Liability of the State

Anytime a business is set up in Germany governmental supervision is involved, which ranges from certain obligations to provide notification of the commencement of operations to the fulfillment of specific permit requirements beforehand. On the other hand, the state’s ability to influence business activity this way also entails a considerable amount of liability risk. The numerous legal regulations in existence give rise to enormous potential for error, even to state institutions. Enormous damages can be sustained as a result of an unreasonable delay in the commencement of a business operation caused by wrongful supervisory acts or omissions. The state is liable for such damages.