Tort Law in Nepal : Civil Liability and Compensation 2026

Table of Contents

    Introduction

    Tort law governs civil wrongs where there is no contractual relationship between the parties. It focuses on providing monetary compensation and restoring the victim to their position before the wrongful act occurred. Courts apply tort principles to resolve disputes involving personal injury, property damage, and infringement of legal rights.

    Internationally Recognized Principles of Tort Law

    Tortious acts are broadly categorized into three main types:

    1. Intentional Tort

    An intentional tort arises when a person deliberately commits a wrongful act knowing it will cause harm.

    Example:
    If a business knowingly makes false representations to mislead another party and causes financial loss, it constitutes an intentional tort.

    2. Negligence

    Negligence occurs when:

    1. A duty of care exists
    2. That duty is breached
    3. The breach directly causes damage

    Example:
    If water leakage from a neighbor’s pipe floods another’s property due to lack of maintenance, the negligent party is liable for damages.

    3. Strict Liability

    Under strict liability, no proof of intention or negligence is required. Liability arises solely from the occurrence of harm.

    Example:
    A manufacturer producing defective goods that injure consumers is liable regardless of fault.

    Tort Law in Nepal – Legal Framework

    Tort law was formally introduced in Nepal through the Civil Code Act, 2017. Prior to this, remedies were scattered across various statutes. The Civil Code now clearly recognizes tort as an independent branch of law.

    What Constitutes a Tort?

    A tort occurs when a person causes loss or damage to:

    • Body
    • Life
    • Property
    • Legal rights

    through negligence, recklessness, or omission.

    However, it is not considered a tort if:

    • There is an existing contract
    • The act constitutes a criminal offence
    • A separate legal remedy exists under law

    Determination of Liability

    Liability is assessed based on:

    • Nature of wrongdoing
    • Degree of fault
    • Number of wrongdoers

    Multiple Wrongdoers

    • Liability is shared proportionately if fault can be determined
    • Otherwise, liability is joint and equal

    Vicarious Liability

    Employers, companies, and property owners may be liable for acts committed by:

    • Employees
    • Domestic workers
    • Agents

    This depends on whether the act was done in good faith. If done negligently or dishonestly, the individual remains personally liable.

    Property Owner Liability

    Owners are liable for damage caused by:

    • Fire or explosions
    • Excessive smoke or noise
    • Falling trees (except natural calamities)
    • Discharge of toxic substances

    A defendant may escape liability if they prove absence of fault or negligence.

    Compensation

    Victims are entitled to financial compensation proportionate to the damage suffered. Courts may award significant damages depending on severity.

    Notable International Example:
    In Liebeck v. McDonald’s, a US court awarded $2.86 million to a plaintiff who suffered severe burns from excessively hot coffee.

    Limitation Period

    A tort claim must be filed within six months from the date of the wrongful act.

    Key Takeaway

    Tort law in Nepal is still evolving. Judicial interpretations will bring more clarity in the future. Businesses and individuals must proactively understand their duties to avoid costly claims and legal exposure.

    Tort Law Services

    Onesphere Law Associates

    Onesphere Law Associates provides specialized legal services in tort law, assisting individuals, corporations, and institutions in protecting their rights and pursuing compensation for civil wrongs.

    Our Expertise

    We advise and represent clients in:

    • Personal injury claims
    • Property damage disputes
    • Product liability
    • Employer and owner liability
    • Trespass and nuisance cases
    • Harm caused by animals
    • Unsafe premises claims

    Compensation & Remedies

    We assist clients with:

    ✔ Assessing quantum of damages
    ✔ Court representation
    ✔ Negotiation & settlement
    ✔ Mediation & arbitration

    Litigation & Dispute Resolution

    Our litigation team provides strategic representation before courts and tribunals to ensure:

    • Fair compensation
    • Legal compliance
    • Efficient dispute resolution

     

    Your Trusted Partner in Tort Law

    Onesphere Law Associates stands as your reliable legal partner for all matters relating to civil liability, negligence, and compensation claims in Nepal.