• Want to consult about a traffic accident in the Yaizu, Makinohara, Yoshida Town, Omaezaki, and Fujieda area
• Want to know whether the other party's damages in a traffic accident can be offset against my own damages
• Want to know whether a loan to the accident victim can be offset against the victim's damages

Are you troubled by issues like these in Yaizu, Makinohara, Omaezaki, Fujieda, Shimada, Yoshida Town, or surrounding areas?
Yaizu Sogo Law Office offers a free initial legal consultation regarding traffic accident concerns. There is no obligation to retain our services after the initial consultation. We are also available on weekday evenings and Saturdays. Please feel free to contact us by phone or email.

Can You Offset the Other Party's Damages Against Your Own Claim in a Traffic Accident?

In a traffic accident, unless it is an accident caused entirely by one party's negligence (for example, a rear-end collision while the front vehicle was stopped, or an accident caused by crossing the center line), in most cases both parties bear some degree of responsibility (fault) for the accident.

In traffic accidents, both the other party and you sustain damages (such as medical expenses for injuries and vehicle repair costs), and both parties often owe monetary compensation obligations. In such cases, can the mutual damages be offset against each other?

You Cannot Offset Against the Other Party's Personal Injury Damages

For example, consider a traffic accident at an intersection without traffic signals involving a straight-going vehicle and an oncoming right-turning vehicle, where Person A was driving the straight-going vehicle and Person B was driving the right-turning vehicle. Assume Person A's injury damages amount to 1,000,000 yen and your vehicle repair costs amount to 1,000,000 yen.

In this case, since the basic fault ratio is 20% for the straight-going vehicle and 80% for the right-turning vehicle (for details on fault ratios, please refer to "Fault Ratios Between Straight-Going and Right-Turning Vehicles at Intersections"), Person B is obligated to pay 80% of Person A's injury damages (800,000 yen).

On the other hand, Person B can claim 20% of their vehicle repair costs (200,000 yen) from Person A. So, can Person B assert to Person A that they will offset the 200,000 yen against the 800,000 yen and pay only 600,000 yen?

The conclusion is that, unless Person A agrees, such an offset cannot be legally asserted (Article 509, Item 2 of the Civil Code). The reason this type of offset is prohibited by law is based on the principle that, for debts arising from damages to a person's life or body, the debtor should be required to actually make payment to compensate for the damages, in order to protect the victim. From the perspective of a person who has actually been injured, there is a risk that they may face difficulty paying medical expenses if the offset is applied, which is why the Civil Code contains this provision.

Furthermore, even if Person B and Person A happen to be acquaintances and Person B has lent 800,000 yen to Person A, for the same reason as above, Person B cannot offset the loan against Person A's medical treatment costs.

For reference, the relevant provision of the Civil Code is set forth below.

(Prohibition of Offset Using Claims Arising from Tort, etc. as Passive Claims)
Article 509: The debtor of the following obligations may not assert an offset against the creditor. However, this shall not apply when the creditor has acquired the claim pertaining to such obligation from another person.
1. Obligations for damages based on a tort committed with malicious intent
2. Obligations for damages arising from infringement of a person's life or body (excluding those listed in the preceding item)

Civil Code

You Can Offset Against the Other Party's Property Damages

Now, in the same accident scenario as above, what if Person A's vehicle repair costs are 1,000,000 yen and Person B's vehicle repair costs are also 1,000,000 yen?

In this case, Person B can assert the offset of their own 20% repair cost portion (200,000 yen) against Person A's 80% repair cost portion (800,000 yen), even without Person A's consent. This is because Person A's damages are not damages arising from infringement of a person's life or body, but merely damages to property (a vehicle), and therefore the purpose of the prohibition of offset under Article 509 of the Civil Code does not apply.

As such, offsetting property damages against each other is possible and is routinely done in practice. Particularly when both parties' vehicles are damaged, offset processing allows for settlement at once, enabling a rational resolution.

However, in negotiations with the insurance company of the other party, calculations premised on offset are not necessarily appropriate. It is important to verify the reasonableness of the fault ratio and repair costs.

Summary

The above is an explanation of the relationship between damages and offset in traffic accidents.

In practice, when processing damages based on actual traffic accidents where both parties have sustained damages, there is an advantage of resolving the dispute in one go, so in many cases both parties agree to offset and reach a resolution. In practice, offset is a convenient system, but caution is needed because "if you mistakenly offset items that cannot be offset, it becomes legally invalid." Particularly when personal injury damages are involved, careful judgment is required.

Determining fault ratios, damage amounts, and whether offset is permissible requires a high level of expertise, and errors can lead to losses of hundreds of thousands to millions of yen. If you are troubled by a traffic accident in the Yaizu, Makinohara, Yoshida Town, Omaezaki, or Fujieda area, please feel free to consult with Yaizu General Law Office.

Frequently Asked Questions

The Initial Legal Consultation for Traffic Accidents at Yaizu Sogo Law Office Is Free of Charge

Yaizu Sogo Law Office provides a free initial legal consultation regarding traffic accidents.

We handle all traffic accident-related legal matters, regardless of severity or whether they involve property damage or personal injury. If you are feeling stressed by dealings with insurance companies, or if you want to know whether the amount offered by your insurance company is fair, please do not hesitate to consult with us.

Yaizu Sogo Law Office is available not only during regular weekday hours but also on weekday evenings and Saturdays. Please contact us by phone or email to schedule a legal consultation.

Are You Troubled by a Traffic Accident?

• Settlement Offers from Insurance Companies Are Almost Always Low
• The Insurance Company Said They Would Cut Off My Medical Expenses
• Dissatisfied with the Fault Ratio
• When and How to Consult a Lawyer About a Traffic Accident
• What Claims Can Be Made in a Personal Injury Accident?
• What Claims Can Be Made in a Property Damage Accident?
• What You Need to Know About Whiplash
• Traffic Accidents and Health Insurance
• Procedures and Steps to Follow After a Traffic Accident
• Fault Proportions Between a Through-Going Vehicle and a Right-Turning Vehicle at an Intersection
• Diminished Value (Loss of Market Value)
• Amount Claimable from the Other Party When Personal Injury Protection Insurance Was Used Prior to the Claim for Damages Against the Other Party
• Free legal consultation is available for traffic accidents
• Filing a Victim's Claim with Compulsory Automobile Liability Insurance (CALI)
• Lost Wages for Salaried Employees (Wage Earners) in Traffic Accidents
• Understanding a Company's Losses When Employees Are Killed or Injured in a Traffic Accident
• Finding the Court with Jurisdiction over Traffic Accident Lawsuits
• Want to Know Whether You Can Offset the Other Party's Damages Against Your Own in the Same Traffic Accident
• The at-fault party refuses to use their voluntary automobile insurance. What should I do?
• I was seriously injured in a traffic accident in June 2017, before the enforcement of the amended Civil Code (April 1, 2020). Three years have passed (but less than five years) since I completed my treatment. Is the statute of limitations still valid?
• How to Identify a Hit-and-Run Driver from a Vehicle License Plate Number
• Methods of Dispute Resolution in Traffic Accidents
• What You Need to Know About Medical Commuting Transportation Expenses
• How to Find the Insurance Company of the At-Fault Driver in a Traffic Accident
• Understanding Workers' Compensation Insurance in Traffic Accidents (Leave Compensation)
• How Much Is the Standard Compensation for a Traffic Accident?
• What Is Residual Disability Grade Certification in Traffic Accidents?
• How Much Compensation Can You Get for Whiplash from a Traffic Accident?
• Benefits of Hiring a Lawyer for Traffic Accidents
• Key Points When Dealing with Insurance Companies After a Traffic Accident
• How to Calculate Lost Income from a Traffic Accident
• The Relationship Between Number of Hospital Visits and Compensation for Pain and Suffering in Traffic Accidents (Key Considerations When Visit Frequency Is Low)
• What Is Maximum Medical Improvement (MMI) After a Traffic Accident?
• How to Use Lawyer Fee Special Coverage for Traffic Accidents?
• How to Handle a Traffic Accident When the At-Fault Driver Has No Insurance
• Damages in Bicycle Accidents
• Claiming Compensation When a Passenger Is Injured in a Traffic Accident
• Do You Have to Pay a Traffic Fine for a Burned-Out Brake Light?
• "I Said I Would Pay the Full Repair Cost" in a Bicycle Accident
• If Repair Costs Exceed Your Car's Market Value After a Traffic Accident, Can You Still Recover the Full Amount?
• Can a Car Proceed if a Pedestrian Yields at a Crosswalk?
• What Are "Replacement Incidental Costs" When a Vehicle Is Totaled in a Traffic Accident?
• What Damages Can Be Claimed When a Family Member Dies in a Traffic Accident?

See all articles on traffic accidents