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1. When is a person who causes damage exempt from liability for compensation?

1.1. Basis for arising liability for compensation

According to Clause 1, Article 584 of the Civil Code 2015:

“A person who commits acts infringing upon the life, health, honor, dignity, reputation, property, rights, and other legitimate interests of another person that causes damage must compensate…”

Accordingly, a person is only liable for compensation when there is an act infringing upon the life, health, honor, dignity, reputation, property, or other legitimate rights and interests of another person that causes actual damage.

However, liability for non-contractual damage only arises when all three of the following conditions are met:

(1) Actual damage occurs

Damage is defined as a reduction in material benefits or a loss of spiritual value that the injured party must bear. Damage must be real, quantifiable, or estimable, including:

+ Material damage is the actual identifiable material loss of the injured party, including losses of property that cannot be remedied; reasonable costs to prevent, limit, or remedy the damage; actual income lost or reduced due to the infringement of property, health, life, honor, dignity, reputation, rights, and other legitimate interests.

+ Spiritual damage is the mental loss due to the infringement of life, health, honor, dignity, reputation, rights, and other personal interests that the injured party or their relatives must endure and requires compensation for that loss. Without actual damage, liability for compensation does not arise.

(2) There is an unlawful act causing damage

An act is considered unlawful when:

+ It infringes upon the rights and legitimate interests of others

+ It is not permitted by law or exceeds the limits allowed by law

An act can be an action or inaction when there is an obligation to act.

(3) There is a causal relationship between the damage that occurs and the unlawful act

It must be proven that:

+  If there were no unlawful act, the damage would not occur

+ The act is the direct or necessary cause leading to the damage

If the damage arises from another cause such as force majeure or the complete fault of the injured party, liability for compensation does not arise.

Note: if the property causes damage, the owner or possessor must compensate. However, if the damage occurs due to force majeure or the complete fault of the injured party, the owner is not liable for compensation.

2. When is a person who causes damage exempt from liability for compensation?

According to Clause 2, Article 584 of the Civil Code 2015:

“A person who causes damage is not liable for compensation in cases where the damage arises from force majeure or is entirely due to the fault of the injured party…”

From the above provision, there are two cases of exemption from liability:

a. Damage arises from force majeure

Force majeure is an objective event that occurs unexpectedly and cannot be remedied even after all necessary measures have been applied.

Examples include natural disasters such as earthquakes, floods; major epidemics; wars.

Characteristics of this case:

+ The person causing the damage is not at fault

+ The consequences cannot be controlled or prevented

In practice, a person who is lawfully traveling encounters an unexpected landslide causing rocks to fall onto another vehicle may not be liable for compensation.

b. Damage occurs entirely due to the fault of the injured party

Entirely due to the fault of the injured party means that the injured party caused the consequences themselves without any fault of anyone else.

For example: The injured party voluntarily enters a dangerous area despite clear warnings.

In this case, civil liability cannot be attributed to others if they do not have an unlawful act or do not intervene to cause the damage.

In addition to the two cases above, the law also recognizes exceptions:

+ If the parties have other agreements

+ If specialized laws provide otherwise

2. The wall of the house under construction has collapsed onto the neighboring house; who is responsible, the contractor or the homeowner?

During the construction process, unexpected incidents can occur and cause damage to surrounding properties, such as a wall collapsing onto a neighboring house. In such cases, the common question arises: Who will be responsible for compensation, the homeowner or the construction unit?

2.1. Who is responsible for compensating for damages caused by property?

The Civil Code 2015 clearly stipulates the basis for arising liability for damages. According to Clause 1, Article 584, a person who infringes upon the rights and legal interests of others and causes damage must compensate.

Thus, when a wall collapses and causes damage to the adjacent property, it is first necessary to identify the owner of the property at the time the incident occurred to determine the liability for compensation.

2.2. How is the property owner identified?

Identifying who is the owner of the property at the time the damage occurs is crucial in determining who is liable for compensation. Clause 1, Article 161 of the Civil Code 2015 stipulates the time of establishing ownership rights as follows:

“Article 161. Time of establishing ownership rights and other rights to property
1.The time of establishing ownership rights and other rights to property is carried out according to the provisions of this Code, other relevant laws; if the law does not have provisions, it shall be implemented according to the agreement of the parties; if the law does not stipulate and the parties do not have an agreement, the time of establishing ownership rights and other rights to property is the time the property is transferred.
The time the property is transferred is the time the person with the right or their legal representative possesses the property.”

From this provision, it can be affirmed:

+ The homeowner (the investor) is the legal owner of the construction throughout the construction process until the project is completed and handed over for use. Therefore, at the time the wall under construction collapses and causes damage, the project still belongs to the homeowner, so the homeowner is primarily responsible for compensating the affected party.

+ The construction contractor is not the owner of the property but is the party directly managing, supervising, and carrying out the construction activities. If the damage arises due to the contractor’s fault, such as unsafe construction practices or violations of technical standards, the contractor must compensate the homeowner or directly bear responsibility according to the agreement in the contract and the degree of fault.

+ Only when ownership is transferred to the buyer according to legal conditions and agreements can the liability for compensation shift from the seller to the buyer. If ownership has not been established or fully transferred, the seller is still considered the owner and must bear responsibility for damages caused by the property.

3.3. How are the responsibilities of the homeowner and the construction contractor determined?

In the case of the wall under construction collapsing, the property causing the damage is the construction project. This project belongs to the investor (the homeowner). Therefore, according to general principles, the homeowner must compensate for the damages to the affected party.

However, it is also necessary to consider the element of fault:

+ If the fault lies with the construction contractor, such as incorrect construction, use of poor-quality materials, or lack of safety measures, the homeowner has the right to request the contractor to reimburse the corresponding compensation.

+ If the fault is due to the homeowner, such as unauthorized design changes, unpermitted construction, or failure to meet technical requirements, the homeowner must bear primary responsibility.

+ If both parties share fault, the responsibility will be divided according to the degree of fault of each party.

3.4. In what cases can the homeowner be exempted from compensation liability?

The law allows for exemption from liability in cases where:

+ Damage occurs due to force majeure events, such as landslides or tornadoes that cannot be foreseen.

+ The damage is entirely due to the fault of the affected party.

Article 584 of the Civil Code affirms that in these cases, the party causing the damage is not required to compensate. However, clear evidence must be provided to prove the occurrence of force majeure or the fault of the affected party.

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