Can a company be a victim of moral damage?
Material and non-material damages
Damage is any injury, decrease, or harm suffered by a legal or natural person to a good or legal interest, as a result of a specific event or occurrence.
According to the interest or legal right affected, damage can be divided into material and non-material (extrapatrimonial or moral) damage. Material damage refers to damage to a person's property or assets. On the other hand, non-material damages, known as moral damages, refer to the violation of personality rights, physical integrity, honor, privacy, freedom, emotional or moral effects.
This leads to the discussion regarding what damages a legal entity can claim.
Can a company be morally damaged?
The position in doctrine and jurisprudence is divided on this issue, but we can clearly identify a growing trend towards recognizing that companies can also suffer and seek compensation for non-material or moral damages.
The most modern thesis assumes an objective notion of moral damage, unrelated to physical or emotional pain. In this sense, it is argued that although these legal entities do not have feelings of dignity, they are capable of being reflected in the consideration of third parties, and therefore, it is recognized that they enjoy their own honor, reputation, and prestige, separate from that of their members.
For a minority thesis, the configuration of moral damage requires the verification of pain or suffering, a negative sensation of the spirit, or disturbance of the victim's emotional state. Consequently, since suffering, pain, or spiritual distress are indispensable requirements for moral harm, companies could not suffer this type of moral damage, to the extent that suffering is inconceivable in their scope.
Difficulties in raising these types of claims
Although, as we mentioned, the growing trend is to admit that companies can suffer non-material damages, it is important to consider that in these cases it is not always easy to distinguish between the limits of material and non-material damages. This is because damage to the honor of the company ultimately often materializes in a loss of profits, which is precisely a material damage.
But the greatest difficulty lies in the evidence, as while some believe that moral damage is self-proven (\"in re ipsa\"); the predominant position is that the company must prove that the acts committed by the responsible party significantly affected the company's image or prestige, requiring the presentation of various means of proof in this regard.
Final reflections
Ultimately, the trend is towards recognizing that companies can not only be passive subjects of damage to their assets and/or property, but they can also be victims of non-material or moral damages.
This is because they can see their own honor, reputation, prestige, and image affected; separate and independent from the consideration of the partners, shareholders, or Directors involved; and in pursuit of full reparation of the damage.
Dr. Pablo Garrido
April 19, 2016.
