A family from the Göttingen district has won a landmark ruling before the Federal Social Court regarding the interest on back payment claims under the Asylum Seekers' Benefits Act (AsylbLG)

In a landmark case (Case No.: B 7 AY 2/18 R) with implications for the entire country, a family from the Göttingen district achieved a victory today before the Federal Social Court (BSG) in Kassel. On appeal by the plaintiffs, the BSG overturned the previous judgments dismissing the claim by the Hildesheim Social Court (Case No.: S 42 AY 5/16) and the Lower Saxony-Bremen State Social Court (Case No.: L 8 AY 40/16) and ordered the defendant, the Göttingen district, to pay interest on a back payment claim of €783.75 from August 14, 2013.

The family from Algeria has lived in Germany since 1993 and for over 20 years received only benefits under the Asylum Seekers' Benefits Act (AsylbLG) from the Göttingen district. Following a successful lawsuit by the family, the district was ordered to pay additional housing costs as supplementary basic income support for the period from June 1, 2009, to December 31, 2010, which had previously been unlawfully withheld. The district has refused the family's request for interest on this back payment to this day.

The Federal Social Court today ruled for the first time in the area of ​​Asylum Seekers' Benefits Act (AsylbLG) that successfully sued for and thus previously unlawfully withheld back payments are subject to interest,” said Göttingen-based lawyer Sven Adam, who represents the plaintiffs, expressing his satisfaction with the outcome of the proceedings. Until now, the courts have generally rejected claims for interest on back payments under the AsylbLG, arguing that there was no legal basis for such interest. “The Federal Social Court sees things differently and has ordered the district to grant interest on the claim in accordance with the general rules of the German Civil Code (BGB). This decision affects all cases in which higher AsylbLG benefits are obtained through legal action,” Adam continued, emphasizing the significance of the ruling. 

The written grounds for the judgment are not yet available. However, the Federal Social Court's (BSG) report on the hearing can be accessed here:

https://www.bsg.bund.de/SharedDocs/Verhandlungen/DE/2018/2018_10_25_B_07_AY_02_18_R.html