By: Garland M. Baker B.
Exclusive to A.M. Costa Rica
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People are tired of losing money in Costa Rica. They are fed up with flushing it down the toilet due to the mistakes made by the Registro Nacional and other government entities. They are also disgusted with the bulling around they get from administrative offices.
Expats and Ticos alike are fighting to get their money back. To resolve their conflicts, they are suing the government, holding it responsible for its inefficiencies and negligence. They are using a revised procedural code called the Código Procesal Contencioso Administrativo or the procedural code for administrative disputes.
These retooled set of rules were created by Law 8508 on April 24, 2006, and came into effect Jan. 1. The law revised a system to sue the government. In the past, doing so was a long and drawn out process, taking years. With the new set of rules, doing so now can be faster and more efficient.
The tribunal of this court just ordered Costa Rica's telecommunications monopoly to return $15 million to Alcatel. The court ruled in favor of Alcatel's petition that the monopoly had no right to the money until the legal case between the two organizations was decided. The phone company arbitrarily decided to retain a deposit without judicial process.
Under the new regulations, a person, or company with a complaint files it with the special court located in Goicoechea — many refer to this area as Guadalupe, probably because it is easier to pronounce. It is the court building in front of Clínica Católica just northeast of San José.
It is important to note that before a case can be filed with the special court, all the normal administrative routes for a resolution to the problem must be exhausted. The dispute court is the place of last resort for the final say in a matter. It is not for trivial charges against the government or its administrative offices, nor to circumvent the normal resolution process.
The action goes something like this. One files a complaint with the special court stating all avenues for a settlement have ended. The accused party is notified and given a prudent time to answer the accusation by the reviewing judge. Once the reply is received, the plaintiff is given three days to address the defendant's position. The reviewing judge calls for a conciliation hearing between parties. If nothing is resolved in this hearing, the case is then sent to a three-judge tribunal for a decision. In cases where physical testimony is necessary, a trial is set. The special court's timing, under the new code, is designed to be expeditious to solve problems quickly.
Here is an example of a case going to the administrative dispute court:
Many years ago, Banco Anglo, a national bank, over extended itself by lending money based on land values that were fraudulently concocted by borrowers. These land values ultimately were registered on the properties at the Registro Nacional and, in turn, became the property values used by municipalities to compute taxes all over the country. In one case, the valuation is 10 times the actual value of the property.
The municipality does not want to reduce the amount for obvious reasons. It does not want to lose the taxes. All efforts to work with the municipality have failed. All appeals have been lost. The only place to turn to to have this unfair tax rescinded is the court of last resort — the Juzgado Contencioso Administrativo.
The court is hearing a wide range of cases these days, including ones against the Registro Nacional for their inefficiency and negligence. There are many properties in Costa Rica with administrative alerts against them placed there by this institution. A worse problem is, employees there are not solving the cases, just twiddling their thumbs. In some, they admit faults for properties being transferred illegally to crooks. However, they do nothing to resolve the messes they have created.
Many lawyers believe the country should pay and are filing cases using the new code to go after the Registro. They believe the institution is responsible for disseminating information that is not correct. Everyone in Costa Rica uses the systems of this entity to buy and sell property. If data is not correct, how can there be any security investing in Costa Rica? Some lawyers go further in criticizing the Registro Nacional. They feel the organization should guarantee its information and indemnify losses.
Complaints fall on deaf ears. The Registro does not compensate for losses even if it is the institution's fault. The institution believes all relief must come from the courts. The criminal court system is in a state of meltdown. The civil courts are overworked and inefficient. Where can one get their money back? Who has the last word?
It is no longer the constitutional court for these cases. The magistrates are sending most of them back unanswered, indicating that the new Código Procesal Contencioso Administrativo is the law to use to fight for equity against the government.
The new rules are serious. A complaining party can ask the court for preventive measures to protect any potential award. Upon winning a suit against a government institution, if the government does not pay, the national budget can have a judicial lien put on it to guarantee payment.
For someone who has exhausted all processes to solve an administrative problem unsuccessfully — including having something stolen from them because of the government's ineptness — he or she should consult their legal professional. It should be regarding the revamped code for administrative disputes to see if there is a possibility for reimbursement.
Article first published in A.M. Costa Rica on November 10, 2008.
