Resolution No. 03/2006/NQ-HDTP dated July 08, 2006 of the Judges's Council of the Supreme People's Court guiding the application of a number of provisions of the 2005 Civil Code on extra-contractual damage compensation

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Resolution No. 03/2006/NQ-HDTP dated July 08, 2006 of the Judges's Council of the Supreme People's Court guiding the application of a number of provisions of the 2005 Civil Code on extra-contractual damage compensation
Issuing body: People's Supereme CourtEffective date:
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Official number:03/2006/NQ-HDTPSigner:Nguyen Van Hien
Type:ResolutionExpiry date:
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Issuing date:08/07/2006Effect status:
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THE JUDGES' COUNCIL OF THE SUPREME PEOPLE'S COURT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 03/2006/NQ-HDTP
Hanoi, July 08, 2006
 
RESOLUTION
GUIDING THE APPLICATION OF A NUMBER OF PROVISIONS OF THE 2005 CIVIL CODE ON EXTRA-CONTRACTUAL DAMAGE COMPENSATION
THE JUDGES' COUNCIL OF THE SUPREME PEOPLES COURT
Pursuant to the Law on Organization of the People's Courts;
Pursuant to the National Assembly's Resolution No. 45/2005/QH11 of June 14, 2005 on "the Implementation of the Civil Code";
In order to apply in a correct and uniform manner the provisions of the 2005 Civil Code to the settlement of disputes over extra-contractual damage compensation;
After obtaining the agreements of the Chairman of the Supreme People's Procuracy and the Justice Minister;
RESOLVES:
I. GENERAL PROVISIONS
1. Liability to compensate for damage
According to the provisions of Article 604 of the 2005 Civil Code on the general principles, the liability to compensate for extra-contractual damage shall arise only when all the following elements appear:
1.1. There must be damage caused.
Damage includes material and spiritual damage.
a/ Material damage covers damage caused by infringement upon property as provided for in Article 608 of the Civil Code; damage caused by infringement upon health as provided for in Clause 1, Article 609 of the Civil Code; damage caused by infringement upon life as provided for in Clause 1, Article 610 of the Civil Code; damage caused by infringement upon honor, dignity, prestige as provided for in Clause 1, Article 611 of the Civil Code.
b/ Spiritual damage of individuals shall be understood as damage caused by infringement upon health, honor, dignity and/or prestige of victims or by infringement upon life, for which the next of kin of the victims have to suffer pain, agony, sentimental loss, prestige decline or loss, distance from friends due to misunderstanding' and for which a sum of money shall be compensated to make up for the loss they have suffered.
Damage caused by mental sufferings to legal persons and subjects other than legal persons (referred collectively to as organizations) shall be understood as damage caused by infringement upon honor and/or prestige, which leads to the decrease or loss of trust, confidence in such organizations due to misunderstanding and for which a sum of money shall be compensated to make up for the losses such organizations have to suffered.
1.2. There must be illegal acts committed.
Illegal acts means specific human behaviors expressed through action or non-action contrary to the provisions of law.
1.3. There must be the cause-effect relations between damage caused and illegal acts. The damage caused must be the indispensable results of the illegal acts and vice versa the illegal acts are the cause of the damage.
1.4. There must be intentional or unintentional faults of the damage causers.
a/ Intentionally causing damage means the case where a person is fully aware that his/her act will cause damage to another person but still commits it and wishes or does not wish but let the damage happen.
b/ Unintentionally causing damage means the case where a person fails to foresee that his/her acts may cause damage though he/she should have known it or may have known in advance that damage will happen or foresees that his/her acts may cause damage but think that the damage will not happen or can be prevented.
It should be noted that for cases where the law requires compensation for damage even when the damage causers are not at fault, the damage causers' liability to compensate for damage shall comply with the provisions of such legal documents.
2. Principles for damage compensation
2.1. Upon settling disputes over compensation for extra-contractual damage, the principles for damage compensation provided for in Article 605 of the Civil Code should be strictly observed. The agreements reached between the parties on the compensation levels, forms and modes should be respected if such agreements do not run counter to law and social ethics.
2.2. In cases where the parties cannot reach any agreement, when setting disputes over compensation for extra-contractual damage, attention should be paid to the following:
a/ Damage must be fully compensated for, meaning that when there is a claim for compensation for damage caused by infringement upon property, health, life, honor, dignity and/or prestige, it should be based on the relevant provisions of the Civil Code in such specific cases that the damage covers which items and the levels of damage caused, the extent of fault of the parties in order to compel the damage causers to compensate for such corresponding damage amounts.
b/ In order to have damage compensated in time, the court shall quickly handle the claims for damage compensation within the time limit prescribed by law. In case of necessity, one or a number of provisional emergency measures can be applied under the provisions of the procedural law in order to settle urgent claims of the involved parties.
c/ The damage causers can enjoy lower compensation levels only when they fully meet the two following conditions:
The damage is caused due to their unintentional faults;
The caused damage is too great for their immediate and long-term economic capabilities, which means the caused damage for which they have to compensate but cannot pay full or large compensation for such damage due to their immediate and long-term economic circumstances.
d/ The compensation levels are no longer suitable to reality, which means that due to changes in the economic and social situation, price fluctuation, the current compensation levels are no longer suitable or due to changes in the casualty status and/or working capacity of the victims, the compensation levels are no longer suitable, or due to changes in the economic capabilities of the damage causers....
3. Liability capacity to compensate for damage
3.1. When implementing the provisions of Article 606 of the Civil Code on liability capacity to compensate for damage, attention should be paid to correctly determining the capacity of the involved parties in each case, concretely as follows:
- For the case specified in Clause 1, Article 606 of the Civil Code, the damage causers are civil respondents unless they have lost their civil act capacity;
- For the case specified in Paragraph 1, Clause 2, Article 606 of the Civil Code, the fathers, mothers of the damage causers are civil respondents;
- For the case specified in Paragraph 2, Clause 2, Article 606 of the Civil Code, the damage causers are civil respondents and their fathers, mothers are persons with related interests and obligations;
- For the case specified in Clause 3, Article 606 of the Civil Code, their guardians being organizations or individuals are civil respondents.
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