Judicial Error in Morocco: An Evolving System to Reassure Foreign Investors

Morocco, currently undergoing significant economic and legal transformation, is committed to strengthening its judicial system to provide a secure and transparent environment for foreign investments. This commitment is particularly evident in the recognition and redress of judicial errors, demonstrating the country’s dedication to the rule of law and the protection of fundamental rights. These advancements send a strong signal to foreign investors, who see them as a guarantee of stability and reliability.

 

A Protective Constitutional Framework

The 2011 Constitution marked a decisive turning point by enshrining the right to compensation in cases of judicial error. Article 122 clearly states that « any person who has suffered damage as a result of a judicial error has the right to compensation, at the expense of the State. » This constitutional provision offers a solid guarantee to investors, assuring them that remedies exist in the event of a malfunction in the judicial system.

 

Jurisprudence Consolidating Confidence

In this regard, Moroccan jurisprudence has reinforced this constitutional guarantee. The judgment of the Rabat Administrative Tribunal on July 1, 2017, is an emblematic example. This judgment established precise criteria for compensating judicial errors, particularly in cases of unjustified provisional detention. Other decisions, such as those published in the Scientific Guide of Administrative Jurisprudence ([1] and [2]), confirm this trend. These judgments illustrate Morocco’s willingness to correct judicial errors and protect the rights of individuals and businesses.

 

Advancements Reassuring Foreign Investors

This evolution of the Moroccan judicial system sends a strong signal to foreign investors. Data from the Moroccan Agency for Investment Development (AMDIE) show that foreign direct investments (FDI) in Morocco reached 42.8 billion dirhams in 2022, an increase of 12% compared to 2021. This growth reflects the increased confidence of international investors in the country’s legal and economic framework.

This confidence is also strengthened by the fact that, in case of a dispute or judicial error, investors can rely on effective and equitable remedies, in line with international standards. The legal basis for State liability in judicial error cases relies on key provisions of the Code of Obligations and Contracts (Articles 73 and 79) and the law establishing administrative tribunals (Article 8) ([3], [4], [5]).

 

Alignment with International Standards

It should be emphasized that Morocco draws inspiration from the best international practices regarding compensation for judicial errors, thereby strengthening its credibility and attractiveness for foreign investments. Countries like France and the United States have also implemented similar mechanisms, which places Morocco in a global dynamic of strengthening confidence in judicial systems. The jurisprudence of the administrative tribunals of Rabat and Casablanca confirms this trend ([6]).

 

A Constantly Improving Business Environment

The continuous reforms of the Moroccan judicial system, combined with a dynamic economy and an advantageous geostrategic position, make Morocco a prime destination for foreign investors. Furthermore, the World Bank’s « Business Ready » report, which replaced the « Doing Business » ranking, highlighted that Morocco achieved significantly above-average scores in several areas important for investors, demonstrating the country’s continuous progress in improving its business environment.

 

Challenges to Overcome to Consolidate Gains

Despite these significant advancements, challenges remain. For example, the complexity of judicial procedures and case processing times can still pose obstacles for some investors. Moreover, raising awareness among economic actors about the available remedies in cases of judicial error remains an important issue.

To address these challenges, Morocco must continue to modernize its judicial system, particularly through the digitalization of procedures and the continuous training of judges. Better communication on investors’ rights and available compensation mechanisms would also be beneficial.

In conclusion, Morocco offers a secure and evolving legal environment, assuring foreign investors that their rights will be protected and that effective remedies exist in cases of judicial error. These advancements, coupled with a dynamic economy and an advantageous geostrategic position, strengthen confidence in the judicial system and contribute to making Morocco a reliable and attractive economic partner.

By continuing its reforms and addressing the remaining challenges, Morocco can consolidate its position as a preferred destination for foreign investments, while reinforcing its commitment to the rule of law and the protection of fundamental rights.

References:

  • [1] Judgment of the Rabat Administrative Tribunal, published in the Scientific Guide of Administrative Jurisprudence, collection Guides de gestion, number 16, first part, 2004, p. 348.
  • [2] Judgment of the Rabat Administrative Tribunal, number 170/12/2012, unpublished.
  • [3] Article 73 of the Code of Obligations and Contracts.
  • [4] Article 8 of the law establishing administrative tribunals.
  • [5] Article 79 of the Moroccan Code of Obligations and Contracts.
  • [6] Jurisprudence of the administrative tribunals of Rabat and Casablanca.