State Liability: Compensation for an Unlawful Criminal Accusation

An acquittal or the discontinuance of criminal proceedings may provide grounds for a compensation claim under Bulgaria’s State and Municipalities Liability for Damage Act (ZODOV). The grounds on which the case ended, the harm suffered and its connection with the criminal prosecution must be examined.

When does the Act allow compensation?

Article 2(1)(3) ZODOV provides for liability for a criminal accusation where the person is acquitted or the proceedings are discontinued because the act was not committed by that person or does not constitute a criminal offence. The provision also covers proceedings instituted after the prosecution had become time-barred or the act had been amnestied. A reference to a limitation period in the discontinuance order is not sufficient by itself: when the proceedings were instituted and the precise ground for discontinuance matter.

The final decision and evidence that it has become final are needed for this assessment. Discontinuance does not automatically give rise to compensation in every case. The claimant must establish the requirements of the legal ground relied on, the harm and the causal connection.

What harm is considered?

Under Article 4 ZODOV, compensation covers pecuniary and non-pecuniary damage that is a direct and immediate consequence of the injury. Liability does not depend on proving personal fault on the part of a particular official.

Financial losses must be supported by documents and other evidence of their amount and connection with the prosecution. For non-pecuniary damage, the suffering experienced and the actual effects on personal, family and professional life are assessed.

There is no uniform compensation amount for every case

In Judgment No. 50194 of 31 October 2022 in civil case No. 3754/2021, Fourth Civil Division, the Supreme Court of Cassation requires a specific assessment of the circumstances. Relevant factors may include the seriousness and number of accusations, the duration of the proceedings, detention and other restrictions, and the established consequences for the individual. An amount awarded in another case is not a tariff for your case.

If the injured party is a company

A claim for harm caused by an unlawful criminal accusation against an individual must be distinguished from other grounds under ZODOV. The general statement that legal entities cannot claim compensation from the state is incorrect: Article 1 expressly includes them in cases of unlawful administrative activity, while Article 2b also protects them against breaches of the reasonable-time requirement. The applicable procedure depends on the particular injury.

Which documents should you prepare?

• The acquittal judgment or discontinuance order, together with evidence that it has become final.
• Documents concerning the accusation, detention and other measures or restrictions.
• Medical records, evidence of expenses and income, and other information about the harm suffered.
• A short chronology and details of people who can give evidence of the consequences.

With these materials, Tomovi Law Firm can assess the grounds for a claim, the appropriate defendants, the applicable time limits and the evidence required in your particular case.

Sources: ZODOV, Articles 1, 2, 2b and 4; Supreme Court of Cassation Judgment No. 50194 of 31 October 2022.