Compensation for damages is a fundamental principle in civil law that ensures justice and fairness between individuals and organizations within the framework of legal relationships. This concept primarily arises from unlawful actions that cause harm to others and serves as a legal mechanism to restore the injured party to their original state, as far as possible. In this article, we delve into the definition, conditions, and principles of non-contractual compensation for damages within the context of the 2015 Civil Code of Vietnam, incorporating specialized legal terminology for analytical clarity.
1. Definition of Compensation for Damages
Compensation for damages refers to a civil liability arising from unlawful actions that lead to harm between parties. The party committing the unlawful act is legally obligated to compensate the injured party. According to Article 275 of the 2015 Civil Code, one of the legal grounds for establishing civil obligations is the occurrence of harm caused by unlawful actions. Corresponding to this provision, Chapter XX, Part Three of the 2015 Civil Code specifies regulations on “Non-contractual liability for damages.”
In this context, liability is understood as the obligation of the party causing harm to compensate the injured party. Non-contractual liability for damages creates a corresponding obligation to compensate, thereby establishing a legal relationship of obligation between the parties. The legal basis for this liability is the framework that allows competent state authorities to determine the party responsible for compensation.
Clause 1, Article 584 of the 2015 Civil Code stipulates: “Anyone who causes harm to another person’s life, health, honor, dignity, reputation, property, or other legitimate rights and interests through unlawful actions must compensate for the damage, except where otherwise provided by this Code or other relevant laws.”
Thus, the determination of non-contractual liability for damages hinges on the “unlawful action of the party causing harm.” A closer examination reveals that the 2015 Civil Code provides provisions favoring the injured party by simplifying the grounds for establishing liability in cases of non-contractual harm.
2. Conditions for Establishing Non-Contractual Liability for Damages
Non-contractual liability for damages arises when the following conditions are met:
a. The Occurrence of Damage
Damage is a fundamental element for establishing non-contractual liability. Such liability arises only when harm occurs, either in the form of material damage or emotional damage.
- Material damage refers to the loss or reduction of tangible interests protected by law. It can be quantified into a specific monetary amount.
- Emotional damage arises from infringement on life, health, honor, dignity, or reputation, resulting in pain, suffering, or loss of emotional and social standing. In these cases, compensation is provided to mitigate the victim’s non-material suffering.
b. Unlawful Action
Unlawful action constitutes the conduct—whether an act or omission—that infringes on public interests or the legitimate rights and interests of others. This includes:
- Performing prohibited actions,
- Failing to perform legally mandated actions,
- Exceeding the boundaries of lawful conduct, or
- Failing to fulfill obligations prescribed by law.
c. Causal Relationship Between Action and Damage
A direct causal link must exist between the unlawful action and the resulting damage. The damage must be the inevitable consequence of the unlawful action, and the action must inherently carry the potential to cause such damage under specific conditions. This relationship must be systematic and predictable, rather than coincidental or arbitrary.
Under the 2015 Civil Code, the basis for determining liability is the “unlawful action of the party causing harm.” Previously, Article 604 of the 2005 Civil Code required proof of “intentional or unintentional fault” by the party causing harm. However, the 2015 Civil Code has simplified this requirement, favoring the injured party by focusing solely on the occurrence of damage, the unlawful nature of the action, and the causal relationship between the two.
3. Principles of Compensation for Damages
The principles governing compensation for damages are clearly outlined in Article 585 of the 2015 Civil Code:
a. Full and Timely Compensation for Actual Damage
The injured party must be fully and promptly compensated for all actual damage. The parties involved may mutually agree on the amount, form (e.g., monetary payment, replacement with goods or services), and methods of compensation (e.g., one-time or installment payments), provided such agreements do not contravene the law or social ethics.
b. Reduction of Compensation in Specific Circumstances
The party responsible for compensation may have their liability reduced if:
- They caused harm unintentionally or without fault.
- The damage incurred is excessively disproportionate to their financial capacity, both immediate and long-term.
c. Adjustment of Compensation Levels
If the level of compensation becomes inconsistent with actual circumstances, either party may request a competent court or authority to adjust the amount.
d. Shared Fault of the Injured Party
If the injured party is partially at fault for the damage, they cannot claim compensation for the portion of damage attributable to their fault. This principle is grounded in fairness, where liability is proportionate to the degree of fault.
e. Obligation to Mitigate Damage
The injured party has a duty to take reasonable and necessary measures to prevent or minimize the harm. Failure to do so may result in a denial of compensation for avoidable damage.
In conclusion, the legal framework governing compensation for damages in the 2015 Civil Code reflects a balanced approach to justice and equity, ensuring that injured parties are adequately compensated while delineating clear boundaries for liability. By simplifying the conditions for establishing non-contractual liability and emphasizing fairness in compensation, the law promotes accountability while safeguarding the legitimate rights and interests of all parties involved.
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Dinh Phuong Thao