Since suspension by a trade association does not require a competent authority’s approval or recordation and does not involve the exercise of public authority, national compensation shall not be sought for suspension by a trade association which is not corrected by the competent authority (Taiwan)

2018.7.17
Frank Sun

The Taiwan High Court rendered the 107-Shang-Guo-7 Civil Decision of July 17, 2018 (hereinafter, the “Decision”), holding that since suspension by a trade union does not require a competent authority’s approval or recordation and does not involve the exercise of public authority, national compensation shall not be sought for suspension by a trade association which is not corrected by the competent authority.

According to the facts underlying this Decision, the Plaintiff filed a complaint alleging that the Defendant, or the Social Welfare Department of New Taipei Government, had allowed the recordation of the amended charter of the New Taipei City Veterinary Association (hereinafter, the “Charter at Issue”) without ascertaining if there was any issue in the amendment process of the association within the Defendant’s jurisdiction and had allowed such association to adopt a resolution to suspend the Plaintiff pursuant to the newly amended charter.  Therefore, a complaint was filed to seek national compensation on the ground that the Plaintiff had been injured.  The original decision was rendered against the Plaintiff.  Dissatisfied, the Plaintiff appealed.

According to this Decision, in view of the people’s freedom of association protected under Article 14 of the Constitution and under the principle of autonomy and self-regulation of people’s organizations, the competent authority should avoid excessive intervention in the operation of an association to safeguard the freedom of association of the people.  Although the Defendant is the competent authority for people’s organizations, still it has no judicial investigation authority, has no right to interfere with or adjudicate disputes between a people’s organization and its members over rights and obligations, and is not legally obligated to inform the Plaintiff of the reasons and grounds of his suspension.  Since the Plaintiff’s suspension by the association did not require the Defendant’s approval or recordation, this did not involve the Defendant’s exercise of public authority.  Therefore, the Plaintiff shall not seek any compensation from the Defendant pursuant to Article 2, Paragraph 2 of the National Compensation Law.