- Insufficiently Victory-secured Litigations Regarding Corona Aid Refunds
By August 21, 2024, out of roughly 1,600 grievances concerning overpayments in COVID-19 business relief claims in Hesse, only two claims have been victorious. This information was disclosed by the Ministry of Economics in Wiesbaden to the German Press Agency. The aim of the diverse federal and state COVID-19 aid initiatives was to alleviate the financial strain on businesses and freelancers due to the COVID-19 outbreak and the government-enforced restrictions.
For the initial COVID-19 emergency aid, responsibility lies with the Regional Council (RP) in Kassel, while the later COVID-19 transitional aid is managed by the RP in Gießen. In the jurisdiction of the RP in Kassel, 563 matters have been closed and 313 are still pending. "To date, no legal action has been successful, and 69 cases have been resolved," the ministry explained (as of August 21, 2024).
In the area of the RP in Gießen, there are 550 ongoing court cases. Two victories have been achieved in these proceedings. "In the other cases, the judgments have been upheld by the courts or the cases have been terminated, for instance, by withdrawing the lawsuit or in some other manner," the Ministry of Economics reported.
Approximately 957 million euros were disbursed under the first funding program, the initial COVID-19 emergency aid, to maintain liquidity for ongoing operating expenses such as rent and lease. The ministry stated that this was done for 106,214 approved applications in Hesse.
In approximately 4,000 instances, repayment demands were made. Business owners have already returned 38.6 million euros. "Furthermore, there is an amount that cannot be easily quantified, which includes demanded but not yet repaid funds, such as installment payments, other postponements, or pending court cases," the Ministry of Economics explained.
The Ministry of Economics mentioned that in the other ongoing court cases related to COVID-19 aid claims in the jurisdiction of the RP in Gießen, the judgments have been upheld by the courts or the cases have been terminated through various means. Other than the victories in two claims, no legal action has been successful yet in settling the grievances concerning overpayments in Hesse.
