Damages Claim Lawsuit

Abbreviation of damages compensation claim lawsuit; a civil lawsuit seeking compensation for damages incurred through tort or non-performance of obligation.

Damages Claim Lawsuit

Overview

Damages Claim Lawsuit (손배소, 損賠訴) is an abbreviation of 'damages compensation claim lawsuit (損害賠償請求訴訟)', referring to the civil litigation procedure in which a victim who has suffered property or mental damages due to another person's tort or non-performance of obligation claims compensation for those damages from the wrongdoer. Articles 750 (tort) and 390 (non-performance) of the Civil Act are the substantive legal bases, and it is often filed together with preservative measures such as provisional seizure and provisional disposition. In everyday terms, it is the most frequently used type of litigation in various disputes such as traffic accidents, medical accidents, defamation, and breach of contract.

Key Details

Legal Basis

The legal basis for a damages claim is largely divided into two branches. First, damages based on tort: under Article 750 of the Civil Act, a person who intentionally or negligently causes damages to another bears liability for compensation. Second, damages based on non-performance of obligation: under Article 390 of the Civil Act, a party who fails to perform a contractual obligation must compensate the other party for damages. In addition, special statutes such as the Automobile Damage Compensation Guarantee Act, the Product Liability Act, and the State Compensation Act may apply.

Types and Scope of Damages

Damages subject to compensation are largely divided into positive damages (property damages), negative damages (lost profits), and mental damages (consolation money). Article 393 of the Civil Act distinguishes, in cases of non-performance, between 'ordinary damages' and 'special damages,' and special damages are recognized only when the party could have foreseen them. In addition, under comparative negligence (Article 396 of the Civil Act) and the principle of offsetting gains and losses, if the victim is also at fault, the compensation amount may be reduced.

Litigation Procedure

A damages claim lawsuit generally proceeds as follows.

1. Filing and acceptance of complaint – Submit a complaint stating the purport of the claim and cause of claim to the competent court and pay the filing fee.

2. Service and submission of answer – A copy of the complaint is served on the defendant, and the defendant responds with an answer.

3. Pleadings and evidence examination – After issues are sorted out, evidence examination takes place, including witness examination, orders to produce documents, and expert appraisal.

4. Judgment and appeal – The court calculates the compensation amount and renders judgment; if dissatisfied, appeal to a higher court or final appeal is possible.

Statute of Limitations

A claim for damages due to tort is extinguished by prescription if not exercised for three years from the day the victim or their legal representative becomes aware of the damage and the wrongdoer, or for ten years from the day the tort was committed (Article 766 of the Civil Act). In cases of non-performance of obligation, the general extinctive prescription for claims (10 years) applies.

Burden of Proof

In civil litigation, the burden of proof is in principle on the claimant (plaintiff). However, in medical accidents, product liability, etc., the doctrine of 'relaxation of burden of proof' or 'shifting of burden of proof' may apply, placing a considerable burden on the defendant.

Latest Trends

As of 2024–2025, damages claim lawsuits are situated within the trend toward expanding class actions and punitive damages. With amendments to the Product Liability Act, discussions continue on raising the cap on punitive damages from up to three times, and damages lawsuits against platform and IT companies over personal information leaks are also increasing rapidly. In addition, as defamation lawsuits over deepfakes and false information increase, case law on the scope and calculation standards for consolation money is actively accumulating. Large-scale lawsuits directly connected to social issues, such as damages lawsuits by victims of jeonse fraud, have also become frequent, and there is a clear tendency for mediation, arbitration, and collective dispute mediation—conducted by small-amount and multiple victims gathering online—to replace litigation. Furthermore, with the establishment of the electronic litigation system, the filing and service of complaints have become digital, improving procedural accessibility.