REFUTATION OF ADMINISTRATIVE SETTLEMENT

Abstract

Although settlement is atypical for administrative proceedings, it represents an importantagreement through which parties regulate disputed relations based on mutual concessions. A settlementthat has been concluded and officially confirmed carries the legal force of an enforceable decision and canbe executed only against the participating party. The agreement between the parties must be officiallyconfirmed by recording the content of the reached settlement. Settlement cannot be equated in terms ofcontent or legal nature with a decision rendered in administrative proceedings. Legal remedies provided bythe Administrative Procedure Act cannot be applied to settlement since they exclusively pertain toadministrative acts. No administrative dispute can be initiated against a settlement as the subject matter ofsuch dispute solely concerns the legality assessment of that act. Given the undisputed civil legal effects of asettlement concluded in administrative proceedings, the important question arises as to whether settlementcan be regarded as a bilateral legal transaction. If a party believes that the settlement was made under amistake, duress, or fraud, it can challenge it only through an appropriate civil lawsuit filed before thecompetent court. Considering the legal gap, we believe that the complete regulation of this matter and legalcertainty to some extent require the application of civil law principles and judicial practice.