Moral Damages

Q: Does a claim for moral damages survive the death of the plaintiff?

A: NO. The right to moral damages is not transmissible to the injured party’s substitutes because it
is extremely personal to the injured party. (Immaculate Concepcion Academy, et al. vs. AMA Computer
College, Inc.)

Q: Are proof of pecuniary loss necessary in order that moral damages be adjudicated?

A: NO, proof of pecuniary loss is not necessary. The assessment of such damage is left to the
discretion of the court, according to the circumstances of the case. (Article 2216 of the Civil Code)
However, there must be proof that the defendant caused physical suffering, mental anguish, fright,
serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar
injury to the plaintiff. Without allegation and proof of such sufferings, no moral damages can be
awarded. (Compania Maritama vs. Allied Free Worker’s Union) The exceptions to the rule that the
factual basis for moral damages must be alleged are criminal cases (see last question for this part).

Q:  What are moral damages?

A:  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 (NCC, Art. 2217).

A:  It is awarded to enable the injured party to obtain means, diversions or amusement that will
serve to alleviate the moral suffering he has undergone by reason of the defendant’s culpable
action (Prudenciado v. Alliance Transport System, Inc., G.R. No. L-33836, March 16, 1987).
Source:  UST

Q: In what cases may moral damages be recoverable? (1996, 2002, 2004, 2006, 2009 BAR) 
A: Based on Art. 2219 of the New Civil Code, moral damages may be recovered in the following
and analogous cases:
1. A criminal offense resulting in physical injuries; 
2. Quasi-delicts causing physical injuries; 
3. Seduction, abduction, rape, or other lascivious acts; 
4. Adultery or concubinage; 
5. Illegal or arbitrary detention or arrest; 
6. Illegal search; 
7. Libel, slander or any other form of defamation; 
8. Malicious prosecution; 
9. Acts mentioned in Article 309; and 
10. Actions referred to in Articles 21, 26, 27, 28, 29, 30, 32, 34, and 35 (of NCC).
source:  UST

Q: What are the elements required for award of moral damages (1991, 2002, 2003 BAR)
A:  The requisites are the following:
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 (Amado v. Salvador,
G.R. No. 171401, December 13, 2007)
Source:  UST

Q:  What is the rule on recovery of moral damages when the victim is bearing a child?
A:  An award for the death of a person does not cover the case of an unborn foetus that is not
endowed with personality. The damages recoverable by the parents of an unborn child are
limited to moral damages for the illegal arrest of the normal development of the foetus on
account of distress and anguish attendant to its loss (Geluz v. CA, G.R. No. L-16439, July 20,
1961).
Source: UST

Q:  In what cases may moral damages be recovered without need of any proof?
A:  Moral damages may be recovered without need of any proof in the following cases:
1. Rape cases 
2. Murder cases  (note:  Same rule applies in cases of frustrated murder)
3. Homicide 

In robbery and other common crimes, the grant of moral damages is not automatic, unlike in rape
cases (People v. Taño, G.R. No. 133872, May 5, 2000).
Source:  UST

Actual or Compensatory Damages

Q: How can a party be entitled to adequate compensation?

A: A party is entitled to adequate compensation only for such pecuniary loss actually suffered and
duly proved. It is a basic rule that to recover damages, the amount of loss must not be only be capable
of proof but must actually be proven with a reasonable degree of certainty, premised upon competent
proof or best evidence obtainable of the actual amount thereof. (PNOC Shipping and Transport Corp. vs.
CA) It must be noted further that, a court cannot rely on speculations, conjectures or guesswork as to
the fact and amount of damages. (Yamauchi vs. Romeo F. Suniga) The New Civil Code “denies the grant
of speculative damages, damages not actually proved to have existed and to have been caused to the
party claiming the same”. (Basilan Lumber Company vs Cagayan Timber Export Company)

Q: Are interests covered by the award of compensatory damages?

A: YES. The Code Commission included provisions in the Civil Code allowing interest on damages
because they believed that “such interest is in fact a part of the loss suffered”. The pertinent articles of
the Code provide for such grant: Articles 2209, 2210, 2211, 2212, 2213. To add, interest ay either be (1)
Monetary Interest, or (2) Compensatory Interest. Interest may be paid only either as compensation for
the use of money (monetary interest) under Article 1956 or as damages (compensatory interest) under
Article 2209 to 2212 of the New Civil Code. (Republic vs. Unimex Micro-Electronics GMBH)

Q:  What are actual damages?

A:  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 (Filipinas (Pre-Fab Bldg.)
Systems, Inc. v. MRT Development Corp., G.R. Nos. 167829-30, November 13, 2007). NOTE:
To recover damages, the amount of loss must not only be capable of proof but must actually be
proven (1991, 1996, 2004 BAR).

Q:  In case of death, what actual damages are recoverable?

A:  Damages recoverable in case of death are the following:
1.  Medical & Hospital Bills 
2. Damages for death 
1. Minimum amount: P50,000 
2. 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
3. Support, if deceased was obliged to give support (for period not more than 5
years) 
4. Moral damages

Q:  What are the kinds of actual or compensatory damages?

A:  The kinds of actual or compensatory damages are the following:
1.  General Damage - natural, necessary and logical consequences of a particular wrongful
act which result in injury; need not be specifically pleaded because the law itself implies
or presumes that they resulted from the wrongful act 
2. Special Damages - damages which are the natural, but not the necessary and inevitable
result of the wrongful act. (i.e., attorney’s fees) 
Requirements: 
i. Need to be pleaded 
ii. Pray for the relief that claim for loss be granted
iii. Prove the loss

Q:  What is the purpose of the law in awarding actual damages?

A:  Its purpose is to repair the wrong that has been done, to compensate for the injury inflicted,
and not to impose a penalty (Algarra v. Sandejas, G.R. No. L-8385, March 24, 1914).

Q:  How is net earning capacity determined?

A:  The computation of Unearned Income Formula: 
Net Earning Capacity (x) = Life Expectancy X (Gross Annual Income LESS Living Expenses) 
(People v. Asilan, G.R. No. 188322, April 11, 2012)
Legend: 
Net Earning Capacity = Life Expectancy x (Gross Annual Income – Living Expenses) Life
Expectancy = 2/3 x (80 – Age of the Deceased Living Expenses = 50% of gross annual income

Nominal Damages
Q:  What are nominal damages? (1991, 1994, 2005 BAR)
A:  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 (NCC, Art. 2221) 
source:  UST

Q:  What are the elements of nominal damages?

A:  The elements of Nominal Damages are the following
1. Plaintiff has a right; 
2. Such right is violated; and 
3. The purpose of awarding damages is to vindicate or recognize the right violated.
Source:  UST 

Q:  In what cases may nominal damages be awarded?

A:  The court may award nominal damages in every obligation arising from any source
enumerated in Article 1157, or in every case where any property right has been invaded (NCC,
Art. 2222). 

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
(NCC, Article 2223).

Q: How can the amount be ascertained in nominal damages?

A: The assessment of nominal damages is left to the sound discretion of the court according to the
circumstances of the case (Ventanilla vs. Centeno). Generally, nominal damages by their nature are
small sums fixed by the court without regard to the extent of the harm done to the injured party.

Q: Can nominal damages then co-exist with Actual Damages?

A: NO. Nominal damages cannot co-exist with actual or compensatory damages (GR No. 142029).
The purpose of nominal damages is to vindicate or recognize a right that has been violated, in order to
preclude further contest thereof; and not for the purpose of indemnifying the plaintiff for any loss
suffered by him. An award of compensatory damages is a vindication of a right. It is in itself recognition
that plaintiff’s right was violated, hence, the award of nominal damages is unnecessary and improper
(Vda de Medina vs Cresencia).

Q:  When is there an award of nominal damages in labor termination cases?

A:  Where an employee was terminated for a just cause, but the employer failed to comply with
the notice requirement, the employee is entitled to the payment of nominal damages (Agabon v.
National Labor Relations Commission, G.R. No. 158693, November 17, 2004).

Q:  Can nominal and temperate damages be awarded concurrently?  Why or why not?  
A:  No.  Nominal and Temperate damages cannot be awarded concurrently.  The two awards are
incompatible. Nominal damages are given in order that a right of plaintiff which has been
violated or invaded by the defendant, may be vindicated or recognized. On the other hand,
temperate damages may be awarded when the court finds that some pecuniary loss has been
suffered but its amount cannot be proved with reasonable certainty (Rabuya, 2017).

Exemplary or Corrective Damages

Q: What are exemplary or corrective damages?
A:  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, NCC)

Q:  What is the other names of exemplary damages?

A:  They are also known as “punitive” or “vindictive” damages
Source:  UST

Q:  What is the purpose of exemplary or corrective damages?

A:  Exemplary or corrective damages are intended to serve as a deterrent to serious wrongdoings.
(People v. Orilla, 422 SCRA 620)
Source:  https://batasnatin.com/law-library/civil-law/torts-and-damages/2388-what-are-the-
kinds-of-damages.html

A:  The rationale behind exemplary damages is to provide an example or correction for the
public good and not to enrich the victim (Rana v. Wong, G.R. No. 192861, June 30, 2014).
source:  UST 

Q:  When may exemplary damages be imposed?

A:  They are imposed on the following
a. Criminal offenses – exemplary damages as a part of the civil liability may be imposed
when the crime was committed with one or more aggravating circumstances. Such
damages are separate and distinct from fines and shall be paid to the offended party. 
b. Quasi-delicts – exemplary damages may be granted if the defendant acted with gross
negligence. 
c. Contracts and quasi-contracts – the court may award exemplary damages if the defendant
acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner.

Q:  What must be proved so as exemplary damages be awarded?

A:  While the amount of 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.
 Liquidated Damages
Q:  What are liquidated damages?
A:  Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of
breach thereof. (Art. 2226, NCC)

Q:  When may liquidated damages be equitably reduced?

A:  Liquidated damages may be equitably reduced:  a. Iniquitous or unconscionable (Art. 2227,
NCC); b. Partial or irregular performance.

A:  Liquidated damages are those that the parties agree to be paid in case of a breach. Under
Philippine laws, they are in the nature of penalties. They are attached to the obligation in order to
ensure performance. As a precondition to such award, however, there must be proof of the fact of
delay in the performance of the obligation (Suatengco v. Reyes, G.R. No. 162729, December 17,
2008).

Q:  What is the rule governing liquidated damages in case of breach of contract?
A:  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 (NCC, Art. 2228).

Q:  Is proof of pecuniary loss necessary in the award of liquidated damages? Why or why not?
A:  No.  If intended as a penalty in obligations with a penal clause, proof of actual damages
suffered by the creditor is not necessary in order that the penalty may be demanded (Art. 1228,
NCC).  No proof of pecuniary loss is necessary.

Q:  What is the nature of liquidated damages?

A:  A stipulation on liquidated damages is a 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
(Titan v. Uni-Field, G.R. No. 153874, March 1, 2007).

Q: What are the functions of Liquidated Damages?

A: In (Atlantic Erectors, Inc. vs. CA), the Supreme Court reiterated that the liquidated damages “is
attached to an obligation in order to ensure performance and has a double function: (1) to provide for
liquidated damages, and (2) to strengthen the coercive force of the obligation by the threat of greater
responsibility in the event of breach”. Based on the report of the Code Commission, liquidated damages
are either (1) penalty, or (2) a fixed amount of recovery without proof. Hence, liquidated damages are
governed by the same rules that are applicable to obligations with penal clause (Lambert vs. Fox).

Q: Can liquidated damages be reduced?

A: YES. Article 2227 of the Civil Code provides that liquidated damages, whether intended as an
indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable. The Supreme
Court observed that “the question of whether a penalty is reasonable or iniquitous is addressed to the
sound discretion of the courts. To be considered in fixing the amount of penalty are factors such as – but
not limited to – the type, extent and purpose of the penalty; the nature of the obligation; the mode of
the breach and its consequences; the supervening realities; the standing and relationship of parties; and
the like” (Sps Poltan vs. BPI Savings Bank, Inc.)

Temperate Damages – these questions may be given to other groups.

Q:  What are Temperate Damages?  
A:  Temperate or moderate damages, which are more than nominal but less than compensatory
damages, and 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 (Art. 2224, NCC)

Q:  What are the elements of Temperate Damages?

A:  The elements of Temperate Damages are the following:
1. Some pecuniary loss;
2. Loss is incapable of pecuniary estimation; and
3. Damages awarded are reasonable.
source: UST

Q:  What is the purpose of Temperate Damages?

A:  When the court is convinced that there has been such a loss, the judge is empowered to
calculate moderate damages rather than let the complainant suffer without redress. (GSIS v.
Labung-Deang, 365 SCRA 341)
Source: https://batasnatin.com/law-library/civil-law/torts-and-damages/2388-what-are-the-kinds-
of-damages.html

Q:  How may the amount of temperate damages be determined?

A:  In computing the amount of temperate or moderate damages, it is usually left to the
discretion of the courts, but the amount must be reasonable, bearing in mind that temperate
damages should be more than nominal but less than compensatory (Nanito Evangelista vs. Sps.
Nero Andolong III, et al. G.R. No. 221770, November 16, 2016)
Source: https://batasnatin.com/law-library/civil-law/torts-and-damages/2388-what-are-the-
kinds-of-damages.html

Q:  What is the rationale behind the temperate or moderate damages? (1994 BAR) 
A:  The rationale behind temperate damages is precisely that from the nature of the case, definite
proof of pecuniary loss cannot be offered. When the court is convinced that there has been such
loss, the judge is empowered to calculate moderate damages, rather than let the complainant
suffer without redress from the defendant’s wrongful act (GSIS v. Spouses LabungDeang, G.R.
No. 135644, September 17, 2001).

-000-