On The Devaluation Loss In The Scope Of Damages

Devaluation loss refers to the depreciation of the market value of certain property damage, despite the repair it is still not possible to regain the original market value, which causes a value gap between the suffered loss and the original price. Whether such a gap of devaluation loss is compensable is widely disputed, it is difficult to form a unified understanding standard practice.The concept of depreciation loss cannot find its trace in theory, yet in some summaries made by Yang Lixin on property damage of the concept of induction, the thought of depreciation and value gap including the value of depreciation of property damage are included. Yang deems that property loss should contain not only physical damages but also a value-based depreciation. However, he did not clearly put forward and further discuss the concept of property devaluation loss. Scholars have paid much painstaking attention on tort and the conditions of tort, but less research on property damage and compensation itself. What’s more, even in the controversial discussions on indirect loss and vast available interests, devaluation loss gained no position.Whether devaluation loss can be incorporated into the scope of damage compensation largely depends on the scope of compensation for damages. The principle of full compensation, which is confirmed by the legislation of most countries in the world, provides a unified starting point on determining the scope of compensation for damages. However, this principle is generally criticized because of its "all or nothing" mode, which on one hand ensures the legal stability and logical soundness, while on the other excludes the value judgment in a specific situation at the expense of substantial justice. Admittedly, in the practices of States, no country is absolutely abide by this principle, instead, exceptions are always provided. As for the concept of damages, no unanimous opinion is reached, and no reasonable and practical classification is at hand, thus using concept and classification of damages as tools for analysis can be problematic. The appropriateness of a case decision is not determined by the contemplation of a mere concept, but by the realization of the aspiration of some specific rules. Lastly, damages can by no means be determined prior to the tort, it must be considered comprehensively on various factors.Loss in the context of law of torts indicates the loss of rights and interests which is protected by tort law, therefore, to determine whether the damages should be compensated is inevitably under value evaluation of legal orders. The tort liability law regards compensation of the loss of victims as the primary function and at the meantime, avoids improper burden of expense of obligator. When judging compensability of actual damages, this article sets forth, from the perspective of purpose of tort law regulations, taking into consideration of elements like scope and potency dimension of legally protected interests, degree of contribution of cause and effect relationship, extent of faults in individual cases and finally decides based on dynamic balance of all the elements. Specifically, considering loss of devaluation, firstly we should decide whether it belongs to the legally protected interest and how strengthened the protection is. Then comes the comprehensive judgment in light of the degrees of contribution of other elements.In the condition of market economy, value of property implies value in use and value for exchange. After the restoration of accident vehicles, the overall technical indexes are usually under the conditions before accident, so delicts cause direct and actual damages to property, which naturally should be deemed in the scope of legally protected interest. Under the condition of pure devaluation of market price, delict acts still constitutes injuries to economic status of the right owner. The economic status based on property of rights owner, same as use and possession, are all property interests protected by the law. The results of delict reflect not only in objective material loss, but also perform as expropriation of human’s initiative and future right to choose. Hence, devaluation loss should be taken in the scope of compensable damages. The influence of devaluation to vehicles includes two aspects:subsequent use and second sale. When judging compensability, actual damage and damage to economic status shall be distinguished. They represent different orders of value, leading to different protection by law. When deciding which shall be included to the scope of compensation, elements like cause and effect relationship, fault of the offender should be taken into consideration, combining with principles like predictability, negligence and gains offset the losses, in order to truly reflect and compensate the loss of the victims.