Compensation law is a branch of law that aims to compensate individuals and institutions for material and moral damages in cases where they are harmed. Within the framework of legal liability, compensation can be claimed under different categories such as tort, breach of contract or strict liability. Compensation law can be considered within the scope of both private and public law and includes various regulations to compensate the aggrieved party.
Basic Principles of Compensation Law
Compensation law is a field of law that includes legal rules that provide compensation for the damages of individuals or institutions. The basic principles of this branch of law include elements such as damage, fault, causal link and illegality. Damage forms the basis of the compensation claim and may be material or immaterial. Fault, on the other hand, is the intentional or negligent causing of harm. While the causal link states that there must be a direct connection between the damage and the act, the element of illegality states that the damage occurred as a result of an action contrary to the laws and general principles of law.
The evaluation of these principles together constitutes the legal basis of compensation and contributes to the provision of justice. In particular, the difference between fault liability and strict liability is of great importance in compensation cases. In fault-based liability, the fault of the damaging party is sought, whereas in strict liability, only the damage and causal link may be sufficient. For example, businesses engaged in hazardous activities may be obliged to pay compensation regardless of whether they are at fault when the damage occurs. These principles ensure that the law of compensation is applied in a fair and balanced manner.
Material and Moral Compensation
Compensation law offers two main types of compensation, namely pecuniary and non-pecuniary compensation, to compensate the injured party. Material compensation is an arrangement that aims to cover direct economic losses. For example, the cost of repairing a vehicle in a traffic accident or the loss of income suffered by the victim in a work accident are considered as material compensation. In such compensation claims, it is of great importance for the injured party to prove his/her damages with documents. In determining the amount of damages, the court takes into account actual losses, future losses and changes in the victim’s standard of living.
Moral compensation aims to compensate for the psychological and emotional damages suffered by a person. Situations such as a person being subjected to an unjustified attack, damage to his/her reputation or experiencing a severe trauma are among the situations that require moral compensation. The amount of moral damages depends on the nature of the concrete case and the degree of distress suffered by the victim. Although it is not possible to completely eliminate such damages, legal systems introduce the mechanism of moral compensation to alleviate the suffering of the injured party.
Tort and Liability
A wrongful act is a situation where harm is caused to another person as a result of an unlawful behavior and is one of the most important issues of compensation law. In order for a tort to occur, four basic elements must be present: illegality, damage, fault and causal link. Unlawfulness means that the act is contrary to legal regulations and general rules of law. The damage may be material or immaterial and the person causing the damage must be at fault. The causal link requires that there is a direct causal relationship between the damage and the tortious act.
In tort liability, the person who causes damage is obliged to compensate the victim for the damage. However, in some cases, the principle of strict liability may come into play. For example, businesses engaged in a dangerous activity may be liable to pay compensation when damage occurs, even if they are not at fault. In lawsuits for damages based on tort, the injured party must prove the damage. The courts determine the amount of compensation according to the circumstances of the concrete case and take decisions to protect the rights of the injured party.
Contractual Compensation
Contracts are legal agreements that contain certain obligations between the parties and a right to compensation may arise in the event of breach of these obligations. Contractual damages are intended to compensate the material or immaterial damage suffered by the other party as a result of a breach of contract by one party. For example, a construction company’s failure to deliver a project on time or a supplier’s incomplete delivery of promised materials is a breach of contract. In such cases, the aggrieved party may take legal action to recover damages.
In contract-based compensation cases, the provisions of the contract must first be examined and the breach must be determined. The court determines the amount of compensation by assessing the extent of damage caused by the breach of contract. If there is a penalty clause in the contract, the parties may reach an agreement on the amount of compensation determined in advance. However, in cases where the penalty clause is excessive, the court may also check whether this amount is equitable.
Work Accidents and Compensation Liability
Occupational accidents are one of the main causes of compensation lawsuits for physical or psychological damages suffered by employees at work. Employers are obliged to take occupational health and safety measures and can be held liable for accidents that occur as a result of violations of these measures. A worker who is victimized after a work accident may claim material and moral compensation. While material compensation covers treatment costs, loss of earning capacity and temporary or permanent disability, non-pecuniary compensation is intended to compensate for the psychological effects and the decrease in the quality of life of the employee.
In compensation lawsuits filed as a result of a work accident, it is evaluated whether the employer is at fault, whether the accident was preventable and whether occupational safety measures were adequately taken. No matter how meticulous the measures taken to prevent work accidents, accidents may not be completely prevented. However, in accidents caused by the negligence or imprudence of the employer, the worker may claim compensation. In order to protect the rights of workers, labor courts may impose more severe sanctions, especially in accidents caused by occupational safety deficiencies.
Burden of Proof in Compensation Cases
In compensation cases, the burden of proof lies with the injured party and the claimant must prove that the damage occurred and that the person who caused the damage is responsible. The burden of proof is one of the most important elements in compensation cases and the case may be dismissed in case of insufficient evidence. The plaintiff may present various evidence such as witness statements, official documents, photographs and video recordings, expert opinions, etc. to prove the damage. The court evaluates the evidence and decides whether the damage has actually occurred and the amount of compensation.
In some cases, the burden of proof may shift to the injured party. Especially in certain areas, such as work accidents and consumer rights, the legislator may place the burden of proof on the injured party in order to protect the aggrieved party. For example, instead of proving that the employer did not take sufficient measures to prevent the work accident, the injured party may be required to prove that the employer took the necessary measures to prevent the accident. In such cases, the aggrieved party may ensure that the legal process proceeds more quickly and fairly.
Statute of Limitations in Compensation Law
The statute of limitations in compensation cases refers to the legal periods determined for the victim to exercise his/her legal rights. Under Turkish law, the statute of limitations for claims for damages based on tort is generally 2 years, but the injured party must file a lawsuit within 10 years at the latest from the date of learning of the tort. If the wrongful act constitutes a criminal offense and a longer limitation period is stipulated in the criminal law, this period may also apply to the claim for damages.
In contractual claims, the statute of limitations may vary depending on the type and content of the contract. For example, while the general limitation period in commercial contracts is 5 years, in some special cases this period may extend up to 10 years. If the statute of limitations expires, the injured person can no longer claim compensation and loses his/her legal rights. Therefore, it is of great importance to initiate the legal process in a timely manner for compensation claims.