Compensation for non-material damage caused to legal entities in the decision-making practice of the CJEU and the ECHR

Abstract

This article examines the recognition and compensation of non-material damage to legal entities by the Court of Justice of the European Union (CJEU) and the European Court of Human Rights (ECHR). Both courts acknowledge the moral dimension of legal entities, addressing non-material damage that is inherently intertwined with these entities and challenging to quantify. While neither court provides a precise definition of non-material damage, this ambiguity enables adaptable interpretations tailored to specific cases. The absence of a comprehensive definition results in a lack of a singular criterion for determining compensation amounts, given the multifaceted nature of non-material damage encompassing subjective and objective elements. Legal entities primarily seek compensation for harm to goodwill and associated intellectual property issues, as well as the frustration stemming from prolonged legal proceedings. The divergence between the CJEU and ECHR becomes evident in the awarded compensation, with the latter typically granting amounts four times smaller. This discrepancy can be attributed to the CJEU's focus on economic competition-related claims involving substantial sums. Notably, the analysis of court decisions reveals an escalating trend in cases related to non-material damage compensation for legal entities, particularly since 2010.