Principles of compensation for non-contractual damage in Vietnam under the Civil Code

The Council of Judges of the Supreme People's Court of Vietnam issued Resolution 02/2022/NQ-HDTP dated September 6, 2022 on guidelines for application of some provisions of the civil code on tort liability.

Principles of compensation for non-contractual damage in Vietnam under the Civil Code (Internet image)

Guidelines for the principles of compensation for non-contractual damage in Vietnam under the Civil Code

Specifically, Article 3 of Resolution 02/2022/NQ-HDTP provides guidance on the principles of compensation for damage specified in Article 585 of the Civil Code as follows:

1. Regarding Clause 1, Article 585 of the Civil Code

- “Actual damage” means damage that has occurred under the guidance at Point b, Clause 1, Article 2 of this Resolution, converted into money at the time of compensation settlement. Damage arising after the time of first settlement of compensation shall be determined at the time of subsequent settlement of compensation at the request of the aggrieved person.

For example: A caused injury to B that B has had to treat for a long time. At the time the Court settles the compensation, the actual total damage is X dong, including: treatment costs, lost or reduced income; costs for caregivers, metal loss. After that, B still has had to continue to receive treatments, the expenses incurred after the time of the Court's settlement will be settled in another case at the request of the aggrieved person.

- “Damage to be fully compensated” means all actual damage that must be compensated.

- “Damage to be compensated in time” means damage that must be compensated as soon as possible in order to prevent, limit and remedy damage.

During the settlement of the case, the Court may apply one or several temporary urgent measures as prescribed by the civil procedure law to settle urgent claims of the aggrieved person (such as forcing the performance of partial obligation to compensate for loss of life or health in advance; or forcing the performance of partial support obligation in advance, etc.).

- In order to ensure complete and timely compensation for damage, the settlement of compensation issues in criminal or administrative cases must be carried out together with the settlement of criminal or administrative cases.

In case a criminal or administrative case mentions the compensation for damage but they could not prove it without affecting the settlement of the criminal or administrative case, the compensation should be split for further settlement in civil proceedings.

- The claimant for damage must clearly state each item of damage actually occurred, claimed compensation amount and documents supporting that his/her claim is grounded.

In case the damage claimant is unable to collect documents by himself/herself, he/she has the right to request the court to collect documents in accordance with the Civil Procedure Code.

2. Regarding Clause 2, Article 585 of the Civil Code

The extent of damage that is too great for the financial situation of the person responsible for compensation is a case where there are grounds to prove that if the Court orders compensation for the entire damage, the defendant’s financial situation is not enough to enforce the judgment.

For example: A person unintentionally sets fire to another's house, causing damage of 1,000,000,000 VND. The tortfeasor has total assets of 100,000,000 VND, the average monthly income is 2,000,000 VND. This extent of damage is too great compared to the financial situation of the tortfeasor.

3. Regarding Clause 3, Article 585 of the Civil Code

“The claimed compensation amount no longer consistent with reality” means that due to a change in the socio-economic situation; price fluctuations; change in injury status, working ability of the aggrieved person; a change in the financial situation of the tortfeasor, then the claimed compensation amount is no longer consistent with such change.

The aggrieved person or the tortfeasor requesting a change in the claimed compensation amount must file a written request for the change in the claimed compensation amount. Attached to the request are documents as a basis for requesting a change in the claimed compensation amount.

4. Regarding Clause 4, Article 585 of the Civil Code

If the aggrieved person is partly at fault for the damage that occurs, he/she is not entitled to compensation corresponding to that part of the fault.

For example: A and B were both driving a car on road, then they both hit together, resulting in A’s loss of 100,000,000 VND. The competent authority determined that A and B are jointly at fault with a 50% degree of fault each. In this case, B must compensate A 50,000,000 VND (50% of the damage).

5. Regarding Clause 5, Article 585 of the Civil Code

"The aggrieved party with infringed rights and interests shall not be compensated if the damage occurs due to his/her failure to apply necessary and reasonable measures to prevent or limit damage to himself/herself" is the case where the aggrieved party would know, foresee that if no precautionary measures has been taken, the damage will occur and she is able to take these measures to prevent and limit the damage from occurring but she/he has let the damage happen, then the aggrieved party shall not be compensated for the damage.

For example: A's house was caught on fire, B parked his car near A's house, B knew that if he didn’t move it, the fire would spread to burn B's car, and B was able to move it but B did not do that. In this case, B is not entitled to compensation.

Vietnam's Resolution 02/2022/NQ-HDTP takes effect from January 1, 2023.

Nhu Mai

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