Podgorica, (MINA-BUSINESS) – The Constitutional Court has determined in two recent decisions that Montenegrin courts cannot add conditions for state liability beyond those prescribed by law.

It stated that this restricted the right of citizens and companies to compensation for damage caused by unlawful or improper actions of state authorities.

In the first case, a Commercial Court judge instructed the Podgorica-based company K. to initiate separate proceedings before that court. The proceedings cost nearly €14,500, only for it to be established that they were unnecessary and contrary to law. The company sought compensation from the state, but the Basic and High Courts in Podgorica rejected the claim, arguing there was no intent to cause damage.

In the second case, company C.K. bought land from Belgrade-based firm O, which turned out to be owned by D. from Gorazde. In its lawsuit, C.K. argued that the state was jointly responsible, as its authorities contributed to the conclusion of a void contract. The Supreme Court upheld the position of the Podgorica High and Basic Courts that there was no improper or unlawful conduct by public authorities, i.e., “intent or negligence.”

The Constitutional Court found that the requirement of “intent or negligence,” imposed by the courts, does not exist in the Law on Obligations, reminding that the state is responsible for damage caused by unlawful or improper actions of public authorities.

The Constitutional Court upheld the constitutional complaints and returned the case of company C.K. to the Supreme Court and the case of company K. to the High Court for retrial and reconsideration.