What is causation and why is it relevant?

Causal relationship is a concept from compensation law. Literally translated, it means ‘causal relationship. Causal relationship involves the question of whether there is a relationship between a cause and a direct effect. This is often determined by looking at whether there is a so-called ’conditio sine qua non. This assesses whether the event (the cause) was a necessary condition for the occurrence of the consequence (the damage). If the damage would have occurred even without the cause, there is no conditio sine qua non connection. In many cases this also means that there is no causal connection and thus no right to compensation for the damage in question. After all, it was not caused by the alleged act. The other party is then not liable for that damage.

Why is causation important?

The question of causation is very important in determining damages. For example, a person may be liable to another person, such as because that person has a wrongful act has committed. Such liability entails that the liable party must compensate the damages suffered by the other party. However, the damage must be the damage resulting from that wrongful act. If there is no causal connection between the damage and the actions of the other party, that damage is not eligible for compensation.

Causal relationship and assignability of damages

In the law (article 6:98 BW) namely, it states that damages are only eligible for compensation if they are attributable to the debtor. This is only the case if the damage is related to the event that makes the debtor liable. That connection must be such that the damage can be attributed to the debtor. In other words, there must be such a causal connection between the event and the damage that attribution of that damage to the debtor is appropriate.

Establishing causal relationship

Establishing causation is not always straightforward. This is the case when there are or could be multiple causes that caused or could have caused the same injury. If there are two liable parties and the injury may have resulted from each of their actions, the rule is that each of them must compensate for the injury (Art. 6:99 BW). But if the damage is also a consequence of the actions of the party who has suffered damage, then it is called own fault. In the case of own fault, the liable party's compensation obligation is reduced by dividing the damages in proportion to each person's fault (Art. 6:101 BW).

What is needed for compensation?

So for compensation, we need:

1. a course of conduct that creates liability, for example, a breach of standards, tort or breach of contract;
2. sometimes: absenteeism;
3. damages (after all, without damages there is nothing to compensate), and;
4. causal relationship between those damages and the alleged conduct.

Lawyer liability law in advising on causation

This set of criteria is also in a damage state proceedings of great importance. Indeed, it may be that the judge first rules that there is liability is, but then that there is no injury or no causation. An action won and reference to damages state, so still doesn't necessarily mean you'll get compensation.