V. COMPROMISE The following cannot be compromised (Art.
2035):
COMPROMISE – a contract by which the parties, by
making reciprocal concessions, avoid litigation or put an
end to one already commenced. (Art. 2028)
Note: it is a consensual contract, perfected upon the meeting
of the minds. However, neither courts nor quasi-judicial
bodies cannot impose a compromise different from the
agreement between the parties as such.
Requirements under Compromise: (CARE)
1. There must be a Contract;
2. With Reciprocal Concessions;
3. Seeking to Avoid or End litigation.
Two Kinds of Compromise Agreements:
1. Judicial – which puts an end to a pending
litigation; and
2. Extrajudicial – which is to avoid litigation.
Under Article 2029: the court shall endeavor to persuade
the litigants in a civil case to agree upon some fair
compromise.
Note: There may be a compromise upon the civil liability
arising from an offense; but such compromise shall not
extinguish the public action for the imposition of the legal
penalty. (Art. 2034)
When will civil action or proceeding be suspended:
1. If willingness to discuss a possible compromise is
expressed by one or both parties; or
2. If it appears that one of the parties, before the
commencement of the action or proceeding,
offered to discuss a possible compromise but the
other party refused the offer.
The duration and terms of the suspension of the civil
action or proceeding and similar matters shall be governed
by such provisions of the rules of court as the Supreme
Court shall promulgate. Said rules of court shall likewise
provide for the appointment and duties of amicable
compounders. (Art. 2030)
Note: the courts may mitigate the damages to pe paid by the
losing party who has shown a sincere desire for a
compromise. (Art. 2031)
Note: Court approval is necessary for compromise entered
in by:
1. Guardians;
2. Representatives of absentees;
3. Administrator or Executors of a decedent’s estate;
or
4. Parents (Art. 2032)
Juridical persons may compromise only in the form and with
the requisites which may be necessary to alienate their
property. (Art. 2033)
1. Civil status or persons;
2. Validity of marriage or of legal separation;
3. Any ground for legal separation;
4. Future support;
5. Jurisdiction of courts;
6. Future legitime.
Note: A compromise only those objects which are definitely
stated therein, or which by necessary implication from its
terms should be deemed to have been included in the same.
Under Article 2037: A compromise has upon the parties
the effect and authority of res judicata; but there shall be
no execution except in compliance with a judicial
compromise.
Note: Even if the compromise is not judicially approved, it is
res judicata. However, only if the compromise is approved by
the court can it be enforced by mandamus.
Under Article 2038: A compromise in which there is a
mistake, fraud, violence, intimidation, undue influence, or
falsity of documents, is subject to provisions of Art. 1330 of
the NCC.
However, one of the parties cannot set up a
mistake of fact against the other if the latter, by virtue of
the compromise, has withdrawn from a litigation already
commenced
Newly-discovered documents rule
GR: if there are newly-discovered documents referring to
part of a compromise that was already entered into, the
discovery of such by itself is not a cause of annulment
/rescission of the compromise, unless the documents were
concealed by one of the parties.
Exception: if the compromise refers to the only one thing,
and the newly-discovered documents show that one party
had no right to said thing. (Art. 2039)
Note: if after a litigation has been decided by final
judgement, a compromise should be agreed upon, either or
both parties being unaware of the existence of the final
judgement, the compromise may be rescinded. (Art. 2040)
Note: if one of the parties fails or refuses to abide by the
compromise, the other party may either enforce the
compromise or regard it as a rescinded and insist upon his
original demand. (Art. 2041)
VI. QUASI-CONTRACTS
Quasi-Contract – a juridical relation arising from lawful,
voluntary, and unilateral acts based on the principle that
no one shall be unjustly enriched. (Art. 2142)
Characteristics of a quasi-contract:
1. It must be Lawful;
 2. It must be Unilateral; and
3. It must be Voluntary.
PRESUMPTIVE CONSENT – since a quasi-contract is a
unilateral contract created by the sole acts of the gestor,
there is no express consent given by the other party. The
consent needed in a contract is provided by law through
presumption.
Principal forms of quasi-contracts:
1. Negotiorum Gestio – arises when a person
voluntarily takes charge of the management of the
business or property of another without any
power formthe latter. (Art. 2144)
2. Solutio Indebiti – takes place when a person
received something from another, without any
right to demand for it, and the thing was unduly
delivered to him through mistake. (Art. 2154)
Rule in case of excess of payment of interest
- If the borrower pays interest when there has been
no stipulation therefor, the provisions of the Code
concerning solution indebiti, or natural
obligations, shall be applied.
- If the payment of the interest is made out of the
mistake, solution indebiti applies; hence, the
amount to be returned to the debtor. If the
payment was made after the obligation to pay
interest has already prescribe, natural obligation
applies; hence, the creditor is authorized to retain
the amount paid.
VII. TORTS AND DAMAGES
QUASI-DELICT – Whoever by act or omission causes
damage to another, there being fault or negligence, is
obliged to pay for the damage done. Such fault or
negligence, if there is no pre-existing contractual relation
between the parties, is called a quasi-delict and is
governed by the provisions of this chapter. (Art. 2176)
TORT – acts giving rise to civil liability but are not
necessarily the consequences of crimes or contractual
obligations.
Elements of Quasi-Delict:
1. Damage suffered by plaintiff;
2. Fault or Negligence of the defendant, or some
other person for whose acts he must respond;
3. Connection of cause and effect between the fault
or negligence of the defendant and the damages
incurred by the plaintiff;
4. No pre-existing contractual relation between the
parties.
PRINCIPLES
A. ABUSE OF RIGHT – 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. (Art. 19)
Rationale: prescribes that a person should not use his right
unjustly or in bad faith; otherwise, he may be liable to
another who suffers injury.
Elements:
1. The existence pf legal right or duty;
2. Which is exercised in bad faith; and
3. For the sole intent of prejudicing or injuring
another.
Note: Malice or Bad faith is a t the core of an abuse of
right. It implies a conscious and intentional design to do a
wrongful act for a dishonest purpose or moral obliquity.
B. UNJUST ENRICHMENT – every person who
through an act of performance by another, or any
other means, acquires or comes into possession of
something at the expense of the latter without just
or legal ground, shall return the same to him. (Art.
22)
Even when an act or event causing
damage to another’s property was not due to the
fault or negligence of the defendant, the latter
shall be liable for indemnity if through the act or
event he was benefited. (Art. 23)
Elements:
1. A person is unjustly benefited;
2. Such benefit is derived at the expense of or with
damages to another; and
3. The aggrieved party has no other action based on
a contract, quasi-contract, crime, quasi-delict, or
any other provisions of law.
C. LIABILITY WITHOUT FAULT – there is strict
liability if one is made liable independent of fault,
negligence or intent after establishing certain facts
specified by law. Strict liability tort can be
committed even if reasonable care was exercised
regardless of the state of mind of the actor at that
time.
Instances of Strict Liability:
 Possessors and Users of Animals (Art. 2183)
GR: the possessor of an animal or whoever may make
use of the same is responsible for the damages which it
may cause although it may escape or be lost.
Note: Ownership is immaterial. What must be
determined is the possession of the animal that
admittedly was staying in the house in question,
regardless of ownership of the animal or the house.
Exceptions:
 1. By force majeure – possessor or user is till liable
even if the damage is caused by the negligence of
3rd person unless equated with force majeure;
2. By the person who suffered the damage;
3. Defendant is not the possessor of the animal.
 Falling Object (Art. 2193) – the head of a family
lives in building or a part thereof, is responsible
for damages caused by the things thrown or falling
from the same.
Note: the head of the family may recover. From the person
who caused the damage. The liability is solidary. (Art.
2194)
 Liability of Employers in case of Death or
Injuries or injuries of employees (Art. 1711)
GR: owners of enterprises and other employers are liable
to pay for the death or injuries to their employees, even if
the cause is purely accidental.
Exception: if the mishap was due to the employee’s own
notorious negligence, or voluntary act or drunkenness.
Exception to the Exception: when the employer’s lack of
due care only. Contributed to this death or injury, the
employer shall be liable for compensation but the same
shall be equitably reduced.
 Nuisances (Art. 694) – Any act, amission,
establishment, business, condition of property, or
anything else which:
a. Injuries or endangers the health or safety of
others;
b. Shocks, defies or disregards decency or
morality;
c. Annoys or offends the senses;
d. Hinder or impairs the user property; or
e. Obstructs or interferes witht eh free passage
of any public highway or street, or any body of
water.
GR: Everyone is bound to bear the habitual customary
inconveniences that result from the proximity of others,
and so long as this level is not surpassed, he may not
complain against him.
Exception: if the. Prejudice exceeds the inconvenience that
such proximity habitually brings, the neighbor who causes
such disturbance is held responsible for the resulting
damage, being guilty of causing nuisance.
 Product Liability by Manufacturers (Art. 2187)
– manufacturers and processors of foodstuffs,
drinks, toilet articles and similar f=goods shall be
liable for death or injuries caused by any noxious
or harmful substances used, although no
contractual relation exists.
Requisites:
a. The defendant is the manufacturer or processor of
foodstuffs, drinks, toilet articles and similar goods
involved;
b. Plaintiff used or cosumed such product unaware of
the injurious condition of the product;
c. The defendant used noxious or harmful
substances in the manufacturing or processing of
the foodstuff, drink or toilet articles and similar
goods;
d. Plaintiff’s injury or death was caused by the
product used or consumed; and
e. The forms or kinds of damages suffered and the
amount thereof.
D. ACTS CONTRARY TO LAW – Every person who,
willfully or negligently causes damage to another,
shall indemnify the latter for the same. (Art. 20)
Note: Article 20 speaks of the general sanction for all other
provisions of law which do not especially provide for their
own sanction.
Note: Under Article 20 there is no requirement that the act
must be directed at a specific person, but it suffices that a
person suffers damage as a consequence of a wrongful act of
another in order that indemnity could be demanded form
the wrongdoer.
E. ACTS CONTRARY TO MORALS – any person who
willfully causes loss or injury to another in a
manner that is contrary to morals, good customs
or public policy shall compensate the latter. (Art.
21)
Rationale: Article 21 is designed to fill in the countless
gaps in the statutes, which leave so many victims of moral
wrongs, helpless, even though they have actually suffered
material and moral injury.
Elements of Acts Contrary to Morals:
a. Act which is legal;
b. Act is contrary to morals, good customs, public
order or public policy; and
c. That act is done with intent to injure.
CLASSIFICATION OF TORTS
INTENTIONAL TORTS – it is a tort or wrong perpetrated
by one who intends to do that which the law has declared
wrong.
Note: it includes Art. 32 and 34, and culpa aquilina under
Art. 2176 of the Civil Code, or those where the injured party
is granted a right to file an action or suit independent and
distinct from the criminal action under Art. 33 of the Civil
Code.
NEGLIGENT TORT – it involves voluntary acts or
omissions which results in injury to others, without
intending to cause the same.
 obligatio is the obligation of is an act or
Note: Negligent is defined as the omission of that degree of n defendant’s the omission
diligence which is required by the nature of the obligation negligence defendant to punishable
and corresponds to the circumstances of the persons, time itself. pay damages by law.
and place. (Art. 1173) is breach or
non-
STRICT LIABILITY TORTS – the person iis made liable fulfillment of
independent of faulty or negligence upon submission of the contract
proof of certain facts. Proof of Negligence Proof of the Accused
negligenc must be existence of shall be
Note: it rests not on negligence but on intentional doing of e proved by the contract presumed
that which a person knows or would know, in the exercise of defendant and of its innocent
ordinary care, may reasonably cause loss to another in the breach of until
normal course of events. non- proven
fulfillment is guilty
sufficient beyond
THE TORTFEASOR prima facie reasonable
to warrant doubt.
JOINT TORTFEASOR – are all the persons who command, recovery.
instigate, promote, encourage, advise, countenance, Defense Defense of Defense of Defense of
cooperate in, aid or abet the. Commission of a tort, or who available good father good father good father
approve of it after it is done, if done for their benefit. of a family in of a family in of a family
the selection the selection in the
Note: Under Art. 2194 of the Civil Code, joint tortfeasor & & selection &
are solidarily liable for the resulting damage. In other supervision supervision supervisio
words, joint tortfeasors are each liable as principles, to the of the of the n of the
same extend and in the same manner as if they had employees is employees is employees
performed the wrongful act themselves. a proper and not a proper is not a
complete complete proper
Note: there is no contribution between joint tortfeasors defense defense complete
whose liability is solidary since both of them are liable for though it defense.
the total damage. may mitigate The
damages. employee’s
DIRECT TORTFEASOR – whoever by act or omission Respondent guilt is
causes damage to another, there being fault or negligence, superior or automatica
is obliged to pay for the damage done. (Art. 2176) command lly the
responsibilit employer’s
Note: every person legally responsible is liable for a tort y or the civil guilty
committed by him provided it is the proximate cause of an master and if the
injury to another. servant rule. former is
insolvent.
Proof Prepondera Preponderan Proof of
QUASI_DELICT vs. CULPA CONTRACTUAL vs. CULPA needed nce of ce of guilt
CRIMINAL evidence evidence beyond
reasonable
BASIS QUASI_DELI CULPA CULPA doubt.
CT CONTRACTU CRIMINAL
AL
Existence Negligence Negligence is Negligence PROXIMATE CAUSE
of is merely an is
Negligenc substantive incident in substantiv PROXIMATE CAUSE – that cause which, in natural and
e and the e and continuous sequence, unbroken by any efficient
independent performance independe intervening cause, produces the injury, and without which
of an nt the result would not have occurred.
obligation
Contractu There is no There is There is no Note: proximate cause of the injury is not necessary the
al pre-existing always a pre- pre- immediate cause of, or the cause nearest in time to, the
relation contractual existing existing injury. It is only when the causes are independent of each
relation contractual contractual other that the nearest is to be charged with the disaster.
relation relation.
Source of The source The source of The source
Note: Proximate Cause is inapplicable in breach of contracts
it only applies to quasi-delicts.
LAST CLEAR CHANCE/DOCTRINE OF DISCOVERED
PERIL – even though a person’s own acts may have placed
him in a position of peril and an injury result, the inured is
entitled to recover if the defendant thru the exercise of
reasonable care and prudence might have avoided
injurious consequences to the plaintiff.
Requisites:
1. Plaintiff was in a position of danger by his own
negligence;
2. Defendant knew of such position of the plaintiff;
3. Defendant had the last clear chance to avoid the
accident by exercise of ordinary care but failed to
exerciser such last clear chance; and
4. Accident occurred as proximate cause of such
failure.
Note: Plaintiff may invoke the right.
When is the doctrine not applicable:
a. Joint Tortfeasors;
b. Defendants concurrently negligent;
c. As against 3rd persons
VICARIOUS LIABILITY
VICARIOUS LIABILITY – the obligation imposed by Art.
2176 of the Civil Code on quasi-delicts is demandable not
only for one’s own acts or omissions, but also for those of
persons for whom one is responsible. (Art. 2180)
Note: it is not governed by the doctrine of respondeat
superior. Under the doctrine of respondeat superior, the
master is liable in every case and unconditionally; the
negligence of the servant is conclusively presumed to be the
negligence of the master.
However, in vicarious liability, persons are made
vicariously liable not because of the negligent or wrongful
act of the person for whom they are responsible, but because
of their own negligence.
Exception: the doctrine of respondeat superior is
applicable in:
a. Liability of employers under Art. 103 of the RPC;
b. Liability of a partnership for the tort commited by
a partner.
Persons who are liable under Vicariously Liable:
1. Father/Mother for their minor;
2. Guardians are liable for the minor and
incapacitated persons under their authority;
3. Schools, administrators and teachers, and
individuals, entities or institutions engaged in
child care having special parental authority over
children;
4. Owners/managers of establishment or enterprise
for their employees;
5. Employers for their employees and household
helpers
6. State for their special agents
7. Teachers/heads of establishment of arts and
trades for their pupils/students/apprentices. (Art.
2180)
RES IPSA LOQUITUR
RES IPSA LOQUITOR (“the thing speaks for itself”) – it
is the rule that the fact of the occurrence of an injury, taken
with the surrounding circumstances, may permit an
inference or raise a presumption of negligence, or make
out a plaintiff’s prima facie case, and present a question of
fact for defendant to meet with an explanation.
Requisites for its application:
1. The accident is of such character as to warrant an
inference that it would not have happened except
for the defendant’s negligence;
2. The accident must have been caused by an agency
or instrumentality within the exclusive
management with the negligence complained of;
and
3. The accident must not have been due to any
voluntary action or contribution on the part of the
person injured.
Note: this is not applicable when an unexplained accident
may be attributed to one of several causes, for some of which
the defendant could not be responsible.
3 uses and application of the doctrine:
1. In medical negligent cases;
2. In cases where the exercise of judicial discretion is
abused; and
3. In practical instances.
DAMNUM ABSQUE INJURIA
DAMNUM ABSQUE INJURIA (“Damage without
Prejudice”) – the proper exercise of a lawful right cannot
constitute a legal wrong for which an action will lie,
although the act may result in damage to another, for no
legal right has been invaded.
Note: the principle does not apply when the exercise of this
right is suspended or extinguished pursuant to a court order.
DEFENSES
A. Plaintiff’s negligence is the proximate cause of
the injury, he cannot recover damages. But if his
negligence was only contributory, the immediate
and proximate cause of the injury being the
defendant’s lack of due care, the plaintiff may
 recover damages, but the courts shall mitigate the
damages to be awarded. (Art. 2179)
B. Contributory Negligence – when the plaintiffs’
own negligence was the immediate and proximate
cuase of his injury, he cannot recover damages. But
if his negligence was only contributory, the
immediate and proximate cause of the injury being
the defendant’s lack of due care, the plaintiff may
recover damages, but the courts shall mitigate the
damages to be awarded. (Art. 2179)
C. Assumption of Risk
 Volenti Non fit Injuria (“that to which a
person assents is not deemed in law an
injury”) – one who voluntarily exposes
himself to an obvious, known and appreciated
danger assumes the risk of injury that may
result therefrom.
Requisites as a defense in negligence cases:
1. The plaintiff must know that the risk is present;
2. He must further understand its nature; and
3. His choice to incur it must be free and voluntary.
Note: it is not applicable if an emergency is found to exist, if
the life or property of another is in peril, or when he seeks to
rescue his endangered property.
D. Last Clear Chance/Doctrine of Discovered Peril
- even though a person’s own acts may have placed
him in a position of peril and an injury result, the
inured is entitled to recover if the defendant thru
the exercise of reasonable care and prudence
might have avoided injurious consequences to the
plaintiff.
Requisites:
1. Plaintiff was in a position of danger by his own
negligence;
2. Defendant knew of such position of the plaintiff;
3. Defendant had the last clear chance to avoid the
accident by exercise of ordinary care but failed to
exerciser such last clear chance; and
4. Accident occurred as proximate cause of such
failure.
Note: Plaintiff may invoke the right.
When is the doctrine not applicable:
1. Joint Tortfeasors;
2. Defendants concurrently negligent;
3. As against 3rd persons
E. Prescription – period commences to run from the
time the cause of action arises.
ACTION FOR DAMAGES 10 years, when the rightn
of action accrues:
- Upon a written
contract;
- Upon an
obligation created
by law;
- Upon a
judgement.
QUASI-DELICT 4 years from the time the
cause of action arises.
F. Fortuitous Event – no person shall be responsible
for those events which cannot be foreseen, or
which though foreseen were inevitable. (Art.
1174)
Requisites:
1. The cause of the unforeseen and unexpected
occurrence, or of the failure of the debtor to
comply with his obligation, must be independent
of the human will;
2. It must be impossible to foresee the event which
constitutes caso fortuito or if it can be foreseen it
must be impossible to avoid;
3. The occurrence must be such as to render it
impossible for the debtor to fulfill his obligation in
a normal manner;
4. The obligor must be free from any participation in
the aggravation of the injury resulting to the
creditor.
GR: Fortuitous Event is a complete defense and a persin is
not liable if the cause of the damge is fortuitous event.
Exception: it is merely a partial defense and the courts
may mitigate the damages if the loss would have resulted
in any event. (Art. 2215 [4])
Note: a person may still be liable for a fortuitous event if
such person made and assumption of risk.
G. Waiver – right may be waived, unless the waiver is
contrary to law, public order, public policy, morals,
or good customs, or prejudicial to a third person
with a right recognized by law. (Art. 6)
Elements:
1. Person making the waiver possesses that right;
2. Has the capacity and power to dispose of that
right;
3. Waiver must be clear and un equivocal;
4. Not contrary to law, public policy.
Exceptions:
1. Waiver of the action for future fraud is void;
2. Exemplary damages cannot be waived;
3. Waiver must not be contrary to public policy;
4. One’s consent to a waiver to public policy.
H. Emergency – one who suddenly finds himself in a
place of danger and is required to act without time
to consider the best means that may be adopted to
avoid the impending danger, is not guilty of
negligence, if he fails to adopt what subsequently
 and upon reflection may appear to have been a
better method unless the emergency in which he
finds himself is brought about by his own
negligence.
I. DAMNUM ABSQUE INJURIA (“Damage without
Prejudice”) – the proper exercise of a lawful right
cannot constitute a legal wrong for which an
action will lie, although the act may result in
damage to another, for no legal right has been
invaded.
Note: the principle does not apply when the exercise of this
right is suspended or extinguished pursuant to a court order.
NEGLIGENCE
NEGLIGENCE - as the omission of that degree of diligence
which is required by the nature of the obligation and
corresponds to the circumstances of the persons, time and
place. (Art. 1173)
A. Standard of Care; Emergency Rule – one who
suddenly find himself in a place of danger and is
required to act without time to consider the best
means that may be adopted to avoid the
impending danger, is not guilty of negligence, if he
fails to adopt what subsequently and upon
reflection may appear to have been a better
method, unless the emergency in which he finds
himself is brought about by his own negligence.
Note: Applicable only to situations that are sudden and
unexpected such as to deprive the actor of all opportunity
for deliberation; the action shall still be judge by the
standard of the ordinary prudent man.
B. Presumption of negligence
GR: the burden of proof in each action based on quasi-
delict rests on the plaintiff.
Exception: there are certain exceptions when the plaintiff
need not prove the existence of negligence as an element of
quasi-delict i.e. Res Ipsa Loquitur, injury caused by
dangerous weapon and substances, violation of traffic
rules and regulations.
DAMAGES
DAMAGES – is the sum of money which the law awards or
imposes as a pecuniary compensation, a recompense or
satisfaction for an injury done or wrong sustained as a
consequence either of a breach of contractual obligation or
a tortious act.
Note: in actions for damages, the courts should award an
amount to the winning party and not its equivalent in
property.
KINDS OF DAMAGES
1. Actual or Compensatory Damages – Actual
damages are such compensation or damages for
an injury that will put the injured party in the
position in which he had been before he was
injured. They pertain to such injuries or losses
that are actually sustained and susceptible of
measurement.
Note: to recover damages, the amount of loss must not only
be capable of proof but must actually be proven.
Kinds of Actual or Compensatory Damages:
1. Danum Emergens/Dano Emergente (Actual
damages) – all the natural and probable
consequences of the act or omission complained of
the act or omission complained of, classified as
one for the loss of what a person already
possesses.
2. Lucrum Cessans/ Lucro Cesante
(compensatory damages) – for failure to receive,
as benefit, that which would have pertained to
him.
Note: both damages can be granted at the same. Time to the
plaintiff as provided under Art. 2200.
Proving the loss:
GR: loss must be proven with a reasonable degree of
certainty, premised upon competent proof or best evidence
obtainable of the actual amount thereof before one can be
entitled to damages.
Exception: loss need not be proved in the following:
1. Liquidated damages have been previously agreed
upon. (Art. 2226);
2. Forfeiture of bonds in favor of the government for
the purpose of promoting public interest or policy;
3. Loss is presumed;
4. When the penalty clause is agrees upon in the
contract between the parties;
5. When death is caused within the contemplation of
Art. 2206.
Coverage of Actual Damages
a. Loss or impairment of earing capacity in cases of
temporary or permanent personal injury;
b. Injury to the plaintiff’s business standing or
commercial credit. (Art. 2205)
Loss or impairment of earning capacity
- To be compensated for loss of earning capacity, it
is not necessary that the victim be gainfully
employed at the time of the injury or death.
Determination of the amount of damages recoverable:
1. Pecuniary loss to plaintiff or beneficiary;
2. Loss of support;
3. Loss of service;
4. Loss of society;
 5. Mental suffering of beneficiaries;
6. Medical and funeral expenses.
Computation of unearned income:
Net earning Capacity = Life Expectancy x (Gross Annual
Income – Living Expenses)
Basis of Life Expectancy – is assumed that the deceased
would have earned income even after retirement from a
particular job.
Note: Heirs cannot claim as damages the full amount of
earning of the deceased.
Note: Adjustment fees do not constitute actual damages.
3. MORAL DAMAGES – it includes physical suffering,
metal anguish, fright, serious anxiety, besmirched
reputation, wounded feelings, moral shock, social
humiliation, and similar injury. (Art. 2217)
Note: it is awarded to enable the injured party to obtain
means, diversions or amusement that will serve t alleviate
the moral suffering he has undergone by reason of the
defendant’s culpable action.
Note: a case of simple negligence does not justify an award
or moral damages. Such is proper only in cases of gross
negligence amounting to bad faith.
Act or omission must be with bad faith
- Moral damages are recoverable only if the party
whom it is claimed has acted fraudulently or in
bad faith or in wanton disregard of his contractual
obligations.
Note: Unless there is a clear showing of malice or bad faith
or gross negligence, a public officer is not liable for moral
and exemplary damages for acts done in the performance of
duties.
Elements required for Recovery:
1. An injury clearly sustained by the claimant;
2. A culpable act or omission factually established;
3. The act or omission must be the proximate result
of the physical suffering, mental anguish, fright,
serious anxiety, besmirched reputation, wounded
feelings, moral shock, social humiliation and
similar injury; and wrongful act or omission of the
defendant as the proximate cause of the injury
sustained by the claimant; and
4. The award of damages predicated on any of the
cases stated in Art. 2219.
Recovery of Moral Damages:
GR: to recover moral damages, the plaintiff must allege and
prove:
1. The factual basis for moral damages; and
2. The casual relation to the defendant’s act.
Exception: moral damages may be awarded to the victim
in criminal proceedings without the need for pleading of
proof or the basis thereof.
Note: Moral damages are mandatory without need of
allegation and proof other than the death of the victim,
owing to the fact of the commission of murder or homicide.
3. NOMINAL DAMAGES – are adjudged 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.
Nature of Nominal Damages
- Are small sums fixed by the court without regard
to the extent of the harm done to the injured party.
They are damages in name only and are allowed
siply in recognition of a technical injury based on a
violation of a legal right.
Elements of Nominal Damages:
i. Plaintiff has a right;
ii. Such right is violated; and
iii. The purpose of awarding damages is to vindicate
or recognize the right violated.
4. TEMPERATE OR MODERATE DAMAGES – are
those damages, which are more than nominal but
less than compensatory, and may be recovered
when the court finds that some pecuniary loss has
been suffered but its amount cannot be proved
with certainty.
Nature of Temperate Damages
- The allowance of temperate damages when actual
damages were not adequately proven is ultimately
a rule drawn fro equity, the principle affording
relief to those definitely injured which are unable
to prove how definite the injury.
Temperate damages may be awarded in the following
cases:
 Inlieu of actual damages; or
 In lieu of loss or earning capacity.
Rationale: the nature of the case, definite proof or
pecuniary loss cannot be offered.
Elements of Temperate Damages:
i. Some pecuniary loss;
ii. Loss is incapable of pecuniary estimation; and
iii. The damages awarded are reasonable;
5. LIQUIDATED DAMAGES – are fixed damages
previously agreed by the partied to the contract
and payable to the innocent party in case of breach
by the other.
Nature of Liquidated Damages
 - A stipulation on liquidated damages is penalty
clause where the obligor assumes a greater
liability in case of breach of an obligation. The
obligor is bound to pay the stipulated amount
without need for proof on the existence and on the
measure of damages caused by the breach.
Liquidated damages may be equitably reduced when:
a. Iniquitous or unconscionable. (Art. 2227);
b. Partial or irregular performance.
When principal obligation is void
- The nullity of the principal obligation carries with
it that of the penal clause. (Art. 1230)
Rule governing in case of breach of contract
- When the breach of 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. (Art. 2228)
6. 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. (Art. 2229)
Nature of Exemplary Damages
- Are mere accessories to other forms of damages
except nominal damages.
Rationale: is to provide an example or correction for the
public good and not to enrich the victim.
Cases where exemplary damages may be imposed as
accessory damages:
GR: exemplary damages cannot be recovered as a matter of
right. (Art. 2233)
Exception: they can be imposed in the following cases:
a. Criminal offense – whenthe crime was committed
with one or more aggravating circumstances. (Art.
2230);
b. Quasi-delicts – when the defendant acted with
gross negligence (Art. 2231);
c. Contracts and Quasi-Contracts – when defendant
acted in wanton, fraudulent, reckless, oppressive,
or malevolent manner, (Art. 2232)
Requirements for an award of exemplary damages:
i. The claimant’s right to exemplary damages
has been established;
ii. Their determination depends upon the
amount of compensatory damages that may
be awarded to the claimant; and
iii. The act must be accompanied by bad faith or
done in wanton, fraudulent, oppressive or
malevolent manner.
DAMAGES IN CASE OF DEATH
A. In crimes and Quasi-Delicts Causing Death:
a. Medical & Hospital Bills;
b. Civil Indemnity/damages for death under Art.
2206;
c. Loss of earning capacity unless deceased had
permanent physical disability not caused by
defendant so that deceased had no earning
capacity at time of death;
d. Support, if deceased was obliged to give
support for period not more than 5 years;
e. Moral damages.
Note: Civil Indemnity for death is mandatory and a matter
of course, and without need of proof other than the fact of
death as the result of the crime or quasi-delict, and the fact
that the accused was responsible therefor.
B. Death caused by Breach of contract by a
common carrier:
a. Indemnity for death;
b. Indemnity for loss of earning capacity;
c. Moral damages.
DUTY OF INJURED PARTY
DOCTRINE OF AVOIDABLE CONSEQUENCES – 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. (Art. 2203)
Burden of Defendants
- It is the burden of the defendants to show
satisfactory not only that the injured party could
have mitigated his damages, but also the amount
thereof; failing in this regard, the amount of
damages awarded cannot be proportionately
reduced.
Mitigation Due to Refusal to Find Work
- Before defendant can take advantage of the failure
of plaintiff to obtain like employment, it must
appear:
 That it is like employment;
 That it is in the same locality;
 That it is under substantially the same
conditions; and
 The wages which he could have earned.