Cities Urge Swift Limits on Group Lawsuits

Cities Urge Swift Limits on Group Lawsuits

Municipal leaders are advocating for a swift reform of the right of associations to bring legal action, aiming to expedite the deployment of funds from special-purpose infrastructure funds. André Berghegger, Managing Director of the German Association of Cities and Municipalities (DStGB), told the “Neue Osnabrücker Zeitung” (NOZ) that the practice frequently leads to the blockage of infrastructure projects. He suggested restricting the right to sue to instances where associations are directly affected by a project or were inadequately involved in the permitting process.

This push for reform aligns with a commitment made in the governing coalition agreement between the Union and SPD parties, which outlined plans to tighten the right of associations to bring legal action before administrative courts, focusing on actual impact and exploring international reduction models. While details regarding concrete preparations within the office of Justice Minister Stefanie Hubig (SPD) remain scarce, the DStGB is urging rapid action.

Berghegger emphasized that accelerating the reform could significantly boost the anticipated economic recovery. The call follows the provision of 100 billion euros for states and municipalities from the Infrastructure Special Fund. He asserted that clear and long-term financial commitments and guaranteed project orders are necessary to enable local authorities and the local economy to build capacity for planning and implementation.

The association recognizes the importance of upholding the rule of law but argues that current procedures often lead to protracted legal battles lasting years or even decades. Beyond the reform of the association lawsuit right, another potential solution identified is addressing the ability of claimants to escalate cases to higher courts based on purportedly new arguments after initial approvals. The DStGB proposes a mechanism for final decisions at a specific court instance, ensuring legal certainty and facilitating project commencement.