2.1.2. French Law

In contrast, the French administrative courts adopt a more generous approach. There is no explicit wariness of actions in damages for economic loss. So, in the case of Nice Helicoptères, a company was awarded damages of over ten million Francs when its helicopter transport business folded owing to a series of fautes by public authorities, including an unlawful refusal to renew an air transport licence.⁶²

Similar claims are brought in many areas of administrative activity. In particular, three important spheres of administrative activity—planning, licence-granting, and travaux publics—confirm that the administrative courts are in principle willing to recognize liability for pure economic loss.⁶³

In planning cases, liability can arise from a variety of administrative activities or decisions, such as the unlawful granting or refusal of planning permission.⁶⁴ In such circumstances, damages can be gained for a wide swathe of financial loss.⁶⁵ Those neighbouring the property built on the basis of irregular permission may claim damages for the depreciation in the value of their own land.⁶⁶ Alternatively, the disappointed property developer may recover damages for the cost of the aborted construction,⁶⁷ the architects' fees,⁶⁸ and even the interest payments on a mortgage taken out to purchase the construction land.⁶⁹ More controversial have been actions for lost profits that would have been made if planning authorities had not been at fault, for instance in illegally refusing planning permission (p.197) for property development.⁷⁰ Despite initial resistance,⁷¹ the courts do now allow the recovery of loss of real estate profits.⁷²

The administration has often been sued for financial loss caused by its licence-granting activities. Thus, in the famous case of Driancourt, a snack bar owner was awarded damages for the loss of profits caused by an unlawful prohibition on the use of games machines to attract customers.⁷³ Many claims have also been brought for damages for financial loss caused by delay in the granting of authorization to undertake regulated business activities, for instance the unlawful refusal to authorize the opening of a pharmacy⁷⁴ and a hydroelectric power station.⁷⁵

Finally, in the sphere of travaux publics, businessmen can sue for the economic consequences of public works on their businesses. So, damages were gained when the construction of a motorway entirely prevented road access to a service station,⁷⁶ and when a town's irrigation scheme severely reduced the output of a hydroelectric factory.⁷⁷ In some cases, restrictions on claims arise from the requirement that the claimant's loss must be shown to be abnormal and special.⁷⁸

2.2. Signs of Convergence

The French and English systems seem prima facie to be radically different in their attitude to the recovery of purely financial loss. The French administrative courts ostensibly take a liberal stance in respect of damages actions for economic loss; the English courts exhibit a minimalist approach to such claims. However, a closer analysis reveals that the differences are perhaps not so great.