If someone causes you harm, or you cause harm to another, the Civil Transactions Law sets the rules determining who bears liability and how much compensation is due. These provisions — known as the rules of the harmful act — do not concern traffic accidents only, but extend to harm caused by your employees, your animal, your building, or even things under your custody. Here is a practical guide explaining when liability arises, when you are exempt, and how compensation is assessed.
The basic rule: a fault causing harm requires compensation
The fundamental principle is simple: any fault causing harm to another obliges the one who committed it to compensate. Liability has three elements: a fault, harm, and a causal link connecting them. A person is liable for their harmful act when it issues from them while they are of discernment.
When are you exempt from liability?
The law recognizes situations in which your obligation to compensate is negated despite harm occurring:
Foreign cause: you are not liable if it is established that the harm arose from a cause beyond your control — such as force majeure, the fault of a third party, or the fault of the injured party themselves.
Legitimate defense: one who causes harm while lawfully defending their life, honor, or property is not liable, provided they do not exceed the extent necessary to repel the aggression.
State of necessity: one who causes harm to avert a greater imminent harm to themselves or another is obliged to compensate only to the extent the court deems appropriate.
Important point: the injured party's fault reduces compensation
If the injured party contributed by their fault to causing the harm or increased it, their right — or part of it — to compensation lapses in proportion to their contribution. In other words, your own negligence may reduce what you are owed even if the other party is at fault.
Liability for the acts of others
You may be liable for harm you did not cause yourself:
Liability of the supervisor: one who is obliged to supervise a person (due to their young age or deficiency in mental or physical condition) is liable for the harm that person causes — unless they prove they performed the duty of supervision with the requisite care, or that the harm was bound to occur regardless.
Liability of the principal for the agent: this is of particular concern to employers. The principal (employer) is liable for the harm their subordinate (employee) causes by their fault during the performance of their work or because of it, where the principal has actual authority to supervise and direct them. One who paid the compensation has the right of recourse against the one who actually caused the harm.
Liability for things
The law establishes special liability on those who have custody of certain things:
- The keeper of an animal is liable for harm the animal causes, unless they prove the harm was from a cause beyond their control.
- The keeper of a building is liable for harm resulting from the building's collapse, unless they prove the harm is not attributable to neglect of maintenance, age, or defect.
- The keeper of things requiring special care is liable for the harm they cause, unless a foreign cause is proven.
A person is deemed the keeper of a thing if they have actual authority over it, and the owner is presumed to be the keeper unless transfer of custody to another is proven.
How is compensation assessed?
The principle is that compensation fully repairs the harm — restoring the injured party to the state they would have been in but for the harm. Compensation covers the loss the injured party suffered and the gain they were deprived of, where this is a natural result of the harmful act.
Importantly, the law expressly recognized compensation for moral harm — the sensory or psychological injury resulting from harm to the body, freedom, honor, reputation, or social standing. The court assesses this harm considering its type, nature, and the person of the injured party.
If the harm falls on life or limb, the compensation for the injury itself is determined according to the rules of fixed indemnity (diya and arsh) under Islamic Sharia.
Watch the deadline
A compensation claim for a harmful act is not heard after three years from the date the injured party became aware of the harm and of the person responsible. In all cases, it is not heard after ten years from the date the harm occurred.
Conclusion
Civil liability is not only for what you do with your own hand, but extends to what those under your supervision and what is under your custody do. Conversely, if harm befalls you, the law guarantees you full compensation covering loss, lost gain, and even moral harm. The golden rule: document the harm as soon as it occurs — photos, reports, witnesses, invoices — because compensation is built on proof, and memory alone is not enough before the courts.
How does LEXIUM help?
We assess your position whether you are an injured party claiming compensation or a party against whom a claim is directed, determine the elements of liability and the scope of compensation due, and prepare the evidentiary file needed to achieve the best possible outcome.
This topic is sensitive and each incident has its own details that affect the outcome, so consulting a specialist to assess your specific case is advised.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. See our full disclaimer.