The Civil Code 2015 has the following new points on compensation for non-contractual damages 2015:
Firstly, concerning grounds giving rise to liability to compensate for non-contractual damages:
The Civil Code 2015 has omitted the element of the fault of the person causing damage in general grounds giving rise to liability to compensate for non-contractual damages. This is a fundamental change among new points on compensation for non-contractual damages 2015. As of 01 January 2017, in general principle, the person who claims compensation for non-contractual damages shall prove the following elements[1]:
- An illegal act of the party causing damage;
- The actual damage;
- There must be a cause-and-effect relationship between the damage incurred and the illegal act.
The Civil Code 2015 does not particularly regulate damages of a natural person, a legal person individual and other subjects as the Civil Code 2005 did. Instead, the Civil Code 2015 generally provides the liability for compensation for damage caused by infringing the life, health, honour, dignity, prestige, property, or other lawful right and benefit of other people. Thus, if a legal person is possible to prove that its honour, prestige, property, or other lawful right and benefit is harmed, it has the right to claim compensation for non-contractual damages and is not limited in the scope of damages to honour, prestige, or property as the Civil Code 2005 did. Certainly, the legal person has no right to claim compensation for non-contractual damages to its life, health.
The Civil Code 2015 clearly provides that the owner, possessor, the user of a property will be liable for compensation for damage caused by such property.
One of the new points on compensation for non-contractual damages 2015 is that a person causing damage will be discharged from the liability for compensation for damage arising from an event of force majeure or the entire fault of the aggrieved party. Meanwhile, the Civil Code 2005 only provided this content for some specific cases such as compensation for damage caused by trees, or sources of extreme danger, or houses and other construction works[2].
Secondly, that the supplementation to principles of compensation for damage stands out among new points on compensation for non-contractual damages 2015:
- Where an aggrieved party is at fault for causing damage, such party shall not be entitled to compensation for the part of the damage arising from the fault of such party.
- A party with infringed rights or benefits shall not be compensated if the damage results from failure to use necessary and reasonable measures to prevent or mitigate the damage to such party[3].
- The person who is liable for compensation for damage can be reduced the amount of damage if such person has no-fault and the actual damage is very large in comparison to its capacity.
Thirdly, the new points on compensation for non-contractual damages 2015 also include the following regulations:
- The Civil Code 2015 supplement the regulation on the capacity of a person having difficulties in being aware of, or controlling its acts for liability for compensation for damage[4].
- The limitation period for initiating legal action of claiming compensation for damage shall be increased from two years to three years, as of the date on which the person having the right knew or should have known an infringement of its legal rights or interests[5].
- The maximum amounts of compensation (i) for mental loss due to harm to health, (ii) for mental loss due to harm to life, and (iii) for mental loss due to harm to honour, dignity or prestige[6] is increased more.
Above is an overview of the new points on compensation for non-contractual damages 2015. If you have trouble with legal issues regarding the new points on compensation for non-contractual damages 2015, please contact us: Phuoc & Partners is a professional consulting firm established in Vietnam and currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi and Danang. Phuoc & Partners is also rated as one of the leading consulting firms specializing in business law in Vietnam that has leading practice areas in the legal market such as Labour and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing customers with optimal and effective service.
[1] Article 584(1) of the Civil Code 2015, Section I(1) of the Resolution No. 03/2006/NQ-HĐTP
[2] Article 584(2) of the Civil Code 2015, Article 626 and Article 627 of the Civil Code 2005, Section 3 of the Resolution No. 03/2006/NQ-HĐTP
[3] Article 585 of the Civil Code 2015, Article 605 of the Civil Code 2005
[4] Article 586(3) of the Civil Code 2015, Article 606(3) of the Civil Code 2005
[5] Article 588 of the Civil Code 2015, Article 607 of the Civil Code 2005
[6] Article 590, Article 591, and Article 592 of the Civil Code 2015, Article 609, Article 610 and Article 611 of the Civil Code 2005
