THE BOTTOM LINE
- Cost of Inaction: If a Dutch government body misses a legally mandated deadline for a decision, it can be ordered to pay the legal costs incurred by the party that files an appeal against the delay.
- Action After Appeal Still Costs: The government is liable for these costs even if it issues the decision shortly after the appeal is filed. The act of filing the lawsuit is what forces the decision, making the government responsible for the associated fees.
- A Tool for Business: This principle of Dutch administrative law is a crucial tool for companies awaiting overdue permits, licenses, or other regulatory decisions. It provides a clear, cost-effective path to compel government action.
THE DETAILS
In a recent ruling, the District Court of The Hague reinforced a vital principle for anyone dealing with Dutch administrative bodies: calculated inaction has financial consequences. The case involved an asylum applicant who sued the Minister for Asylum and Migration for failing to issue a decision on their application within the legal timeframe. The government had already been ordered by the court in a prior judgment to make a decision within four weeks but failed to comply, prompting a second appeal from the applicant.
The core of the issue arose when the Minister finally issued a decision after the second appeal was filed. The applicant then withdrew their appeal but requested that the government cover their legal costs. The government argued the appeal was premature, but the court disagreed. It found that because the government only acted in response to the legal pressure of the lawsuit, it had effectively “accommodated” the applicant’s request. This concession, prompted by the filing of the appeal, is the legal trigger that makes the government liable for the costs incurred.
While this case originated in immigration law, its implications are far broader and serve as a critical reminder for business leaders and legal counsel. The mechanism used by the applicant—filing an appeal against a failure to decide—is a powerful instrument available under the Dutch General Administrative Law Act. For any company facing damaging delays in obtaining a crucial permit, license, or regulatory ruling, this precedent confirms that legal action can not only force a decision but can be pursued with the expectation that the government will bear the procedural costs if it concedes by acting late.
SOURCE
Source: Rechtbank Den Haag (District Court of The Hague)
