Salzburg Festival Fund Must Disclose Information on Potential Recourse Claims Against Board of Trustees

The subject matter of the proceedings is the question of the extent to which the Salzburg Festival Fund must provide the public with information about internal processes – in particular regarding potential liability-related steps. The decision ties into ongoing journalistic and legal disputes concerning the transparency of the fund, which is the carrier of the Salzburg Festival.

The Salzburg Festival is one of the world's most renowned festivals for opera, drama, and concert. At the head of the artistic direction is Markus Hinterhäuser, who has shaped the fortunes of the Festival for several years. Karin Bergmann, former head of the exhibition division, also appears in the case files with four mentions.

The Festival Fund administers the funds with which the Festival is publicly financed. Its bodies, in particular the Board of Trustees, have long been the focus of discussions about the use of these funds and about responsibilities in the event of wrong decisions. Recourse and damage claims are a typical instrument for asserting potential breaches of duty by members of organs.

Background: Festival Fund and Board of Trustees

In substantive terms, the court order is oriented to the freedom of information law of the State of Salzburg. Under this, information on the activities of funds organized under public law is generally accessible, provided there are no overriding interests of secrecy to the contrary. The court weighed these interests and came to the conclusion that the requested information is to be provided.

Specifically, the court demands of the Festival Fund: "Auskunft darüber zu erteilen, ob der Festspielfonds Regressforderungen/Schadenersatzforderungen gegen die Mitglieder des Kuratoriums prüfen lasse und gegebenenfalls das Ergebnis einer solchen stattgefundenen Prüfung mitzuteilen". The fund is thus obliged to disclose both the status of the review and any results.

Legal Framework

The decision is a further building block in a series of proceedings concerning access to information about the Festival Fund. Just recently, proceedings concerning the publication of further documents had been pending; the Regional Administrative Court had decided on several points in favor of an extended duty to disclose information. The decision now issued fits into this line.

Nothing is yet known about the immediate financial and organizational consequences of the transparency decision. Neither the Board of Trustees nor the management of the fund has publicly commented on individual details of the proceedings. Nor were there any confirmed details available at the time of reporting on the question of whether an ordinary legal remedy will be filed against the decision.

The Salzburg Regional Administrative Court is part of the administrative jurisdiction of the federal state and decides, among other things, on freedom of information proceedings relating to institutions under public-law sponsorship. With its latest decision, the court strengthens the principle that internal decision-making processes of public-law funds are subject to a certain degree of public scrutiny.

Reporting on the Festival Fund, in which the news agency APA has also participated, has repeatedly pointed out in recent months to potential deficits in the oversight of the use of funds. The obligation now imposed to disclose information on recourse and damage claims is therefore regarded as a signal to the fund's bodies.

Outlook on Further Proceedings

Overall, the ruling illustrates the tension between, on the one hand, the self-responsibility of foundation and fund organs and, on the other hand, the public interest in a comprehensible, transparent use of public funds. The next procedural steps – possible statements by the fund as well as any appeal – remain to be seen.