submission for the Compensation for Loss
Caused by a Local Government Institution
(1) If the submission of a private individual for the
compensation for loss is received by a local government
institution which has caused the loss by its actions in the
performance of direct administration functions or tasks, it shall
immediately forward the submission to a functionally higher or
another institution of direct administration (decision-making
institution) specified in laws and regulations, whereas a copy of
the submission shall be sent thereby to the Ministry of
Environmental Protection and Regional Development.
(2) If the submission of a private individual for the
compensation for loss is received by a local government
institution which has caused the loss by its actions in the
performance of autonomous functions or tasks of the local
government, or while implementing its voluntary initiative, it
shall immediately forward the submission to the relevant local
government council, whereas a copy of the submission shall be
sent thereby to the Ministry of Environmental Protection and
Regional Development.
(3) If the submission of a private individual for the
compensation for loss is received by a local government
institution which has caused the loss by its actions in the
performance of autonomous functions or tasks of another local
government, it shall immediately forward the submission to the
local government council with jurisdiction, whereas a copy of the
submission shall be sent thereby to the Ministry of Environmental
Protection and Regional Development.
(4) If the submission is forwarded to an institution with no
jurisdiction, it shall immediately forward the submission to the
Ministry of Environmental Protection and Regional Development.
The Ministry shall, within one month, determine the institution
with jurisdiction for the compensation for loss referred to in
Paragraph one, two, or three of this Section. The decision shall
be notified to all interested persons. The time until the
decision of the Ministry is taken is not counted as part of the
time period referred to in Paragraphs five and six of this
Section.
(5) The decision-making institution shall, within one month
after receipt of the submission, examine the legal grounds for
the compensation for loss and take the decision on the allocation
of the compensation for loss and the amount of the compensation
or on the rejection of the submission.
(6) If, due to objective reasons, this cannot be done within a
month, the decision-making institution may, by taking a reasoned
decision, extend the deadline by up to four months, informing the
submitter thereof in writing. This decision may not be contested
or appealed.
(7) The loss shall be compensated from the State basic budget
if it has been caused by the actions of a local government
institution in the performance of direct administration functions
or tasks. The loss shall be compensated from the budget of the
relevant local government if it has been caused by the actions of
a local government institution in the performance of the
autonomous functions or tasks of the relevant local government,
or while implementing its voluntary initiative. The loss shall be
compensated from the budget of another legal person governed by
public law if it has been caused by the actions of a local
government institution in the performance of the autonomous
functions or tasks of such other legal person governed by public
law.
[16 December 2010; 1 July 2011]
Section 20. Procedures for the
Examination of the Submission for the Compensation for Loss
Caused by Another Derived Legal Person Governed by Public Law
(1) If the submission of a private individual for the
compensation for loss is received by an institution of indirect
administration which has caused the loss by its actions in the
performance of direct administration functions or tasks, it shall
immediately forward the submission to a functionally higher
institution of direct administration or another institution of
direct administration specified in the regulatory enactment
(decision-making institution), whereas a copy of the submission
shall be sent thereby to the Ministry to which the relevant
derived legal person governed by public law is subordinate.
(2) If the submission of a private individual for the
compensation for loss is received by an institution of indirect
administration (official) which has caused the loss by its
actions in the performance of functions or tasks of a derived
legal person governed by public law, it shall immediately forward
the submission to the body of the derived legal person governed
by public law or to another institution of direct administration
specified in laws and regulations (decision-making institution),
whereas a copy of the submission shall be sent thereby to the
Ministry to which the relevant derived legal person governed by
public law is subordinate.
(3) If the submission of a private individual for the
compensation for loss is received by an institution of indirect
administration which has caused the loss by its actions in the
performance of functions or tasks of another derived legal person
governed by public law, it shall immediately forward the
submission to the body of the derived legal person governed by
public law with jurisdiction, whereas a copy of the submission
shall be sent thereby to the Ministry to which the relevant
derived legal person governed by public law is subordinate.
(4) [15 February 2018]
(5) The decision-making institution shall, within one month
after receipt of the submission, examine the legal grounds for
the compensation for loss and take the decision on the
compensation for loss and the amount of the compensation or on
the rejection of the submission.
(6) If, due to objective reasons, this cannot be done within a
month, the decision-making institution may, by taking a reasoned
decision, extend the deadline by up to four months, informing the
submitter thereof in writing. This decision may not be contested
or appealed.
(7) The loss shall be compensated from the State basic budget
if it has been caused by the actions of an institution of
indirect administration in the performance of direct
administration functions or tasks. The loss shall be compensated
from the budget of the relevant derived legal person governed by
public law if it has been caused by the actions of an institution
of indirect administration in the performance of the autonomous
functions or tasks of a derived legal person governed by public
law.
[15 February 2018]
Section 21. Procedures for the
Examination of the Submission for the Compensation for Loss
Caused within the Scope of an Autonomous Budget of the
Institution
(1) An institution with an autonomous budget which receives a
submission from a private individual for the compensation for
loss suffered within the scope of the autonomous budget of such
institution (Clause 4 of Section 3) shall immediately forward the
submission to the institution to which it is subordinate or to
another institution (decision-making institution) specified in
laws and regulations.
(2) The decision-making institution shall, within one month
after receipt of the submission, examine the legal grounds for
the compensation for loss and take the decision on the rejection
of the submission or on the compensation for loss from the
autonomous budget of the relevant institution or from the budget
of a legal person governed by public law and the amount of the
compensation.
(3) If, due to objective reasons, this cannot be done within a
month, the decision-making institution may, by taking a reasoned
decision, extend the deadline by up to four months, informing the
submitter thereof in writing. This decision may not be contested
or appealed.
[15 February 2018]
Section 21.1 Decision of
the Decision-making Institution to Compensate the Loss
(Non-received Remuneration)
(1) If the compensation for loss to be disbursed to a private
individual consists of the non-received remuneration, it shall be
taxed in the cases and in the amount specified in laws and
regulations. In such case the decision-making institution has the
obligation to indicate the following in the decision to
compensate the loss:
1) the time period for which the non-received remuneration is
to be disbursed and the taxes specified in laws and regulations
have been calculated;
2) the remuneration and the compensation for non-used
leave;
3) the mandatory social insurance contributions of the
employee (private individual);
4) the mandatory social insurance contributions of the
employer;
5) the personal income tax;
6) the amount of the compensation for loss (non-received
remuneration) to be disbursed to a private individual after
payment of taxes.
(2) The term "remuneration" used in this Law, if referring to
persons covered by the Law on Remuneration of Officials and
Employees of State and Local Government Authorities, shall be
understood as the term "remuneration" within the meaning of the
Law on Remuneration of Officials and Employees of State and Local
Government Authorities.
[1 July 2011]
Section 22. Appeal of a Decision
The decision of the institution on the compensation for loss
shall not be subject to contesting, but may be appealed to a
court in accordance with the Administrative Procedure Law.
Chapter
IV
Execution of a Decision of the Institution or Enforcement of a
Court Ruling on the Compensation for Loss
Section 23. Disbursement of the
Compensation for Loss
The compensation for loss shall be disbursed in accordance
with the provisions of this Chapter.
Section 24. Compensation for Loss
from the State Basic Budget
(1) If a decision of the institution or a court ruling is
directed against the Republic of Latvia, the amount specified
therein shall be disbursed from the programme "Funds for
Unforeseen Events" of the State basic budget or from the funds
allocated in the State basic budget for the activities of the
relevant institution.
(2) If the compensation for loss is disbursed from the
programme "Funds for Unforeseen Events" of the State basic
budget, the decision-making institution or the institution of
direct administration (official) which participated in court
proceedings shall, within one month:
1) make a request for the allocation of funds from the
programme "Funds for Unforeseen Events" of the State basic budget
and submit it to the relevant sectoral ministry. The relevant
sectoral ministry shall submit the request to the Ministry of
Finance in accordance with the procedures laid down in laws and
regulations. If the ministry is the decision-making institution,
it shall make a request for the allocation of funds from the
programme "Funds for Unforeseen Events" of the State basic budget
and submit it to the Ministry of Finance in accordance with the
procedures laid down in laws and regulations;
2) request information from the private individual on the
personal bank account or postal settlement system account,
personal data, and address of the place of residence.
(3) The decision-making institution or the institution of
direct administration (official) which participated in court
proceedings shall, within 10 working days after the allocation of
funds from the programme "Funds for Unforeseen Events" of the
State basic budget, disburse the compensation for loss by
transferring it to the personal bank account or postal settlement
system account of the private individual.
(4) If the loss is compensated from the funds allocated in the
State basic budget for the activities of the relevant
institution, the decision-making institution or the institution
of direct administration (official) which participated in court
proceedings shall, within one month after the entry into effect
of the relevant decision of the institution or court ruling and
receipt of information from the private individual on his or her
personal bank account or postal settlement system account,
personal data, and address of the place of residence, disburse
the compensation for loss by transferring it to the personal bank
account or postal settlement system account of the private
individual.
[15 February 2018]
Section 25. Compensation for Loss
from a Local Government Budget
(1) If a decision of the institution or a court ruling to
compensate a loss is directed against a local government, the
amount specified therein shall be disbursed from the local
government budget.
(2) After a decision of the institution or a court ruling to
compensate a loss has entered into effect, the decision-making
institution or the local government institution (official) which
participated in court proceedings shall, within one month, send
the true copy of the decision of the institution or the court
ruling to the local government institution with jurisdiction.
(3) The decision-making institution or the local government
institution (official) which participated in court proceedings
shall, together with the true copy of the decision of the
institution or the court ruling referred to in Paragraph two of
this Section, also send information to the local government
institution with jurisdiction on the personal bank account or
postal settlement system account, personal data, and address of
the place of residence of the relevant private individual.
(4) If the compensation for loss to be disbursed to a private
individual consists of the non-received remuneration (Section
21.1), the institution (official) shall, when sending
the true copy of the court ruling to the local government
institution with jurisdiction, indicate the following in the
cover letter:
1) the time period for which the non-received remuneration is
to be disbursed and the taxes specified in laws and regulations
have been calculated;
2) the remuneration and the compensation for non-used
leave;
3) the mandatory social insurance contributions of the
employee (private individual);
4) the mandatory social insurance contributions of the
employer;
5) the personal income tax;
6) the amount of the compensation for loss (non-received
remuneration) to be disbursed to a private individual after
payment of taxes.
(5) The local government institution with jurisdiction shall,
within a month after receipt of all the necessary information,
disburse the compensation for loss by transferring it to the
personal bank account or postal settlement system account of the
private individual.
(6) The local government institution with jurisdiction may, by
taking a reasoned decision, disburse the compensation in
instalments. The disbursement shall be made within one year from
the date of receipt of all the necessary information. The local
government institution with jurisdiction shall inform the private
individual of its decision in writing. This decision may not be
contested and appealed.
(7) If necessary and if it conforms to legal provisions, the
local government council shall adopt amendments to the local
government budget for the current year.
[1 July 2011]
Section 26. Compensation for Loss
from the Budget of Another Derived Legal Person Governed by
Public Law
(1) If a decision of the decision-making institution or a
court ruling to compensate a loss is directed against a derived
legal person governed by public law other than a local
government, the amount specified therein shall be disbursed from
the budget of the relevant derived legal person governed by
public law.
(2) After a decision of the institution or a court ruling to
compensate a loss has entered into effect, the decision-making
institution or the institution of indirect administration
(official) which participated in court proceedings shall, within
one month, send the true copy of the decision of the institution
or the court ruling to the body of the relevant derived legal
person governed by public law.
(3) The decision-making institution or the institution of
indirect administration (official) which participated in court
proceedings shall, together with the true copy of the decision of
the institution or the court ruling referred to in Paragraph two
of this Section, also send information to the body of the derived
legal person governed by public law on the personal bank account
or postal settlement system account, personal data, and address
of the place of residence of the relevant private individual.
(4) If the compensation for loss to be disbursed to a private
individual consists of the non-received remuneration (Section
21.1), the institution (official) shall, when sending
the true copy of the court ruling to the body of the derived
legal person governed by public law, indicate the following in
the cover letter:
1) the time period for which the non-received remuneration is
to be disbursed and the taxes specified in laws and regulations
have been calculated;
2) the remuneration and the compensation for non-used
leave;
3) the mandatory social insurance contributions of the
employee (private individual);
4) the mandatory social insurance contributions of the
employer;
5) the personal income tax;
6) the amount of the compensation for loss (non-received
remuneration) to be disbursed to a private individual after
payment of taxes.
(5) The body of the derived legal person governed by public
law shall, within a month after receipt of all the necessary
information, disburse the compensation for loss by transferring
it to the personal bank account or postal settlement system
account of the private individual.
(6) The body of the derived legal person governed by public
law may, by taking a reasoned decision, disburse the compensation
for loss in instalments. The disbursement shall be made within
one year from the date of receipt of all the necessary
information. The body of the derived legal person governed by
public law shall inform the private individual of its decision in
writing. This decision may not be contested and appealed.
(7) If necessary and if it conforms to legal provisions, the
body of the derived legal person governed by public law shall
adopt amendments to the budget of the derived legal person
governed by public law for the current year.
[1 July 2011]
Section 27. Compensation for Loss
from an Autonomous Budget of the Institution
(1) If a decision of the institution or a court ruling to
compensate a loss is directed against an institution with an
autonomous budget, the amount specified therein shall be
disbursed from the autonomous budget of the relevant institution
(Clause 4 of Section 3).
(2) After a decision of the institution or a court ruling to
compensate a loss has entered into effect, the decision-making
institution or the institution (official) which participated in
court proceedings shall, within one month, send the true copy of
the decision of the institution or the court ruling to the
relevant institution with an autonomous budget.
(3) The decision-making institution or the institution
(official) which participated in court proceedings shall,
together with the true copy of the decision of the institution or
the court ruling referred to in Paragraph two of this Section,
also send information to the institution with an autonomous
budget on the personal bank account or postal settlement system
account, personal data, and address of the place of residence of
the relevant private individual.
(4) If the compensation for loss to be disbursed to a private
individual consists of the non-received remuneration (Section
21.1), the institution (official) shall, when sending
the true copy of the court ruling to the institution with an
autonomous budget, indicate the following in the cover
letter:
1) the time period for which the non-received remuneration is
to be disbursed and the taxes specified in laws and regulations
have been calculated;
2) the remuneration and the compensation for non-used
leave;
3) the mandatory social insurance contributions of the
employee (private individual);
4) the mandatory social insurance contributions of the
employer;
5) the personal income tax;
6) the amount of the compensation for loss (non-received
remuneration) to be disbursed to a private individual after
payment of taxes.
(5) An institution with an autonomous budget shall, within a
month after receipt of all the necessary information, disburse
the compensation for loss by transferring it to the personal bank
account or postal settlement system account of the private
individual.
(6) An institution with an autonomous budget may, by taking a
reasoned decision, disburse the compensation in instalments. The
disbursement shall be made within one year from the date of
receipt of all necessary information. The institution shall
inform the private individual of its decision in writing. This
decision may not be contested and appealed.
(7) If an institution with an autonomous budget is unable to
execute a decision of the institution or a court ruling due to
the lack of funds, it shall immediately inform the institution to
which it is subordinate and the compensation for loss shall be
disbursed from the budget of such legal person governed by public
law to which the responsibility of the relevant institution is
attributable. The private individual shall be notified thereof in
writing.
(8) If necessary and if it conforms to legal provisions, the
body of the legal person governed by public law to which the
responsibility of the institution with an autonomous budget is
attributable shall adopt amendments to the budget of such
institution for the current year.
[15 February 2018]
Section 28. Subsidiary Compensation
for Loss from the State Basic Budget
(1) If a derived legal person governed by public law or an
institution with an autonomous budget cannot, in accordance with
Section 25, 26, or 27 of this Law, execute a decision of the
institution or a court ruling due to the lack of funds, the
compensation for loss shall be disbursed from the State basic
budget in accordance with the provisions of this Section.
(2) If a local government council or a body of another derived
legal person governed by public law or an institution with an
autonomous budget establishes that a decision of the institution
or a court ruling cannot be executed due to the lack of funds,
the local government council or the body of the derived legal
person governed by public law or the institution to which the
institution with an autonomous budget is subordinated shall make
a request for the allocation of funds from the programme "Funds
for Unforeseen Events" of the State basic budget and submit it to
the relevant sectoral ministry. The relevant sectoral ministry
shall submit the request to the Ministry of Finance in accordance
with the procedures laid down in laws and regulations. The
request shall be accompanied by documents certifying that the
disbursement cannot be made from the relevant budget. The private
individual shall be notified thereof in writing.
(3) A local government council or a body of another derived
legal person governed by public law, or an institution to which
an institution with an autonomous budget is subordinate shall,
within 10 working days after the allocation of funds from the
programme "Funds for Unforeseen Events" of the State basic
budget, disburse the compensation for loss by transferring it to
the personal bank account or postal settlement system account of
the private individual.
[15 February 2018]
Section 29. Default Interest
(1) Statutory interest shall be payable for a delay in the
disbursement of the compensation for loss.
(2) If the compensation for loss is determined by a court
ruling, the starting point for establishing default interest
shall be two months after the date of entry into effect of the
court ruling.
(3) If the compensation for loss is determined by a decision
of a State administration institution or a body of a legal person
governed by public law, the starting point for establishing
default interest shall be as follows:
1) in the case where the submission is to be examined within
one month (Paragraph two of Section 18, Paragraph five of Section
19, Paragraph five of Section 20, Paragraph two of Section 21) -
after two months from the date of submitting the submission;
2) in the case where the submission is to be examined within
four months (Paragraph three of Section 18, Paragraph six of
Section 19, Paragraph six of Section 20, Paragraph three of
Section 21) - after five months from the date of submitting the
submission;
3) in the case where the submission is to be examined within
one month but the circumstances referred to in Paragraph four of
Section 19, Paragraph four of Section 20, Paragraph seven of
Section 27, or Section 28 are present - after three months from
the date of submitting the submission;
4) in the case where the submission is to be examined within
four months but the circumstances referred to in Paragraph four
of Section 19, Paragraph four of Section 20, Paragraph seven of
Section 27, or Section 28 are present - after six months from the
date of submitting the submission.
[1 July 2011]
Section 30. Adjustment of the Use of
Funds from the State Basic Budget
If the compensation for loss is disbursed from the funds of
the programme "Funds for Unforeseen Events" of the State basic
budget in accordance with Section 28 of this Law, the sectoral
ministry may recover these funds, fully or in part, from the
relevant legal person governed by public law. The adjustment
procedure is governed by other laws.
[15 February 2018]
Section 31. Report on the
Compensation for Loss
[15 February 2018]
Chapter V
Assessment of Cases Related to the Compensation for Loss and
Civil Legal Liability of an Official
Section 32. Assessment of Cases
Related to the Compensation for Loss
(1) In order to ascertain the circumstances which caused or
contributed to causing losses subject to compensation, a higher
institution to which the institution responsible for causing the
losses is subordinate shall assess each individual case where
losses are subject to compensation in accordance with a decision
of the institution or a court ruling.
(2) After assessment of all circumstances of the case related
to the compensation for loss, a higher institution shall decide
whether to forward the case to the institution with jurisdiction
in order to determine whether the official responsible for
causing the losses should be held to disciplinary liability,
administrative liability, or criminal liability.
Section 33. Civil Legal Liability of
an Official
(1) In order to compensate the loss caused to a legal person
governed by public law due to an action of an official, the
relevant body of the legal person governed by public law or the
institution with jurisdiction shall, in accordance with this
Section, assess and recover in accordance with subrogation
procedures full or partial compensation for loss from the
official.
(2) An official shall have civil legal liability for the loss
caused to a legal person governed by public law if he or she has
acted unlawfully by intention or has allowed gross negligence in
his or her action.
(3) False application or interpretation of legal norms shall
not be regarded to be gross negligence if the opinion which has
been the basis of action of an official shall not be regarded to
be legally non-adequate. The fact that a higher institution or
court has expressed other opinion at a later time shall not serve
as confirmation for the fact that the opinion of the official has
been legally non-adequate.
(4) Officials of a collegial decision-making institution shall
be liable for the loss which has been caused to a legal person
governed by public law in accordance with the State
Administration Structure Law.
(5) If the loss is caused due to an action of several
officials, the amount of the compensation which is paid by each
relevant official shall be determined by taking into account the
degree of guilt thereof.
(6) When taking the decision to compensate a loss and
determining whether full or partial compensation for loss is to
be demanded from an official, the degree of guilt of the official
shall be taken into account.
(7) Civil legal liability of an official shall set in
regardless of whether the relevant official is held to
disciplinary liability, administrative liability, or criminal
liability.
Section 34. Subrogation Action
against an Official
(1) A higher institution (the institution with jurisdiction
laid down in the regulatory enactment) shall, within six months
from the day when the obligation for a legal person governed by
public law to compensate the loss has set in, carry out
disciplinary investigation in order to determine a possible
responsible official against whom a subrogation action could be
brought.
(2) If the official agrees to voluntarily compensate for the
loss, the amount of the compensation shall be deducted from his
or her remuneration.
(3) In the cases provided for in Sections 24 and 28 of this
Law, the funds recovered in accordance with the subrogation
procedures shall be credited to the State basic budget.
Transitional
Provisions
[18 October 2012]
1. Section 28 of the Law shall come into force on 1 February
2006.
[18 October 2012]
2. Amendment to this Law regarding the supplementation of
Section 1 with Paragraph two and Section 2.1 shall
come into force on 1 January 2013.
[18 October 2012]
3. Examination of the cases accepted for examination prior to
entry into force of Section 2.1 of this Law in
relation to the compensation for losses caused to a private
individual by an unlawful decision of the institution in an
administrative offence case shall be continued by the institution
or court that accepted the case (regardless of whether the
submission for the compensation for loss is submitted
concurrently with the appeal against the decision in an
administrative offence case or after the date of entry into
effect of the final judgment) in accordance with the provisions
laid down in the Administrative Procedure Law and this Law.
[18 October 2012]
4. Private individuals who have been refused the acceptance of
the submission for the compensation for loss due to expiry of the
deadline specified in Section 17 of this Law may, until 31 July
2013, submit a new submission for the compensation for loss,
requesting to renew the missed procedural deadline.
[18 October 2012]
5. The Cabinet shall, by 31 December 2013, develop and submit
to the Saeima the necessary draft laws to improve the
compensation for losses caused by the State to private
individuals.
[18 October 2012]
6. A decision of the institution or a court ruling to
compensate a loss which has been received by the Ministry of
Finance before 28 February 2018 shall be examined in accordance
with the legal provisions in force before 28 February 2018. The
Ministry of Finance shall, by 15 April 2018, prepare and submit
to the Cabinet a report on the costs incurred in 2018.
[15 February 2018]
7. The terms "personal injury" and "non-pecuniary damage" used
in the Administrative Procedure Law shall conform to the term
"non-material damage" used in this Law.
[15 February 2018]
8. Amendments regarding the replacement of the words "personal
damage, including moral damage" with the words "non-material
damage" in Section 1, Paragraph one of this Law, replacement of
the words "personal damage, including moral damage" with the
words "non-material damage" in Paragraph three of Section 2, the
rewording of Section 8, the deletion of Section 9, the rewording
of Paragraphs two and three of Section 11, the rewording of
Paragraph three of Section 13 and Section 14 shall not be
applicable in the examination of cases where the relevant
submission to the institution or the application to a court has
been submitted until the date of coming into force of these
amendments.
[15 February 2018]
The Law has been adopted by the Saeima on 2 June
2005.
President V. Vīķe-Freiberga
Rīga, 17 June 2005
1 The Parliament of the Republic of
Latvia
Translation © 2022 Valsts valodas centrs (State
Language Centre)
