Order No. 20871 of 2024: Criteria for Compensation of Non-Economic Damage

The recent order no. 20871 of July 26, 2024, issued by the Court of Cassation, offers an important reflection on the criteria to be adopted for the compensation of non-economic damage. This issue is particularly relevant in the Italian legal context, where the assessment of moral damage and commercial reputation requires meticulous analysis by the trial judge.

The Context of the Judgment

The judgment in question was issued following a case in which the company P. (L. G.) challenged a decree that had excluded the demonstration of damage to its image. The Court of Cassation, accepting the appeal, emphasized the need for a systematic approach in evaluating non-economic damages.

The Principle of the Judgment

In general, for the purposes of equitable compensation for non-economic damage, it is necessary for the trial judge to first identify a parameter of a quantitative nature, in monetary terms, directly or indirectly related to the nature of the interests affected by the harmful act and, subsequently, to the quantitative adjustment of that monetary parameter through reference to one or more objective, verifiable factors that are not manifestly incongruous - neither excessive nor deficient - suitable to allow posterior control of the entire specification process of the liquidated amount. (In this case, applying this principle, the S.C. annulled the challenged decree which, in the context of opposition to the passive state, had excluded that the opposing company had demonstrated the alleged injury to its image and commercial reputation, on the grounds that it had not produced its financial statements in court, not considering that the latter are intended to present only economic-asset data, but are not in themselves significant of the non-economic damage claimed by the applicant company).

This principle highlights the importance of establishing a monetary reference parameter for non-economic damages, which must be supported by objective factors. This approach not only ensures greater fairness in compensation but also provides transparency in the judge's decision-making process.

Compensation Criteria and Their Implications

The Court recognizes that equitable compensation for non-economic damage must occur through a process that includes:

  • Identification of a monetary parameter related to the damage suffered.
  • Adjustment of that parameter with objective and verifiable factors.
  • Exclusion of manifestly incongruous evaluations.

This method of evaluation aims to avoid disparities in treatment and to ensure that compensations accurately reflect the severity of the damage suffered. It is crucial, therefore, that the parties involved present adequate and relevant evidence to demonstrate the extent of the non-economic damage.

Conclusions

In conclusion, order no. 20871 of 2024 represents a significant step towards greater clarity and consistency in the compensation of non-economic damages. The Court of Cassation, with this decision, calls for a rigorous interpretation of the compensation criteria, emphasizing the importance of a quantitative assessment supported by objective factors. This approach not only protects the rights of the parties involved but also contributes to greater trust in the legal system.

Bianucci Law Firm