Compensation for damage, losses to legal entities

Legal grounds for compensation of losses 

The basis for the recovery of losses from the tortfeasor is the norms of civil legislation governing both contractual and non-contractual (tort) liability. First of all, Articles 15 and 16 of the Civil Code of the Russian Federation are subject to application. 

Article 15 of the Civil Code of the Russian Federation formulates a general rule on compensation for damages. According to this norm, a person whose unlawful action caused damage to another person is obliged to compensate the victim: 

• real damage is the costs that a person has incurred or should incur to restore the violated right; 

• lost profit is income that a person could have received under normal conditions of civil circulation if his right had not been violated. 

Article 16 of the Civil Code of the Russian Federation extends the rule on compensation for losses to cases where damage was caused as a result of illegal actions (or inaction) of state bodies or their officials. 

• in case of suspension of the company's activities based on the results of an illegal inspection; 

• in case of refusal to register rights; 

• when issuing acts that were subsequently declared invalid. 

Additionally, the following are used: 

• Articles 393 and 393.1 of the Civil Code of the Russian Federation – establish liability for violation of obligations under the contract; 

• Articles 1064 and 1068 of the Civil Code of the Russian Federation – regulate the general provisions on tort liability, including liability for the actions of employees; 

• Article 1100 of the Civil Code of the Russian Federation indicates cases when damage is compensated regardless of fault (for example, in the field of activities associated with increased danger). 

Although, of course, these are not all the norms governing this type of relationship. If we are talking about legal relations with a foreign element, foreign law may be applicable.

Classification of losses 

In the context of legal practice, losses are understood not only as actually incurred damage, but also as lost income to which the organization would have been entitled in the normal course of events. In accordance with Article 15 of the Civil Code of the Russian Federation, losses are divided into two main types: 

1. Actual damage 

The actual damage is the actual losses that the legal entity has already suffered. It includes: 

• direct costs caused by the need to eliminate the consequences of the offense; 

• loss of or damage to property; 

• costs of fulfilling obligations to third parties resulting from violations; 

• additional costs incurred in connection with the unfair behavior of the counterparty. 

Example: the counterparty did not deliver the paid goods on time, as a result of which the company was forced to urgently purchase similar goods at a higher price. 

2. Lost profits 

Lost profit is income that a legal entity could have received if its right had not been violated. Unlike the actual damage, it is not about costs incurred, but about unrealized opportunities. 

To recover lost profits, it is necessary to prove: 

• the likelihood of making a profit; 

• that these profits were not obtained solely due to the defendant's misconduct; 

• The amount of this profit can be reasonably calculated. 

Example: due to the failure of the project due to the fault of the contractor, the company lost a contract with a third party, which implied a stable income throughout the year.

Typical grounds for losses 

Compensation for losses to a legal entity is possible if there are certain legal grounds. Depending on the nature of the offense, they can arise both within the framework of contractual relations and outside them (on the basis of non-contractual liability).  

1. Breach of Contractual Obligations

This is one of the most common sources of losses. Classic examples: 

• delay in the performance of an obligation (for example, delivery of goods); 

• non-fulfillment or improper fulfillment of the terms of the contract; 

• unilateral refusal to perform without legal grounds. 

Such actions may entail direct financial losses, failure to meet obligations to other counterparties, the need to urgently replace the supplier and other losses. 

2. Causing damage outside the framework of the contract (tort liability)

Examples: 

• damage to property by a third party; 

• dissemination of false and defamatory information about the company; 

• infringement of exclusive rights (for example, to a trademark); 

• unfair competition. 

In all these cases, the person who violated the law is obliged to compensate for the damage caused. 

3. Actions (or inaction) of state bodies and their officials

A legal entity has the right to compensation for losses if they have arisen as a result of: 

• issuance of an illegal normative act; 

• conducting an illegal inspection; 

• refusal of state registration; 

• other illegal actions on the part of state bodies recognized by the court as invalid. 

The presence of a judicial act confirming the illegality of such actions is the basis for filing a claim for damages.

Indemnification procedure 

The mechanism for compensating losses to a legal entity may include both a pre-trial procedure and recourse to the court. The effectiveness of recovery directly depends on the correct legal qualification of the situation, the completeness of the evidence base and compliance with the established procedures. 

1. Legal and factual analysis of the situation

Initially, a legal assessment of the grounds for filing claims is carried out. Installed: 

• the nature of the offense (contractual or tort); 

• the presence of a connection between the actions of the offender and the consequences that have occurred; 

• the possibility and expediency of recovering damages. 

At this stage, it is necessary to calculate the amount of the potential claim, including both actual damage and lost profits. 

2. Documentation and calculation of losses

It is necessary to collect: 

• contracts and correspondence with counterparties; 

• invoices, payment orders, waybills; 

• expert opinions on the market value of losses; 

• other supporting documents, including internal reporting. 

The calculation should be transparent and verifiable. 

3. Complaint procedure

In many cases, the law and the terms of the contract require compliance with the pre-trial procedure. The injured party sends a claim to the violator outlining the essence of the violations, calculating losses and demanding their voluntary compensation. 

Failure to comply with the claim procedure may result in a refusal to accept the claim or leave it without consideration. 

4. Trial

If the dispute cannot be settled amicably, the affected company files a lawsuit in the arbitration court. In the course of the proceedings, it is necessary: 

• substantiate the violation; 

• confirm the causal relationship; 

• to prove the amount of damages. 

The court may order a forensic examination and request additional documents. 

5. Execution of the court decision

At the end of the process, if the claim is satisfied, a writ of execution is issued, on the basis of which it is possible: 

• forced collection of funds through the bailiff service; 

• foreclosure on the debtor's assets; 

• other measures within the framework of enforcement proceedings.

Features of proving losses 

The key condition for satisfying a claim for damages is the availability of proper evidence. In accordance with the provisions of the Civil Procedure and Arbitration Procedure Codes, the burden of proof lies with the plaintiff, that is, with the legal entity filing the claim for compensation. 

To recover damages, three mandatory elements must be proved: 

1. The fact of violation

The plaintiff must confirm that the actions of the defendant were contrary to the law, the terms of the contract or generally accepted rules of conduct in civil turnover. The following can be used as evidence: 

• treaties and annexes thereto; 

• correspondence of the parties; 

• acts, decisions or inaction of state bodies; 

• other documents recording the fact of violation. 

2. Amount of losses

The amount required for reimbursement must be justified and documented. Depending on the situation, the evidentiary array may include: 

• financial documents (invoices, acts, bills); 

• internal documents (business plans, reports, calculations); 

• opinions of appraisers and economic experts. 

Losses cannot be arbitrary or hypothetical. 

3. Cause-and-effect relationship

The plaintiff is obliged to show that there is a direct and legally significant connection between the actions of the defendant and the losses incurred. In other words, the losses must be a direct consequence of the defendant's unlawful conduct, and not the result of other circumstances. 

If the losses could have been caused by other reasons (e.g. market fluctuations, actions of third parties), it is necessary to exclude such versions or show that they did not have a decisive effect.