When a dispute ends during proceedings, costs depend on who made litigation necessary

Restoration of the Italian personal assistance allowance during proceedings does not automatically mean that each party must bear its own costs. In judgment No. 660 of 26 May 2025, the Bari Court of Appeal applied the prospective assessment of the likely losing party and the principle that litigation costs should fall on the party whose conduct made proceedings necessary.

INPS had demanded repayment of the June 2022 allowance instalment of €525.83. The reassessment report was communicated on 14 June, after payment. During the proceedings, a court order approving the medical assessment recognised eligibility from the reassessment date, leading to restoration of the allowance and crediting of the instalment.

The Tribunal declared that no substantive dispute remained and left each party to bear its own costs. The Court of Appeal instead found that, even without restoration, the challenge to recovery would have succeeded: payment preceded the beneficiary’s knowledge of the adverse outcome.

The Court also rejected the procedural criticism that the claimant had failed to mention the separate medical proceedings in the original claim. Those proceedings were commenced later and could not have been described as already pending when the overpayment case began.

The appeal succeeded only in relation to costs, which INPS was ordered to pay at both levels. A 10% fee increase was awarded for useful hyperlinks. The judgment makes clear that an order leaving each party to bear its own costs requires concrete justification, rather than the mere fact that the benefit was recognised during litigation.

View the court decision (PDF) ↗

https://studiolegalecelentano.com/en/news/overpayments-of-social-assistance-benefits-and-costs-at-both-levels-of-proceedings