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Legal Archive

Germany: (BGH decision 10^th July 2007) The federal court of justice confirmed its former decision that if the cost of repair to car is over 130% of the cost of replacing the car, the repair is considered to be unreasonable. In such a case the claimant cannot claim the cost of the repair of the car. He can also not claim the cost of a repair which exceeded the cost of replacing the car but within the limit of 130%, when the repair did not result in a full restoration of the car. A repair which does not lead to a complete and professional rectification of the damage is considered not to be just and reasonable. The claim for the cost of such a repair is not justified. (Edited by Ass.jur. Julia-Jana Brockelmann MBA) Germany: (BGH decision 11^th July 2007): A driver who tries to evade a fox crossing the road is not guilty of an act of negligence. (BGH decision 11^th July 2007, file number XII ZR 197/05.) In this case, the court decided that the question of the extent to which negligence on the part of the driver contributed to the insured event is based on criteria different from those applicable to the question of whether the driver has fulfilled his duty to minimise his losses. In the context of minimising loss, the court in an earlier case decided a driver’s failure to avoid a hare did not preclude an insurance claim. However, a driver who considered such avoiding action necessary to limit his damage was held to have been grossly negligent and could not claim compensation from the insurer (BGH decision 11^th December 1996- IV ZR 321/95).