DAMAGES

I. DEFINITION AND CONCEPT

Art. 2195. The provisions of this Title shall be respectively applicable

to all obligations mentioned in Article 1157.
What are damages?

Damages may be defined as the Pecuniary compensation,

Recompense, or Satisfaction for an injury sustained, or as otherwise
expressed, the Pecuniary consequences which the law imposes for the
breach of some duty or the violation of some right (People vs.
Ballesteros).

The obligation to repair the damages exists whether done

intentionally or negligently and whether or not punishable by law
(Ocena vs. Icamina).

Elements for recovery of damages: RID

1. Right of action

2. For a wrong Inflicted by the defendant

3. Damage resulting to the plaintiff

II.
KINDS OF DAMAGES

Kinds of Damages (MENTAL)

(1)ACTUAL/COMPENSATORY- for loss actually suffered

(2)MORAL- mental anguish, etc.

(3)NOMINAL- for rights recognized and violated

(4)TEMPERATE/MODERATE- for damages proved but the

amount was not proven

(5)LIQUIDATED- stipulated damages in the contract

(6)EXEMPLARY/CORRECTIVE- to serve as an example for the

common good (Art. 2197)
 B.
MORAL

What is the nature of moral damages?

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 vs. CA)

When are moral damages awarded?

- If injury consists of any of the ff: (PBMF-MWSSS)

a. Physical suffering

b. Besmirched reputation

c. Mental anguish

d. Fright

e. Moral shock

f. Wounded feelings

g. Social humiliation

h. Serious anxiety

i. Similar injury

- Though incapable of pecuniary computation - If such is the proximate

result of defendant’s act or omission. (Art. 2217)

What are the requisites for awarding moral damages? PIC-2199

(1)there must be an Injury, whether physical, mental or

psychological, clearly sustained by the claimant;
 (2)there must be a culpable act or omission factually
established;

(3)the wrongful act or omission of the defendant must be the

proximate cause of the injury sustained by the claimant; and

(4)the award of damages is predicated on any of the cases stated

in ART. 2219 NCC. (Villanueva vs. Salvador)

General Principles of Recovery (as outlined in Expertravel & Tours vs.

CA #1 to 7)

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 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.
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
vs. Salvador)

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 vs. Bautista)

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. vs. Traya et al.)

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 vs.
CA)

Who may recover moral damages?

STREBEL VS. FIGUERAS, ET AL.

As a general rule, the right of recovery for mental suffering

resulting from bodily injuries is restricted to the person who has
suffered the bodily hurt, and there can be no recovery for distress
caused by sympathy for another's suffering, or for fright due to a wrong
against a third person. A husband or wife cannot recover for mental
suffering caused by his sympathy for the other's suffering.

Exception: Art. 2219

ABS-CBN vs. COURT OF APPEALS

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.
experience physical suffering and mental anguish, which call 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 an obiter dictum.
 NAPOCOR VS. PHILIPP BROTHERS

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.

F. EXEMPLARY OR CORRECTIVE
Art. 2229. Nature of exemplary or corrective damages - Imposed
by way of example - or correction for the public good - in addition
to the moral, temperate, liquidated or compensatory damages.

Exemplary damages cannot be recovered as a matter of right;

discretion of the court. (Art. 2233)

Requisites to recover exemplary damages and liquidated damages

agreed upon in addition to exemplary (Art.2234):

The plaintiff must show that he is entitled to moral, temperate or

compensatory damages

C. NOMINAL
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 in Article 1157, or - where any property right has
been invaded.

Art. 2223. What is precluded by the adjudication of nominal

damages?
Further contest upon the right involved - all accessory questions -
between the parties or their respective heirs and assigns.
Requisites: LV-N

(1)A Legal Right has been violated.

(2)There is No loss or damage suffered or such cannot be

proven or was not proved.

(3)The award is to Vindicate the right violated.

General Rule:

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

ARMOVIT VS. CA
Nominal damages cannot co-exist with actual or compensatory
damages.

FRANCISCO V. FERRER
No moral or exemplary damages was awarded. Nevertheless,
when confronted with their failure to deliver on the wedding day the
wedding cake ordered and paid for, petitioners gave the lame excuse
that delivery was probably delayed because of the traffic, when in truth,
no cake could be delivered because the order slip got lost. For such
prevarication, petitioners must be held liable for nominal damages for
insensitivity, inadvertence or inattention to their customer's anxiety and
need of the hour.

D. TEMPERATE
What is the nature of temperate or moderate damages?

Temperate or moderate damages, which are more than nominal but

less than compensatory damages.

It may be recovered when some pecuniary loss has been suffered but
its amount can not be provided with certainty. (Art. 2224)
Temperate damages must be reasonable under the circumstances.
(Art. 2225)

REQUISITES: ARP (TARP)

(1)There is Actual damage.

(2)The pecuniary amount of the damage cannot be

proved.

(3)Amount must be reasonable.

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, 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.
Temperate damages are incompatible with nominal damages hence,
cannot be granted concurrently (Citytrust Bank vs. IAC)

PLENO vs. CA

Temperate damages are included within the context of compensatory

damages (RCPI vs. CA). ". . . 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 one's commercial credit or to the goodwill of a business firm is
often hard to show certainty in terms of money.

NOTE: In this case, actual and temperate damages were awarded. It

is postulated that the actual damages is for the car while the temperate
damages is for the lost actual income not sufficiently proved.

A. Actual or Compensatory
When is a person entitled to actual or compensatory damages?
PLAS
Proved, loss, alleged, stipulated.
A) When there is a pecuniary loss suffered by him

When he has alleged and prayed for such relief (Manchester

Dev’t Corp vs. CA)
 When he has duly proved it

B) 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)

KINDS OF ACTUAL DAMAGES

Civil Code
Provisions
A. Damnum emergente- value of the loss
Article 2200 suffered

B. Lucro cessante- profits which the obligee failed

to obtain
A. Loss of earning capacity due to injury
(temporary or permanent)
Article 2205
B. Damage to Business Standing or Commercial
Credit
A. Fixed indemnity for death
Article 2206
B. Loss of Earning Capacity of the Deceased

Article 2209 Interest

Article 2208 Attorney’s Fees & Expenses of Litigation

GENERAL PRINCIPLES FOR RECOVERY OF DAMAGES

(1)The amount of damages must be fair and just and commensurate

to the loss. - In case of contracts, only those injuries which could have
been reasonably foreseen by the parties at the time the contract was
entered into are recoverable.
(2)The damages must be proximate damages and not remote or
speculative.

(3)The damages must be proven by competent evidence (admissible

or probative) - It is necessary to prove with a reasonable degree of
certainty, premised upon competent proof and on the best evidence
obtainable by the injured party, the actual amount of loss. (Integrated
Packaging Corp. vs. CA; Fuentes vs. CA)

(4)Complaint and prayer must specify amount of damages and pay

filing fees before it may be accepted and admitted for filing. (Circ. No.
7, Mar. 24, 1988; Manchester Dev’t. Corp. vs. CA, 1987).

(5)The requirement of certainty does not prevent the drawing of

reasonable inferences from the fact and circumstance in evidence.

(6)Events which occur after the wrong complained of may serve to

render the damage sufficiently certain.

(7)The damages must be susceptible of ascertainment in some

manner other than by mere speculation, conjecture or surmise and by
reference to some fairly definite standard, such as market value,
established experience or direct inference from known circumstances.

Where, however, it is reasonably certain that injury consisting of failure

to realize otherwise reasonably expected profits had been incurred,
uncertainty as to the precise amount of such unrealized profits will not
prevent recovery or the award of damages. (Talisay Silay vs.
Associacion)

When pecuniary loss need not be proved: FAPS

1) Liquidated damages previously agreed upon

2) If damages other than actual are sought (Art. 2216)

3) Loss is presumed (ex: loss of a child or spouse)

4) Forfeiture of bonds in favor of the government for the purpose

of promoting public interest or policy (ex: bond for temporary stay
of alien)
Damages for Personal Injury & Death (Art. 2206)

Recoverable damages for death caused by a crime or quasi-

delict:

(a) At least three thousand pesos, even though there may have
been mitigating circumstances. - As of 2008, it is P75,000
(People vs. Robert Brodett y Pajaro, Jan. 18, 2008

(b) (b) Loss of the earning capacity of the deceased, - paid to his
heirs - unless the deceased on account of permanent physical
disability not caused by the defendant, had no earning capacity
at the time of death;

(c) Support according to the provisions of Article 291 - the recipient

who is not a testate or intestate heir may demand support from
the person causing the death, for a period not exceeding five
years

(d) Moral damages - demanded by the spouse, legitimate and

illegitimate descendants and ascendants of the deceased

Factors: MOES

1. Earning Capacity

2. Obligation to Support

3. Moral Damages to heirs

Compensation should be allowed for loss of earning capacity

resulting from the death of a minor who has not yet commenced
employment or training for a specific profession if sufficient evidence
is presented to establish the amount thereof.

The argument for allowing compensation for loss of earning

capacity of a minor is even stronger if he or she was a student, whether
already training for a specific profession or still engaged in general
studies. Formula established in decided cases for computing net
earning capacity:
 Net earning capacity (X) = life expectancy * [gross annual
income - reasonable, necessary
living
expenses]

Life expectancy = 2/3 (80- age of deceased) (MMTC v. CA)

E. Liquidated
What are liquidated damages?

Those agreed upon by the parties to a contract, to be paid in case of

breach thereof. (Art. 2226)

What are the grounds for equitable reduction of liquidated

damages? - iniquitous or - unconscionable. (Art. 2227)

In what instance is the stipulation not controlling?

When the breach of the contract is not the one contemplated by the
parties in agreeing upon the liquidated damages. In this case, the law
shall determine the measure of damages. (Art. 2228)

Note:

(1)These damages are agreed upon in a contract in case of

breach thereof.

(2)There is no need to prove the amount, only the fact of the

breach.

(3)The amount can be reduced if:

a. unconscionable as determined by the court (Art. 2227)

b. partial or irregular performance

General Rule: The penalty shall substitute the indemnity for

damages and the payment of the interests in case or breach.
Exceptions

(1)When there is 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.

MORAL
PBMF-MWSSS
EXEMPLARY/CORRECTIVE
NOMINAL
LV-N
TEMPERATE/MODERATE
ARP
ACTUAL/COMPENSATORY
MOES
LIQUIDATED