Uzbekistan adopts law on compensation for damage caused by unlawful actions of state authorities

Uzbekistan has enacted a new law, "On Compensation for Damage Caused by an Unlawful Decision, Action or Inaction of a State Authority or Its Official," which is set to become effective on January 28, 2027, six months following its official publication.

This legislation stipulates that courts will adjudicate disputes concerning compensation. The final amount awarded for both material and non-material damages will be determined by a conclusive court ruling.

**Compensation Funds to Be Established**

The law mandates the establishment of regional targeted compensation funds. These funds will operate under the purview of the Council of Ministers of the Republic of Karakalpakstan, regional administrations, and the Tashkent city administration.

Upon a court decision gaining legal force, compensation will be disbursed in monetary form from the appropriate regional compensation fund.

Should a specific individual be identified as responsible for the damage through a final court ruling, that person will be obligated to compensate for both material and moral harm.

**State to Recover Payments from Those Responsible**

In instances where compensation has been paid from a regional fund and the law permits the state to seek reimbursement from the responsible individual, the Council of Ministers of Karakalpakstan or the relevant regional or Tashkent city administration will file a claim with the state body where the individual is currently or was previously employed.

The state body is required to transfer the full amount to the compensation fund from its off-budget resources within three working days. Subsequently, it must initiate legal proceedings to recover these funds from the responsible individual through the right of recourse.

If the institution's off-budget resources are insufficient, it must revise its expenditure estimates to ensure the necessary funds are transferred within the stipulated timeframe.

Should the responsible individual not voluntarily reimburse the amount, the state body will pursue recovery of the funds through the courts.

**Law Excludes Several Categories of Claims**

This legislation specifically addresses damage resulting from unlawful decisions, actions, or inactions by state authorities, their structural and territorial subdivisions, or their officials.

However, it explicitly excludes several categories of cases, which are governed by separate legislation. These include compensation for damage caused by unlawful actions of members of the National Guard, internal affairs bodies, customs authorities, military personnel, and state notaries.

Furthermore, the law does not apply to compensation related to counterterrorism operations, emergency response measures, states of emergency, or the compulsory acquisition of land plots for public needs; all of these are regulated by distinct legal acts.