By way of Decision No. 3 of 23 February 2026 (Panel for the Resolution of Appeals in the Interest of the Law), published in the Official Gazette No. 223 of 23 March 2026, the High Court of Cassation and Justice has established a unified interpretation of the law regarding the point at which statutory penalising interest begins to accrue on damages awarded for harm caused by wrongful acts.
Key Provisions
This decision clarifies that statutory penalising interest related to material and/or moral damages, awarded to cover the harm caused by a wrongful act (irrespective of whether it constitutes a criminal offence), accrues from the date the harm occurred. Previously, judicial practices were inconsistent, with some courts considering that interest accrued only from the date the court judgment became final.
The High Court emphasises the principle of full restitution (restitutio in integrum), which includes both the actual loss suffered (damnum emergens) and the loss of profit (lucrum cessans). The right to compensation arises on the day the harm is caused, even if its exact value is subsequently determined by a court judgment. The court judgment is declaratory, not constitutive, in nature, as it recognises a pre-existing right. Consequently, the debtor of the obligation to provide restitution is deemed in default by operation of law from the date the harm occurred, and the penalising interest is calculated from that moment.
The decision reiterates that this interpretation also applies to the civil liability of MTPL (Motor Third Party Liability) insurers, given that Law No. 132/2017 on compulsory motor third-party liability insurance is supplemented by the provisions of the Civil Code. Thus, insurers will also owe statutory penalising interest from the date the harm was sustained.
Scope and Impact
This decision has a direct impact on:
- Companies and legal entities that, through their activities, may cause material or moral harm to third parties and are called upon to answer under civil tort liability. This includes a wide range of sectors, from construction and transport to services and manufacturing.
- Insurance companies, particularly those providing MTPL insurance, as well as other types of civil liability insurance.
- Legal and financial departments within companies that manage litigation and risk provisions.
Recommended Actions
- Evaluate tort liability risks in light of this new interpretation, which requires interest to be calculated from the date the harm occurred.
- Review internal claims and litigation management policies, particularly those related to payment deadlines and the calculation of damages.
- Adjust accounting provisions for ongoing or potential litigation to reflect the higher costs generated by interest calculated over an extended period.
- Collaborate with legal and financial departments to understand the full implications for cash flows and financial statements.
- Communicate with your insurers to clarify how this decision affects civil liability policies and claims coverage.
- Train personnel involved in claims management and third-party relations regarding the new rules for calculating interest.
Published in the Official Gazette, Part I, No. 223 of 23 March 2026.
Note: This material is for general information purposes only and does not constitute legal, tax, or business advice. The application of legal provisions may vary significantly depending on the specific circumstances of each company. We recommend seeking a dedicated legal opinion before implementing any operational decisions based on these changes.