Indemnity for Damage to Property

The basic rules applicable to indemnity for damage to property are regulated by the provisions of the Law on Contracts and Torts (Articles from 185 to 198).

By the provisions of Articel 185 of the Law on Contracts and Torts indemnity for damage to property is defined as re-establishing of the previous situation and an indemnity in money. A responsible person shall be liable to re-establish the situation existing prior to the occurence of damage. Indemnity for damage to property in money shall be paid to the person suffering loss in following cases:

  • Should re-establishing of the previous situation fail to eliminate the damage entirely, the responsible person shall be liable to pay an indemnity in money to cover for the rest of the damage.
  • Should restitution be impossible, or should the court find it necessary for the responsible person to do that, the court shall order such person to pay to the person suffering loss an adequate amount of money as compensation for loss.
  • At the request of the person suffering loss, the court shall award compensation in money to him, unless the circumstances of the specific case justify the restitution.

Compensation for damage to property shall be due from the moment of the damage taking place. Continue reading Indemnity for Damage to Property

Assumptions of liability for damages

Liability for damage exists if the following special conditions have been met:

  • injured person and tort-feasor (subjects)
  • harmful action
  • damage
  • unlawfulness of the tort-feasor’s action
  • established causal link between undertaken harmful action and harmful consequence
  • fault of tort-feasor.

Assumptions of liability for damages vary depending on whether liability for damages based on the criterion of guilt or causing damage.

Liability for damages based on causing damage criterion on the basis of the strict liability for dangerous object of property or dangerous activity, it is enough the existence of two conditions: the damage and the causal link established between undertaken harmful action and harmful consequence. Continue reading Assumptions of liability for damages