Ex gratia
Encyclopedia
Ex gratia is Latin
for "by favour", and is most often used in a legal context. When something has been done ex gratia, it has been done voluntarily, out of kindness or grace. In law
, an ex gratia payment is a payment made without the giver recognising any liability
or legal obligation.
or organization is prepared to compensate victims of an event such as an accident
or similar, but not to admit liability to pay compensation, or for causing the event.
Latin
Latin is an Italic language originally spoken in Latium and Ancient Rome. It, along with most European languages, is a descendant of the ancient Proto-Indo-European language. Although it is considered a dead language, a number of scholars and members of the Christian clergy speak it fluently, and...
for "by favour", and is most often used in a legal context. When something has been done ex gratia, it has been done voluntarily, out of kindness or grace. In law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
, an ex gratia payment is a payment made without the giver recognising any liability
Legal liability
Legal liability is the legal bound obligation to pay debts.* In law a person is said to be legally liable when they are financially and legally responsible for something. Legal liability concerns both civil law and criminal law. See Strict liability. Under English law, with the passing of the Theft...
or legal obligation.
Examples of ex gratia payments
Compensation payments are often made ex gratia when a governmentGovernment
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
or organization is prepared to compensate victims of an event such as an accident
Accident
An accident or mishap is an unforeseen and unplanned event or circumstance, often with lack of intention or necessity. It implies a generally negative outcome which may have been avoided or prevented had circumstances leading up to the accident been recognized, and acted upon, prior to its...
or similar, but not to admit liability to pay compensation, or for causing the event.
- A company conducting layoffLayoffLayoff , also called redundancy in the UK, is the temporary suspension or permanent termination of employment of an employee or a group of employees for business reasons, such as when certain positions are no longer necessary or when a business slow-down occurs...
s may make an ex gratia payment to the affected employees that is greater than the statutory payment required by the law, perhaps if those employees had a long and well performing service with the company. - An insurance company may make an ex gratia payment to customers where a claim does not meet the terms and conditions but the company chooses to make a voluntary payment out of kindness or compassion, without recognizing any obligation to make such a payment
- When the USS VincennesUSS Vincennes (CG-49)The fourth USS Vincennes is a U.S. Navy Ticonderoga class Aegis guided missile cruiser. On July 3, 1988, the ship shot down Iran Air Flight 655 over the Persian Gulf, killing all 290 civilian passengers on board, including 38 non-Iranians and 66 children.The ship was launched 14 April 1984 and...
fired upon Iran Air passenger Flight 655Iran Air Flight 655Iran Air Flight 655 was a civilian jet airliner shot down by U.S. missiles on 3 July 1988, over the Strait of Hormuz, toward the end of the Iran–Iraq War...
in 1988, killing some 290 individuals, the President of the United StatesPresident of the United StatesThe President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
decided that the United StatesUnited StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
would offer compensation, on an ex gratia basis, to the families of the victims. - In a more routine context, the document Suffolk County Council Education: Ex-Gratia Payments for Loss of or Damage to Personal Property shows how an education authority compensates victims for damage, but without accepting a liabilityLegal liabilityLegal liability is the legal bound obligation to pay debts.* In law a person is said to be legally liable when they are financially and legally responsible for something. Legal liability concerns both civil law and criminal law. See Strict liability. Under English law, with the passing of the Theft...
to do so. - Following the 1994 Black Hawk shootdown incident1994 Black Hawk shootdown incidentThe 1994 Black Hawk shootdown incident, sometimes referred to as the Black Hawk Incident, was a friendly fire incident over northern Iraq that occurred on April 14, 1994 during Operation Provide Comfort...
, on August 26, 1994 the U.S. Department of Defense announced that it would pay U.S.$United States dollarThe United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
100,000 in compensation to the families of each of the non-U.S. personnel killed in the friendly-fire incident. - Maharashtra Chief Minister Vilasrao DeshmukhVilasrao DeshmukhVilasrao Dagadojirao Deshmukh , popularly known as Vilasrao is the current Minister of Science and Technology and Minister of Earth Sciences....
announced ex-gratia payments of Rs 100,000 (approx. US$2,000) to the next of kin of those who died in the Mumbai train bombings (11 July 2006)11 July 2006 Mumbai train bombingsThe 11 July 2006 Mumbai train bombings were a series of seven bomb blasts that took place over a period of 11 minutes on the Suburban Railway in Mumbai, the capital of the Indian state of Maharashtra and the nation's financial capital. The bombs were set off in pressure cookers on trains...
. The injured would be given Rs 50,000 (approx. US$1,000) each. - Prime Minister of Malaysia, Datuk Seri Abdullaha Haji Ahmad BadawiAbdullah Ahmad BadawiTun Abdullah bin Haji Ahmad Badawi is a Malaysian politician who served as Prime Minister from 2003 to 2009. He was also the President of the United Malays National Organisation , the largest political party in Malaysia, and led the governing Barisan Nasional parliamentary coalition...
announced undisclosed ex-gratia payments to the judges that have been affected during the 1988 Malaysian Constitutional Crisis1988 Malaysian constitutional crisisThe 1988 Malaysian constitutional crisis was a series of events that began with United Malays National Organisation general election in 1987 and ended with the suspension and the eventual removal of the Lord President of the Supreme Court, Tun Salleh Abas, from his seat...
in June 2008.