General Liability & Claims: Understanding Material and Non-Material Damage Claims

Suffering a loss—whether it is a physical injury, property destruction, or a financial setback—can be overwhelming. Beyond the immediate stress, the legal path to recovery often feels like a maze of complex terminology. At our firm, we believe that understanding your rights is the first step toward achieving justice.

Under the Law on Contracts and Torts, everyone is legally obligated to refrain from actions that may cause harm to others. When this obligation is breached, the law provides a clear framework for damage compensation.

⚖️The Two Pillars of Liability: Contractual vs. Tortious

Before diving into the types of damage, it is essential to distinguish how the liability arises:

• 🤝Contractual Liability: Occurs when a party fails to fulfill obligations specifically agreed upon in a valid contract. For example, if a supplier fails to deliver goods on time, causing a production halt, they are liable for the resulting loss.
• ⚖️Non-Contractual (Tort) Liability: Arises from the general legal duty not to harm others, regardless of any prior agreement. This includes traffic accidents, workplace injuries, or damage to property caused by a neighbor

What Qualifies as “Damage”?

In legal terms, damage is categorized into two primary forms: Material (Economic) and Non-Material (Non-Pecuniary).

💶 Material Damage: Recovering Financial Losses

Material damage refers to any harm that directly impacts your net worth. It consists of:

• 📉Actual Loss: The direct reduction of your current assets. Examples include repair costs for a vehicle or medical bills.
• 📈Lost Profits: The prevention of your wealth from increasing. This is calculated based on the profit that could have been reasonably expected according to the regular course of events.

🧠 Non-Material Damage: Compensation for “Pain and Suffering”

Non-material damage deals with intangible, personal suffering. According to the law, a court may award fair monetary compensation for:

• Physical Pain and Fear: Resulting from injuries or traumatic events.
• Psychological Distress: Caused by the reduction of life activities, disfigurement, or the death/severe disability of a close relative.
• Infringement of Personal Rights: This includes breaches of reputation, honor, liberty, or privacy. For instance, if a business’s reputation is damaged by false claims, or an individual’s privacy is illegally violated, the law provides for financial satisfaction to help restore emotional and social balance.

How Damages are Proven and Calculated

Winning a claim requires more than just a story; it requires concrete evidence and professional assessment:

Proving the Case

• 👨‍🔬 Expert Testimony: This is the cornerstone of most claims. Medical experts assess the intensity of pain and fear, while economic or technical experts calculate lost profits or property repair costs.
• 📑 Documentation: Police reports, medical records, invoices, and “Reports on Injuries at Work” serve as the factual foundation.
• 👥 Witness Statements: Eyewitnesses can be crucial in establishing the sequence of events and the nature of the harm caused.

Determining the Amount

The law aims for full compensation, placing the victim in the financial position they would have been in if the harm had not occurred.

• Material claims are calculated based on market prices at the time of the court’s decision.
• Non-material claims are determined by the court’s “fair assessment,” taking into account the significance of the breached right and the purpose of the compensation.