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 going to a special court called Juzgado Contencioso Administrativo (Administrative Dispute Court) that uses a revised procedural code named 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 that would take years to finalize. Now with the new set of rules and its own court, suing the government can be a faster and more efficient process.
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 settled. The phone company had arbitrarily decided to retain a deposit without undergoing any judicial process.
Under the new regulations, a person or company with a complaint files it directly with the Administrative Dispute 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 protocol administrative routes for its resolution must be exhausted. The dispute court should be the last resort and will have the final say in any matter brought to its attention. This court will not process trivial charges against the government or its administrative offices, nor does it circumvent the normal resolution procedures.
The process goes somewhat like this: one files a complaint with the dispute court stating all avenues for a settlement have been exhausted. 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 inflated amounts for obvious reasons, nor does it want to lose the taxes. All efforts to work with the municipality have failed. All appeals have been lost. Therefore, the only place to turn to in order 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 that employees at the Registro are not solving the cases, they are just twiddling their thumbs. Some of these employees admit fault for cases in which properties have been illegally transferred 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 this institution is responsible for disseminating incorrect information. Everyone in Costa Rica has to go through this entity if they buy or sell property. If the data registered on the transaction documents is not correct, how can there be any security investing in Costa Rica? Some lawyers go further than just criticizing the Registro Nacional. They feel the organization should guarantee its information and indemnify any losses.
However, most complaints fall on deaf ears. The Registro does not compensate for losses, even if they are at fault; instead, the institution believes all relief must come from the courts. The criminal court system is in a state of meltdown: civil courts are overworked and inefficient. Where can one get their money back? Who has the last word?
These cases are no longer the constitutional court’s responsibility. The magistrates are sending most of them back unanswered, indicating that the new Código Procesal Contencioso Administrativo is the law to use in order 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 court can put a judicial lien on the national budget to guarantee payment.
For someone who has exhausted all administrative procedures to solve a case without success — including having something stolen because of the government’s ineptness — they should consult with their legal advisor regarding the options offered by the revamped code for administrative disputes, including the possibility for reimbursement.
