THE DIFFERENCES BETWEEN MATERIAL AND MORAL COMPENSATION: THE LEGAL PROCESS AND REMEDY FOR DAMAGES

The Difference Between Material and Non-Material Compensation:

Material and non-material damages are two primary types of compensation that parties harmed as a result of legal disputes can claim to remedy their losses. These two types of compensation differ in many respects.

Financial Compensation:

Monetary compensation is a type of compensation sought to cover material damages to a person's property. The injured party can request monetary compensation, seeking to have their losses compensated in kind or in cash.

• In order to claim monetary compensation, there must be concrete and measurable damages. The decrease in the injured party's assets must be objectively and clearly quantifiable.
• Monetary compensation is calculated based on the amount of damage, the nature of the loss suffered, and legally admissible evidence of that loss.
• Claims for monetary compensation are based on the provisions of the law of obligations relating to torts, breach of contract, and unjust enrichment.

Tort: If a person causes harm to another through an unlawful act, the injured party can claim monetary compensation based on the provisions of tort law.

Breach of contract: If damage results from a breach of contract between the parties, the injured party may claim monetary compensation from the party that breached the contract.

Unjust enrichment: Unjust enrichment occurs when one person's assets increase while another person's assets decrease, without a valid and legal reason. The person harmed as a result of unjust enrichment can claim monetary compensation.

• The purpose of monetary compensation is to compensate the injured party for the damages suffered and to restore them to their condition before the damage occurred. This compensation is intended to remedy the material damage suffered by the injured party and is calculated according to the extent of the damage.

Scope of Monetary Compensation:

The aim of monetary compensation is to redress all material losses suffered by the injured party. These losses include:

Direct damages: These are direct reductions in the property of the injured party. For example, the destruction of a property.

Indirect damages: These are additional damages that occur as a consequence of direct damage. For example, loss of productivity due to an accident.

Lost earnings: Earnings that could not be obtained due to the loss.

Medical expenses: These are the costs incurred by an injured person for treatment resulting from the injury they sustained. For example, hospital expenses incurred as a result of an injury.

Compensation is calculated based on the type and amount of material damage suffered by the injured party. Accurate determination of the damage is necessary to set the amount of compensation. In compensation claims, a lawsuit must be filed within a specific period from the date the damage is learned. This period is generally two years, but a general ten-year statute of limitations applies in cases of torts. The party claiming compensation must prove the damage suffered and that the other party's actions caused the damage.

Examples:

• Traffic Accident: Damages to a vehicle resulting from a traffic accident, repair costs, medical expenses for the injured parties, and loss of earning capacity can be claimed as compensation for material damages.
• Workplace Accident: If a worker becomes incapacitated or suffers a loss of income as a result of a workplace accident, these economic losses are compensated with monetary compensation.

 

Non-pecuniary damages:

Non-pecuniary damages are a type of compensation sought to cover the moral harm suffered by a person as a result of the violation of their personal rights. Non-pecuniary damages aim to help the individual recover psychologically and compensate for the emotional harm suffered. Since moral harm cannot be measured concretely and its monetary value cannot be precisely determined, the amount of non-pecuniary damages is determined at the discretion of the judge. When calculating non-pecuniary damages, the degree of pain, sorrow, and suffering experienced by the injured party is taken into account. This compensation is determined according to the nature of the event, the person's place in society, their economic situation, and the extent of the harm suffered. Claims for non-pecuniary damages are based on the provisions of the law of obligations concerning the violation of personal rights and torts.

Examples:

• Violation of Personal Rights: If a person suffers moral damage due to an attack on their personal rights (e.g., defamation, insult, violation of privacy), they may claim compensation for moral damages.
• Loss of a Loved One: The profound pain and grief experienced by a person who has lost a loved one may be the subject of a claim for moral damages.

The Difference Between Material and Non-Material Compensation:

Both pecuniary and non-pecuniary damages are two types of compensation paid to individuals who have suffered harm as a result of unlawful acts, aiming to compensate for different types of damages. While both types of compensation aim to remedy the victims' losses, they have significant differences in content and purpose.

Financial Compensation:

• Aim:

1. 1. • Monetary compensation aims to compensate for direct economic losses to a person's assets. This compensation is paid to cover the material extent of the damage.

• Type of Damage:

1. 1. • Monetary compensation is directed towards tangible and measurable damages. These damages are generally economic in nature, such as physical injuries, loss of property, loss of income, and medical expenses.

• Calculation:

1. 1. • Monetary compensation is determined by assessing the economic losses suffered by the injured party using a specific formula or calculation method. This calculation takes into account actual damages and lost earnings.

• Examples:

1. • Repair costs for a vehicle damaged in a traffic accident, loss of productivity due to a workplace accident, and financial losses arising from the faulty delivery of a product.

Non-pecuniary damages:

• Aim:

1. 1. • Non-pecuniary damages aim to compensate for harm suffered by a person's moral values, personal rights, or mental health. This compensation is intended to alleviate the pain, sorrow, stress, fear, or loss of reputation experienced by the individual.

• Type of Damage:

1. 1. • Non-pecuniary damages are directed towards abstract and immeasurable harms. These harms are non-physical, based primarily on emotional and psychological effects.

• Calculation:

1. 1. • Non-pecuniary damages cannot be calculated using concrete criteria; the court exercises its discretion in determining the amount of non-pecuniary damages, taking into account the severity of the damage, the circumstances of the parties, and the specifics of the case.

• Examples:

1. • Damage to a person's reputation due to an attack on their personal rights, profound grief and sorrow experienced due to the death of a loved one, and moral harm resulting from the violation of privacy.

In summary:

• Monetary Compensation: This relates to tangible, measurable, and economic damages, and compensates for the actual material losses resulting from the damage.
• Non-pecuniary damages: These are for intangible, immeasurable, and emotional harm, aiming to remedy damage to a person's moral values.

These two types of compensation can also be claimed together in legal proceedings to ensure that victims receive full compensation for their losses.

 

Compensation Lawsuit:

Lawsuit Filing Process: A person seeking material or moral damages can file a lawsuit regarding the event in which the damage occurred. The lawsuit is filed against the person who caused the damage in the civil courts of first instance. In a compensation lawsuit, the plaintiff must prove the existence of the damage and that this damage originated from the defendant.

Court Decision: The court evaluates whether the claim is justified and, if it deems appropriate, determines the amount of compensation. Material compensation is calculated as a fixed amount to compensate for tangible losses, while moral compensation is assessed according to the emotional dimension of the damage.

Material and non-material compensation are fundamental tools for redressing damages caused by unlawful acts. Material compensation addresses losses in property, while non-material compensation aims to alleviate the emotional distress suffered by the individual. These types of compensation are of great importance in ensuring justice and redressing the losses of victims.

 

Law Student Intern Nursena İbanoğlu