THE BOTTOM LINE
- Hold Agencies Accountable: If a Dutch administrative body, such as the Employee Insurance Agency (UWV), fails to make a decision within the legal deadline, businesses can take them to court to force a resolution.
- Cost Recovery is Possible: Even if you withdraw your court case because the agency finally makes a decision, the court can still order the agency to pay your legal costs for having to file the case in the first place.
- Reduced Financial Risk: This ruling confirms that the costs of holding a government agency to its deadlines are largely recoverable, including both standardized legal fees and the reimbursement of court filing fees.
THE DETAILS
This case involved a home care company, Emcart Thuiszorg Uitleen B.V., that had applied to the Dutch Employee Insurance Agency (UWV) for a disability benefits reassessment for one of its employees. When the UWV failed to issue a decision within the statutory timeframe, the company was left in administrative limbo. To break the deadlock, Emcart exercised its right under Dutch law to file a specific type of appeal with the court for “failure to decide”. This is a common legal tool used to compel a government body to act when it has missed a deadline.
The legal action proved effective. Shortly after the company filed its appeal in March 2023, the UWV issued its decision in June 2023. Having achieved its primary objective of getting a decision, Emcart withdrew its appeal. However, the company argued that it should not have had to incur legal expenses to force the UWV to do its job. It therefore requested that the court order the UWV to pay for its process costs, a request to which the UWV did not object.
The District Court of Midden-Nederland sided with the company. It reasoned that because the UWV only made its decision after legal proceedings had been initiated, the agency had effectively acknowledged the validity of the company’s complaint. Based on the Dutch General Administrative Law Act, this situation entitles the petitioner to compensation for their legal costs. The court awarded a standardized fee of €453.50 for the legal work involved in filing the appeal and noted that, under the law, the UWV is also obligated to refund the company’s €385 court filing fee.
SOURCE
Rechtbank Midden-Nederland
