Economic analysis of non-pecuniary damage compensation in the civil proceeding

[D. Z. Petrović]

[12], 327 listova

Biografija autora: list 323; Bibliografija: listovi 299-322.

economic analysis of law

In this paper work has been researched the compensation of the nonpecuniary damage from economic angle, respectively economic implications of non-pecuniary damage to the well-being of individuals and the well-being of the society as a whole. The aim of the paper is to point out the significant resources that absorb the area of non-pecuniary damages in civil proceedings and to indicate the possibility of their reduction by applying the principle of efficiency. Researching of indicated problem requires an analysis from an economic, as well as from a legal aspect. In order of better and complete understanding the compensation of non-pecuniary damage, the economic angle of observation, which includes economic instruments and the use of economic concepts and methodology, will dominate in this paper. Studying the economic implications of the non-pecuniary damage compensation procedure involves use of legal methods, but also use of the concept of economic analysis of law first of all, the microeconomic aspect of the Chicago School of Economic Analysis of Law. The fact that the litigation procedure absorbs a significant amount of resources, which would be used in other areas in order to increase social prosperity, indicates the necessity of increasing the efficiency of the procedure, as well as defining the legal rules that create stimulus to the perpetrators of the damage as well as to the injured party in accordance their behavior with the standard of due attention. The theoretical analysis points to the importance of preventive action, in a number of areas where a person's rights are breached so that the number of injured parties can be reduced, which would result in a reduction in the number of proceedings in which compensation would be claimed. The paper also analyzes the reasons for the frequency of the challenging the first instance verdicts and submitting the appeals for second instance decisions.Based on analysis of court verdicts of Appellate courts in Serbia in the field of non-pecuniary damage, we determine whether legal reasons related to violation of material law, wrongly established factual situation or the provisions of the civil proceedings or the reason for appealing a verdict of the first instance decision is the dissatisfaction of the parties in litigation with the amount which have been decided by the verdict. There is a significant difference between the highly established amounts in the claims and the compensation of the damage made. Is it possible to reduce the number of appeals against the judgements based on more realistic claims for compensation and what is the role of lawyers in introducing the questions that need to be answered. The specificity of non-pecuniary damage due to the subjective feeling of fear, pain and other violations of subjective rights that is inherent to an individual, as well as the absence of clearly defined criteria for measuring mental pain, makes it difficult to determine an adequate compensation that can compensate or mitigate the condition of the injured in which they are brought without their consent and that were caused by the violation of rights. These and other related issues will be subject to specific elaboration.

nematerijalna šteta, parnični postupak, troškovi, efikasnost, odgovornost za štetu, pobijanje presuda, žalba

non-pecuniary damage, costs of civil proceeding, efficiency, liability for damage, impugned verdicts, appeal

33:[347.426.4:347.9](043.3)

331.109.64:34.04](043.3)

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