Corporate Law

Principles Established by the Qatari Court of Cassation Regarding the Award of Compensation

It is well established in the jurisprudence of the Qatari Court of Cassation that, although the assessment of compensation is a matter of fact falling within the discretion of the trial court, such discretion must be exercised on the basis of sound and reasonable grounds. Compensation must correspond to the purpose for which it is awarded, ensuring that it is proportionate to the damage suffered—neither inadequate nor excessive. In reaching its assessment, the court must take into account all relevant facts and circumstances of the case. Accordingly, where the Court of Appeal modifies or overturns an award of compensation, it is required to state the reasons that justify such modification or annulment.

One of the important principles established by the Court is that: “Any person whose fault causes damage to another is liable to compensate the injured party.”

Reflecting the legal principle of liability for personal fault (tortious liability), the law requires every person who causes damage to another through an unlawful act to compensate the injured party for the harm sustained. The concept of damage includes both the actual loss suffered and the profit lost as a direct consequence of the wrongful act.

Liability arises once the three essential elements of civil liability are established: fault, damage, and the causal link between them. Compensation encompasses both the creditor’s actual loss and the profit of which the creditor has been deprived. The compensable damage must be certain, meaning that it has already occurred or that its occurrence in the future is inevitable. The law also recognizes compensation for loss of profit that the injured party reasonably expected to obtain, provided that such expectation is supported by acceptable grounds. Although an opportunity may be uncertain in itself, the loss of that opportunity constitutes a definite harm for which compensation may be awarded.