Claiming Compensation & Damages

What Is Compensation?

Compensation (damages) is the money or property the wrongdoer or breaching party must pay to the injured party to make up for actual and reasonably foreseeable losses. The principle is "to put the injured party back in the position they would have been in had the harm not occurred" (restitutio in integrum).

In Thai law, the right to claim damages arises from two main sources: (1) Tort — accidents, assault, property damage; and (2) Breach of Contract — non-delivery, non-payment, breach of employment terms.

Applicable Law

• Civil and Commercial Code Section 420 — General tort principle: the wrongdoer must compensate the injured.
• Section 438 — The court determines damages based on circumstances and severity.
• Section 443 — In death cases, heirs may claim funeral expenses and loss of support.
• Section 444 — Personal injury cases: medical expenses, loss of capacity.
• Section 446 — Non-pecuniary damages such as pain and suffering.
• Section 222 — Damages for breach of contract.

Categories of Damages in Tort

1. Pecuniary Damages

• Medical expenses — including medication, surgery, rehabilitation, travel to hospital.
• Repair or replacement of property — vehicles, homes, equipment.
• Loss of income — wages lost during recovery or reduced earning capacity.
• Caregiver wages — for permanent disability.
• Funeral costs — in death cases.
• Loss of support — for those whom the deceased supported, e.g., children, spouse, parents.

2. Non-Pecuniary Damages

• Pain and suffering
• Damage to reputation — in defamation cases.
• Loss of enjoyment of life — e.g., permanent disability.

3. Punitive Damages

Thai law generally does not recognize punitive damages as broadly as common-law jurisdictions. Specific statutes — such as the Consumer Protection Act and the Consumer Case Procedure Act — do allow them in certain situations.

Categories of Damages in Contract

• Actual Loss — money already paid or clearly forgone.
• Loss of Profits — profits expected if the contract had been fully performed.
• Consequential Damages — flow-on effects, e.g., lost customers, missed opportunities.
• Liquidated Damages (Penalty Clauses) — agreed in advance; courts may reduce excessive penalties under Section 383.

Steps to Claim Compensation

1. Preserve evidence immediately — Photos, videos, receipts, medical certificates, witness statements, police reports. Discard nothing.
2. Get a medical examination and certificate — Essential for injury claims.
3. Quantify the loss — Total all expenses paid and to be paid in the future.
4. Send a demand letter — A lawyer's formal letter stating the amount and basis of the claim.
5. Negotiate settlement — Many cases resolve here without litigation.
6. File a civil suit — If negotiation fails, file in civil court within the limitation period (1 year for tort, 10 years for contract, etc.).
7. Enforce judgment — Seize assets, garnish wages, or auction property.

Limitation Periods for Damages Claims

• Tort — 1 year from when the victim learned of the wrong and the wrongdoer's identity, capped at 10 years from the act (Section 448).
• Tort that is also a criminal offense — Use the longer criminal limitation period.
• Contract — Generally 10 years unless specified otherwise by special law.
• Minors — Limitation begins on reaching legal age.

Hypothetical Case Studies (Educational)

Case 1 — Car accident: Mr. A is hit and suffers a fractured bone. Medical expenses: THB 200,000. Loss of income for 3 months: THB 90,000. Pain and suffering: THB 100,000. Total claim: THB 390,000. The court awards THB 350,000.

Case 2 — Wrongful death: Mrs. B dies in an accident, leaving a husband and two young children (ages 5 and 8). Heirs claim THB 100,000 for funeral, THB 1,500,000 for loss of support to children until age 20, and THB 200,000 for the husband's pain. The court considers her income and circumstances.

Case 3 — Construction breach: A contractor delivers 60 days late. The contract sets a penalty of THB 5,000/day. The owner claims THB 300,000. The contractor argues the penalty is excessive. The court reduces it to THB 150,000 under Section 383.

Common Mistakes

• Discarding evidence too early — Selling damaged car wreckage before photographing, throwing away medical receipts.
• Settling without a lawyer — Accepting a small lump sum and signing a release waives all future claims.
• Letting the limitation expire — Especially in tort, the 1-year limit passes quickly.
• Not accounting for future medical costs — Recovering only past expenses, forgetting ongoing treatment.
• Claiming too low — Increasing the amount later is difficult once the suit is filed.

Frequently Asked Questions

How is pain and suffering calculated?
There is no fixed formula. Courts weigh circumstances, severity, and the parties' status. Lawyers propose figures based on similar cases, and the court exercises discretion.

If the victim was partly at fault, do they recover full damages?
No. Under comparative negligence, the court reduces damages by the victim's share of fault — e.g., 30% at fault means 70% recovery.

If insurance covers the loss, can additional damages be claimed?
Yes — for amounts not covered or under-covered. Insurance proceeds are deducted from the claim.

What is the court filing fee?
2% of the amount claimed, capped at THB 200,000. In Magistrate Courts (claims up to THB 300,000), fees are lower.

If the wrongdoer has no assets, can someone else be liable?
Yes — employers can be vicariously liable for employees acting in the course of employment; insurance companies can be liable in motor cases. A lawyer can identify the proper defendants.

Conclusion

The right to claim compensation exists to remedy injured parties, but success depends on preserving evidence, accurate valuation, and acting within the limitation period. Engaging a lawyer at the moment of harm helps secure full compensation and avoids signing away rights permanently in early settlement documents.