Facts
In the context of labour market measures, the canton of St. Gallen concluded a contract with A. (the claimant) in the spring of 1994 for the latter to set up an IT infrastructure (training company) intended for 10 to 12, and then 15 to 17 unemployed persons, with a daily remuneration per participant. After approximately three years of collaboration, the canton significantly reduced the number of participants sent to the training company, before ultimately terminating the contract. A. then filed a lawsuit against the canton, claiming payment of compensation. The cantonal courts considered that this was a public law contract and not a private law contract, which A. contests by filing an appeal for reform with the DFC.Considerations
The DFC confirms that the contract concluded between the parties falls under public law and not private law. Indeed, this contract is part of the implementation of labour market measures provided for by the UIA. According to this law, unemployment insurance finances vocational training and integration measures, but does not implement them itself. It pays contributions to the institutions that offer these training courses, such as the training company managed by the claimant. Therefore, the contract between the parties aims to regulate the terms of this public subsidy, which falls under administrative law and not private law.
Even…