Liability risk
Liability risk is that if there is damage due to the activity of certain enterprises, they are obliged to repair it. And they are exempt only if the damage occurs as a result of the force independent of the entrepreneur (force majeure, e.g. elements of nature), as a result of the victim's own behavior or the so-called intrusion and actions of a third party. It is associated with the use of dangerous devices, the use of nature forces or the use of other people. If, as a result of these actions, damage occurs, an obligation of compensation is imposed on the person who used these devices or persons, even if it was not guilty. It is therefore the most severest kind of responsibility[1].
Characteristics
Liability risk may concern only enterprises or plants set in motion by means of nature, or those who produce explosives or those who use such means. Indication of what explosives are, does not pose serious difficulties. Enumeration of nature forces - steam, gas, electricity, liquid fuels, is exemplary and not exhaustive. It is possible, existence of other forces capable of setting in motion the enterprise and being the forces of nature. Characterizing in general, it is going to be about sources of energy other than man or animal, sources of energy directed by man, but which in given conditions, not completely dominated by him, create a danger of unpredictable reaction and are thus connected with a high degree likelihood of bringing damage[2].
To assign the entrepreneur responsibility for the resulting damage on a risk basis it is necessary to state that[3]:
- there was damage
- the damage is related to the activity of the entrepreneur
- there is a cause and effect relationship between the damage and the activity of the entrepreneur
- no circumstances exist that exclude the entrepreneur's liability on a risk basis, i.e. no force majeure, lack of self-exposure of the injured person, no third party influence
The liability risk does not require that the injurious event would be unlawful, nor does it have to be human behavior. This principle is characterized by the fact that there is a possibility of freeing oneself from liability in the event of exhaustively defined, i.e. exoneration circumstances (circumstances which may be invoked by the person obliged to repair the damage in order to release themselves from liability).
It is possible to release liability on a risk basis when it is shown that[4]:
- the damage occurred as a result of force majeure. Force majeure is an event having its source from outside, outside the movement of the enterprise, the vehicle and only such an event that could not have been foreseen, avoided or simply protected against it even with the utmost care.
- exclusively due to the aggrieved party's fault. It must be the exclusive guilt of the casualty, so it is not possible to talk about the complicity. If it is proven that the victim contributed to the damage, the compensation may be reduced depending on the degree of fault of the aggrieved party and the perpetrator.
- through the fault of a third party, for which the entity is not liable - the obligated damages may also be released from liability when it proves that the exclusive fault for the damage bears third person, but only third person which entity is not responsible for.
Footnotes
| Liability risk — recommended articles |
| Crisis situation — Hardship clause — Aggravated damages — Contractual liability — Insurance risk — Indemnity clause — Implied agency — Consideration clause — Prohibitory injunction |
References
- Barboza J., (2010), The Environment, Risk and Liability in International Law, Martinus Nijhoff Publishers, p. 102-107
- Friedberg B. and others, (2015), Personal Finance: An Encyclopedia of Modern Money Management: An Encyclopedia of Modern Money Management, ABC-CLIO, p. 205
- Ross D. L., (2018), Civil Liability in Criminal Justice, Routledge, p. 77-81
- Shavell S., (2004), Foundations of Economic Analysis of Law, Harvard University Press, p. 259-263
Author: Kristina Tyshchenko
