When was financial compensation introduced? In a recent repeat ep of Allo Allo Msr Alphonse alluded to a fear of being sued. I wouldn't have expected civil lawsuits in wartime - would there have been?
It's been happening for thousands of years - as long as people have suffered losses at the hands of others. Obviously how often and how easy it happens depends on the laws of the country and the climate of opinion socially.
Yes, civil law continue in war time. Of course, you could argue that it wasn't war time in France as the government had surrendered thus ending war with Germany. Life carried on, the law carried on, now subservient to German occupation law. So yes, M. Alphonse could be sued.