Recent developments in Milan’s urban planning practice—where building procedures were initiated on the basis of municipal practices and guidelines that were subsequently reconsidered—have brought renewed attention to the issue of legitimate reliance by private parties on the conduct of public authorities.
This issue is addressed by two recent and innovative rulings of the Joint Chambers of the Italian Supreme Court, which are decisive in determining when and before which court damages may be claimed.
In ruling of the Joint Chambers No. 8236 of 28 April 2020, the Court held that liability based on legitimate reliance may arise even in the absence of a formal administrative act, where the damage results from improper conduct by the public administration, such as misleading information, reassurances, or inconsistent administrative practices.
In such cases, claims for damages fall within the jurisdiction of the ordinary civil courts.
More recently, Ruling of the Joint Chambers No. 26080 of 25 September 2025 clarified that where such conduct occurs within the context of a relationship aimed at the issuance of a building title, the resulting damage falls within the scope of urban planning and building law. Consequently, the claim for damages must be brought before the administrative courts, even though it concerns the infringement of a subjective right.
In conclusion, even where a Municipality acts lawfully, it may still be held liable for damages if it has created innocent and legitimate reliance on the part of private parties. The choice of the competent court depends on the origin of the reliance and the legal field involved.