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KHO:1998:18 AI generated

Supreme Administrative Court dismissed liability claim against municipal officials for failing to secure loan collateral.

Case Number KHO:1998:18
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Dismissed
Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Supreme Administrative Court dismissed the liability claim against the municipal executive director and mayor for failing to secure collateral for a 1991 housing loan. The plaintiffs argued that the officials' negligence caused financial loss to the municipality in 1994 due to insufficient security. The court ruled that the officials were not liable because the law did not impose a strict duty to secure collateral in this specific context.

Legislator headnote

AI generated

Section 6 of the Municipal Act 1994; Section 10 of the Liability Act 1994: Municipal officials are not liable for damages resulting from the failure to secure collateral for municipal housing loans unless specific statutory conditions for strict liability are met.

Keywords

AI generated
municipal liability housing loans collateral security official negligence Supreme Administrative Court financial loss duty of care

Cited Legislation

AI generated
Section 6 of the Municipal Act 1994
Section 10 of the Liability Act 1994
AI generated
admin_1996_kuopio-county__168
Municipal council cannot deny immunity for 1994 loss based on 1991 negligence when immunity was granted for 1991.
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kko-precedent_1997_103
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Public trade certifier not considered entrepreneur for pension insurance despite receiving fees from private transactions.

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Full text

Kunnan hallintojohtaja, jolle asuntolainojen hoito kuului ja kunnanjohtaja, jolle valvontavelvollisuus kuului olivat laiminlyöneet hankkia vakuuden vuonna 1991 myönnettyyn kunnan asuntolainaan. Koska puutetta ei oltu korjattu, puutteellisista vakuuksista aiheutui kunnalle vahinkoa vuonna 1994.

Samoin D:1292/1/96