Settlement-based discontinuance of proceedings under § 106 VwGO and voiding of prior judgments in a subsidy dispute

The Federal Administrative Court (BVerwG) ordered the discontinuance of proceedings because the parties reached a judicial settlement, simultaneously declaring the judgment of the Higher Administrative Court of Thuringia from November 26, 2008, and the judgment of the Administrative Court of Gera from July 17, 2006, void and of no effect. The dispute concerned a challenge to a financial subsidy granted to a foundation affiliated with a political party. Although the specific substantive legal merits were not decided due to the settlement, the procedural termination was effected under § 106 sentence 2 of the Administrative Procedure Act (VwGO), which allows for the resolution of litigation through a court-proposed settlement agreed upon by both parties, thereby nullifying the lower court rulings.