Can the heirs of a deceased public employee be held liable for financial loss to the state?

Administrative liability is one of the five potential forms of liability that a public employee may face during the course of their duties. These include:

(i) civil liability, which arises when damage is caused to third parties;(ii) criminal liability, arising from conduct in breach of criminal law;iii) disciplinary liability, which is triggered by breaches of service-related obligations that are now codified in collective bargaining agreements and public service codes of conduct;iv) managerial liability when targets are not achieved or directives are disregarded (pursuant to Article 21 of Legislative Decree No. 165/2001); and v) administrative liability, arising from wilful misconduct or gross negligence that causes financial harm to the public administration.(v) Administrative liability, which arises from wilful misconduct or gross negligence causing financial harm to the public administration, broadly defined. Administrative liability is often considered a distinct category from a legal standpoint, situated between civil and criminal liability. It is defined by two key features: the personal nature of the fault and the economic impact of the wrongdoing.Due to its strictly personal nature, a fundamental rule applies: claims for compensation arising from administrative liability cannot be transferred to the heirs of the liable party.However, this principle is subject to a notable exception: the debt may pass to the heirs if there is evidence of:1. unlawful enrichment of the deceased; or2. Unjust enrichment of the heirs themselves.In this regard, the Lombardy Regional Section of the Italian Court of Auditors (Corte dei Conti) ruled that liability may be transmitted to the heirs of a defendant who dies during proceedings concerning fiscal damage to the State only under the above conditions.In the present case, the Court found no basis or evidence to justify transferring the alleged liability to the heirs. Consequently, it ordered that the proceedings against the deceased be formally discontinued. For further reading:- Supreme Court (Civil Division), Ruling No. 8522/2024- Italian Court of Auditors, Lombardy Section, Ruling No. 102/2017