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Chapter 15
Exemplary Damages
Nature & Concept

Exemplary or Corrective damages is imposed by way of example or correction for the public good,
in addition to moral, temperate, liquidated, or compensatory damages.

Also known as “punitive” or “vindictive” damages, exemplary or corrective damages are intended
to serve as a deterrent to serious wrongdoings and as a vindication of undue sufferings and wanton
invasion of the rights of an injured or a punishment for those guilty of outrageous conduct. (People
vs. Catubig, G.R. No. 137842, August 23, 2001)

Q1: What are the requisites for the award of exemplary damages?

(Medelo vs. Gorospe, G.R. No. L-41970, March 25, 1988)

Q2: In an action for quasi-delict, the court awarded exemplary damages in favor of the plaintiff.
The defendant appealed and argued that exemplary damages has no application in a quasi-delict
case. Is the defendant correct?

(Art. 2231; CLLC E.G. Gochangco Workers Union vs. NLRC, 161 SCRA 655; Globe Mackay
Cable and Radio Corp. vs. CA, 176 SCRA 778)

Q3: When is exemplary damages awarded in contracts and quasi-contracts?

(Art. 2232; PNB vs. Gen. Acceptance and Finance Corp., 161 SCRA 449)

Q4: The winning party did not present any proof as to the amount of exemplary damages
they prayed during the trial and yet the Court still award said damages in their favor. Is the award
of exemplary damages without proof proper?

(Zenith Insurance Corp., vs. CA, G.R. No. 385296, May 14, 1990)

Q5: X was a businesswoman engaged in supplying office material & equipments to Phil.
Navy Office (PNO); and Y was a military officer & comptroller of the PNO. Y approached X and
offered to loan her the amount P540K. X accepted Y’s proposal. The loan agreement was not
reduced in writing and there was no stipulation as to the payment of interest. X made a partial
payment in the amount of P500K. Thereafter, X made payment of P200K to Y for the remaining
balance and X told Y that the excess of P160K would be applied as interest for the loan. Y, not
satisfied, pestered X to pay additional interest and threatened X to block or disapprove X’s
transactions with the PNO if X would not comply with his demand. The total amount X paid to Y
for the loan & interest accumulated to P1.2M. Ignoring X’s repeated written demand for
reimbursement, X filed an action for collection of sum of money. Is the collection of interest of Y
proper?

(Siga-an vs. Villanueva, G.R. No. 173227, January 20, 2009)

Q6: Are there instances in which monetary interest may be imposed even in the absence of express
stipulation, verbal or written? (Art. 2209 & Art. 2212)

Q7: Y argued that he cannot be compelled to return the excess amount paid by X as interest
because the principle of solution indebiti does not apply in the instant case. Is the contention of Y
tenable? (Art. 1960 & Art. 2154)

Q8: If a bus driver was proved driving the bus very fast in a reckless, negligent and
imprudent manner, should the injured party be awarded with exemplary damages?
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(R Transport Corp. vs. Pante, G.R. No. 162104, September 15, 2009)

Q9: Due to the prosecution’s failure to prove the existence of the qualifying circumstances of
minority, accused was only held liable for simple rape and meted the penalty of reclusion perpetua.
Private complainant was not awarded with exemplary damages although the prosecution was able
to prove the relationship between the victim and the accused as uncle and niece. Is the judgment
correct?

(People vs. Manalili, G.R. No. 184598, June 23, 2009)

Q10: In simple rape where the victim is a minor and no qualifying or even generic aggravating
circumstances was alleged and proved, will an award for exemplary damages proper?

(People vs. Saludo, G.R. No. 178406, April 6, 2011)

(People vs. Funesto, G.R. No. 182237, August 3, 2011)

Q11: If an aggravating circumstance is not alleged in the information but established at trial, can an
award for exemplary damage be granted?

(People vs. Dadulla, G.R. No. 172321, February 9, 2011)