CHAPTER 1. INTRODUCTION
ACTUAL DAMAGES
DAMAGES is the sum of money which the law awards or
imposes as pecuniary compensation, recompense or
satisfaction for an injury done.
• Injury is the illegal invasion of a legal right;
• Damage is the loss, hurt /harm which results from the injury;
• Damages are the recompense or compensation awarded
for the damage suffered.
Kinds of Awards of Damages. [MENTAL]
(1) M Moral;
(2) E Exemplary or corrective;
(3) N Nominal;
(4) T Temperate or moderate;
(5) A Actual or compensatory;
(6) L Liquidated.
Damnum Absque Injuria. Literally means “damage without
injury”. This pertains to loss or harm that does not result from
a violation of a legal duty. In such a case, damage is borne
solely by the injured person because the law does not afford
remedy for damages resulting from an act amounting to a legal
injury. If damage results from a person’s exercising of his legal
right it is damnum absque injuria.
Rationale for Damages. The fundamental principle on which
an award of damages is based is just compensation. It is
indemnity given to an injured party so that he may be made
whole and restored as nearly as possible to his condition prior
to the injury.
Damages to property or person are either general or special.
[the siginifcance lies in the making of pleadings]
1. General Damages, naturally or necessarily result from the
wrong; it accrues to any person similarly situated. Need not
be specially pleaded and may be embraced in the general
plea ”such other relief as may be deemed just and
equitable”.
In a contract of carriage. The death of the victim
resulting to loss of earning capacity, separate from the
indemnity by reason of death is included in the prayer
for “actual damages” and for other “just and equtable
reliefs”.
2. Special Damages accrue to the particular individual by
reason of the particular circumstances of the case; the
damage has proximately resulted but not always
immediately result from the rbeach and will therefore be not
implied by law. It must be specifically prayed for.
CHAPTER 2.
ACTUAL & COMPENSATORY DAMAGES, are those
recoverable because of pecuniary loss in business, trade,
property, profession, job or occupation. Both “actual” damages
and “consequential” damages are used as equivalent of one
another.
• Spanish Civil Code refers to foreseen or might have been
foreseen or the direct and immed iate consequences of the
act or omission.
• American system, include pecuniary recompense for pain
and suffering, injured feelings, and the like.
• In the Phils, it means just compensation for the loss
suffered, akin to US Civil Law less the fact that it
compensates injured feelings and the like.
Requirements for the Grant of Actual Damages, there must
be a reasonable degree of certainty proved by the injured party
[he has the BOP], as to the actual amount of loss. Courts
cannot simply assume that damages were sustained by the
injured party, nor can it rely on speculation or guesswork in
determining the fact and amount of damages. A party is entitled
to adequate compensation only for duly proved pecuniary loss
actually suffered by him or her.
• Quantum of proof is preponderance of evidence which
means that the evidence, as a whole, adduced by one side
is superior to that of the other. The court cannot rely on
uncorroborated testimony whose truth is suspect, but must
depend upon competent proof that damages have been
actually suffered.
• Actual damages is not proved by mere testimony of
witness. In a case, only the testimony of the victim’s elder
sister. No proof of the actual damages was presented. SC
held that the Court can only give credence to those
supported by receipts and which appear to have been
genuinely expended in connection with the death of the
victim. Since the actual amount was not substantiated, the
same cannot be granted.
• A list of expenses cannot replace receipts when the latter
should have been issued as a matter of course in business
transactions.
Components of Actual Damages. The indemnification shall
comprehend not only the value of the loss suffered, but also that
of the profits that the obligee failed to obtain.
2 Kinds of Actual Damages:
a. loss of what a person already possesses,
b. the failure to receive as a benefit that which would have
pertained to him. Unrealized profits [Also called
ganacias frustradas or lucrum cessans] are not to be
granted on the basis of mere speculation but rather by
reference to some reasonably definite standard such
as market value, established experience, or direct
inference from known circumstances.
Actual Damages in Crimes. In crimes and quasi-delicts, the
defendants shall be liable for all damages which are the natural
and probable consequences of the act or omission complained
of, whether or not such damages have been foreseen or could
have reasonably been foreseen by the defendant.
Eggshell skull rule or thin-skull rule makes an individual
responsible for all the consequences of his act, whether
foreseen or unforeseen. The term implies that if a person had a
skull as delicate as the shell of an egg, and a tortfeasor who did
not know of that condition were to tap that person on the head,
causing the skull to break, the responsible party would be held
liable for all damages resulting from the wrongful contact, even
though they were not foreseeable. The defendant must “take
their victim as they find them”.
Restitution, Reparation and Indemnification, all correspond
to actual damages in the Civil Code. But courts can only give
credence to those supported by receipt and which appear to
have been genuinely incurred in connection with the death,
wake or burial of the victim. No credence on the ff. expenses
• expenses before the date of the slaying;
• after a considerable lapse of time from the burial of the victim and
which do not have any relation to the death, wake or burial;
• for purely aesthetic or social purposes;
• those which appear to have been modified to show an increase
in the amount of expenditure;
• those which could not be reasonably itemized or determined to
have been incurred in connection with the death, wake or burial
of the victim;
• being merely incidental; and
• not in fact shouldered by the immediate heirs of the victim, such
as plane tickets by relatives.
In the crime of Rape. The civil indemnity arising from the crime
as determined by judicial policy aside from proven actual
damages comprise the actual damages in civil law. Said civil
indemnity is mandatory upon finding of the fact of rape; it is
distinct from and should not be denominated as moral damages
which are based on different jural foundations. In cases of rape
with ho- micide, the civil indemnity is fixed at P100,000.00.
Damages may be recovered for loss or impairment of
earning capacity in cases of temporary or permanent
personal injury. Only net earnings, not gross earnings, i.e., the
total of the earnings less expenses necessary in the creation of
such earnings and minus living and other incidental expenses.
Variables taken into account in determining the compensable
amount of lost earnings are:
(1) number of years for which the victim would otherwise have
lived called life expectancy;
(2) the rate of loss sustained by the heirs of the deceased.
NB. In computing the loss of the earning capacity of the victim,
several factors are considered besides the mathematical
computation of annual income x life expectancy. Allowances are
made for circumstances which could reduce the computed life
expectancy of the victim [nature of work, his lifestyle, prior
health].
Net Earning Capacity.
[2/3 x (80 - age at time of death) x (gross annual income —
reasonable and necessary living expenses)]”. In the absence of
proof of living expenses of the deceased, net earnings are
computed at 50% of the gross earnings.
A handwritten certification in a yellow pad indicating therein that
the victim was paid P146.75 per day hardly suffices as proof to
justify an award as it is, at best, self-serving. It was held that
indemnification for loss of earning capacity partakes of the
nature of actual damages which must be duly proven. For lost
income to be recovered, there must be an unbiased proof of the
deceased’s average, not just gross income.
By way of an exception, testimonial evidence is
sufficient in the following instances: either:
(1) self-employed, earning less than the minimum
wage, and judicial notice may be taken of the fact
that in the victim’s line of work, no documentary
evidence is available; or
(2) employed as a daily-wage worker earning less
than the minimum wage.
If income is not sufficiently prove, temperate damages
may be awarded.
Civil Indemnity for death is P50K without need of proof other
than the commission of the crime. In one case, the court held
that the awards for actual damages P50K representing funeral
expenses, although stipulated by the parties, and P50K as
moral damages, which the parties left to the discretion of the trial
court, are improper for although death had taken place, the
offense charged is illegal possession of firearm and the killing
merely aggravated it. No private interest is therefore involved.
The civil liabil ity arising from death may be the subject of a
separate civil action or impliedly instituted with the criminal
action for murder or homicide. The award is givent to ALL
compulsory heirs.
Actual Damages in Contract and Q-Contracts. The damages
which may be awarded are dependent on whether the obligor
acted with good faith or otherwise.
• GF. Damages recoverable are those which are the natural
and probable consequences of the breach of the obligation
and which the parties have foreseen or could have
reasonably foreseen at the time of the constitution of the
obligation. [only natural and probable consequence]
• If the obligor acted with fraud, BF, malice, or wanton
attitude, he shall be responsible for all damages which may
be reasonably attributed to the non-performance of the
obligation. [ all reasonably attributable damages]
NCC 2206 only deaths caused by a delicts or quasi delict are
entitled to actual damages without the need of proof; this
provision also applies to death of a passenger caused by the
breach of contract by a common carrier
Actual Damages in Q.Delicts. Actual damages include all the
natural and probable consequences of the act or omission
complained of.
Interest.
a. for the payment of a sum of money, i.e., a loan or
forbearance of money, the interest due should be that
which may have been stipulated in writing. Furthermore, the
interest due shall itself earn legal interest from the time it is
judicially demanded. In the absence of stipulation, the rate
of interest shall be 12% per annum to be computed from
default, i.e., from judicial or extrajudicial demand.
b. if not constituting a loan or forbearance of money, an
interest on the amount of damages awarded may be
imposed at the discretion of the court at the rate of 6% per
annum. No interest, however, shall be adjudged on
unliquidated claims or damages except when or until the
demand can be established with reasonable certainty.
Accordingly, where the demand is established with
reasonable certainty, the interest shall begin to run from the
time the claim is made judicially or extrajudicially but when
such certainty cannot be so reasonably established at the
time the demand is made, 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). The actual base for
the computation of legal interest shall, in any case, be on
the amount finally adjudged.
c. Awarding a sum of money becomes final and executory, the
rate of legal interest, shall be 12% per annum from such
finality until its satisfaction.
NB. Interest due shall earn legal interest from the time it is
judicially demanded, although the obligation may be silent upon
this point
Subrogatory Rights of the Insurer.
NCC2207. If the plaintiff’s property has been insured, and he
has received indemnity from the insurance company for the
injury or loss arising out of the wrong or breach of contract
complained of, the insurance company shall be subrogated to
the rights of the insured against the wrongdoer or the person
who has violated the contract. If the amount paid by the
insurance company does not fully cover the injury or loss, the
aggrieved party shall be entitled to recover the deficiency from
the person causing the loss or injury.
Attorney’s Fees.
NCC2208. In the absence of stipulation, attorney’s fees and
expenses of litigation, other than judicial costs, cannot be
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 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) separate civil action to recover civil liability arising from 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 should be recovered
Attorney’s fees are also in the nature of actual damages,
which must be duly proved. Standards in the grant:
(1) they must be reasonable, that is to say, they must have a
bearing on the importance of the subject matter in controversy;
(2) the extent of the services rendered; and
(3) the professional standing of the lawyer.
In all cases, they must be addressed in a full-blown trial and not
on the bare word of the parties. And always, they are subject to
the moderating hand of the courts.
Attorney’s fees as an item of damages is an award made in favor
of the litigant, not of his counsel; the litigant, not his counsel, is
the judgment creditor who may enforce the judgment for
attorney’s fees by execution.
The reason for the award of attorney’s fees must be stated in
the text of the court’s decision, otherwise, if it is stated only in
the dispositive portion of the decision, the same shall be
disallowed on appeal. The settled rule is that the matter of
attorney’s fees cannot be mentioned only in the dispositive
portion of the decision. The same goes for the award of
litigation expenses. They must be clearly explained and justified
by the trial court in the body of its decision.
Attorney’s Fees in Labor Cases. In cases of unlawful
witholding of wages, the culpable party may be assessed
attorney’s fees equivalent to 10% of the amount of wages
recovered.
CHAPTER 3. MORAL DAMAGES.
NCC2177. 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.
NCC2218. Sentimental value of property may be considered.
NCC2219. 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; note that QD give rise
to moral damages ONLY if physical injury results therefrom
3. Seduction, abduction, rape, or other lascivious acts; [parents
may also recover moral damages]
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; [disrespect to the dead, or
wrongfully interferes with a funeral] -The spouse,
descendants, ascendants, and brothers and sisters may bring
the action mentionedin the order named.
10. Acts under articles 21, 26, 27, 28, 29, 30, 32, 34, and 35.
NCC2220. Willful injury to property if the court should find that such
moral damages are justly due. Also in breaches of contract where
the defendant acted fraudulently or in bad faith.
I. NATURE & CONCEPT.
These damages are form of grants, not punitive/corrective in
nature. Its award is aimed at restoration, as much as possible,
of the spiritual status quo ante. Although incapable of
pecuniary estimation, the amount must somehow be
proportional to the suffering inflicted. There is no hard-and-fast
rule in determining a fair and reasonable amount since it
depends on peculiar facts. Trial courts are given discretion in
determining the amount, provided it is not palpably and
scandalously excessive.
II. REQ FOR THE GRANT OF MORAL DAMAGES
To be granted, the claimant must be able to:
1. wrongful act/ omission being the proximate cause of the
moral damage; and
2. pleading and proof of moral suffering, mental anguis or
the like caused by those under NCC2219&2220.
XPNs on the Need for Pleading and Proof.
a. Rape. here the victim is entitled to both CIVIL &
MORAL DAMAGES. The civil indemnity is mandatory
upon the fact of rape, separate and distinct from moral
damages of 75K is from a different jural foundation.
b. Murder/Homicide. No other proof is required to grant
moral damages to the heirs other than the fact of death.
Actual v Moral damages. While actual damages cannot be
awarded without proof of actual loss, moral damages may be
awarded even without proof of pecuniary loss, inasmuch as the
determination of the amount is discretionary on the court.
Though incapable of pecuniary estimation, moral damages are
in the nature of an award to compensate the claimant for actual
injury suffered but which for some reason can not be proven.
May the Plaintiff fix an amount if moral damages in his
pleadings? YES, for purposes of determining the amount of
docket and other fees.
III. MORAL DAMAGES IN DEFAMATION. Defamation includes
libel and slander, injuring the character, fame or repute of a
person through malicious and false statements.
LIBEL ELEMENTS:
1. Defamatory;
2. Publicly made;
3. Malicious;
4. Victim is identifiable
SLANDER ELEMENTS.
Same with libel, only that is is made orally.
Insulting Words are not actionable as libel or slander per se,
and mere words of general abuse however ill-natured whether
written or spoken, do not constitute a basis for an action for
defamation in the absence of an allegation for special damages.
The fact that the language is offensive to the plaintiff does not
make it actionable by itself.
Truth is not a defense in defamation, unless shown that the
matter charged as libelous was made w/ good motives and for
justifiable ends. In RPC354, every defamatory imputation is
presumed to be malicious, even if it be true, if no good
intention and justifiable motive for making it is shown. There is
malice when the author is prompted by personal ill-will or spite
and speaks not in response to duty but merely to injure the
reputation of the person who claims to have been defamed.
When Malice is Not presumed? [RPC 354]
The GR. Every defamatory imputation is Malicious. But in the ff
cases, Malice is NOT presumed.
1. prvt communication made in the performance of a legal,
moral or social duty;
2. fair and true report, made in good faith, without any
comments or remarks, of any judicial, legislative or other
official proceedings which are not of confidential nature, or
of any statement, report or speech delivered in said
proceedings, or of any other act performed by public
officers in the exercise of their functions.
Types of Privileged Matters.
1. Abosolute, not actionable regardless of the existence of
BF; examples:
a. are speeches delivered in senate/ debates
b. Allegations in a lawyer’s pleadings are absolutely
privileged as long as they are relevant to the
issues; the test is not BF but rather relevance.
2. Qualified, where the liability depends on the existence of
BF/ malice. Examples are (a) RPC 354; and fair
commentaries on matters of public interest under the
doctrine of fair comment.
IV. DOCTRINE OF FAIR COMMENT, means that “while in
general every discreditable imputation publicly made is deemed
false, because every man is presumed innocent until his guilt is
judicially proved, and every false imputation is deemed
malicious, nevertheless, when the discreditable imputation is
directed against a public person in his public capacity, it is not
necessarily actionable. In order that such discreditable
imputation to a public official may be actionable, it must either
be a false allegation of fact or a comment based on a false
supposition. If the comment is an expression of opinion, based
on established facts, then it is immaterial that the opinion
happens to be mistaken, as long as it might reasonably be
inferred from the facts.”
Sullivan case. As commissioner having charge over
police actions, Sullivan felt that he was sufficiently
identified in the ad as the perpetrator of the outrage;
consequently, he sued New York Times on the basis of
what he believed were libelous. HELD. Honest criticisms
on the conduct of public officials and public figures are
insulated from libel judgments. The guarantees of
freedom of speech and press prohibit a public official from
recovering damages for a defamatory falsehood relating
to his official conduct unless he proves that the statement
was made with actual malice, i.e., with knowledge that it
was false or with reckless disregard of whether it was
false or not. The rationale is that, to rule otherwise would
lead to self-censorship.
Who is a PUBLIC FIGURE. A person who, by his
fame, accomplishment, mode of living, or by adopting
a profession which gives the public a legitimate interest
in his doings; those who have achieved some degree
of reputation by appearing before the public, like
actors, a professional baseball player, or any other
entertainer. He is anyone who has arrived at a
position where the public attention is focused
upon him as a person.
What is PUBLICATION in libel. Means the making
known of the defamatory matter, after it has been
written, to some person other than the person of whom
it is written. If the statement is sent straight to a person
of whom it is written there is no publication of it.
V. GROUP LIBEL.
Defamation of a large group does not give rise to a COA to an
individual unless it can be shown that he is the target of the
defamatory matter [no element of being identifiable]. Absent
circumstances specifically pointing to a particular member of a
class, no member of such class has a right of action. This
principle is said to embrace (2) important public policies:
1. where the group referred to is large, the courts presume
that no reasonable reader would take the statements as so
literally applying to each individual member; and
2. the limitation on liability would satisfactorily safeguard
freedom of speech and expression, as well as of the press.
VI. MALICIOUS PROSECUTION.
Defined. “An action for damages brought by one against whom
a criminal prosecution, civil suit, or other legal proceeding has
been instituted maliciously and without probable cause, after the
termination of such prosecution, suit, or other proceeding in
favor of the defendant therein. The gist of the action is the
putting of legal process in force, regularly, for the mere purpose
of vexation or injury’’
The Rule is “when the action is filed in GF there should be no
penalty on the right to litigate. To support an action for malicious
prosecution, the PF must prove: ELEMENTS
1. the fact of prosecution;
2. that the defendant was himself the prosecutor or that he
instigated its commencement;
3. that it finally terminated in his acquittal;
4. that in bringing it, the prosecutor acted without probable
cause, and
5. that the prosecutor was actuated by legal malice, that is,
by improper and sinister motives
Who is the defendant in Malicious Prosecution? He is the
prosecutor in a suit which was found to be malicious and without
probable cause.
NB.
Malice and Want of probable cause must both exist in order
to justify the action for malicious prosecution;
The fact of termination of the criminal prosecution, civil suit
or legal proceeding maliciously filed and without probable
cause, should precede the complaint for malicious
prosecution.
Probable Cause are such facts and circumstances as
would excite the belief, in a reasonable mind, acting on the
facts within the knowledge of the prosecutor, that the
person charged was guilty of the crime (or in this case, the
wrongdoing) for which he was prosecuted.
The foundation of an action for malicious prosecution is an
original proceeding, judicial in character. A disbarment
proceeding being judicial in character may therefore be the
basis for a subsequent action for malicious prosecution
Being mere witness does not make one liable for malicious
prosecution.
The adverse result of an action does not per se make the
action wrongful and subject the action to damages; If
damages result from a person’s exercise of a right, it is
damnum absque injuria.
Advice of counsel is a complete defense for malicious
prosecution in reliance in good faith on such advice, given
after a full and fair statement of all the facts to the attorney.
This is true whether the advice was sought in respect of a
civil action or a criminal prosecution.
VII. NCC 19,20,21.
Malice or bad faith defined. implies a conscious and
intentional design to do a wrongful act for a dishonest purpose
or moral obliquity; it is different from the negative idea of
negligence in that malice or bad faith contemplates a state of
mind affirmatively operating with furtive design or ill will.
NCC19. Every person must, in the exercise of his rights and in
the performance of his duties, act with justice, give everyone his
due, and observe honesty and good faith. [A-G-O]
Elements of ABUSE OF RIGHT.
(1) the existence of a legal right or duty,
(2) which is exercised in bad faith, and
(3) for the sole intent of prejudicing or injuring another.
NCC20 Every person who, contrary to law, wilfully or negligently
causes damage to another, shall indemnify the latter for the
same [speaks of the general sanction for all other provisions of
law which do not especially provide for their own sanction.]
NCC21 Any person who wilfully causes loss or injury to another
in a manner that is contrary to morals, good customs or public
policy shall compensate the latter for the damage; slapping a
person on the face is contrary to morals and good customs
Elements:
(1) there is an act which is legal,
(2) but which is contrary to morals, good custom, public order,
or public policy, and
(3) and it is done with intent to injure.
Is there Moral Damages for BIGAMY? Yes, under NCC2219
in relation to NCC19,20,21.
Is Breach of Promise To Marry is actionable? Yes. Where a
man’s promise to marry is in fact the proximate cause of the
acceptance of his love by a woman and thereafter becomes the
proximate cause of the giving of herself unto him in a sexual
congress, and that he had, in reality, no intention of marrying
her, the act could justify the award of damages pursuant to
Article 21 not because of such promise to marry but because of
the fraud and deceit behind it and the willful injury to her honor
and reputation which followed thereafter.
IX. CULPA CONTRACTUAL CASES
The GR is NO Moral Damages, except when with BF. In breach
of contract, moral damages may be recovered when the
defendant acted in bad faith or was guilty of gross negligence or
in wanton disregard of contractual obligations and, as in this
case, when the act of breach of contract itself constitutes the tort
that results in physical injuries.
A. In contract of carriage.
GR, one may be given moral damages ONLY if it results to
death of the passenger. However, there are situations where the
negligence of the carrier is so gross and reckless as to virtually
amount to bad faith, in which case, the passenger likewise
becomes entitled to recover moral damages.
In an airline service for example. inattention and lack of care on
the part of the carrier resulting in the failure of the passenger to
be accommodated in the class contracted for amounts to bad
faith or fraud which entitles the passenger to the award of moral
damages. All cases were awarded Moral Damages.
Case laws, awarded with Moral Damages.
(1) Lopez Case; despite sufficient time (1month) to inform the
passengers of what had happened to their booking, the
airline agent intentionally withheld that info from them.
(2) In Zulueta Case; the passenger was deliberately off-loaded
after being gravely insulted during an altercation.
(3) Ortigas Case. the passenger was intentionally
downgraded in favor of a European.
(4) China Airlines Case. Here, a passenger repeatedly
secured confirmations of his PR 311 flight. The status of
this flight was marked “OK” on a validating sticker placed
on his ticket. Since the status of the passenger on Flight PR
311 was “OK,” as a matter of right testified to by PAL’s
witness, he should have been automatically transferred to
and allowed to board Flight 307 the following day. Clearly
resulting from negligence on the part of PAL was its claim
that his name was not included in its list of passengers.
PAL’s negligence was so gross and reckless that it
amounted to bad faith.
B. Credit Card. Where the suspension is brought about by the
non-payment of one’s outstanding account, the dishonor is held
to be without malice and is not in abuse of right.
C. Failure to Video Tape the Wedding. The failure to record
on videotape the wedding celebration constitutes malicious
breach of contract as well as gross negligence.
In breach of contract, the damages recoverable maybe
1. Indemnity for Death. Art. 1764 of the Civil Code, in relation
to Art. 2206 thereof, provides for the payment of indemnity
for the death of passengers caused by the breach of
contract of carriage by a common carrier. It is presently
fixed at P50,000.00;
2. Actual Damages. Art. 2199 provides that “except as pro-
vided 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.”;
3. Moral Damages. Under Art. 2206, the “spouse, legitimate
and illegitimate descendants and ascendants of the
deceased may demand moral damages for mental anguish
by reason of the death of the deceased.”;
4. Exemplary Damages. Art. 2232 provides that “in contracts
and quasi- contracts, the court may award exemplary
damages if the defendant acted in a wanton, fraudulent,
reckless, oppressive, or malevolent manner.”;
5. Attorney’s Fees. Pursuant to Art. 2208, attorney’s fees
may be recovered when, as in the instant case, exemplary
damages are awarded;
6. Compensation for Loss of Earning Capacity. Art. 1764
of the Civil Code, in relation to Art. 2206 thereof, provides
that in addition to the indemnity for death arising from the
breach of contract of carriage by a common carrier, the
“defendant shall be liable for the loss of the earning capacity
of the deceased, and the indemnity shall be paid to the heirs
of the latter.”
X. OTHER ANALOGOUS CASES, following the ejusdem
generis rule, must be held similar to those expressly
enumerated by the law.
Case laws.
(1) The writ of attachment based on a false affidavit was
improperly or irregularly issued. An action to recover
damages from the attachment plaintiff, for the wrongful
issuance and levy of attachment is identical with or
analogous to the ordinary action for malicious prosecution.
(2) Moral damages is also recoverable in illegal termination
cases; Moral damages are recoverable only where the
dismissal of the employee was attended by bad faith or
fraud, or constituted an act oppressive to labor, or was done
in a manner contrary to morals, good customs or public
policy.
(3) kidnapping and failure to return a minor under RPC is
analogous to illegal and arbitrary detention or arrest.
(4) Loss of a boyfriend as a result of physical injuries suffered
after an accident is not one of them. Neither can it be
categorized as an analogous case.
(5) Breach of promise to marry per se is not actionable. The
exception is where the plaintiff has actually incurred
expenses for the wedding and the necessary incidents
thereof.
(6) Moral damages are not to be awarded in actions for nullity
of marriage on ground of psychological incapacity. it is
contradictory to characterize acts as a product of
psychological incapacity, and hence beyond the control of
the party because of an innate inability, while at the same
time considering the same set of acts as willful.
XI. MORAL DAMAGES IN FAVOR OF CORPORATIONS
GR. A juridical person is not entitled to moral damages because,
unlike a natural person, it cannot experience physical suffering
or such sentiments as wounded feelings, serious anxiety,
mental anguish or moral shock.
XPN. Under NO.7 of NCC2219, where the claim is founded on
libel, slabder or other forms of defamation ® there is no
qualification on WON it applies to natural.juridical persons.
CHAPTER 4. NOMINAL DAMAGES
NCC2221.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.
NCC2222. The court may award nominal damages in every
obligation arising from any source of obligation or in every case
where any property right has been invaded.
NCC2223. 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.
Nominal damages are damages in name only and not in fact.
Where these are allowed, they are not treated as an equivalent
of a wrong inflicted but simply in recognition of the existence of
a technical injury. It is not intended for indemnification of loss
suffered but for the vindication or recognition of a right violated.
In the absence of competent proof on the actual damage
suffered, private respondent is entitled to nominal damages.The
amount of P50,000.00 was considered just and reasonable
under the circumstances.
Where no right of petitioner was violated or invaded, nominal
damages cannot be awarded.
Nominal damages cannot co-exist with compensatory
damages.This is because the two stand on totally different jural
foundations. Nominal damages are awarded not to indemnify
one for his loss but to recognize a right that has been violated,
whereas compensatory damages are awarded for the precise
purpose of reparation and indemnification.
Nominal Damages in Illegal termination Cases. Where the
dismissal is for a just cause, the lack of statutory due process
should not nullify the dismissal, or render it illegal, or ineffectual.
However, the employer should indemnify the employee for the
violation of his rights.
a. if the dismissal is based on a just cause but the employer
failed to comply with the notice requirement, the sanction to
be imposed upon him should be tempered because the
dismissal process was, in effect, initiated by an act
imputable to the employee. In these instances, nominal
damages is invariably fixed at P30,000.00;
b. if the dismissal is based on an authorized cause but the
employer failed to comply with the notice requirement, the
sanction should be stiffer because the dismissal process
was initiated by the employer’s exercise of his management
prerogative. The nominal damages is at P50,000.00.
Nominal Damages in Banks. The bank should not have
allowed complete strangers to take possession of the owner’s
duplicate certificate even if the purpose is merely for
photocopying for a danger of losing the same is more than
imminent.
CHAPTER 5. TEMPERATE DAMAGES
NCC 2224. Temperate or moderate damages, which are more
than nominal but less than compensatory damages, may be
recovered when the court finds that some pecuniary loss has
been suffered but its amount can not, from the nature of the
case, be proved with certainty.
NCC 2225. Temperate damages must be reasonable under the
circumstances.
There are cases where from the nature of the case, definite
proof of pecuniary loss cannot be offered, although the
court is convinced that there has been such loss. For
instance, injury to the goodwill of a business is often hard to
show with certainty in terms of money. The judge should be
empowered to calculate moderate damages in such cases,
rather than that the plaintiff should suffer, without redress from
the defendant’s wrongful act.
Damages cannot be both actual and temperate. Temperate
damages are allowed because, while some pecuniary loss has
been suffered, from the nature of the case its amount cannot be
proved with certainty. In cases where the amount of pecuniary
losses could, by their very nature, be established with certainty,
it is error to award temperate damages. Hence, the GR is that
temperate and actual are mutually exclusive.
Exception. Temperate damages should be awarded
on top of actual damages in instances where the injury
is chronic and continuing. The reason is that these
damages cover two distinct phases. This occurs in
cases where the resulting injury might be continuing
and possible future complications directly arising from
the injury, while certain to occur, are difficult to predict.
Case Laws.
• Temperate damages may be awarded if there is no
evidence of burial and funeral expenses. This is in lieu of
actual damages as it would be unfair for the victim’s heirs
to get nothing, despite the death of their kin.
• If the court finds that there is no pecuniary loss, themperate
damages may not be awarded; he may be awarded
nominal damages in lieu.
• It is wrong to award, along with nominal damages,
temperate or moderate damages. The two awards are
incompatible and cannot be granted concurrently.
CHAPTER 6. LIQUIDATED DAMGES
NCC 2226. Liquidated damages are those agreed upon by the
parties to a contract, to be paid in case of breach thereof.
NCC 2227. Liquidated damages, whether intended as an
indemnity or a penalty, shall be equitably reduced if they are
iniquitous or unconscionable.
NCC 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.
Defined. Liquidated damages are those that the parties agree
to be paid in case of a breach. As worded, the amount agreed
upon answers for damages suffered by the owner due to delays
in the completion of the project.
Nature. Under Philippine laws, these damages take the nature
of penalties. A penal clause is an accessory undertaking to
assume greater liability in case of a breach. The stipulation for
liquidated damages is intended to obviate controversy on the
amount of damages.
No Proof of Loss Required. In case liquidated damages have
been agreed upon, no proof of loss is necessary in order that
such liquidated damages may be recovered. Attorney’s fees are
in the form of actual damages. But when stipulated, no proof of
loss is required.
Reduction of Penalty. The judge shall equitably reduce the
penalty when the principal obligation has been partly or
irregularly complied with by the debtor. Even if there has been
no performance, the penalty may also be reduced by the courts
if it is iniquitous or unconscionable.
Effect of Nullity of Principal Obligation. Liquidated damages
are identical to penalty insofar as legal results are concerned.
Intended to ensure the performance of the principal obligation,
such damages are accessory and subsidiary obligations. The
nullity of the principal obligation carried with it the nullity of the
accessory obligation of liquidated damages
CHAPTER 7. EXEMPLARY DAMAGES
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.
2230. In Delicts. Exemplary damages may be imposed when
the crime was committed with 1/more aggravating
circumstances. Such damages are separate and distinct from
fines and shall be paid to the offended party.
2231. In Quasi-Delict. Exemplary damages may be granted if
the defendant acted with gross negligence.
2232. In Contracts and Q. Contracts. The court may award
exemplary damages if the defendant acted in a wanton,
fraudulent, reckless, oppressive, or malevolent manner.
2233. Exemplary damages cannot be recovered as a matter of
right; the court will decide WON they should be adjudicated.
2234. While the amount of the exemplary damages need not be
proved, the plaintiff must show that he is entitled to moral,
temperate or compensatory damages before the court may
consider the question of whether or not exemplary damages
should be awarded. In case liquidated damages have been
agreed upon, although no proof of loss is necessary in order that
such liquidated damages may be recovered, nevertheless,
before the court may consider the question of granting
exemplary in addition to the liquidated damages, the plaintiff
must show that he would be entitled to moral, temperate or
compensatory damages were it not for the stipulation for
liquidated damages.
2235. A stipulation whereby exemplary damages are renounced
in advance shall be null and void.
Defined. 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.
Requisites:
(1) They may be imposed by way of example or correction only
in addition to compensatory damages and cannot be
recovered as a matter of right, their determination
depending upon the amount of compensatory damages
that may be awarded to the claimant.
(2) The claimant must first establish his right to moral,
temperate, liquidated or compensatory damages. [absence
of actual damages, nominal, temperature, or com-
pensatory blocks the grant of exemplary damages]
(3) The wrongful act must be accompanied by bad faith, and
the award would be allowed only if the guilty party acted in
a wanton, fraudulent, reckless, oppressive or malevolent
manner.
As disitinguished from Moral Damages. Moral damages have
to do with injury personal to the awardee, such as physical
suffering and the like, exemplary damages are imposed by way
of example or correction for the public good.
Case laws.
(1) The arrogant treatment of airline personnel manifests
malice as manifested in the disregard of the passenger’s
protest and the abrupt rejection of their request that the
Manila office be contacted for verification of the correct
billing. Award of exemplary damages warranted.
(2) Exemplary damages are also awarded in maritime
disasters. In requiring compliance with extraordinary
diligence from common carriers and in creating a
presumption of negligence against them, the law seeks to
compel them to control their employees, and to force them
to take adequate care of human beings and their property.
(3) Exemplary damages are recoverable in cases of illegal
termination. Exemplary damages may be awarded if the
dismissal was effected in a wanton, oppressive or
malevolent manner. In such instance, the claim is
cognizable by the Labor Arbiter. “This is because an
illegally dismissed employee has only a single cause of
action although the act of dismissal may be a violation not
only of the Labor Code but also of the Civil Code. For a
single cause of action, the dismissed employee cannot
institute a separate action before the La- bor Arbiter for
backwages and reinstatement and another action before
the regular court for the recovery of moral and other
damages because splitting a single cause of action is
prohibited.
(4) SC affirmed the award of exemplary damages in order to
serve warning to cities concerned to be more conscious of
their duty, especially when they are engaged in
construction work or when there are manholes on their
sidewalks which are uncovered, to immediately cover the
same, in order to minimize or prevent accidents.
(5) In Crimes. Exemplary Damages is awarded when
commiteed with 1/more aggravating.
a. Exemplary damages awarded in case of sexual
violence inflicted upon the eight-year old child.
b. Raping a married woman after forcibly abducting her,
in the presence of her husband.
c. Raping a lifeless woman;
d. Raping a Pregnant Woman;
e. Fathers sexually abusing their children;
f. Uncle raping a niece.
NB. If the relationship is not alleged in the Informations, it cannot
be used to aggravate or qualify the rapes. However, even if not
so alleged, an aggravating circumstance, when proven to have
attended the commission of the crime, entitles the complainant
to exemplary damages; jurisprudence sets exemplary damages
in these at P25,000.00.
(7) In a case where home-made firearms were used to
perpetrate the killing, exemplary damages in the amount of
P20,000.00 was awarded in order to impress on the public
the state’s abhorrence to the proliferation of firearms.
(8) The initial carelessness of the rural bank in consolidating
the ownership of the entire property instead of only one-half
thereof in its name, its sale of the entire property and the
lack of promptness to rectify the mistake after its discovery,
constitute gross negligence and bad faith, for which it
should be held liable for exemplary damages. The grant of
exemplary damages is justified where bank is guilty of
carelessness.
CHAPTER 8. ASSESSMENT OF DAMAGES
There is no hard and fast rule for determining what would be
a fair amount of moral or exemplary damages, each case having
to be governed by its attendant particulars. Generally, the
amount of moral damages should be commensurate with the ac-
tual loss or injury.
§ In crimes. The term “aggravating circumstances” used
by the Civil Code, the law not having specified
otherwise, is to be understood in its broad or generic
sense. In fine, relative to the civil aspect of the case,
an aggravating circumstance, whether ordinary or
qualify- ing, should entitle the offended party to an
award of exemplary damages.
§ In Q. Delicts, the contributory negligence of the
plaintiff shall reduce the damages that he may
recovered.
Good faith not a defense in action for damages founded on
violation of constitutional rights. Article 32 speaks of an
officer or employee or person “directly” or “indirectly”
responsible for the violation of the constitutional rights and
liberties of another. Thus, it is not the actor alone who must
answer for damages under Article 32; the person indirectly
responsible has also to answer for the damages or injury caused
to the aggrieved party. Only judges are excluded from liability
under the said article, provided their acts or omissions do not
constitute a violation of the Penal Code or other penal statute.
Suspension of the Privilege of the Writ of Habeas Corpus is
no defense in an action for damages based on violation of
constitutional rights. The suspension does not render valid an
otherwise illegal arrest or detention. What is suspended is
merely the right of the individual to seek release from detention
through the writ of habeas corpus as a speedy means of
obtaining his liberty.

§ NCC 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:
a. That the plaintiff himself has contravened the
terms of the contract;
b. That the plaintiff has derived some benefit as a
result of the contract;
c. In cases where exemplary damages are to be
awarded, that the defendant acted upon the
advice of counsel;
d. That the loss would have resulted in any event;
e. That since the filing of the action, the defendant
has done his best to lessen the plaintiff’s loss or
injury.

Doctrine of Avoidable Consequences.

NCC 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.

Under the doctrine of avoidable consequences, a party cannot

recover damages flowing from the consequences which that
party could reasonably have avoided Corollary to this principle,
the person who reasonably attempts to minimize his damages
can recover expenses incurred. Thus, in the United States, a
person tortiously injured can recover the cost of medical
services incurred in seeking correction of the injury.

As distinguished from Contributory Negligence. Although in

this jurisdiction, both operate to prevent full recovery,
contributory negligence occurs either before or at the time of the
wrongful act or omission of the defendant. On the other hand,
the doctrine of avoidable consequences arise after the wrongful
act of the defendant.

Judgment on the Pleadings Improper.

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.
§ Actual damages must be proved and a court cannot rely on
speculation.
§ Although an allegation is not necessary in order that moral
damages may be awarded, it is essential that the claimant
satisfactorily prove the existence of the factual basis of the
damage and its causal relation to defendant’s acts.