Italy: Constitutional Court - Legislative intervention with retroactive effects on pending judgments is unconstitutional

In brief

On 6 May 2024, the Constitutional Court declared the constitutional illegitimacy of Article 36, paragraphs 1 and 2, of Law No. 449/1997 for violating Articles 3, 111 and 117, paragraph 1, of the Constitution. The Court, indeed, found that these provisions, allegedly introduced with the aim of providing an authentic interpretation of Article 8, paragraph 12, Law No. 537/1993 (which had introduced a price surveillance regime for medicines), aimed at interfering with multiple ongoing judgments in which the public administration was involved. 


Contents

Key takeaways

In this case, the Legislator had intervened through paragraphs 1 and 2 of the aforementioned Article 36 to offer an authentic interpretation of the aforementioned Article 8. These provisions were applicable also retroactively, thus also to the multiple pending judgements involving the public administration, to which claims were also submitted.

On this point, the Court ruled that the provisions covered by the questions raised "evidently aimed at affecting judgments in which the public administration is a party; judgments of which it is intended to frustrate or in any case condition the outcome, also with reference to the related compensation profiles". The Court, indeed, argues that "this purpose emerges from the preparatory works", which reveal no reasons that can justify said retroactive intervention "other than the need to overcome the reasons of illegitimacy endorsed by the Council of State that annulled the CIPE (Inter-ministerial Committee for Economic Planning and Sustainable Development) resolution", the competent authority on the matter.

The Court, therefore, insisted that, since the objective pursued was to sterilize the effects of the Council of State's ruling, the provisions in question must be deemed constitutional illegitimacy in violation of the principles of due process and the equality of the parties before the courts established by Articles 3, 111 and 117, paragraph 1, of the Constitution, and, through the latter, by Article 6 ECHR.


Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.