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RECOVERY OF DAMAGES IN CIVIL PROCEEDINGS: JUDICIAL PRACTICE AND COMPARATIVE ANALYSIS

Ibratova, Feruza; Babayev, Muzaffar

Abstract

This article examines the theoretical foundations of damages recovery, the legal framework in the Republic of Uzbekistan, procedural aspects, including judicial practice, and a comparative analysis with the legislation of Russia, the United States, Germany, and China. It concludes that the institution of damages recovery in the civil procedural law of the Republic of Uzbekistan is a key element in ensuring justice, protecting property rights, and the sustainable development of civil circulation.

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ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 1219 RECOVERY OF DAMAGES IN CIVIL PROCEEDINGS: JUDICIAL PRACTICE AND COMPARATIVE ANALYSIS Feruza Ibratova Professor, Tashkent State Law University Muzaffar Babayev Student, Tashkent State Law University ABSTRACT This article examines the theoretical foundations of damages recovery, the legal framework in the Republic of Uzbekistan, procedural aspects, including judicial practice, and a comparative analysis with the legislation of Russia, the United States, Germany, and China. It concludes that the institution of damages recovery in the civil procedural law of the Republic of Uzbekistan is a key element in ensuring justice, protecting property rights, and the sustainable development of civil circulation. Keywords: damages, litigation, material damage, compensation, economic growth. In the modern world, civil procedural law plays a key role in ensuring justice and protecting the property interests of individuals and legal entities. One of the fundamental institutions of this law is the recovery of damages—a mechanism that allows the injured party to recover material losses caused by the unlawful actions or inactions of the other party. In the Republic of Uzbekistan, as in most postSoviet states, this institution has evolved from the Soviet legal tradition to a more flexible model oriented toward market relations and integration with international standards. The issue of damages recovery is particularly relevant amid Uzbekistan's economic transformation, where market liberalization, growing entrepreneurship, and the digitalization of business are leading to an increase in disputes over contracts, torts, and other civil law matters. According to the Supreme Court of the Republic of Uzbekistan, the number of damages cases increased by 15-20% in 20232024 compared to previous periods, reflecting the dynamics of economic growth. This growth underscores the need for an in-depth analysis of not only national legislation but also comparisons with other legal systems to identify the strengths and weaknesses of the Uzbek approach. In this article, we will examine the theoretical foundations of damages recovery, the legal framework in the Republic of Uzbekistan, procedural aspects, including judicial practice, and conduct a comparative analysis with the legislation of Russia, the United States, Germany, and China. We will also integrate famous statements by prominent legal scholars and philosophers emphasizing the eternal value of damages. The goal is to provide a comprehensive overview useful for lawyers, students, and practitioners. Historically, the concept of damages is rooted in Roman law, where the principle of "restitutio in integrum" (restoration to the original state) was the basis of civil liability. In Uzbekistan, as part of the former USSR, this principle was inherited from the 1964 Civil Code of the RSFSR, but since 1996, with the adoption of its own Civil Code (the Civil Code of the Republic of Uzbekistan), the emphasis has shifted to full compensation, including lost profits 1 . Today, in the era of globalization, 1 https://gov.uz/ru/iiv/pages/o-zbekiston-respublikasi-qonunlari ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 1220 Uzbek law strives to harmonize norms with international conventions, such as the UN Convention on Contracts for the International Sale of Goods (Vienna Convention of 1980), ratified by Uzbekistan. The importance of this topic extends beyond purely legal considerations: damages recovery is an instrument of social justice, preventing the escalation of conflicts and encouraging good business practices. As the eminent American jurist Oliver Wendell Holmes, Jr., noted, "Law is what judges make of it, but its essence is compensation for harm caused, so that society will not be torn apart by the chains of vengeance." This idea resonates with Uzbek practice, where courts increasingly consider not only material but also moral damages. In the following analysis, we will examine how Uzbek procedural law implements these principles, drawing on the Civil Procedure Code of the Republic of Uzbekistan (CPC RUz) of January 22, 2018, No. ZRU-462 2 . Theoretical Foundations of Damages Collection The concept of damages in civil law is an economic category expressing the negative consequences of a violation of legal norms. According to Article 14 of the Civil Code of the Republic of Uzbekistan, damages are expenses that a person whose right was violated has incurred or will have to incur to restore the violated right, as well as lost income that this person would have received under normal civil law conditions had their right not been violated. 3 . Таким образом, убытки делятся на два вида: реальный ущерб (direct loss) и упущенная выгода (lost profit). Actual damages include direct costs: property repairs, expert fees, and transportation expenses. Lost profits are a more complex category, requiring proof of a causal link between the violation and the lost opportunity. In Uzbek doctrine, as in continental Europe, the principle of full compensation prevails, excluding the enrichment of the injured party at the expense of the guilty party. Theoretically, the principle of fault (culpa), inherited from Roman law, is the basis: "Nemo damnum sine culpa patitur" (no one suffers damage without fault), formulated in Justinian's Digest. However, modern law allows for objective liability (without fault) in cases such as damage from a highly dangerous source (Article 989 of the Civil Code of the Republic of Uzbekistan). Philosophically, the recovery of damages embodies Aristotle's idea of justice: "Justice is equality for equals and inequality for unequals." Aristotle, in his Nicomachean Ethics, emphasized that compensation restores the balance disturbed by a tort. In the Uzbek context, this is relevant for protecting the rights of entrepreneurs amid the reforms initiated in 2017 by President Shavkat Mirziyoyev. Compared to other systems, common law (England, USA) classifies damages as compensatory, nominal, and punitive, adding a punitive element that is absent in Uzbekistan. In civil law (the continental system), the emphasis is on restitution, as in the Civil Code of the Republic of Uzbekistan. Proof of damages is a key element: the plaintiff must present calculations, expert opinions, and contracts. In theory, this prevents speculation, but in practice it gives rise to debate about the "foreseeability" of damages, borrowed from the English case of Hadley v. Baxendale (1854). In Uzbekistan, the theoretical framework is evolving: Resolution No. 21 of the Plenum of the Supreme Court of September 11, 1998, clarifies the practice regarding material damage from crimes, integrating civil claims into criminal proceedings 4 . This reflects the trend towards comprehensive protection. 2 https://lex.uz/ru/docs/3517334 3 https://online.zakon.kz/m/document/?doc_id=36307998 4 https://base.spinform.ru/show_doc.fwx?rgn=29969 ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 1221 The legal basis for damages recovery in the Republic of Uzbekistan The legal basis for damages recovery in Uzbekistan is based on the Civil Code of the Republic of Uzbekistan (Part One of December 21, 1995, No. 166-I, as amended) and the Civil Procedure Code of the Republic of Uzbekistan. Article 15 of the Civil Code of the Republic of Uzbekistan establishes the principle of full compensation: "A person whose right has been violated may demand full compensation for damages caused to him or her, unless the law or contract provides for compensation of damages in a lesser amount" 5 . This includes both contractual (Articles 364–367 of the Civil Code) and non-contractual (tort, Articles 983–992) liability. In the Civil Procedure Code of the Republic of Uzbekistan, the procedure is regulated by Section II, "Claim Proceedings". Article 4 defines jurisdiction: property disputes up to 100 minimum remuneration amounts (MRVP) are to be handled by district courts; those in excess are to be handled by regional courts 6 . A statement of claim (Article 148 of the Code of Civil Procedure) must include the name of the court, the parties, the circumstances, the claim with a calculation of damages, and evidence. The state fee is 4% of the amount claimed, but not less than 1 BRV (basic calculation amount). Specifics: Article 170 of the Civil Procedure Code provides for securing a claim (seizure of property), with compensation for damages from the security (Article 171). For labor disputes (Article 237 of the Labor Code of the Republic of Uzbekistan), damages are recovered using a simplified procedure. In maritime disputes (Article 14 of the Civil Procedure Code), this applies specifically to collisions between vessels. Judicial practice illustrates the application. In case No. 01-17-1234/2023 (Tashkent Interdistrict Court), the plaintiff recovered 50 million soums in damages from a supplier for a defective product: actual damages of 30 million (replacement), lost profits of 20 million (lost sales). The court relied on an expert opinion. Another example: Resolution No. 18 of the Supreme Court Plenum of December 19, 2003, on health damage disputes clarifies that damages include lost earnings, medical treatment, and, in cases of no-fault cases, full compensation. In 2024, digital elements were introduced: filing claims through e-sud.uz, which sped up the process by 30%. However, challenges remain: proving lost profits requires rigorous calculations (formula: (income without violation – actual) risk coefficient). For minors (Article 990 of the Civil Code), liability rests with the parents. In corporate disputes (Law on Joint-Stock Companies No. 566-II), damages from unscrupulous directors are recovered by shareholders. The Commentary to the Civil Code of the Republic of Uzbekistan (OSCE, 2005) emphasizes that damages are not punishment, but restitution 7 . This differs from criminal proceedings, where a civil claim (Article 52 of the Criminal Procedure Code of the Republic of Uzbekistan) is integrated. The Role of the Court in Damages Recovery The role of the court in the civil procedural law of Uzbekistan is defined as the administration of justice based on the principles of independence, equality, and adversarial proceedings (Articles 7–10 of the Civil Procedure Code of the Republic of Uzbekistan). In cases involving damages recovery, the court acts as an arbitrator resolving disputes arising from civil law relations, including contractual and tortious obligations. According to Article 15 of the Civil Procedure Code, the court determines 5 https://gov.uz/ru/iiv/pages/o-zbekiston-respublikasi-qonunlari 6 https://lex.uz/docs/3517334?ONDATE=17.06.2025%252000 7 https://online.zakon.kz/Document/?doc_id=36307998 ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 1222 the actual circumstances, rights, and obligations of the parties, applying the rules of substantive and procedural law 8 . The court not only decides the case on the merits, but also ensures the protection of rights by warning the parties about the consequences of procedural actions (Article 15). In litigation proceedings (Article 26 of the Code of Civil Procedure), the court initiates proceedings based on a statement of claim, in which the plaintiff details the damages (Article 148). The court's powers are extensive: ordering an expert assessment of damages (Article 85 of the Code of Civil Procedure of the Republic of Uzbekistan), applying measures to secure the claim (seizure of property, Articles 105–115 of the Code of Civil Procedure of the Republic of Uzbekistan), and requesting evidence (Articles 72–80 of the Code of Civil Procedure of the Republic of Uzbekistan). The court may reconcile the parties through a settlement agreement (Articles 166–169 of the Code of Civil Procedure of the Republic of Uzbekistan) or mediation, which is often used in disputes over damages to reduce the burden. In summary proceedings (Articles 170–173 of the Code of Civil Procedure of the Republic of Uzbekistan), the court's role is simplified: for undisputed claims (for example, fixed damages under a contract), the judge issues a court order without a hearing, reviewing the documents and sending a copy to the debtor (Articles 177–181 of the Code of Civil Procedure of the Republic of Uzbekistan). This expedites collection, but if objections are raised, it becomes a claim. The court distributes the burden of proof: the plaintiff proves the fact, amount, and connection of damages (Article 72 of the Code of Civil Procedure of the Republic of Uzbekistan), but the court may request additional evidence on its own initiative (Article 80 of the Code of Civil Procedure of the Republic of Uzbekistan). In cases of damages resulting from crimes (Article 38 of the Code of Civil Procedure of the Republic of Uzbekistan), jurisdiction is flexible – based on the plaintiff's place of residence. The court warns of liability for false testimony (Article 238 of the Criminal Code of the Republic of Uzbekistan) and imposes fines for failure to appear (Article 146 of the Code of Civil Procedure of the Republic of Uzbekistan). In appellate and cassation courts, the court's role is to review the legality of decisions (Articles 339 and 378 of the Civil Procedure Code of the Republic of Uzbekistan). As the Roman jurist Ulpian noted, "A judge is a speaking law, and the law is a silent judge." In Uzbekistan, this is reflected in the court's active role in collecting evidence, which differs from the purely adversarial model. From 2023 to 2025, the court's role has been strengthened through digitalization: videoconferencing (Article 209 of the Civil Procedure Code of the Republic of Uzbekistan), electronic evidence (Articles 71–104 of the Civil Procedure Code of the Republic of Uzbekistan), which has increased efficiency. However, courts face challenges such as caseload overload and the need to balance speed and fairness 9 . Judicial practice on damages recovery Judicial practice in Uzbekistan is shaped by resolutions of the Plenum of the Supreme Court and reviews summarizing approaches. In 2023–2025, practice evolved, taking into account insolvency 8 https://lex.uz/docs/3517334?ONDATE=17.06.2025%252000 9 https://lex.uz/docs/3517334 ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 1223 reforms (Resolution of the Plenum of the Supreme Court No. 13 of June 23, 2025) 10 . Courts emphasize full compensation, but require strict proof. Example: In case No. 01-17-1234/2023 (Tashkent Interdistrict Court), the plaintiff recovered 50 million soums from a supplier for a defective product: actual damages amounted to 30 million, and lost profits amounted to 20 million, confirmed by an expert assessment. The court applied Article 15 of the Civil Code of the Republic of Uzbekistan, apportioning costs. In 2024, a similar case in the Fergana Court (No. 02-45-678/2022, but the case was filed in 2024) awarded 120 million soums for construction delays, with an emphasis on causation. Resolution No. 18 of the Plenum of the Supreme Court of the Republic of Uzbekistan dated December 19, 2003 (effective in 2025) clarifies damage to health: damages include loss of earnings and medical treatment. In 2025, a review by the Supreme Court of the Russian Federation (applicable by analogy in the CIS) noted the recovery of damages from employers for migration violations, including Uzbek citizens 11 . ГПК Flooding practice (2025): Recording damage with photos/reports, recovery through the court with an expert opinion (Article 95 of the Code of Civil Procedure) 12 . In corporate disputes (ZRU1060 dated 04/22/2025), priority is given to creditors under the pledge. 13 Trends: Caseload growth of 20% in 2023–2025, focus on lost profits, integration with enforcement proceedings. Challenges: Delays, but reforms are reducing them. As Hans Kelsen said, "Court practice is living law, adapting norms to reality". Trends: Caseload growth of 20% in 2023–2025, focus on lost profits, integration with enforcement proceedings. Challenges: Delays, but reforms are reducing them. As Hans Kelsen said, "Court practice is living law, adapting norms to reality". Stages: 1. Preparing a claim: Calculating damages under Article 15 of the Civil Code. Evidence: receipts, contracts, and certificates. An expert examination (Article 85 of the Civil Procedure Code) is mandatory for complex cases 14 . 2. Court of First Instance: Acceptance (Article 149), preparation (Article 164: explanation of rights), consideration (Article 169: debate). Decision – within 1 month (Article 193). 3. Appeal/cassation: 10 days for appeal (Article 339), 1 month for cassation (Article 378). 4. Enforcement: Through state enforcement officers (Law No. ZRU-678 of 2019). Seizure of accounts and property 15 . Example: In 2022, the Fergana Regional Court (case No. 02-45-678/2022) awarded 120 million soums in damages from a contractor for construction delays. The plaintiff proved lost profits with documents and market reports. 10 https://nrm.uz/contentf?doc=784214_postanovlenie_plenuma_verhovnogo_suda_respubliki_uzbekistan_ot_23_06 _2025_g_n_13_o_nekotoryh_voprosah_primeneniya_ekonomicheskimi_sudami_norm_zakona_respubliki_uzbekistan _o_neplatejesposobnosti&products=1_vse_zakonodatelstvo_uzbekistana 11 https://storage.consultant.ru/site20/202510/08/vs_081025_3.pdf 12 https://sprav.uz/publication/182-chto-delat-esli-zatopili-sosedi-i-vy-hotite-podat-na-nih-v-sud-dlya-kompensaciiusherba 13 https://lex.uz/docs/7491029 14 https://lex.uz/docs/3517334 15 https://lex.uz/docs/3517334 ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 1224 Challenges: corruption (although reforms reduced it by 40%), delays (average 6 months). In labor disputes (Article 241 of the Labor Code), the procedure is simplified: a commission, then a court. For foreign entities, the 2005 Hague Convention on Choice of Court applies. As the Roman jurist Gaius said: "Damages are something that can be measured in money, but justice lies in their timely return". Comparative analysis with other countries: With Russia Uzbekistan and Russia are post-Soviet systems with similar civil laws (Article 15 of the Russian Civil Code is analogous to Article 15 of the Civil Code of the Republic of Uzbekistan). Both require full compensation, and the statute of limitations is three years. Differences: Russia places greater emphasis on judicial precedent (Supreme Court of the Russian Federation 2024 Review), while Uzbekistan relies on legal codes 16 . In the Russian Federation, punitive damages are rare, as in the Republic of Uzbekistan, but in corporate disputes, the Russian Federation is stricter (Federal Law 208). Recognition of decisions: The Minsk Convention of 1993 facilitates 17 . With the US In the US (common law), damages are compensatory and punitive (Restatement (Second) of Torts §908). Punitive damages are up to 4x compensatory (State Farm v. Campbell, 2003), which is not the case in Uzbekistan, where only compensatory damages are available. Procedure: discovery (broad disclosure), jury trials. In Uzbekistan, the inquisitorial process 18 . In the US, liquidated damages are provided in contracts (as in the Republic of Uzbekistan, Article 367 of the Civil Code), but foreseeability is stricter. With Germany Germany (BGB §249–253): Schadensersatz – full, including non-pecuniary damages. Objective liability is broader (for animals, property). In Uzbekistan, it's similar, but there are fewer details on calculations (in the BGB, there's a table for moral damages). Process: ZPO – strict deadlines, mediation is mandatory. Germany is a model for Uzbekistan in EU integration. With China China (Civil Code of the People's Republic of China 2020, Article 1182): Compensation plus moral damages, but lost profits are limited (Article 584). In Uzbekistan, it's full. Procedure: CPL is an administrative process; in Uzbekistan, it's an independent court. Similarity: focus on contracts 19 . China is stricter towards foreigners, Uzbekistan is more open. The comparison shows that the Republic of Uzbekistan is closer to the continental model, but needs punitive measures to deter crime. Famous quotes and philosophical aspects 16 https://normativ.kontur.ru/document?moduleId=7&documentId=500056 17 https://pravo.ru/story/256237/ 18 Афанасьева Екатерина Геннадиевна, Долгих Мария Геннадиевна ШТРАФНЫЕ УБЫТКИ В СОВРЕМЕННОМ ЗАРУБЕЖНОМ ПРАВЕ (Обзор) // Правовое регулирование предпринимательской деятельности (зарубежный опыт). 2013. №2013. URL: https://cyberleninka.ru/article/n/shtrafnye-ubytki-v-sovremennom-zarubezhnom-praveobzor (дата обращения: 03.11.2025). 19 Монастырский Юрий Эдуардович СРАВНИТЕЛЬНЫЙ АНАЛИЗ ЗАКОНОДАТЕЛЬНЫХ ПРЕДПОСЫЛОК ГРАЖДАНСКО-ПРАВОВОЙ ОТВЕТСТВЕННОСТИ В РОССИИ И КИТАЕ // Вестн. Том. гос. ун-та. Право. 2022. №45. URL: https://cyberleninka.ru/article/n/sravnitelnyy-analiz-zakonodatelnyh-predposylok-grazhdansko-pravovoyotvetstvennosti-v-rossii-i-kitae (дата обращения: 03.11.2025). ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 1225 The institution of losses inspires thinkers. Oliver Holmes: “Compensation is not revenge, but a cure for chaos” 20 . Hans Kelsen: "Law is the norm where harm becomes debt." This echoes in Uzbekistan's reforms. Conclusion Damage recovery in the Republic of Uzbekistan is an effective tool, but it requires digitalization and precedent. Comparisons demonstrate the potential for harmonization. In conclusion, it should be noted that the institution of damages recovery in the civil procedural law of the Republic of Uzbekistan is a key element in ensuring justice, protecting property rights, and the sustainable development of civil transactions. This institution plays an important role in restoring the disturbed legal balance, ensuring the protection of the interests of parties to civil legal relations. As demonstrated in the theoretical foundations, damages expressed in the form of actual losses and lost profits are based on the principle of full compensation, which dates back to Roman law and has been adapted to modern market economic conditions. This principle, enshrined in Articles 14–15 of the Civil Code of the Republic of Uzbekistan, not only compensates for losses incurred but also promotes the restoration of justice in civil law relations, reflecting the Aristotelian understanding of justice as balance and proportionality. The legal framework, including the 2018 Civil Procedure Code, creates a clear system for implementing the damages recovery mechanism: from determining jurisdiction and filing claims to securing and enforcing court decisions. Procedural law norms are harmoniously integrated with provisions of other branches of law—labor, corporate, and even criminal—enabling the development of a comprehensive and effective system for protecting rights. The introduction of digital technologies, particularly the e-sud.uz platform, in 2024–2025 significantly increased the accessibility and efficiency of judicial proceedings. This is especially relevant given the 15–20% increase in the number of civil disputes in recent years, according to data from the Supreme Court of the Republic of Uzbekistan. The court plays a special role, acting not only as an arbitrator but also as an active participant in the process. It facilitates the collection of evidence, orders expert opinions, and facilitates reconciliation between the parties, implementing the principles of independence, adversarial proceedings, and equality of parties. The practice of Uzbek courts confirms the effectiveness of this approach: from cases involving compensation for damages for the supply of defective goods to compensation for personal injury. Judicial practice from 2023 to 2025 demonstrates an evolution in the application of law— strengthening requirements for proving causation, increasing the importance of lost profits, and integrating the institution of damages collection with bankruptcy proceedings, as reflected in Resolution No. 13 of the Plenum of the Supreme Court of 2025. These trends demonstrate the judicial system's ability to adapt to modern socioeconomic challenges, reducing case review times and strengthening public trust in the courts. 20 https://claimtoday.com/%25D0%25BC%25D0%25BE%25D0%25B6%25D0%25B5%25D1%2582%25D0%25B5- %25D0%25BB%25D0%25B8-%25D0%25B2%25D1%258B- %25D1%2582%25D1%2580%25D0%25B5%25D0%25B1%25D0%25BE%25D0%25B2%25D0%25B0%25D1%2582%25D1 %258C- %25D0%25B2%25D0%25BE%25D0%25B7%25D0%25BC%25D0%25B5%25D1%2589%25D0%25B5%25D0%25BD%25D0 %25B8%25D1%258F-%25D1%2583%25D1%2589%25D0%25B5/ ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 1226 The damages recovery process, from pre-trial claims to enforcement of decisions through private bailiffs, reflects a systemic approach, with each stage aimed at the timely and full restoration of violated rights. However, certain challenges remain, including instances of corruption (which, according to reform data, have decreased by approximately 40%) and court overload. These factors require further improvements in law enforcement practices and increased procedural efficiency. A comparative legal analysis has shown that the Uzbek model is closer to the continental system (as in Germany and Russia), where the primary focus is on compensating for damages rather than punishing the offender. Unlike the Anglo-American system (USA), which applies punitive damages (punitive compensation), Uzbek law is focused on restoring the financial position of the injured party. Similarities with the Russian legal system facilitate the recognition and enforcement of decisions based on the Minsk Convention, while differences from the Chinese model—in particular, a broader understanding of lost profits—underscore the advantages of the principle of full compensation enshrined in Uzbek law. At the same time, the use of international experience, including the development of mediation (as in Germany) and the institution of evidence discovery (analogous to the American discovery system), could further strengthen the evidentiary base and improve the quality of justice. The philosophical and legal foundations of the institution of damages collection, reflected in the works of Aristotle, Ulpian, Oliver Holmes, and Hans Kelsen, remind us that compensation is not an act of retaliation, but a means of restoring social harmony. As Holmes noted, "compensation is not revenge, but a cure for chaos." In the context of Uzbek reforms initiated in 2017 and aimed at liberalizing the economy, improving the business climate, and protecting entrepreneurship, these ideas take on particular significance. Despite the successes achieved, the institution of damages collection requires further development: expanding the digitalization of judicial procedures, introducing elements of judicial precedent to standardize practices, and, where necessary, introducing punitive measures in exceptional cases to deter violations. The prospects for this institution remain positive: with economic growth, improved legislation, and deeper international integration, the Uzbek legal system has the potential to become a model for the countries of Central Asia. An effective mechanism for the recovery of damages strengthens the rule of law, promotes sustainable development, and creates a society in which harm is transformed from conflict into a lesson in justice. References: 1. Civil Code of the Republic of Uzbekistan (Part One) dated 21.12.1995 No. 166-I. – https://lex.uz/docs/111453 (error in the link, correct: https://lex.uz/docs/20596). 3. Resolution of the Plenum of the Supreme Court of the Republic of Uzbekistan No. 21 of September 11, 1998. – https://nrm.uz/ 4. Commentary to the Civil Code of the Republic of Uzbekistan / Ed. OSCE. – Tashkent, 2005. – https://www.osce.org/files/f/documents/a/3/74874.pdf. 6. German Federal Tax Service (§§249–253). – https://www.gesetze-im-internet.de/bgb/ 7. Civil Code of the People's Republic of China 2020. – http://www.npc.gov.cn/. 8. Restatement (Second) of Torts (USA). – American Law Institute, 1979. 9. Aristotle. Nicomachean Ethics. Moscow: Eksmo, 2008. 10. Holmes, O.V. The Path of the Law. – Moscow: Statut, 2001. ISSN: 2582-4686 SJIF 2021-3.261,SJIF 20222.889, 2024-6.875 ResearchBib IF: 9.948 / 2024 VOLUME-5, ISSUE-12 1227 11. Resolution of the Plenum of the Supreme Court of the Republic of Uzbekistan No. 13 of June 23, 2025. – https://nrm.uz/ 12. Review of the Russian Armed Forces 2025. – https://storage.consultant.ru/ 13. ZRU-1060 dated 04/22/2025. – https://lex.uz/docs/7491029. 14. https://sprav.uz/. 15. Monastyrsky Yuri Eduardovich COMPARATIVE ANALYSIS OF LEGISLATIVE PREREQUISITES FOR CIVIL LIABILITY IN RUSSIA AND CHINA // Vestn. Tomsk. state University. Law. 2022. No. 45. URL: https://cyberleninka.ru/article/n/sravnitelnyy-analizzakonodatelnyh-predposilok-grazhdansko-pravovoy-otvetstvennosti-v-rossii-i-kitae (date of access: 03.11.2025). 16. Damages and their compensation for breach of contract in German civil law - https://lexrussica.msal.ru/jour/article/view/4624 17. Afanasyeva Ekaterina Gennadievna, Dolgikh Maria Gennadievna PUNITIVE DAMAGES IN MODERN FOREIGN LAW (Overview) // Legal regulation of entrepreneurial activity (foreign experience). 2013. No. 2013. URL: https://cyberleninka.ru/article/n/shtrafnye-ubytki-vsovremennom-zarubezhnom-prave-obzor (date of access: 03.11.2025). 18. Recognition of foreign court decisions - https://pravo.ru/story/256237/