Introduction and Objective: The present study deals with the legal analysis of the way in which municipalities compensate for damages in the process of acquiring land from individuals and examines the legal, executive and economic challenges of this process.
Methodology: The present study is classified as descriptive-analytical research in terms of method. The required data were collected using the documentary (library) method and by reviewing written and digital sources. Along with analyzing laws, judicial decisions and research history.
Findings: The findings indicate that the types of damages include: moral damage, material damage, lump sum damages and fines, irreparable damage, indirect or implied damage, expected damage, damage exceeding the legally prescribed amount, specific damage, general or direct damage, nominal damage, punitive damage, compensatory damage. Also, the principle of full compensation is often limited to financial value and non-material aspects such as emotional losses are ignored. Compensation methods are mainly divided into two general categories: objective compensation (restoration to the previous status) and equivalent compensation (substitution).
Conclusion: Municipalities, as a non-governmental public law institution, may cause damages in performing their duties of providing services to citizens. Municipal supervision of development projects is a necessity of urban management and no excuse can justify the lack of supervision. The law has somehow foreseen in the form of a commitment to the result (supervision) that a non-fault liability should be interpreted with scrutiny in these cases.