The Supreme People’s Court on Tuesday upheld a decision that requires Long An Province to compensate a local company for wrongfully rejecting its application to open a gas station.
Under the ruling, Long An People’s Committee and the provincial Department of Construction will have to pay Le Thanh Tung Enterprise VND950 million (US$44,560) for relevant damages.
According to the verdict, the company bought a piece of land on the National Highway 1A in 2004 and asked for permission to build a fuel station.
In April 2005, the construction department ratified the request, saying he could proceed with relevant procedures.
However, later in the same year, the agency refused to consider the company's application, before issuing an official decision to reject it in 2011.
The company then filed a lawsuit, demanding for compensation for damages it had incurred.
The Long An Court of First Instance decided that Le Thanh Tung won the case because the construction department did not have a justified reason for its rejection of the application.
The provincial People’s Committee was also held responsible.
The two losing agencies then lodged their appeals to the Supreme People’s Court, which continued to rule against them at Tuesday's trial.