We cordially invite you to follow our new series: Compensation Without Secrets. Every Wednesday, we will discuss selected topics related to compensation. We hope that our series will dispel many of your doubts regarding the validity of compensation or damages due to injured parties. This is crucial given the increasing number of road accidents, agricultural accidents, and workplace accidents.
We will begin our series with a short introduction that will explain what compensation is and who is entitled to it.
Compensation – what is it and who is entitled to it?
According to the everyday definition, compensation is a benefit due to the injured party in connection with the harm caused. Legal doctrine distinguishes three types of functions that compensation is intended to fulfill:
- compensatory – aims to compensate for the damage suffered by the injured party,
- repressive – the person who caused the damage must feel the financial consequences of the compensation paid,
- preventive and educational – aimed at preventing the perpetrator from causing harm again.
According to Article 445 of the Civil Code, fault is the general principle of liability, but liability for damage may also be based on the principles of risk or equity.
It is also crucial to clarify the concept of damage, the fundamental premise for the perpetrator's potential liability. Damage is defined as damage to legally protected interests. Two types of damage should be distinguished: pecuniary and non-pecuniary. Pecuniary damage is the infringement of the injured party's pecuniary interests and property. Non-pecuniary damage, on the other hand, is harm that constitutes damage to the injured party's psychological well-being.
According to Article 363 of the Civil Code, "Damage should be redressed, at the injured party's option, either by restoring the previous condition or by paying an appropriate sum of money. However, if restoration of the previous condition is impossible or would entail excessive difficulties or costs for the obligated party, the injured party's claim is limited to monetary compensation."
According to the above-mentioned provision, it is the injured party who chooses the form of compensation for the damage that will be most satisfactory to him.
For the purposes of this series, it is also necessary to distinguish between two concepts: compensation and redress. They are not the same. Compensation relates to the existence of property damage, while redress relates to the harm suffered by a person.
The provisions in which the Act clearly defines who and when should repair the damage are included, among others, in the Civil Code – Articles 417, 429, 430, 433, 434, 436.
Detailed rules and cases justifying the payment of compensation or damages due to the injured party will be discussed in the next article, to which we invite you.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of August 6, 2024
author/editor of the series:
