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Right to compensation

Compensation for pecuniary and non-pecuniary damages – Action for damages

A person who causes damage to another person in violation of the law shall be liable for such damage. He shall be relieved of liability if he is able to prove that he has acted in a manner that can generally be expected in the given situation.

If voluntary performance is not effected, the injured party may enforce his claim through an action for damages. In such actions general courts, i.e. – depending on the amount claimed – district courts or tribunals have competence. An action for damages can be brought by a statement of claim to be filed by the injured party (claimant) to the court competent at the place of residence or registered office of the party who caused the damage (defendant) through a law firm in Budapest. The duty payable on the proceeding in the first instance is 6% of the amount claimed. Depending on financial and earnings position, the party bringing the action may apply for a right of prenotation of duty or personal exemption from duties and charges.

What is reviewed by the court?

Liability for damages is established if the following four basic conditions are met simultaneously: the conduct of the person held liable is illegal and attributable to him, his conduct actually causes a damage and the causal relation between the conduct and the damage can be established.

It means in an action for damages that the injured party should prove the fact (as the case may be, through assistance of a law firm in Budapest) that the damage has occurred, the amount of the damage and its causal relation with the conduct. Nevertheless, the party who caused the damage can excuse himself from liability if he proves that his conduct was not illegal or it was illegal but not attributable to him. 

In the most general sense of the word, damage means all disadvantages caused by an activity giving rise to damage to his person or property. As a general rule, the person liable for the damage must pay full compensation for the damage caused.

The mode of compensation depends on the nature of the damage. In this concern there is a distinction between pecuniary damage which manifests itself as a loss in value of the property and non-pecuniary damage which is an injury arising from infringement of personal rights (e.g. right to good reputation). In the case of pecuniary damages, compensation shall always involve pecuniary compensation, i.e. financial reparation. In the case of non-pecuniary damages the injured party may raise other claims under civil law against the party who caused the damage in addition to those for non-pecuniary compensation (e.g. restitution, restoration of original condition etc.).

(It is to be noted that the legal terminology used currently for compensation has already become slightly outworn. Namely, the concept of compensation always covers a pecuniary compensation. Nevertheless, “non-pecuniary damage” consists actually in a personal injury rather than a pecuniary disadvantage. Therefore, it is more appropriate to use the term “non-pecuniary disadvantage” or “injury” instead of “non-pecuniary damage” and “compensation for pain and suffering” instead of “non-pecuniary compensation” in line with the terminology of the new Civil Code.)

Before bringing an action for damages

Before resorting to litigation, attention should be paid to the fact that courts are basically legal service providers and have the opportunity to provide justice in the traditional sense of the word only in compliance with legal regulations. Therefore, it is worth – in any case – devote time and, if necessary, some money to have your case reviewed by a law firm in Budapest specialized in this field.  You could save much time, efforts and money if you bring an action well-prepared or in awareness of the changes or rather elect to abandon your intention to bring an action.

Our law firm in Budapest can provide you high-standard legal representation and comprehensive consultancy in cases of compensation for damages and actions for damages.

If you have any questions relating to compensation for damages, you may contact our law firm in Budapest  also via our online consultancy column.

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