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Helmut Koziol

Basic Questions of Tort Law from a Germanic Perspective

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Jan Sramek Verlag

Cite as: Helmut Koziol, Basic Questions of Tort Law from a Germanic Perspective (2012), marginal number

Translation from German to English by Fiona Salter Townshend

Helmut Koziol

Basic Questions of Tort Law from a Germanic Perspective

Jan Sramek Verlag

The translation was prepared with financial support from the Austrian Science Fund ( FWF ).

Research results from: Austrian Science Fund: P23519-G16

The financial support of the Austrian Science Fund ( FWF ) also made possible the free access to this electonic version.

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© 2012,  Jan Sramek Verlag KG Wien

V

Preface

The title of the German version of this book reads » Grundfragen des Schadenersatzrechts « and is thus much broader than the English title » Basic Questions of Tort Law from a Germanic Perspective «: the notion of » Schadenersatzrecht « not only comprises delicts but also contractual liability; further, not only the conditions and the bases of liability but also remedies. Therefore – apart from sounding strange to English speaking lawyers – neither the » law of damages « nor the » law of liability « would cover the same area as » Schadenersatzrecht «. As no English expression with similar meaning is available or at least common, I thought it best to refer to » tort law « as this is the main topic, although the borderlines to contractual liability are discussed and remedies and even time limitations are dealt with.

Already the discussion about the title shows the difficulties a translation of a book on Continental European law and in particular on Germanic law runs into. Because of the differences in the way of thinking and in the fundamental ideas, the deeper penetrating theory, the much more comprehensive dogmatics and the more detailed systematics makes it nearly impossible to express German legal discussions and argumentations adequately in English as the corresponding expressions are not available.1 For a Germanic lawyer English is not an ideal language to express his thoughts 2 and, on the other hand, it will not be easy for an English reader to understand the ideas of a German lawyer expressed in English. To make it a little easier for an English reader some of the expressions used by German lawyers are explained and can be found in a » glossary «. Nevertheless, I can imagine that a common lawyer will need quite some patience and perseverance to read this text, but I do hope it will be worth the efforts to some extent.

The volume, » Basic Questions of Tort Law «, is based on the German, Austrian and Swiss legal systems, but moreover it frequently refers in a comparative fashion to other legal systems as well as to the Principles of European Tort Law. The book is the first part of a project supported by the Austrian Science Fund

1See the section on the problem of terms, concepts and language in B Markesinis / M Coester / G Alpa / A Ulistein, Compensation for Personal Injury in English, German and Italian Law: A Comparative Outline ( 2005 ) 2 ff.

2See in regard of this problem Flessner, Die Bedeutung von Wilhelm von Humboldts Sprachdenken für die Rechtswissenschaft, in: Grundmann / Kloepfer / Paulus / Schröder / Werle ( eds ), Festschrift 200 Jahre Juristische Fakultät der Humboldt-Universität zu Berlin ( 2010 ) 882 ff.

Helmut Koziol

Basic Questions of Tort Law from a Germanic Perspective

VI

Helmut Koziol

Basic Questions of Tort Law from a Germanic Perspective

 

 

( Fonds zur Förderung der wissenschaftlichen Forschung, FWF ), which seeks to

 

produce answers to the basic questions of tort law in Europe from a compara-

 

tive perspective. » Basic Questions of Tort Law from a Germanic Perspective « is

 

intended to provide a basis for comprehensive responses by representatives of

 

other European legal families and jurisdictions outside Europe on the fundamen-

 

tal ideas elaborated in this book. The statements will in turn be instrumental in

 

the draft of the conclusions, which will attempt to provide substantiated answers

 

to the fundamental questions of tort law, above all its functions and aims but also

 

numerous other important issues. By this, an attempt will be made to offer basic

 

answers founded on comparative research to guide future developments in Euro-

 

pean tort law.

 

 

 

The book in hand, therefore, tries to give a more extensive introduction to the

 

delictual and contractual law of liability and damages. It addresses basic prob-

 

lems and questions and where appropriate elaborates upon them; it queries the

 

usual arguments, prompts the reconsideration of apparently established ideas

 

and enhances awareness of interrelationships. Accordingly, the rationale of that

 

old but nowadays often disregarded principle that the loss lies where it falls

 

( casum sentit dominus ) is called to mind; the issue of » insurance versus liability «

 

is raised and the pros and cons of strict delimitation and rigid norms as opposed

 

to fluid transitions and elastic rules are discussed. Above all, however, the posi-

 

tion of the law of tort within the overall system for the protection of legal goods is

 

examined and taken as a basis to elaborate the aims of individual legal remedies

 

in more detail and to reveal the fluid transitions between the legal areas and fur-

 

ther develop them. For example, the relationship between claims for damages and

 

preventive and reparative injunctions is looked at; the difficult issue of » punitive

 

damages « at the crossroads between criminal and civil law is examined; the divi-

 

sion of roles between tort law and social security law is reviewed. The resulting

 

conclusions serve to facilitate the subsequent elaboration of the tasks of the law

 

of tort, in which context the increasingly emphasised economic function is dis-

 

cussed as well as the compensatory, deterrent and penal functions.

 

However, the book is not limited to these very general considerations but also

 

seeks to apply the insights gained in order to examine both general and more spe-

 

cific questions. These in turn aim to provide the reader with information which

 

will enable him or her to understand better the – to some extent strange – ideas in

 

foreign legal systems. Nonetheless, no attempt is made to provide a complete over-

 

view; instead the focus is on particularly controversial issues and new approaches.

 

Not only is the relationship between breaches of obligations and torts examined,

 

but the basic requirements for a claim under tort law – damage and causation – are

 

also discussed. An extensive section is devoted to the elements of establishing lia-

 

bility; besides wrongfulness and fault, other defects within the sphere of the party

 

liable for damages are looked at: for example, the capacity to bear the economic

Jan Sramek Verlag KG ©

Preface

Jan Sramek Verlag KG ©

Preface

VII

burden, insurability, the notion of a risk community and the interplay of the various elements. The question of liability on the side of the victim, ie contributory responsibility, is looked at anew – starting from basic principles. After the limitation of liability, the compensation of damage and the reduction of the duty to compensate, a final section is devoted to the prescription of compensation claims.

As the text repeatedly makes reference to the » Principles of European Tort Law « by the European Group on Tort Law and to the » Draft proposal submitted by the working group set up by the Federal Ministry of Justice for a new Austrian law of damages «, these texts are included in the annex to make the complete wording of the relevant provisions as well as the context available to the reader.

Fiona Salter Townshend has carried out the difficult task of translation from German to English with keenness, great care and experience; my sincere thanks for that. I further want to express my gratitude to Vanessa Wilcox, European Centre of Tort and Insurance Law, Vienna, for her enormous personal commitment and important help in finishing this manuscript. I am indebted to Michael D. Green, Wake Forest University School of Law, for his many helpful suggestions to make the book better understandable for US lawyers.

I am grateful to the Austrian Science Fund for supporting this project, which otherwise would have been impracticable.

The very personal assistance provided by my publisher, Mag Jan Sramek, was as professional and as thorough as an author could possibly wish for, but will very rarely experience.

Helmut Koziol

Helmut Koziol

Basic Questions of Tort Law from a Germanic Perspective

Table of Contents

Preface  ..................................................................................................................................

 

V

List of Abbrevations  ..........................................................................................................

XVII

Chapter 1

 

 

Introduction

 

I.

The victim’s own risk and shifting of the damage  .......................................

1

II.

An insurance-based solution instead of liability law ?  ................................

5

 

A. Fundamental advantages and disadvantages........................................

6

 

B. Economic considerations  .............................................................................

8

III.

Strict limits and rigid norms or fluid transitions and elastic rules ?.....

9

 

A. Strict delimitation of the different bases for claims............................

9

 

B. Absolutely protected rights and unprotected interests  .......................

12

 

C.

All - or - nothing principle ?  .............................................................................

13

 

D.

Elastic rules  .......................................................................................................

14

Chapter 2

The law of damages within the system for the protection of rights and legal interests

I.

In general  ..................................................................................................................

 

17

II.

Claims for recovery  ................................................................................................

 

20

III.

Preventive injunctions  ..........................................................................................

 

20

IV.

Rights to self-defence  ............................................................................................

 

24

V.

Reparative injunctions  ..........................................................................................

 

26

VI.

Unjust enrichment by interference  ..................................................................

33

 

A. The relationship between claims for unjust enrichment

 

 

and claims for damages  ................................................................................

 

33

 

B. Blurred boundaries between claims for unjust enrichment

 

 

and claims for damages  ................................................................................

 

34

 

C. The overlap between the laws on unjust enrichment

 

 

and damages  .....................................................................................................

 

36

Helmut Koziol

Basic Questions of Tort Law from a Germanic Perspective

IX

X

Helmut Koziol

Basic Questions of Tort Law from a Germanic Perspective

 

 

1. The problem area at issue  ......................................................................

36

 

 

2. Inapplicability of the law of unjust enrichment  .............................

37

 

 

3. The shortcomings of the law of tort  ....................................................

38

 

 

4. Approaches to solutions in intellectual property law  ....................

40

 

 

5. The doctrinal classification of the claim to disgorgement

 

 

 

of profit  .........................................................................................................

43

 

 

6. Conclusion..................................................................................................

44

 

VII.

Creditors’ avoidance  ..............................................................................................

45

 

VIII.

Claims for damages  ...............................................................................................

46

 

IX.

» Punitive damages « ?  .............................................................................................

50

 

 

A. Alleged need for such and concerns  .........................................................

50

 

 

B. Alternatives  ........................................................................................................

55

 

 

C. Preventive damages instead of punitive damages ?  ..............................

56

 

X.

Insurance Contract Law  .......................................................................................

58

 

 

A. In general

...........................................................................................................

58

 

 

B. Third-party liability insurance and damages  .........................................

59

 

XI.

Social security law  ..................................................................................................

60

 

XII.

Compensating victims of crime and catastrophes  ......................................

62

 

 

A. Victims of crime  ...............................................................................................

62

 

 

B. Victims of catastrophes  .................................................................................

64

 

XIII. Disgorgement claims  ............................................................................................

65

 

XIV.

Criminal law  .............................................................................................................

 

66

 

XV.

Concluding remarks  ..............................................................................................

68

 

 

A. Use of legal protection mechanisms in a manner

 

 

 

contrary to their function  .............................................................................

68

 

 

B. The need for a consistent overall system  .................................................

70

 

 

C. Observation of the structural principles of private law

 

 

 

and public law  ..................................................................................................

71

 

 

D. Taking into account the relationship between prerequisites

 

 

 

and legal consequences  .................................................................................

72

 

 

E. Taking into account the appropriacy of tasks to the nature

 

 

 

of the instrument, the interplay of different protection

 

 

 

mechanisms and the further development of borderline areas  .......

73

Chapter 3

The tasks of tort law

 

I.

Compensatory function  .......................................................................................

75

 

II.

Function of deterrence and continuation of a right

 

 

 

( Rechtsfortsetzungsfunktion )  ............................................................................

78

Jan Sramek Verlag KG ©

Table of Contents