Meaning
Statutory provision in Chinese private law establishes the foundational principle of fault-based tort liability for civil wrongs. Under civil code article 1165, a person who infringes upon the civil rights and interests of another person, causing damage through fault, must bear tort liability. This article forms the basis of most commercial and civil injury claims, requiring both proof of a wrongful act and a causal link to the harm suffered.
Liability Element
Establishing a claim under this statute requires the claimant to prove four distinct components of liability. The plaintiff must demonstrate the existence of a protected civil right, a specific infringing act, actual damages, and a direct causal relationship between the act and the damages. If any of these components are missing, the claim fails.
This structure places the burden of proof on the claimant, ensuring that enterprises are not held liable for losses they did not cause.
Fault Presumption
The second paragraph of this article introduces a shift in the burden of proof under specific conditions where the law presumes fault. In cases of fault presumption, the defendant must prove they were not negligent to avoid liability. This mechanism applies to specific industrial activities where the defendant holds superior information.
It protects weaker parties by adjusting the evidentiary burden.
Operational Impact
Manufacturing and logistics companies must manage their operational risks by aligning their internal safety procedures with standard liability rules. In doing so, they seek to avoid actions that trigger the application of civil code article 1165. Compliance with national standards and industry regulations provides strong evidence of due care, although it is not an absolute defense in all circumstances.
Legal counsel must review supply chain contracts to allocate potential liability through indemnity clauses, insurance requirements, and liability caps. Insufficient documentation of safety protocols can leave an enterprise exposed to massive claims if an operational failure occurs. A clear record of regular audits, equipment maintenance, and employee safety training helps to counter allegations of negligence in court.
