This article examines employer liability and the proof of damages in Palu District Court Decision No. 129/Pdt.G/2022/PN Pal. The dispute arose from an explosion involving liquefied petroleum gas cylinders transported in a company vehicle and driven by its employee, resulting in a fire and damage to the Plaintiff’s property. This study employs normative legal research using statutory, case, and conceptual approaches. The primary legal materials comprise the Indonesian Civil Code and the court decision, while the secondary materials address unlawful acts, negligence, employer liability, causation, and compensation. The findings demonstrate that the employment relationship and the connection between the employee’s conduct and his assigned work provided an adequate basis for applying Article 1367 paragraph (3) of the Civil Code. However, the judgment did not clearly distinguish between the employee’s underlying unlawful act and the vicarious liability imposed on the employer. The partial award of material damages and rejection of immaterial damages were defensible under evidentiary principles because compensation must correspond to losses proved during the proceedings. Nevertheless, the court should have identified more systematically the evidence supporting each loss, the method used to determine the awarded amount, and the reasons for rejecting individual components of the claim. This article proposes an integrated framework combining fault, employment relationship, scope of employment, causation, and proof of loss when assessing employer liability for fire-related damage.