Order No. 20871 of 2024: Criteria for the Assessment of Non-Pecuniary Damage

The recent order No. 20871 of July 26, 2024, issued by the Court of Cassation, offers an important reflection on the criteria to be adopted for the assessment of non-pecuniary damage. This issue is of particular relevance in the Italian legal context, where the evaluation of moral damage and commercial reputation requires meticulous analysis by the trial judge.

Context of the Ruling

The ruling under review was issued following a case in which the company P. (L. G.) appealed a decree that had excluded the demonstration of damage to its image. The Court of Cassation, upholding the appeal, emphasized the need for a systematic approach in assessing non-pecuniary damages.

The Ruling's Principle

In general. For the purpose of equitable assessment of non-pecuniary damage, it is necessary for the trial judge to first identify a quantitative parameter, in monetary terms, directly or indirectly linked to the nature of the interests affected by the harmful event, and then to quantitatively adjust said monetary parameter by referring to one or more objective, verifiable, and not manifestly incongruous factors - neither in excess nor in deficit - capable of allowing ex post control of the entire process of specifying the amount awarded. (In this case, applying the aforementioned principle, the Supreme Court quashed the appealed decree which, in the context of opposition to the list of liabilities, had excluded that the opposing company had demonstrated the alleged damage to its image and commercial reputation, on the grounds that it had not produced its financial statements in court, without considering that the latter are intended to present only economic-financial data, but are not in themselves significant of the non-pecuniary prejudice claimed by the applicant company).

This principle highlights the importance of establishing a monetary reference parameter for non-pecuniary damages, which must be supported by objective factors. This approach not only ensures greater fairness in the assessment but also offers transparency in the judge's decision-making process.

Assessment Criteria and Their Implications

The Court recognizes that the equitable assessment of non-pecuniary damage must occur through a process that includes:

• Identification of a monetary parameter linked to the damage suffered.
• Adjustment of this parameter with objective and verifiable factors.
• Exclusion of manifestly incongruous valuations.

This assessment method aims to avoid disparities in treatment and to ensure that compensation accurately reflects the severity of the damage suffered. It is therefore crucial for the parties involved to present adequate and relevant evidence to demonstrate the extent of the non-pecuniary damage.

Conclusions

In conclusion, order No. 20871 of 2024 represents a significant step towards greater clarity and consistency in the assessment of non-pecuniary damages. The Court of Cassation, with this decision, calls for a rigorous interpretation of the assessment criteria, emphasizing the importance of a quantitative evaluation supported by objective factors. This approach not only protects the rights of the parties involved but also contributes to greater confidence in the legal system.