Question:
Dear Lawyer, in the event that Typhoon Yagi causes damage, can the warehouse lessor be considered exempt from liability for compensation due to it being a force majeure event? We kindly request your advice for our Company.
Answer:
According to Clause 1, Article 156 of the Civil Code 2015, a force majeure event is defined as an event that occurs objectively, is unforeseeable, and cannot be overcome despite taking all necessary measures and within one's capacity.
An event can be considered a force majeure event when it satisfies the following conditions:
- The event occurs objectively, meaning it is beyond the control of the warehouse lessor (e.g., natural disasters such as storms, floods, earthquakes, tsunamis, etc.).
- The consequences of the event could not have been foreseen at the time of the contract signing or during the contract's execution, up until the violation occurred.
- The consequences of the event could not have been mitigated, despite taking all necessary and possible measures.
Typhoon Yagi falls outside the control of the warehouse lessor, its consequences were unforeseeable, and it is essential to prove that the lessor applied all necessary measures to protect the warehouse prior to the storm. However, if the goods were still damaged, only when all three conditions mentioned above are met can the event be considered a force majeure and be the basis for exempting the warehouse lessor from liability.
Currently, legal regulations regarding force majeure events are quite general and lack specific details, which may lead to disputes in practice. Therefore, it is advisable for the client to carefully review the provisions regarding force majeure events and the obligation of notification by the party in breach due to such events, especially whether the agreement explicitly considers a storm as a force majeure event. If it does, the warehouse lessor may be exempt from liability. In cases where there is no clear provision, the lessor might still be held liable for compensation for damaged goods.
