Claim for compensation

Damages caused by the exercise of public authority can, under certain conditions, be compensated from state funds. In enforcement proceedings, the exercise of public authority includes making decisions and the actual implementation of enforcement measures.

The damages incurred from enforcement are usually material. For example, debtors can be compensated for damage to their property during storage by the enforcement authority, third parties can receive compensation for inconvenience caused to them, or customers of enforcement auctions can be compensated for losses incurred from defects in the purchased property. Injuries caused by enforcement measures can also be compensated.

Conditions for the compensation of damages

As a rule, the compensation of enforcement damages from state funds requires negligence, i.e. the damage being caused by an error or act of negligence in the enforcement proceedings. Another condition for the payment of damages is non-compliance with the reasonable requirements concerning the performance of the task or duty, taking its nature and purpose into account. In certain cases specifically provided for by law, compensation can also be paid regardless of negligence, i.e. on the basis of “strict liability”.

If the damages were caused by an enforcement officer’s appealable decision, such as a decision on the distraint or sale of assets, the injured party must appeal against the decision to retain their right to compensation for damages. The injured party will forfeit their right to compensation from the state if they fail to lodge an appeal without a valid reason.

Claiming compensation

If you feel that you have suffered damages due to the activities of the enforcement authorities, you should file a claim for compensation against the state. The claim can be filed with the enforcement authorities, who can decide on the payment of compensation in cases where the liability is clear or the payment of compensation is considered reasonable. The enforcement authorities do not process claims based on personal injuries. Claims for compensation for personal injuries, but not other claims concerning enforcement, can be filed with the State Treasury.

You can also claim compensation for all types of damages by suing the state for damages in a competent district court. You do not have to claim compensation directly from the enforcement authorities or State Treasury before taking legal action.

There is no time limit as such for claiming compensation from the state. However, the claim must be filed before the damages become time-barred, regardless of whether compensation is being sought in the district court or by a claim filed against the enforcement authorities or State Treasury. Damages become time-barred in three years from when the injured party became or should have become aware of the damages and the party responsible for them. If you do not bring action against the state or claim compensation within this three-year time limit, the damages become time-barred and you forfeit your right to compensation from the state.

There are no formal requirements for claims for compensation addressed to the enforcement authorities, but the claim must be made in writing. The claim must specify the damages incurred by the complainant. It must also describe the conduct of the enforcement authorities that caused the damages, as well as on what basis the state is liable for them. State the amount of damages if you are aware of it at the time of filing the claim. You should also attach any documents that support your claim and a report on the amount of damages to your claim.

Processing of the claim by National Enforcement Authority Finland

When the enforcement authorities receive the claim, they will request the opinion of the authority whose conduct the matter concerns.

The enforcement authorities will process the matter in writing and make a written decision on whether to pay compensation from state funds in the matter or reject the claim for compensation.

Decisions made by the enforcement authorities in matters concerning compensation for damages are not appealable. If you are dissatisfied with the decision, you can sue the state for damages in the district court. The enforcement service will speak for the state in the trial. District court judgments regarding claims for damages can be appealed to the courts of appeal and further to the Supreme Court if they grant you leave to appeal the judgment.

Costs incurred from claiming compensation

The processing of claims for compensation by the enforcement authorities is free of charge. As a rule, the losing party in a trial for damages is obliged to pay their own legal costs as well as those of the opposing party. The enforcement authorities will demand compensation for their legal costs from the opposing party.