The success might be the much needed turning point for the RES sector in its struggle with the anti-constitutional actions of the State related to the imposition of the 20 % fee on the income from certain categories of RES power plants in 2014.

With a final decision from 06.04.2020 under civil case 3804/2019, published on the web-site of the Supreme Court of Cassation (SCC) on 22.04.2020, a panel from 4th Civil Division of SCC, presided by the esteemed judge Borislav Belazelkov, fully shared the position maintained and proactively defended under this and other similar cases by our litigators, led by our associate partner and head of litigation practice Atanas Valov, and ruled that the State should be held liable for unlawful actions of the Bulgarian Parliament on the grounds of Art. 7 of the Bulgarian Constitution, as well as that the adoption of anti-constitutional laws by the Parliament and the inaction of the latter to remedy the consequences from such anti-constitutional law after such law is pronounced anti-constitutional by the Bulgarian Constitutional Court is a form of tort, through which the State might cause damages to the physical persons and legal entities which should be indemnified on the grounds of the Constitution and the Obligations and Contracts Act.

SCC adopted similar decision under one more case of RES producer, represented by our team, whereby the decision under the second case is from 21.04.2020 and is not yet published on the website of the court due the delay arising out of the Covid-19 crisis, but the decision if final and already reflected in the electronic case-processing system of the court.

The above decisions of the SCC lead to a vital breakthrough in the outdated doctrine for the lack of liability of the State for the results from its legislative activity, and the citizens and legal persons were allowed to defend their rights and interests, violated by anti-constitutional acts of the Parliament, when the latter fails to act and does not fulfill its obligations envisaged in Art. 22, para 4 of the Constitutional Court Act.

Thus the position of our team, which stood for the main principles of “rule of law” and for the protection of the rights of the RES sector for more than 6 years, met an in-depth professional understanding from the Supreme judges, which have confirmed through their actions the independence and separation of the powers, and the final result is a landmark victory for the primary rights of the entrepreneurs such as the right of peaceful enjoyment of possession and the right of protection of investments.   

Inspired by this achievement, we shall continue with full energy and dedication to employ our efforts and experience gained in the last few years in the protection and representation of not only the interests of the RES sector, but also the interests of any other investors against any and all acts, incompatible with the principles of the rule of law such as the effective remedies for violations and protection of the basic rights of the physical and legal persons.