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CIVIL LAW
DAMAGES

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I. Damages C. TYPES OF DAMAGES

Art. 2197. Damages may be:

A. DEFINITION
(1) Actual or compensatory;
(2) Moral;
Damages may be defined as the pecuniary (3) Nominal;
compensation, recompense, or satisfaction
(4) Temperate or moderate;
for an injury sustained, or as otherwise
expressed, the pecuniary consequences, (5) Liquidated; or
which the law imposes for the breach of some (6) Exemplary or corrective.
duty or the violation of some right [People v.
Ballesteros, G.R. No. 120921].
According to Purpose
The recompense or compensation awarded
for the damage suffered [Custodio v CA, G.R. (1) For adequate reparation of the injury
No. 116100].
a) Compensatory damages
(reparation of pecuniary losses)
B. WHEN ALLOWED b) Moral (reparation for non-pecuniary
losses: injury to feelings; physical
The obligation to repair the damages exists suffering, etc.)
whether done intentionally or negligently and (2) For vindication of the right violated:
whether or not punishable by law [Occena v
Icamina, G.R. No. 82146 (1990)] a) Nominal damages
The mere fact that the plaintiff suffered (3) For less than adequate reparation:
losses does not give rise to a right to recover a) Moderate
damages. To warrant the recovery of
damages, there must be both a right of (4) For deterring future violations:
action for a legal wrong inflicted by the a) Exemplary or corrective
defendant, and damage resulting to the
plaintiff therefrom. Wrong without damage,
or damage without wrong, does not
constitute a cause of action, since damages
are merely part of the remedy allowed for the
injury caused by a breach or wrong [Custodio
v CA, G.R. No. 116100].
Injury vs. Damage vs. Damages
Injury is the illegal invasion of a legal right.
Dam age is the loss, hurt, or harm, which
results from the injury. Dam ages are the
recompense or compensation awarded for
the damage suffered [Custodio v CA, supra].

Elements for recovery of damages

(1) Right of action
(2) For a wrong inflicted by the defendant
(3) Damage resulting to the plaintiff

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II. Actual &
Compensatory
Damages
Compensatory damages are damages in
satisfaction of, or in recompense for, loss or
injury sustained. The phrase “actual damages”
is sometimes used as synonymous with
compensatory damages.
Requisites
To seek recovery of actual damages, it is
necessary to prove the actual amount of loss
with a reasonable degree of certainty,
premised upon competent proof and on the
best evidence obtainable [Asilo, Jr. v. People
and Sps. Bombasi, G.R. No. 159017-18 (2011)].
W hen is a person entitled?
(1) When there is a pecuniary loss suffered by
him;
(2) When he has alleged and prayed for such
relief [Manchester Dev’t Corp v. CA, G.R.
No. L-75919 (1987)];
(3) When he has duly proved it;
(4) When provided by law or by stipulation.
No proof of pecuniary loss is necessary for:
moral, nominal, temperate, liquidated or
exemplary damages. The assessment of such
damages is discretionary upon the court,
except liquidated ones. (Art. 2216)
Alleged and proved with certainty
Art. 2199. Except as provided by law or by
stipulation, one is entitled to an adequate
compensation only for such pecuniary loss
suffered by him as he has duly proved. Such
compensation is referred to as actual or
compensatory damages.
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The damages must be proven by
com petent evidence (adm issible or
probative)
There must be pleading and proof of actual
damages suffered for the same to be
recovered. In addition to the fact that the
amount of loss must be capable of proof, it
must also be actually proven with a
reasonable degree of certainty, premised
upon competent proof or the best evidence
obtainable. The burden of proof of the
damage suffered is, consequently, imposed
on the party claiming the same, who should
adduce the best evidence available in support
thereof… In the absence of corroborative
evidence, it has been held that self-serving
statements of account are not sufficient basis
for an award of actual damages [Oceaneering
Contractors v Baretto, G.R. No. 184215 (2011)].
Actual or compensatory damages cannot be
presumed, but must be proven with a
reasonable degree of certainty [MCC
Industrial Sales Corp. v Ssangyong Corp., G.R.
No. 170633 (2007)].
Damages must be proved with reasonable
accuracy, even when not denied [Valencia vs.
Tantoco, G.R. No. L-7267 (1956)].
Degree of certainty required as to:
fact, cause and am ount of dam ages
Damages are not rendered uncertain just
because they cannot be calculated with
absolute exactness or because the
consequences of the wrong are not precisely
definite in pecuniary amount.
The principle, which will disallow recovery of
damages when their existence rests solely on
speculation, applies both to the fact and
cause of damages.
(1) The requirement of certainty does not
prevent the drawing of reasonable
inferences from the fact and
circumstance in evidence.
(2) Events which occur after the wrong
complained of may serve to render the
damage sufficiently certain.
(3) The damages must be susceptible of
ascertainment in some manner other
than by mere speculation, conjecture or
surmise and by reference to some fairly
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definite standard, such as market value, EXTENT OR SCOPE OF ACTUAL DAMAGES

established experience or direct inference
Source Extent of Liability
from known circumstances.
-If the obligor acted in
Where, however, it is reasonably certain that
injury consisting of failure to realize otherwise GOOD FAITH, he shall
be liable for natural and
reasonably expected profits had been
incurred, uncertainty as to the precise probable consequences
amount of such unrealized profits will not of the breach, which the
parties have foreseen or
prevent recovery or the award of damages
[Talisay-Silay v. Associacion, G.R. No. 91852 could have reasonably
Contracts foreseen at the time the
(1995)].
Art. and obligation was
2201 Quasi- constituted.
Components contracts -If the obligor acted with
Actual damage covers the following: FRAUD, BAD FAITH,
MALICE or WANTON
(1) Value of loss; unrealized profit ATTITUDE, he shall be
(2) Attorney’s fees and expenses of litigation responsible for all
damages which may be
(3) Interest reasonably attributed to
the breach.

LOSS COVERED: Liability extends to all

damages which are the
In General natural and probable
Art. 2200. Indemnification for damages shall consequence of the act
Crimes or omission complained
comprehend not only the value of the loss Art. and
suffered, but also that of the profits which of
2202 Quasi-
the obligee failed to obtain. delicts WON the damage was
foreseen or could have
In other words, indemnification for damages been reasonably
is not limited to damnum emergens (actual foreseen by the
loss) but extends to lucrum cessans (a cession defendant is irrelevant
of gain or amount of profit lost).
The award of damages for loss of earning IN CONTRACTS AND QUASI-CONTRACTS
capacity is concerned with the determination
of losses or damages sustained by the Art. 2201. In contracts and quasi-contracts,
[plaintiffs], as dependents and intestate heirs the damages for which the obligor who acted
of the deceased, and that said damages in good faith is liable shall be those that are
consist, not of the full amount of his earnings, the natural and probable consequences of
but of the support they received or would the breach of the obligation, and which the
have received from him had he not died in parties have foreseen or could have
consequence of negligence of [defendant’s] reasonably foreseen at the time the
agent… Only net earnings, and not gross obligation was constituted.
earnings are to be considered. That is, the In case of fraud, bad faith, malice or wanton
total of the earnings less expenses necessary attitude, the obligor shall be responsible for
in the creation of such earnings or income all damages which may be reasonably
and less living and other incidental expenses attributed to the non-performance of the
[Candano Shipping Lines, Inc. v Sugata-on, obligation.
G.R. No. 163212 (2007)].

Art. 2214. In quasi delicts, the contributory

negligence of the plaintiff shall reduce the

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damages that he may recover.
Art. 2215. In contracts, quasi-contracts, and
quasi-delicts, the court may equitably
mitigate the damages under circumstances
other than the case referred to in the
preceding article, as in the following
instances:
(1) That the plaintiff himself has
contravened the terms of the contract;
(2) That the plaintiff has derived some
benefit as a result of the contract;
(3) In cases where exemplary damages are
to be awarded, that the defendant acted
upon the advice of counsel;
(4) That the loss would have resulted in any
event;
(5) That since the filing of the action, the
defendant has done his best to lessen
the plaintiff's loss or injury.
The damages recoverable upon breach of
contract are, primarily, the ordinary, natural
and in a sense the necessary damages
resulting from the breach. Other damages,
known as special damages, are recoverable
where it appears that the particular
conditions which made such damages a
probable consequence of the breach were
known to the delinquent party at the time the
contract was made [Daywalt vs. Recoletos et
al., G.R. No. L-13505 (1919)].
Bad faith does not simply connote bad
judgment or negligence; it imports a
dishonest purpose or some moral obliquity
and conscious doing of wrong; it partakes of
the nature of fraud…BPI-FB acted out of the
impetus of self-protection and not out of
malevolence or ill will. BPI-FB was not in the
corrupt state of mind contemplated in Article
2201 and should not be held liable for all
damages now being imputed to it for its
breach of obligation [BPI Family Bank v.
Franco, G.R. No. 123498 (2007)].
That there was fraud or bad faith on the part
of respondent airline when it did not allow
petitioners to board their flight in spite of
confirmed tickets cannot be disputed.
Overbooking amounts to bad faith, entitling
the passengers concerned to an award of
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moral damages [Spouses Zalamea v. CA, G.R.
No. 104235 (1993)].
IN CRIMES AND QUASI-DELICTS
Art. 2202. In crimes and quasi delicts, the
defendant shall be liable for all damages
which are the natural and probable
consequences of the act or omission
complained of. It is not necessary that such
damages have been foreseen or could have
reasonably been foreseen by the defendant.
In case of crimes, damages are to be
increased or decreased according to
aggravating or mitigating circumstances
present.
Interest, as part of damages, may be
adjudicated in a proper case, in the Court’s
discretion.
Contributory negligence of the plaintiff, in
case of quasi-delicts, shall reduce the
damages to which he may be entitled.
However, in case of crimes, there is no
mitigation for contributory negligence of the
plaintiff.
The indemnity authorized by our criminal law
as civil liability ex delicto for the offended
party, in the amount authorized by the
prevailing judicial policy and aside from other
proven actual damages, is itself equivalent to
actual or compensatory damages in civil law.
The principal consideration for the award of
damages is the penalty provided by law or
imposable for the offense because of its
heinousness, not the public penalty actually
imposed on the offender… Hence,
notwithstanding the fact that the imposable
public penalty against the offender should be
lowered due to his minority, there is no
justifiable ground to depart from the
jurisprudential trend in the award of
damages in the case of qualified rape,
considering the compensatory nature of the
award of civil indemnity and moral damages
[People v Sarcia, G.R. No. 169641 (2009)].
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EARNING CAPACITY, BUSINESS STANDING As a rule, documentary evidence should be

presented to substantiate the claim for loss
Art. 2205. Damages may be recovered:
of earning capacity [Tan, et al. vs. OMC
(1) For loss or impairment of earning Carriers, Inc., G.R. No. 190521 (2011)].
capacity in cases of temporary or
By way of exception, damages for loss of
permanent personal injury;
earning capacity may be awarded despite the
(2) For injury to the plaintiff's business absence of documentary evidence when: (1)
standing or commercial credit. the deceased is self-employed and earning
less than the minimum wage under current
labor laws, in which case, judicial notice may
LOSS OR IMPAIRMENT OF EARNING be taken of the fact that in the deceased's
CAPACITY line of work, no documentary evidence is
available; or (2) the deceased is employed as
The Court did not award actual damages
a daily wage worker earning less than the
because it was found that plaintiff’s
minimum wage under current labor laws.
employment was lost even before the injury
upon which she was suing. The Court
equated loss of employment with loss of
DEATH BY CRIME OR QUASI-DELICT
earning capacity [Gatchalian v. Delim, G.R. No.
56487 (1991)]. Art. 2206. The amount of damages for death
caused by a crime or quasi-delict shall be at
The plaintiff need not be actually engaged in
least three thousand pesos, even though
gainful employment to recover damages due
there may have been mitigating
to loss or impairment of earning capacity. In
circumstances.
determining the amount of damages to be
awarded, the Supreme Court considered the In addition:
plaintiff’s age, probable life expectancy, the
(1) The defendant shall be liable for the loss
state of his health, and his mental and
of the earning capacity of the deceased,
physical condition before the accident…
and the indemnity shall be paid to the
Taking into account [the plaintiff’s]
heirs of the latter; such indemnity shall in
outstanding abilities, he would have enjoyed
every case be assessed and awarded by
a successful professional career in banking
the court, unless the deceased on
[Mercury Drug v Huang, G.R. No. 172122
account of permanent physical disability
(2007)].
not caused by the defendant, had no
earning capacity at the time of his death;
INJURY TO BUSINESS STANDING OR (2) If the deceased was obliged to give
COMMERCIAL CREDIT support according to the provisions of
article 291, the recipient who is not an
Loss of goodwill should be proven with the
heir called to the decedent's inheritance
same standard of proof as other
by the law of testate or intestate
compensatory damages [Tanay Recreation
succession, may demand support from
Center v. Fausto, G.R. No. 140182 (2005)].
the person causing the death, for a
period not exceeding five years, the exact
duration to be fixed by the court;
FORMULA FOR THE NET EARNING
CAPACITY (3) The spouse, legitimate and illegitimate
descendants and ascendants of the
Net earning capacity = Life expectancy *
deceased may demand moral damages
(Gross annual income – Reasonable living
for mental anguish by reason of the
expenses) [People vs. Aringue, G.R. No.
death of the deceased.
116487 (1997)].
Where:
Life expectancy = 2/3 * (80 – age of victim at
the time of death)
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CIVIL / DEATH INDEMNITY
Mere commission of the crime shall entitle
the heirs of the deceased to such damages.
AS TO THE LOSS OF EARNING CAPACITY
General Rule:
Shall be awarded in every case, and that
claimant shall present documentary evidence
to substantiate claim for damages.
Exceptions:
(1) If the deceased was self-employed and
earning less than the minimum wage; or
(2) The deceased was a daily wage worker
earning less than the minimum wage.
Additional Exception:
Testimonial evidence suffices to establish a
basis for which the court can make a fair and
reasonable estimate of the loss of earning
capacity [Pleyto v. Lomboy, G.R. No. 148737
(2004)]
Note: Such an exception to documentary
proof requirement only exists as to the loss of
earning capacity.
In Rape Cases
No statutory basis but in several cases the
court awards compensatory damages to
victims of rape.
Civil indemnity, in the nature of actual and
compensatory damages, is mandatory upon
the finding of the fact of rape. [People v.
Astrologo, G.R. No. 169873 (2007)].
The SC held that it could not be proven that
the age of the victim was such that it would
support a penalty of death. Thus, it imposed
reclusion perpetua instead. But SC said that
this should not affect the civil liability to be
imposed, and maintained the same at Php.
75,000 [People v. Bartolini, G.R. No. 179498
(2010)].
ATTORNEY’S FEES AND EXPENSES OF
LITIGATION
Art. 2208. In the absence of stipulation,
attorney's fees and expenses of litigation,
other than judicial costs, cannot be
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recovered, except:
(1) When exemplary damages are awarded;
(2) When the defendant's act or omission
has compelled the plaintiff to litigate
with third persons or to incur expenses to
protect his interest;
(3) In criminal cases of malicious
prosecution against the plaintiff;
(4) In case of a clearly unfounded civil action
or proceeding against the plaintiff;
(5) Where the defendant acted in gross and
evident bad faith in refusing to satisfy the
plaintiff's plainly valid, just and
demandable claim;
(6) In actions for legal support;
(7) In actions for the recovery of wages of
household helpers, laborers and skilled
workers;
(8) In actions for indemnity under workmen's
compensation and employer's liability
laws;
(9) In a separate civil action to recover civil
liability arising from a crime;
(10) When at least double judicial costs are
awarded;
(11) In any other case where the court deems
it just and equitable that attorney's fees
and expenses of litigation should be
recovered.
In all cases, the attorney's fees and expenses
of litigation must be reasonable.
General Rule
Attorney’s fees and costs of litigation are
recoverable IF stipulated.
Exceptions
If there is no stipulation, they are recoverable
only in the following cases:
(1) By reason of malice or bad faith
(a) When exemplary damages are
awarded
(b) In case of a clearly unfounded civil
action
(c) Where defendant acted in gross and
evident bad faith
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(d) When at least double judicial costs claimant is compelled to litigate with third
are awarded persons or to incur expenses to protect his
rights, still attorney’s fees may not be
(2) By reason of plaintiff’s indigence in awarded where no sufficient showing of bad
(a) Actions for legal support faith could be reflected in a party’s
persistence in a case other than an erroneous
(b) Actions for recovery of wages of conviction of the righteousness of his cause
laborers, etc. [Bank of America v. Philippine Racing Club,
(c) Actions for workmen’s G.R. No. 150228 (2009)].
compensation
(3) By reason of crimes in
Interest
(a) Criminal cases of malicious
Art. 2209. If the obligation consists in the
prosecution
payment of a sum of money, and the debtor
(b) Separate actions to recover civil incurs in delay, the indemnity for damages,
liability arising from crime there being no stipulation to the contrary,
shall be the payment of the interest agreed
(4) By reason of equity
upon, and in the absence of stipulation, the
(a) Where the defendant’s act legal interest, which is six per cent per
compelled plaintiff to litigate with annum.
third persons
(b) Where the Court deems it just and Art. 2210. Interest may, in the discretion of
equitable the court, be allowed upon damages
awarded for breach of contract.
Note: In all cases, attorney’s fees and costs
of litigation must be reasonable.
Art. 2211. In crimes and quasi-delicts, interest
as a part of the damages may, in a proper
Even if expressly stipulated, case, be adjudicated in the discretion of the
attorney’s fees are subject to control court.
by the Courts.
Attorney’s fees in CC 2208 is an award made Art. 2212. Interest due shall earn legal
in favor of the litigant, not of his counsel, and interest from the time it is judicially
the litigant, not his counsel, is the judgment demanded, although the obligation may be
creditor who may enforce the judgment for silent upon this point.
attorney's fees by execution [Quirante v. IAC,
G.R. No. 73886 (1989)]. Art. 2213. Interest cannot be recovered upon
Attorney's fees cannot be recovered except in unliquidated claims or damages, except
cases provided for in CC 2208 [MERALCO v. when the demand can be established with
Ramoy, G.R. No. 158911 (2008)]. reasonable certainty.
Attorney’s fees and expenses of litigation are
recoverable only in the concept of actual Interest accrues when:
damages, not as moral damages nor judicial
costs. Hence, such must be specifically (1) The obligation consists in the payment of
prayed for…and may not be deemed a sum of money
incorporated within a general prayer for (2) Debtor incurs in delay
"such other relief and remedy as this court
may deem just and equitable [Briones v (3) There being no stipulation to the contrary
Macabagdal, G.R. No. 150666 (2010)]." No interest may be recovered on unliquidated
For CC 2208 (2), an adverse decision does (not fixed in amount) claims or damages,
not ipso facto justify an award of attorney’s except when the demand can be established
fees to the winning party. Even when a
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with reasonable certainty at the Court’s Determ ination of legal interest

discretion.
Compounding of interest
Interest due shall earn legal interest from the
time it is judicially demanded, although the
obligation may be silent on the point.
Note that interest due can earn only at 6%,
whether the rate of interest of the principal is
greater than 6%.
BASE
(a) When the obligation is
breached, and it consists in
the PAYMENT OF A SUM OF
MONEY, i.e., a loan or
forbearance of money, the
interest due should be-
(b) Furthermore, the INTEREST
DUE shall itself earn
(c) When an obligation, NOT
constituting a loan or
forbearance of money, is
breached, an interest on the
AMOUNT OF DAMAGES
awarded may be imposed at
the discretion of the court.
The actual base for the
computation of legal interest shall
be on the amount finally
adjudged.
(1) When an obligation, regardless of its
source (i.e., law, contracts, quasi-
contracts, delicts or quasi-delicts) is
breached, the contravenor can be held
liable for damages.
(2) With regard particularly to an AWARD
OF INTEREST in the concept of actual
and compensatory damages, the RATE
of interest, as well as the ACCRUAL
thereof, is imposed, as follows [Eastern
Shipping Lines v. CA, (1994) as modified
by Nakar v. Gallery Frames, G.R. No.
189871 (2013)]:
RATE ACCRUAL
(a)That which may To be computed from default, i.e., from
have been JUDICIAL or EXTRAJUDICIAL demand under
stipulated in and subject to the provisions of Article 1169 of
writing. the Civil Code.
(b) In the absence
of stipulation, the
rate of interest
shall be 6% per
annum (legal
interest)
Legal interest From the time it is JUDICIALLY demanded.
6% per annum. If claim or damages are LIQUIDATED, from
default, i.e., from judicial or extrajudicial
demand. (Art. 1169, Civil Code)
If UNLIQUIDATED, from the time the demand
can be established with reasonable certainty.
Hence, the interest shall begin to run only
FROM THE DATE THE JUDGMENT OF THE
COURT IS MADE (at which time the
quantification of damages may be deemed to
have been reasonably ascertained).

(d) When the JUDGMENT of the 6% per annum From FINALITY UNTIL ITS SATISFACTION,
court awarding a sum of this period being deemed to be an equivalent
money becomes final and to a forbearance of credit.
executory, whether or not the
case consists in the payment
of a sum of money
Note: Start of Delay
The new rate of legal interest (6%) in Nacar (1) Extrajudicial: Demand letter
does not apply to judgments that have
(2) Judicial: Filing of complaint
become final and executory prior to July 1,
2013. (3) Award
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Duty to Minim ize
Art. 2203. The party suffering loss or injury
must exercise the diligence of a good father
of a family to minimize the damages
resulting from the act or omission in
question.
Article 2203 of the Civil Code exhorts parties
suffering from loss or injury to exercise the
diligence of a good father of a family to
minimize the damages resulting from the act
or omission in question. One who is injured
then by the wrongful or negligent act of
another should exercise reasonable care and
diligence to minimize the resulting damage.
Anyway, he can recover from the wrongdoer
money lost in reasonable efforts to preserve
the property injured and for injuries incurred
in attempting to prevent damage to it [Lim
and Gunnaban vs. CA, G.R. No. 125817
(2002)].
Burden of Proof
The defendant has the burden of proof to
establish that the victim, by the exercise of
the diligence of a good father of a family,
could have mitigated the damages. In the
absence of such proof, the amount of
damages cannot be reduced.
Note:
The victim is required only to take such steps
as an ordinary prudent man would
reasonably adopt for his own interest.
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III. Moral Damages
Art. 2217. Moral damages include physical
suffering, mental anguish, fright, serious
anxiety, besmirched reputation, wounded
feelings, moral shock, social humiliation, and
similar injury. Though incapable of pecuniary
computation, moral damages may be
recovered if they are the proximate result of
the defendant's wrongful act or omission.
Art. 2218. In the adjudication of moral
damages, the sentimental value of property,
real or personal, may be considered.
Moral damages are emphatically not
intended to enrich a complainant at the
expense of the defendant. Its award is aimed
at the restoration, within the limits of the
possible, of the spiritual status quo ante, and
it must be proportional to the suffering
inflicted [Visayan Sawmill v. CA, G.R. No.
83851 (1993)].
Mental suffering means distress or serious
pain as distinguished from annoyance, regret
or vexation [Bagumbayan Corp. v. IAC, G.R.
No. L-66274 (1984)].
Mental anguish is intense mental suffering.
Generally, damages for mental anguish are
limited to cases in which there has been a
personal physical injury or where the
defendant willfully, wantonly, recklessly, or
intentionally caused the mental anguish.
W hen awarded
Awarded when injury consists of:
(1) Physical suffering
(2) Besmirched reputation
(3) Mental anguish
(4) Fright
(5) Moral shock
(6) Wounded feelings
(7) Social humiliation
(8) Serious anxiety
(9) Similar injury
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THOUGH INCAPABLE OF PECUNIARY
COMPUTATION
If such is the proximate result of defendant’s
act or omission.
REQUISITES FOR AWARDING MORAL
DAMAGES
The conditions for awarding moral damages
are [Sulpicio Lines v. Curso, G.R. No. 157009
(2010)]:
(a) There must be an injury, whether
physical, mental, or psychological,
clearly substantiated by the claimant;
(b) There must be a culpable act or
omission factually established;
(c) The wrongful act or omission of the
defendant must be the proximate
cause of the injury sustained by the
claimant; and
(d) The award of damages is predicated
on any of the cases stated in Article
2219 of the Civil Code.
GENERAL PRINCIPLES OF RECOVERY:
(1) Moral damages must somehow be
proportional to the suffering inflicted.
(2) In culpa contractual or breach of contract,
moral damages may be recovered when
the defendant acted in bad faith or was
guilty of gross negligence (amounting to
bad faith) or in wanton disregard of his
contractual obligation and, exceptionally,
when the act of breach of contract itself
is constitutive of tort resulting in physical
injuries.
(3) By special rule in Article 1764, in relation
to Article 2206, moral damages may also
be awarded in case the death of a
passenger results from a breach of
carriage.
(4) In culpa aquiliana or quasi-delict,
(a) when an act or omission causes
physical injuries, or
(b) where the defendant is guilty of
intentional tort, moral damages
may aptly be recovered. This rule
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also applies to contracts when
breached by tort.
(5) In culpa criminal, moral damages could
be lawfully due when the accused is
found guilty of physical injuries,
lascivious acts, adultery or concubinage,
illegal or arbitrary detention, illegal
arrest, illegal search, or defamation.
(6) Malicious prosecution can also give rise
to a claim for moral damages. The term
"analogous cases," referred to in Article
2219, following the ejusdem generis rule,
must be held similar to those expressly
enumerated by the law.
(7) Although the institution of a clearly
unfounded civil suit can at times be a
legal justification for an award of
attorney's fees, such filing, however, has
almost invariably been held not to be a
ground for an award of moral damages.
[Expertravel & Tours vs. CA., G.R. No.
130030 (1999)].
(8) The burden rests on the person claiming
moral damages to show convincing
evidence for good faith is presumed. In a
case involving simple negligence, moral
damages cannot be recovered.
[Villanueva v. Salvador (2006)].
(9) Failure to use the precise legal terms or
"sacramental phrases" of "mental
anguish, fright, serious anxiety, wounded
feelings or moral shock" does not justify
the denial of the claim for damages. It is
sufficient that these exact terms have
been pleaded in the complaint and
evidence has been adduced [Miranda-
Ribaya v. Bautista (1980)].
(10) Even if the allegations regarding the
amount of damages in the complaint are
not specifically denied in the answer,
such damages are not deemed admitted.
[Raagas, et al. v. Traya et al (1968)].
(11) An appeal in a criminal case opens the
whole case for review and this 'includes
the review of the penalty, indemnity and
damages’. Even if the offended party had
not appealed from said award, and the
only party who sought a review of the
decision of said court was the accused,
the court can increase damages awarded.
[Sumalpong v. CA (1997)].
UP LAW BOC
(12) It can only be awarded to natural persons.
The award of moral damages cannot be
granted in favor of a corporation because,
being an artificial person and having
existence only in legal contemplation, it
has no feelings, no emotions, no senses,
It cannot, therefore, experience physical
suffering and mental anguish, which can
be experienced only by one having a
nervous system. The statement in People
vs. Manero and Mambulao Lumber Co. vs.
PNB that a corporation may recover
moral damages if it "has a good
reputation that is debased, resulting in
social humiliation" is obiter dictum [ABS-
CBN v. CA, G.R. No. 128690 (1999)].
While it is true that besmirched
reputation is included in moral damages,
it cannot cause mental anguish to a
corporation, unlike in the case of a
natural person, for a corporation has no
reputation in the sense that an individual
has, and besides, it is inherently
impossible for a corporation to suffer
mental anguish [NAPOCOR v. Philipp
Brothers (2001)].
WHEN RECOVERABLE
Art. 2219. Moral damages may be recovered
in the following and analogous cases:
(1) A criminal offense resulting in physical
injuries;
(2) Quasi-delicts causing physical injuries;
(3) Seduction, abduction, rape, or other
lascivious acts;
(4) Adultery or concubinage;
(5) Illegal or arbitrary detention or arrest;
(6) Illegal search;
(7) Libel, slander or any other form of
defamation;
(8) Malicious prosecution;
(9) Acts mentioned in article 309;
(10) Acts and actions referred to in articles 21,
26, 27, 28, 29, 30, 32, 34, and 35.
The parents of the female seduced,
abducted, raped, or abused, referred to in
No. 3 of this article, may also recover moral
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DAMAGES CIVIL LAW
damages.
The spouse, descendants, ascendants, and
brothers and sisters may bring the action
mentioned in No. 9 of t his article, in the
order named.
IN CRIMINAL OFFENSE RESULTING IN
PHYSICAL INJURIES
Under paragraph (1), Article 2219 of the Civil
Code, moral damages may be recovered in a
criminal offense resulting in physical injuries.
In its generic sense, "physical injuries"
includes death [People v. Villaver (2001)].
In a case where the father of a family was
stabbed to death, the SC said that “a violent
death invariably and necessarily brings about
emotional pain and anguish on the part of
the victim’s family… For this reason, moral
damages must be awarded even in the
absence of any allegation and proof of the
heirs’ emotional suffering [Arcona v CA, G.R.
No. 134784 (2002)].”
IN QUASI-DELICTS CAUSING PHYSICAL
INJURIES
In culpa aquiliana, or quasi-delict, moral
damages may be recovered (a) when an act
or omission causes physical injuries, or (b)
where the defendant is guilty of intentional
tort. The SC held that an employer that is
vicariously liable with its employee-driver
may also be held liable for moral damages to
the injured plaintiff [B.F. Metal v. Lomotan,
G.R. No. 170813 (2008)].
IN SEDUCTION, ABDUCTION, RAPE AND
OTHER LASCIVIOUS ACTS
Anent the award of damages, civil indemnity
ex delicto is mandatory upon finding of the
fact of rape while moral damages is awarded
upon such finding without need of further
proof because it is assumed that a rape victim
has actually suffered moral injuries entitling
the victim to such award. If without factual
and legal bases, no award of exemplary
damages should be allowed [People v.
Calongui (2006)].
In a case where the offender-father was
convicted of simple rape instead of qualified
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rape due to the prosecution’s failure to bad faith. If damage results from the filing of
specifically allege the age and minority of the the complaint, it is damnum absque injuria
victim-daughter, but such was nonetheless [Mijares v. CA (1997)].
established during the trial, the award of civil
The adverse result of an action does not per
indemnity and moral damages in a conviction
se make the act wrongful and subject the
for simple rape should equal the award of
actor to the payment of moral damages. The
civil indemnity and moral damages in
law could not have meant to impose a penalty
convictions for qualified rape. Truly, [the
on the right to litigate; such right is so
victim’s] moral suffering is just as great as
precious that moral damages may not be
when her father who raped her is convicted
charged on those who may exercise it
for qualified rape as when he is convicted
erroneously [Barreto vs. Arevalo (1956)].
only for simple rape due to a technicality
[People v. Bartolini, supra].
Where there are multiple counts of rape and IN ACTS REFERRED TO IN ARTS. 21, 26, 27,
other lascivious acts, the SC awarded moral 28, 29, 32, 34 &35, NCC
damages for each count of lascivious acts
Art. 21. Any person who wilfully causes loss or
and each count of rape [People v. Abadies
injury to another in a manner that is contrary
(2002)].
to morals, good customs or public policy
Note: Recovery may be had by the offended shall compensate the latter for the damage.
party and also by her parents.
Art. 26. Every person shall respect the
dignity, personality, privacy and peace of
IN ILLEGAL OR ARBITRARY DETENTION OR
mind of his neighbors and other persons. The
ARREST
following and similar acts, though they may
Since the crime committed in this case is not constitute a criminal offense, shall
kidnapping and failure to return a minor produce a cause of action for damages,
under Article 270 of the Revised Penal Code, prevention and other relief:
the same is clearly analogous to illegal and
(1) Prying into the privacy of another's
arbitrary detention or arrest, thereby
residence:
justifying the award of moral damages
[People v. Bernardo (2002)]. (2) Meddling with or disturbing the private
life or family relations of another;
(3) Intriguing to cause another to be
IN CASE OF MALICIOUS PROSECUTION
alienated from his friends;
As a rule, no moral damages is imposed for
(4) Vexing or humiliating another on account
litigation, because the law could not have
of his religious beliefs, lowly station in
meant to impose a penalty on the right to
life, place of birth, physical defect, or
litigate. A person's right to litigate, as a rule,
other personal condition.
should not be penalized. This right, however,
must be exercised in good faith. Absence of
good faith in the present case is shown by the
VIOLATION OF HUMAN DIGNITY
fact that petitioner clearly has no cause of
action against respondents but it recklessly The law seeks to protect a person from being
filed suit anyway and wantonly pursued unjustly humiliated. Using this provision, the
pointless appeals, thereby causing the latter SC awarded moral damages to the plaintiff, a
to spend valuable time, money and effort in married man, against the defendant, who
unnecessarily defending themselves, confronted the plaintiff face-to-face, invading
incurring damages in the process [Industrial the latter’s privacy, to hurl defamatory words
Insurance v. Bondad, G.R. No. 136722 (2000)]. at him in the presence of his wife and children,
neighbors and friends, accusing him of
Moral damages cannot be recovered from a
having an adulterous relationship with
person who has filed a complaint against
another woman [Concepcion v. CA (1998)].
another in good faith, or without malice or
PAGE 542 OF 574
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Art. 27. Any person suffering material or
moral loss because a public servant or
employee refuses or neglects, without just
cause, to perform his official duty may file an
action for damages and other relief against
the latter, without prejudice to any
disciplinary administrative action that may
be taken.
REFUSAL OR NEGLECT OF DUTY
Under CC 27, in relation to CC 2219 and 2217,
a public officer may be liable for moral
damages for as long as the moral damages
suffered by [the plaintiff] were the proximate
result of [defendant’s] refusal to perform an
official duty or neglect in the performance
thereof. In fact, under Articles 19 and 27 of
the Civil Code, a public official may be made
to pay damages for performing a perfectly
legal act, albeit with bad faith or in violation
of the "abuse of right" doctrine [Concepcion v.
CA, supra].
Art. 28. Unfair competition in agricultural,
commercial or industrial enterprises or in
labor through the use of force, intimidation,
deceit, machination or any other unjust,
oppressive or highhanded method shall give
rise to a right of action by the person who
thereby suffers damage.
Art. 29. When the accused in a criminal
prosecution is acquitted on the ground that
his guilt has not been proved beyond
reasonable doubt, a civil action for damages
for the same act or omission may be
instituted. Such action requires only a
preponderance of evidence. Upon motion of
the defendant, the court may require the
plaintiff to file a bond to answer for damages
in case the complaint should be found to be
malicious.
If in a criminal case the judgment of acquittal
is based upon reasonable doubt, the court
shall so declare. In the absence of any
declaration to that effect, it may be inferred
from the text of the decision whether or not
the acquittal is due to that ground.
Art. 32. Any public officer or employee, or any
private individual, who directly or indirectly
obstructs, defeats, violates or in any manner
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DAMAGES CIVIL LAW
impedes or impairs any of the following
rights and liberties of another person shall
be liable to the latter for damages:
(1) Freedom of religion;
(2) Freedom of speech;
(3) Freedom to write for the press or to
maintain a periodical publication;
(4) Freedom from arbitrary or illegal
detention;
(5) Freedom of suffrage;
(6) The right against deprivation of property
without due process of law;
(7) The right to a just compensation when
private property is taken for public use;
(8) The right to the equal protection of the
laws;
(9) The right to be secure in one's person,
house, papers, and effects against
unreasonable searches and seizures;
(10) The liberty of abode and of changing the
same;
(11) The privacy of communication and
correspondence;
(12) The right to become a member of
associations or societies for purposes not
contrary to law;
(13) The right to take part in a peaceable
assembly to petition the government for
redress of grievances;
(14) The right to be free from involuntary
servitude in any form;
(15) The right of the accused against
excessive bail;
(16) The right of the accused to be heard by
himself and counsel, to be informed of
the nature and cause of the accusation
against him, to have a speedy and public
trial, to meet the witnesses face to face,
and to have compulsory process to
secure the attendance of witness in his
behalf;
(17) Freedom from being compelled to be a
witness against one's self, or from being
forced to confess guilt, or from being
induced by a promise of immunity or
reward to make such confession, except
when the person confessing becomes a
State witness;
(18) Freedom from excessive fines, or cruel
and unusual punishment, unless the
same is imposed or inflicted in
accordance with a statute which has not
been judicially declared
unconstitutional; and
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(19) Freedom of access to the courts.
In any of the cases referred to in this article,
whether or not the defendant's act or
omission constitutes a criminal offense, the
aggrieved party has a right to commence an
entirely separate and distinct civil action for
damages, and for other relief. Such civil
action shall proceed independently of any
criminal prosecution (if the latter be
instituted), and mat be proved by a
preponderance of evidence.
The indemnity shall include moral damages.
Exemplary damages may also be
adjudicated.
The responsibility herein set forth is not
demandable from a judge unless his act or
omission constitutes a violation of the Penal
Code or other penal statute.
VIOLATION OF CIVIL AND POLITICAL
RIGHTS
The purpose of [CC 32] is to provide a
sanction to the deeply cherished rights and
freedoms enshrined in the Constitution.
Under [CC 32], it is not necessary that the
public officer acted with malice or bad
faith. To be liable, it is enough that there was
a violation of the constitutional rights of
petitioner, even on the pretext of justifiable
motives or good faith in the performance of
one's duties [Cojuangco v. CA, (1999)].
Article 32 of the Civil Code provides that
moral damages are proper when the rights of
individuals, including the right against
deprivation of property without due process
of law, are violated [Meralco v Spouses Chua
(2010)].
Art. 34. When a member of a city or
municipal police force refuses or fails to
render aid or protection to any person in case
of danger to life or property, such peace
officer shall be primarily liable for damages,
and the city or municipality shall be
subsidiarily responsible therefor. The civil
action herein recognized shall be
independent of any criminal proceedings,
and a preponderance of evidence shall
suffice to support such action.
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DAMAGES CIVIL LAW
Art. 35. When a person, claiming to be
injured by a criminal offense, charges
another with the same, for which no
independent civil action is granted in this
Code or any special law, but the justice of the
peace finds no reasonable grounds to believe
that a crime has been committed, or the
prosecuting attorney refuses or fails to
institute criminal proceedings, the complaint
may bring a civil action for damages against
the alleged offender. Such civil action may
be supported by a preponderance of
evidence. Upon the defendant's motion, the
court may require the plaintiff to file a bond
to indemnify the defendant in case the
complaint should be found to be malicious.
If during the pendency of the civil action, an
information should be presented by the
prosecuting attorney, the civil action shall be
suspended until the termination of the
criminal proceedings.
Please refer to previous discussions on the
provisions.
Art. 2220. Willful injury to property may be a
legal ground for awarding moral damages if
the court should find that, under the
circumstances, such damages are justly due.
The same rule applies to breaches of
contract where the defendant acted
fraudulently or in bad faith.
IN WILLFUL INJURY TO PROPERTY
To sustain an award of damages, the damage
inflicted upon [plaintiff’s] property must be
malicious or willful, an element crucial to
merit an award of moral damages under
Article 2220 of the Civil Code [Regala v. Carin,
G.R. No. 188715 (2011)].
IN BREACH OF CONTRACT IN BAD FAITH
Moral damages may be recovered in culpa
contractual where the defendant acted in bad
faith or with malice in the breach of the
contract. However, a conscious or intentional
design need not always be present since
negligence may occasionally be so gross as to
amount to malice or bad faith. Bad faith, in
the context of Art. 2220 of the Civil Code,
UP LAW BOC
includes gross negligence. Thus, we have
held in a number of cases that moral
damages may be awarded in culpa
contractual or breach of contract when the
defendant acted fraudulently or in bad faith,
or is guilty of gross negligence amounting to
bad faith, or in wanton disregard of his
contractual obligations [Bankard, Inc. v.
Feliciano, G.R. No 141761 (2006)].
As an exception [to the requirement of bad
faith], moral damages may be awarded in
case of breach of contract of carriage that
results in the death of a passenger [Sulpicio
Lines v. Curso, supra].
WHO MAY RECOVER MORAL DAMAGES
Art. 2219. Moral damages may be recovered
in the following and analogous cases:
(1) A criminal offense resulting in physical
injuries;
(2) Quasi-delicts causing physical injuries;
(3) Seduction, abduction, rape, or other
lascivious acts;
(4) Adultery or concubinage;
(5) Illegal or arbitrary detention or arrest;
(6) Illegal search;
(7) Libel, slander or any other form of
defamation;
(8) Malicious prosecution;
(9) Acts mentioned in article 309;
(10) Acts and actions referred to in articles 21,
26, 27, 28, 29, 30, 32, 34, and 35.
The parents of the female seduced,
abducted, raped, or abused, referred to in
No. 3 of this article, may also recover moral
damages.
The spouse, descendants, ascendants, and
brothers and sisters may bring the action
mentioned in No. 9 of this article, in the order
named.
RELATIVES OF INJURED PERSONS
Article 2219 circumscribes the instances in
which moral damages may be awarded. The
provision does not include succession in the
PAGE 545 OF 574
DAMAGES CIVIL LAW
collateral line as a source of the right to
recover moral damages. The usage of the
phrase analogous cases in the provision
means simply that the situation must be held
similar to those expressly enumerated in the
law in question [Sulpicio Lines v Curso, supra].
JURIDICAL PERSONS
The award of moral damages cannot be
granted in favor of a corporation because,
being an artificial person and having
existence only in legal contemplation, it has
no feelings, no emotions, no senses, It cannot,
therefore, experience physical suffering and
mental anguish, which can be experienced
only by one having a nervous system. [ABS-
CBN v. CA, supra].
FACTORS CONSIDERED IN DETERMINING
AMOUNT
The amount of damages awarded in this
appeal has been determined by adequately
considering the official, political, social, and
financial standing of the offended parties on
one hand, and the business and financial
position of the offender on the other. The SC
further considered the present rate of
exchange and the terms at which the amount
of damages awarded would approximately be
in U.S. dollars, the defendant being an
international airline. Senate President Lopez,
for his social standing and prestige, received
P100,000; his wife Maria Lopez received
P50,000 for her discomfort, and the fact that
she was already sick and suffering a flu when
she left the Philippines via defendant’s plane;
and the Montelibanos received P25,000 each,
for being immediate family members of
Senator Lopez, and as such they likewise
shared his prestige and humiliation [Lopez v.
Pan American, G.R. No. L-22415 (1966)].
UP LAW BOC DAMAGES CIVIL LAW

IV. Nominal Damages produced no actual present loss of any kind.”

Nominal damages consist in damages
awarded, not for purposes of indemnifying
the plaintiff for any loss suffered, but for the
vindication or recognition of a right violated
by the defendant.
REQUISITES AND CHARACTERISTICS
(1) Invasion or violation of any legal or
property right.
(2) No proof of loss is required.
(3) The award is to vindicate the right
violated.
WHEN AWARDED
Art. 2221. Nominal damages are adjudicated
in order that a right of the plaintiff, which has
been violated or invaded by the defendant,
may be vindicated or recognized, and not for
the purpose of indemnifying the plaintiff for
any loss suffered by him.
Art. 2222. The court may award nominal
damages in every obligation arising from any
source enumerated in article 1157, or in every
case where any property right has been
invaded.
Its award is thus not for the purpose of
indemnification for a loss but for the
recognition and vindication of a right. When
granted by the courts, they are not treated as
an equivalent of a wrong inflicted but simply
a recognition of the existence of a technical
injury. A violation of the plaintiff’s right, even
if only technical, is sufficient to support an
award of nominal damages. Conversely, so
long as there is a showing of a violation of the
right of the plaintiff, an award of nominal
damages is proper [Gonzales v. PCIB, G.R. No.
180257 (2011)].
NATURE AND DETERMINATION OF
AMOUNT
The assessment of nominal damages is left to
the discretion of the trial court according to
the circumstances of the case. Generally,
nominal damages by their nature are small
sums fixed by the court without regard to the
extent of the harm done to the injured party.
However, it is generally held that a nominal
damage is a substantial claim, if based upon
the violation of a legal right; in such a case,
the law presumes damage although actual or
compensatory damages are not proven
[Gonzales v. People, G.R. No. 159950 (2007)].

Art. 2223. The adjudication of nominal

damages shall preclude further contest upon
the right involved and all accessory
questions, as between the parties to the suit,
or their respective heirs and assigns.

One does not ask for nominal damages, and

it is in lieu of the actual, moral, temperate, or
liquidated damages.
Nominal damages are incompatible with
actual, temperate and exemplary damages.
Nominal damages cannot co-exist with
actual or compensatory damages [Armovit v.
CA (1990)].
Nominal damages "are recoverable where a
legal right is technically violated and must be
vindicated against an invasion that has

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V. Temperate Damages Courts are authorized to award temperate

damages even in cases where the amount of
pecuniary loss could have been proven with
Art. 2224. Temperate or moderate damages, certainty, if no such adequate proof was
which are more than nominal but less than presented. The allowance of temperate
compensatory damages, may be recovered damages when actual damages were not
when the court finds that some pecuniary adequately proven is ultimately a rule drawn
loss has been suffered but its amount from equity, the principle affording relief to
cannot, from the nature of the case, be those definitely injured who are unable to
provided with certainty. prove how definite the injury [Republic v.
Tuvera, G.R. No. 148246 (2007)].
Art. 2225. Temperate damages must be
reasonable under the circumstances. FACTORS IN DETERMINING AMOUNT
The SC awarded temperate damages where
These damages are awarded for pecuniary from the nature of the case, definite proof of
loss, in an amount that, from the nature of pecuniary loss cannot be adduced, although
the case, cannot be proved with certainty. the court is convinced that the plaintiff
REQUISITES suffered some pecuniary loss. [De Guzman v.
Tumolva, G.R. No. 188072 (2011)].
(1) Actual existence of pecuniary loss
(2) The nature and circumstances of the loss
prevents proof of the exact amount WHERE NO RECEIPTS WERE PROVIDED
(3) They are more than nominal and less Where the amount of actual damages cannot
than compensatory. be determined because no receipts were
presented to prove the same but it is shown
(4) Causal connection between the loss and that the heirs are entitled thereto, temperate
the defendant’s act or omission. damages may be awarded, fixed
(5) Amount must be reasonable. atP25,000.00. Considering that funeral
expenses were obviously incurred by the
In cases where the resulting injury might be
victim’s heirs, an award ofP25,000.00 as
continuing and possible future complications
temperate damages is proper [People v.
directly arising from the injury, while certain
Surongon (2007)].
to occur are difficult to predict, temperate
damages can and should be awarded on top
of actual or compensatory damages; in such
cases there is no incompatibility between
actual and temperate damages as they cover
two distinct phases [Ramos v. CA, supra].
Temperate damages are incompatible with
nominal damages hence, cannot be granted
concurrently [Citytrust Bank v. IAC (1994)].
Temperate damages are included within the
context of compensatory damages. [Tan v.
OMC Carriers, supra].
The SC awarded temperate damages in lieu
of actual damages for loss of earning
capacity where earning capacity is plainly
established but no evidence was presented to
support the allegation of the injured party’s
actual income [Pleno v. CA, G.R. No. 56505
(1988)].

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VI.Liquidated Damages effect, for what could be the liquidated

Art. 2226. Liquidated damages are those
agreed upon by the parties to a contract, to
be paid in case of breach thereof.
Art. 2227. Liquidated damages, whether
intended as an indemnity or a penalty, shall
be equitably reduced if they are iniquitous or
unconscionable.
Liquidated damages are those damages
agreed upon by the parties to a contract to be
paid in case of breach thereof.
It differs from a penal clause in that in the
latter case the amount agreed to be paid may
bear no relation to the probable damages
resulting from the breach. Basically, a
penalty is “ad terrorem,” while liquidated
damages are “ad reparationem.”
REQUISITES AND CHARACTERISTICS
(1) Liquidated damages must be validly
stipulated.
(2) There is no need to prove the amount of
actual damages.
(3) Breach of the principal contract must be
proved.
damages resulting from such a breach. The
obligor would then be bound to pay the
stipulated indemnity without the necessity of
proof on the existence and on the measure of
damages caused by the breach [Suatengco v.
Reyes (2008)].
General Rule: The penalty shall substitute
the indemnity for damages and the payment
of the interests in case of breach.
Exceptions
(1) When there is a stipulation to the
contrary.
(2) When the obligor is sued for refusal to
pay the agreed penalty.
(3) When the obligor is guilty of fraud.
The amount can be reduced if:
(1) it is unconscionable as determined by the
court
(2) there is partial or irregular performance.

RULES GOVERNING BREACH OF CONTRACT

Art. 2228. When the breach of the contract
committed by the defendant is not the one
contemplated by the parties in agreeing
upon the liquidated damages, the law shall
determine the measure of damages, and not
the stipulation.

Liquidated damages are those agreed upon

by the parties to a contract to be paid in case
of breach thereof. The stipulation on
attorney’s fees contained in the said
Promissory Note constitutes what is known as
a penal clause. A penalty clause, expressly
recognized by law, is an accessory
undertaking to assume greater liability on the
part of the obligor in case of breach of an
obligation. It functions to strengthen the
coercive force of obligation and to provide, in
PAGE 548 OF 574
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VII. Exemplary or
Corrective Damages
Art. 2229. Exemplary or corrective damages
are imposed, by way of example or correction
for the public good, in addition to the moral,
temperate, liquidated or compensatory
damages.
In common law, these damages were termed
“punitive.”
The grant of temperate damages paves the
way for the award of exemplary damages.
Under Article 2234 of the Civil Code, a
showing that the plaintiff is entitled to
temperate damages allows the award of
exemplary damages [Canada v All
Commodities Marketing (2008)].
Exemplary damages are imposed not to
enrich one party or impoverish another but to
serve as a deterrent against or as a negative
incentive to curb socially deleterious actions
[PNB v. CA (1996)].
WHEN RECOVERABLE
IN CRIMINAL OFFENSES; NCC ART. 2230
Art. 2230. In criminal offenses, exemplary
damages as a part of the civil liability may be
imposed when the crime was committed with
one or more aggravating circumstances.
Such damages are separate and distinct
from fines and shall be paid to the offended
party.
Award of exemplary damages is part of the
civil liability, not of the penalty.
Damages are paid to the offended party
separately from the fines.
Although an aggravating circumstance not
specifically alleged in the information, albeit
established at trial, cannot be appreciated to
increase the criminal liability of the accused,
the established presence of one or two
aggravating circumstances of any kind or
nature entitles the offended party to
exemplary damages under Article 2230 of the
PAGE 549 OF 574
DAMAGES CIVIL LAW
Civil Code because the requirement of
specificity in the information affected only the
criminal liability of the accused, not his civil
liability [People v. Dadulla (2011)].
Being corrective in nature, exemplary
damages, therefore, can be awarded, not
only in the presence of an aggravating
circumstance, but also where the
circumstances of the case show the highly
reprehensible or outrageous conduct of the
offender. As in this case, where the offender
sexually assaulted a pregnant married
woman, the offender has shown moral
corruption, perversity, and wickedness. He
has grievously wronged the institution of
marriage. The imposition then of exemplary
damages by way of example to deter others
from committing similar acts or for correction
for the public good is warranted in quasi-
delicts [People v. Alfredo (2010)].
IN QUASI-DELICTS; NCC ART. 2231
Art. 2231. In quasi-delicts, exemplary
damages may be granted if the defendant
acted with gross negligence.
While CC 2231 provides that for quasi-delicts,
exemplary damages may be granted if the
defendant acted with gross negligence, with
more reason is its imposition justified when
the act performed is deliberate, malicious
and tainted with bad faith [Globe Mackay v.
CA (1989)].
IN CONTRACTS AND QUASI-CONTRACTS;
NCC ART. 2232
Art. 2232. In contracts and quasi-contracts,
the court may award exemplary damages if
the defendant acted in a wanton, fraudulent,
reckless, oppressive, or malevolent manner.
Requisites
Art. 2233. Exemplary damages cannot be
recovered as a matter of right; the court will
decide whether or not they should be
adjudicated.
Art. 2234. While the amount of the
exemplary damages need not be proved, the
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plaintiff must show that he is entitled to awarded; hence, they are not recoverable
moral, temperate or compensatory damages as a matter of right.
before the court may consider the question of
(3) The defendant must be guilty of other
whether or not exemplary damages should
malice or else negligence above the
be awarded. In case liquidated damages
ordinary.
have been agreed upon, although no proof of
loss is necessary in order that such liquidated (4) Plaintiff is not required to prove the
damages may be recovered, nevertheless, amount of exemplary damages.
before the court may consider the question of (a) But plaintiff must show that he is
granting exemplary in addition to the entitled to moral, temperate, or
liquidated damages, the plaintiff must show compensatory damage; that is,
that he would be entitled to moral, substantial damages, not purely
temperate or compensatory damages were it nominal ones. This requirement
not for the stipulation for liquidated applies even if the contract
damages. stipulates liquidated damages.
(b) The amount of exemplary damage
Art. 2235. A stipulation whereby exemplary
need not be pleaded in the
damages are renounced in advance shall be
complaint because the same
null and void.
cannot be proved. It is merely
incidental or dependent upon what
Requisites to recover exemplary damages the court may award as
and liquidated damages agreed upon compensatory damages.
The plaintiff must show that he/she is
entitled to moral, temperate or compensatory
damages: DAMAGES IN CASE OF DEATH
RE. CRIMES AND QUASI-DELICTS

If arising When exemplary Art. 2206. The amount of damages for death
from damages are granted caused by a crime or quasi-delict shall be at
least three thousand pesos, even though
The crime was there may have been mitigating
Art. committed with an circumstances. In addition:
Crimes
2230 aggravating
(1) The defendant shall be liable for the loss
circumstance/s
of the earning capacity of the deceased,
Art. Quasi- Defendant acted with and the indemnity shall be paid to the
2231 delicts gross negligence heirs of the latter; such indemnity shall
in every case be assessed and awarded
Defendant acted in a
Contracts by the court, unless the deceased on
Art. wanton, fraudulent,
and Quasi- account of permanent physical disability
2232 reckless, oppressive, or
contracts not caused by the defendant, had no
malevolent manner
earning capacity at the time of his death;
(2) If the deceased was obliged to give
General Principles support according to the provisions of
Article 291, the recipient who is not an
(1) Exemplary damages cannot be awarded
heir called to the decedent's inheritance
alone: they must be awarded IN
by the law of testate or intestate
ADDITION to moral, temperate,
succession, may demand support from
liquidated or compensatory damages.
the person causing the death, for a
(2) The purpose of the award is to deter the period not exceeding five years, the exact
defendant (and others in a similar duration to be fixed by the court;
condition) from a repetition of the acts
(3) The spouse, legitimate and illegitimate
for which exemplary damages were
descendants and ascendants of the
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deceased may demand moral damages of the deceased and for moral damages
for mental anguish by reason of the are recoverable separately from and in
death of the deceased. addition to the fixed sum of P12,000.00
corresponding to the indemnity for the
In death caused by breach of conduct by a sole fact of death, and that these
common crime damages may, however, be respectively
increased or lessened according to the
When death occurs as a result of a crime, the mitigating or aggravating circumstances,
heirs of the deceased are entitled to the except items 1 and 4 above, for obvious
following items of damages: reasons [Heirs of Raymundo Castro v.
(1) As indemnity for the death of the victim Bustos (1969)].
of the offense — P12,000.00, without the At present, the SC allows civil indemnity of
need of any evidence or proof of Php. 50,000 in cases of homicide [De Villa v.
damages, and even though there may People (2012)] and Php. 75,000 in cases of
have been mitigating circumstances murder [People v. Camat (2012)].
attending the commission of the offense.
The omission from Article 2206 (3) of the
(2) As indemnity for loss of earning capacity brothers and sisters of the deceased
of the deceased — an amount to be fixed passenger reveals the legislative intent to
by the Court according to the exclude them from the recovery of moral
circumstances of the deceased related to damages for mental anguish by reason of the
his actual income at the time of death death of the deceased. Inclusio unius est
and his probable life expectancy, the said exclusio alterius [Sulpicio Lines v. Curso,
indemnity to be assessed and awarded supra].
by the court as a matter of duty, unless
the deceased had no earning capacity at
said time on account of permanent
disability not caused by the accused. If
the deceased was obliged to give support,
under Art. 291, Civil Code, the recipient
who is not an heir, may demand support
from the accused for not more than five
years, the exact duration to be fixed by
the court.
(3) As moral damages for mental anguish, —
an amount to be fixed by the court. This
may be recovered even by the illegitimate
descendants and ascendants of the
deceased.
(4) As exemplary damages, when the crime
is attended by one or more aggravating
circumstances, — an amount to be fixed
in the discretion of the court, the same to
be considered separate from fines.
(5) As attorney's fees and expresses of
litigation, — the actual amount thereof,
(but only when a separate civil action to
recover civil liability has been filed or
when exemplary damages are awarded).
(6) Interests in the proper cases.
(7) It must be emphasized that the
indemnities for loss of earning capacity
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UP LAW BOC
VIII. Graduation of
Damages
Rules
IN CRIMES
Art. 2204. In crimes, the damages to be
adjudicated may be respectively increased or
lessened according to the aggravating or
mitigating circumstances.
IN QUASI-DELICTS
Art. 2214. In quasi-delicts, the contributory
negligence of the plaintiff shall reduce the
damages that he may recover.
CONTRIBUTORY NEGLIGENCE
The alleged contributory negligence of the
victim, if any, does not exonerate the accused
in criminal cases committed through reckless
imprudence, since one cannot allege the
negligence of another to evade the effects of
his own negligence [Genobiagon v. CA, supra].
If so, the disobedience of the plaintiff in
placing himself in danger contributed in
some degree to the injury as a proximate,
although not as its primary cause [Rakes v.
Atlantic, G.R. No. L-1719 (1907)].
PLAINTIFF’S NEGLIGENCE
Even if Manila Electric is negligent, in order
that it may be held liable, its negligence must
be the proximate and direct cause of the
accident [Manila Electric v. Remonquillo,
supra].
Both of the parties contributed to the
proximate cause; hence, they cannot recover
from one another [Bernardo v. Legaspi, supra].
IN CONTRACTS, QUASI-CONTRACTS AND
QUASI-DELICTS
Art. 2215 In contracts, quasi-contracts, and
quasi-delicts, the court may equitably
mitigate the damages under circumstances
other than the case referred to in the
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DAMAGES CIVIL LAW
preceding article,
instances:
as in the following
(1) That the plaintiff himself has
contravened the terms of the contract;
(2) That the plaintiff has derived some
benefit as a result of the contract;
(3) In cases where exemplary damages are
to be awarded, that the defendant acted
upon the advice of counsel;
(4) That the loss would have resulted in any
event;
(5) That since the filing of the action, the
defendant has done his best to lessen
the plaintiff's loss or injury.
GROUNDS FOR MITIGATION OF DAMAGES
FOR CONTRACTS:
(1) Violation of terms of the contract by the
plaintiff himself;
(2) Obtention or enjoyment of benefit under
the contract by the plaintiff himself;
(3) Defendant acted upon advice of counsel
in cases where exemplary damages are
to be awarded such as under Articles
2230, 2231, and 2232;
(4) Defendant has done his best to lessen
the plaintiff’s injury or loss.
FOR QUASI-CONTRACTS:
(1) In cases where exemplary damages are
to be awarded such as in Art. 2232;
(2) Defendant has done his best to lessen
the plaintiff’s injury or loss.
FOR QUASI-DELICTS:
(1) That the loss would have resulted in any
event because of the negligence or
omission of another, and where such
negligence or omission is the immediate
and proximate cause of the damage or
injury;
(2) Defendant has done his best to lessen
the plaintiff’s injury or loss.
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The SC deemed CC 2215(2) inapplicable labor laws (Arts. 1418-1419, Civil

where the harm done to private respondents Code).
outweighs any benefits the plaintiffs may
have derived from being transported to
Tacloban instead of being taken to LIQUIDATED DAMAGES
Catbalogan, their destination and the vessel's
Art. 2227. Liquidated damages, whether
first port of call, pursuant to its normal
intended as an indemnity or a penalty, shall
schedule [Sweet Lines v. CA (1983)].
be equitably reduced if they are iniquitous or
unconscionable.
RULE WHEN CONTRACTING PARTIES ARE
IN PARI DELICTO
COMPROMISE
Generally, parties to a void agreement cannot
expect the aid of the law; the courts leave Art. 2031. The courts may mitigate the
them as they are, because they are deemed in damages to be paid by the losing party who
pari delicto or "in equal fault." In pari delicto has shown a sincere desire for a compromise.
is "a universal doctrine which holds that no
action arises, in equity or at law, from an
illegal contract; no suit can be maintained for
its specific performance, or to recover the
property agreed to be sold or delivered, or the
money agreed to be paid, or damages for its
violation; and where the parties are in pari
delicto, no affirmative relief of any kind will
be given to one against the other."
This rule, however, is subject to exceptions
that permit the return of that which may have
been given under a void contract to:
(a) the innocent party (Arts. 1411-1412,
Civil Code);
(b) the debtor who pays usurious interest
(Art. 1413, Civil Code);
(c) the party repudiating the void
contract before the illegal purpose is
accomplished or before damage is
caused to a third person and if public
interest is subserved by allowing
recovery (Art. 1414, Civil Code);
(d) the incapacitated party if the interest
of justice so demands (Art. 1415, Civil
Code);
(e) the party for whose protection the
prohibition by law is intended if the
agreement is not illegal per se but
merely prohibited and if public policy
would be enhanced by permitting
recovery (Art. 1416, Civil Code); and
(f) the party for whose benefit the law
has been intended such as in price
ceiling laws (Art. 1417, Civil Code) and

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IX. Miscellaneous Rules improper. Anyway, ten thousand pesos

cannot, in common sense, be deemed
“nominal”.
DAMAGES THAT CANNOT CO-EXIST
ACTUAL AND LIQUIDATED
NOMINAL WITH OTHER DAMAGES Art. 2226. Liquidated damages are those
agreed upon by the parties to a contract, to
Art. 2223. The adjudication of nominal
be paid in case of breach thereof.
damages shall preclude further contest upon
the right involved and all accessory
questions, as between the parties to the suit,
or their respective heirs and assigns. DAMAGES THAT MUST CO-EXIST

The propriety of the damages awarded has Exemplary with moral, temperate, liquidated
not been questioned, Nevertheless, it is or compensatory
patent upon the record that the award of
There is no basis for awarding exemplary
P10,000 by way of nominal damages is
damages either, because this species of
untenable as a matter of law, since nominal
damages is only allowed in addition to moral,
damages cannot co-exist with compensatory
temperate, liquidated, or compensatory
damages [Vda. De Medina v. Cresencia (1956)].
damages, none of which have been allowed
Since the court below has already awarded in this case, for reasons herein before
compensatory and exemplary damages that discussed [Francisco v. GSIS (1963)].
are in themselves a judicial recognition that
Plaintiff’s right was violated, the award of
nominal damages is unnecessary and

PAGE 554 OF 574