Four Years After Traffic Accident Sequelae... Supreme Court Rules Compensation from Sequelae Diagnosis Date

Court: "Compensation Claim for Damages from Illegal Act Established at Time of Subsequent Damage Determination"

[Asia Economy Reporter Heo Kyung-jun] The Supreme Court has ruled that if after a long period following a traffic accident, sequelae appear, the compensation for damages should be calculated based on the time the sequelae are identified.

The Supreme Court's 2nd Division (Presiding Justice Cheon Dae-yeop) announced on the 8th that it overturned the lower court's decision, which had considered the time of the accident as the basis for compensation rather than the time the sequelae were diagnosed, in the appeal case where traffic accident victim Mr. A sued an insurance company for damages, and remanded the case to the Seoul Central District Court.

Mr. A was injured in June 2010 when he was hit by a passenger car while walking, suffering a broken clavicle among other injuries. The insurance company of the driver paid Mr. A 110 million won in damages in December 2012. Subsequently, Mr. A experienced sequelae that were completely unforeseen at the time of the settlement. He exhibited violent behavior, lost reality testing ability, and showed signs of being unable to communicate.

Eventually, in November 2014, after receiving a diagnosis of sequelae and a determination that he would require care from an adult female until May 2062, Mr. A filed a lawsuit against the insurance company claiming damages.

The first and second trials set the date of the accident as the reference point for compensation for sequelae damages, reasoning that since a settlement had already been reached at the time of the accident, the insurer was not obligated to compensate for treatment costs and consolation money related to the sequelae.

However, the Supreme Court ruled that compensation should be paid based on the time the sequelae were diagnosed. The court stated, "In cases where an injury was caused by an unlawful act but subsequent damages such as sequelae, which were completely unforeseeable at the time of the unlawful act, newly occur, and where it is socially reasonable to consider that actual damages occurred at the time the subsequent damages were identified, the claim for damages arising from the unlawful act is established at the time the subsequent damages are identified, and delayed damages also accrue from that time."

This content was produced with the assistance of AI translation services.