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Liability of a Municipality for a Wrongful Act Committed by Private Entities that were Hired for the Construction of Utility Systems
Liability of a Municipality for a Wrongful Act Committed by Private Entities that were Hired for the Construction of Utility Systems

Municipality has power and duties to provide a drainage system and
a wastewater treatment system within the area of municipality pursuant to Section 56 of Municipalities Act, B.E. 2496 (1953). By hiring private entities to do so,
the municipality entrusted such power and duties to private entities according to Section 22 of Act Determining Plan and Procedures in Decentralizations to the Local Administrative Organization, B.E. 2542 (1999). Since the private entities were professional construction service providers and there was a consulting firm supervising the project, they must perform services with great care in accordance with professional ethics by using any measures to prevent and avoid causing damage to surrounding properties. When the private entities failed to exercise such care resulting in damage to a third party’s building, the Municipality as an administrative agency that delegated its power and duties to that private entities shall be liable for the consequence of such wrongful act.




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