The Governance of the Final Clause of Article 11 of the Civil Liability Act in Compensation for the Depreciation of Properties Adjacent to Municipal Development Projects

Abstract

This study aims to examine the applicability of the final clause of Article 11 of the Civil Liability Act concerning compensation for the depreciation of adjacent properties affected by municipal development projects. With the rapid expansion of urban infrastructure and public projects in metropolitan areas, the conflict between public interests and private property rights has become a fundamental challenge for Iran’s legal and urban governance systems. The research analyzes the conceptual foundations of damage, vested rights, and relevant Islamic jurisprudential rules such as La Zarar, Tasbib, and Itlaf, alongside an interpretation of Article 11 within the context of municipal responsibilities. The findings indicate that urban development projects implemented by municipalities do not constitute acts of sovereignty and, therefore, municipalities—being public non-governmental entities—are not covered by the exemption provided in the final clause of Article 11. According to specific laws, including the 1979 Legal Bill on the Acquisition of Land and Real Estate for Public, Developmental, and Military Programs, as well as judicial precedents from the Administrative Justice Court, municipalities bear direct liability for compensating the losses caused to adjacent property owners. The study concludes that recognizing municipal liability aligns with principles of social justice, constitutional mandates, and institutional accountability, while promoting fair and sustainable urban development. Conversely, broad interpretations of Article 11’s exemption undermine economic security, erode public trust, and violate restorative justice principles.