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Coronadvice 13 – What we think about the state compensation
Due to the coronavirus pandemic and the emergency measures taken, it is possible to claim damages from the state. Given the information currently appearing in the media, many clients ask us if it makes any sense at all. In our opinion, the state has a strict liability for damages caused by the emergency measures taken by the Ministry of Health this week.
The procedure can be summarized to following steps:
a) the documentation of damage and its extent, supported by accounting or other documents
b) an explanation of the context in which the damage has occurred, and why it would not have occurred without these measures
c) consulting with lawyers, and finalizing the grounds
d) claiming damages from the competent authority
e) if the application is not granted or is not answered, it is possible to bring an action against the State
What exactly is included under the “documentation of damage and its extent, supported by accounting or other documents”?
- Create an statement of income projections, i.e. income that was expected (contracted) but subsequently cancelled. Each planned income item needs to be supported by a contract or communication that implies there was an agreement between the parties, and a communication showing that it was not performed and why it was not performed. If a deposit has been made, or a prepayment received, record how much has been refunded to the other party and how much is the expected loss of income.
- Create an overview of the operating or closure expenditures incurred as a result of the coronavirus measures. These can be costs related to employees, rent, supplier or material expenses.
- The expenses are required to be supported by contracts or invoices. Since the legal restrictions continue to evolve over the past few weeks, it is also important to list when the damage occurred:
a) before the announcement of the emergency state on 12 March 2020 (14:00),
b) from 12. 3. 2020 (14:00) to 24. 3. 2020 (6:00),
c) from 24. 3. 2020 (06.00) to 27. 3. 2020 (06.00),
d) after 27 March 2020 (6:00).
Think about how to prove what income you usually have and what income you would expect in a pandemic situation if the government did not take emergency measures. It is likely that the number of clients would still be lower than if there was no pandemic.
This situation is highly uncertain, and legal opinions on damages differ widely. Therefore, nothing can be considered certain. In our opinion, one who does not try anything will certainly get nothing. There is no need to wait until the end of the state of emergency to file a claim.
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Jasper Brinkman
Jasper Brinkman
"Following a devastating hotel fire in Prague, the law firm Holubová advokáti, led by attorney Klara Dvorakova, successfully represented our extended family as a group of victims. The firm navigated complex international insurance and compensation laws to defend our rights.
I would like to acknowledge the extraordinary efforts the firm had to make to bring our case to a successful compensation under extremely difficult circumstances."
Stewarts
Stewarts
"A visit to her daughter in London turned Eva's life upside down when she says she stepped into a crossing on a green light but was hit by a car. Despite her remarkable bravery, she faced a long treatment due to fractures in her pelvis, and the associated limitations and pain are likely to persist for the rest of her life. Regular headaches and impaired concentration compound her challenges.
Eva contacted us through an organization temporarily helping her manage her difficult living situation. At that time, she was destitute, relying only on subsistence payments. We were able to assist her because we specialize in personal injury and have contacts with proven colleagues abroad.
We worked with Stewarts, a UK law firm, on this case. Attorneys Klára Dvořáková and Rebecca Huxford helped Eva with the documentation in her case, explaining her options and the differences between the Czech and British systems of healthcare and social benefits reimbursement. Within a few months, thanks to the professional cooperation between the two offices, an offer of compensation from the insurance company of approximately CZK seven million was achieved. The client accepted this settlement because she did not want to deal with courts in the United Kingdom.
Subsequently, we assisted the client with related tax issues and contacted Auditone, a tax consultancy firm, which arranged for the filing of a tax return. Compensation for lost income is taxable, unlike most personal injury compensation.
'No one has done as much for me as you,' Eva said.
The fact that we were able to help Eva gives our work meaning and brings us great joy. We are very happy that, thanks to our many years of active involvement in the international professional organization PEOPIL, we can cooperate on such cases."