Lesson 9: Tort law
1 In general
1.1 case: Liebeck vs. McDonald’s
1.2 background
1.2.1 general principle: the loss lies where it falls
• the injured party bears the risk for the damage suffered
1.2.2 civil wrong and crime
• the tort is a private wrong
• may be a criminal wrong too at the same time
1.2.3 historical origins
• developed from the vengeance
1.3 functions of tort law
1.3.1 compensation
• compensation of the damage suffered by the injured party
1.3.2 deterrence and prevention
• the injuring party is financially liable for the tort
1.3.3 punishment for the tortfeasor
• common law: punitive damages are awarded where the wrongdoer acted
intentionally or with gross negligence
• civil law: no punitive damages are awarded to the injured party
1.3.4 enabling dangerous but useful activities
• useful for society but create a high degree of risk even when conducted non-
negligently (railway)
Lesson 9 1/8
, 1.4 other compensation systems
• contract law includes provisions concerning the breach of contract which may result
in the obligation of the breaching party to refund the damage suffered by the non-
breaching party
private insurance law
contract with the insurance company
social security law
financial assistance in the case, such as unemployment or disablement
victim support
refunded by the community
labor law
the employer pays the salary of the employee for a limited period of time in case of illness,
accident, and maternity
2 Fault-based liability in tort law
2.1 overview
• whoever unlawfully causes damage to another, whether willfully or negligently, shall
be liable in damages
2.2 damage
2.2.1 general
• the wrongdoer must put the injured party in the position it would have been without
the tort
o reduction of the assets
o loss of profit
2.2.2 pecuniary damages (money)
• must be refunded by the injuring party
• only economic damages are refunded
2.2.3 compensation for pain and suffering
• compensation for pain and suffering is the reimbursement for the physical and
emotional stress caused from an injury
Lesson 9 2/8
1 In general
1.1 case: Liebeck vs. McDonald’s
1.2 background
1.2.1 general principle: the loss lies where it falls
• the injured party bears the risk for the damage suffered
1.2.2 civil wrong and crime
• the tort is a private wrong
• may be a criminal wrong too at the same time
1.2.3 historical origins
• developed from the vengeance
1.3 functions of tort law
1.3.1 compensation
• compensation of the damage suffered by the injured party
1.3.2 deterrence and prevention
• the injuring party is financially liable for the tort
1.3.3 punishment for the tortfeasor
• common law: punitive damages are awarded where the wrongdoer acted
intentionally or with gross negligence
• civil law: no punitive damages are awarded to the injured party
1.3.4 enabling dangerous but useful activities
• useful for society but create a high degree of risk even when conducted non-
negligently (railway)
Lesson 9 1/8
, 1.4 other compensation systems
• contract law includes provisions concerning the breach of contract which may result
in the obligation of the breaching party to refund the damage suffered by the non-
breaching party
private insurance law
contract with the insurance company
social security law
financial assistance in the case, such as unemployment or disablement
victim support
refunded by the community
labor law
the employer pays the salary of the employee for a limited period of time in case of illness,
accident, and maternity
2 Fault-based liability in tort law
2.1 overview
• whoever unlawfully causes damage to another, whether willfully or negligently, shall
be liable in damages
2.2 damage
2.2.1 general
• the wrongdoer must put the injured party in the position it would have been without
the tort
o reduction of the assets
o loss of profit
2.2.2 pecuniary damages (money)
• must be refunded by the injuring party
• only economic damages are refunded
2.2.3 compensation for pain and suffering
• compensation for pain and suffering is the reimbursement for the physical and
emotional stress caused from an injury
Lesson 9 2/8
