Fair compensation for legal entities: the turning point of Cassation Order no. 14749/2025 on the Pinto Law

The slowness of the Italian justice system is a long-standing problem. To address this, Law no. 89 of 2001, known as the "Pinto Law," recognizes the right to fair compensation for those who suffer from excessively lengthy proceedings. But what happens when the injured party is not a natural person, but a legal entity, such as a company? The Court of Cassation, with Order no. 14749 of 01/06/2025, has provided a fundamental clarification, significantly extending protections.

The regulatory context: the Pinto Law and fair proceedings

The right to a fair and swift trial is a guarantee enshrined in Article 6 of the European Convention on Human Rights (ECHR). The Pinto Law (L. 89/2001) provides for compensation for pecuniary and non-pecuniary damages suffered due to the excessive duration of a proceeding. Traditionally, non-pecuniary damage was more easily associated with natural persons. Order 14749/2025 redefines the scope of compensation also for entities.

Non-pecuniary damage for legal entities: the Cassation rules

The central issue addressed by the Supreme Court in Order no. 14749 of 01/06/2025, which saw S. versus M. (Advocacy General of the State) pitted against each other, concerned the configurability of non-pecuniary damage for legal entities. The Cassation reiterated an important principle, consolidating the possibility for such entities to access this form of compensation. Here is the summary of the ruling:

In the context of fair compensation pursuant to art. 2 of l. no. 89 of 2001, the right to compensation for non-pecuniary damage suffered due to the unreasonable duration of the proceedings may also be recognized to a legal entity, provided that the other party does not demonstrate that particular circumstances exist (such as the awareness that the claim brought in the main proceedings was unfounded or the modification, during the course thereof, of the shareholders or directors of the entity exposed to suffering, in terms of anxiety and stress, due to the unreasonable duration of the proceedings), from which it can be excluded that such damage was actually suffered.

This summary is of crucial importance. The Court clarifies that non-pecuniary damage is not the exclusive prerogative of natural persons. Even a company or an entity can suffer a non-economic prejudice. The "suffering" refers to the anxiety and stress of the individuals acting on behalf of the entity (shareholders, directors), whose concern for the company's fate translates into damage for the legal entity itself.

Conditions and exceptions

Order 14749/2025 establishes that the right to compensation for a legal entity is not automatic. It is up to the opposing party to demonstrate the existence of "particular circumstances" that may exclude the damage. Among these, the Cassation indicates:

• The awareness that the claim brought in the main proceedings was unfounded from the outset.
• The modification, during the course of the proceedings, of the entity's shareholders or directors.

These exceptions place a significant burden of proof on the party contesting the right to fair compensation, balancing protection with the need to prevent abuse.

Conclusions and protections for businesses

Order no. 14749 of 01/06/2025 represents an important step forward in the protection of the rights of legal entities. Recognizing non-pecuniary damage for the unreasonable duration of proceedings offers an additional tool for protection for businesses and entities. For legal entities, it is crucial to be aware of this right and the conditions for asserting it, relying on expert professionals to navigate the complexities of the Pinto Law.