Withdrawal of a Decision by the Administration that Has Not Yet Become Legally Binding

Facts

The case concerns a decision by the Compensation Fund of the Canton of Glarus and the Appeals Commission of the Canton of Glarus for Old Age and Survivors' Insurance (AHV) against Randazzo. The administration revoked a decision that had not yet become legally binding during the appeal period, without the prerequisites for the reconsideration of a formally legally binding decision being met. The Federal Supreme Court had to decide whether the same prerequisites apply for the reconsideration of such a decision as for the reconsideration of formally legally binding decisions.

Considerations

The Federal Supreme Court decided that the administration can revoke an unchallenged decision during the appeal period without being bound by the special prerequisites applicable for the reconsideration of formally legally binding decisions. The decisive factor is that legal certainty and the principle of trust do not have the same significance before the decision becomes legally binding as they do after that time. Furthermore, according to Art. 58 of the Federal Act on Administrative Procedure (VwVG), the objective law should be enforced in the simplest possible way. This consideration justifies an unconditional reconsideration even more when reverting to a decision that has not yet become legally binding and has not been challenged.

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