Damages it may be defined as a

sum of money which the law

awards or imposes as pecuniary
compensation, recompense, or
satisfaction for an injury done or a
wrong
sustained
as
a
consequence of the breach of
some duty or the violation of
some right.
The different kinds of damages
recoverable under our NCC are:
1. Actual
or
Compensatory
damages, or the compensation
awarded to a person for such
pecuniary loss suffered by him as
he has duly proved.
- To seek recovery for actual
damages, it is essential that the
injured party proves the actual
amount of loss with reasonable
degree of certainty premised upon
proof and on the best evidence
available.
- 2 kinds of actual or compensatory
damages:
o Dano emergente refers to the
value of the loss suffered.
o Lucro Cesante refers to the
profits which the obligee failed
to obtain.
- In crimes and quasi-delicts, the
defendant is liable for all damages
which are the natural and probable
consequences of the act or
omission complained of. It is not
necessary that such damages have
been forseen or could have
reasonably been foreseen by the
defendant.
- In contracts and quasi-contracts,
the damages for which the obligor
who acted in good faith is liable
shall be those that are natural and

probable consequences of the

breach of the obligation, and which
the parties have foreseen at the
time
the
obligation
was
constituted.
In case of fraud, bad faith, malice
or wanton attitude, the obligor
shall
be
responsible
for
all
damages which may be reasonably
attributed to the non-performance
of the obligation.

2. Moral
Damages,
or
the
compensation awarded to a person
for physical suffering, mental
anguish, fright, serious anxiety,
besmirched reputation, wounded
feelings,
moral
shock,
social
humiliation, and similar injury.
- Art. 2219 of the NCC enumerates
the instances when moral damages
may be recovered.
- Under our law, the only instances
where
moral
damages
are
recoverable in damage actions
predicated on culpa contractual
are:
(1) Where the mishap results in the
death of the passenger; and
(2) Where it is proved that the
carrier was guilty of fraud or
bad faith, even if death does
not result.
- According to the SC, moral
damages are to be fixed in the
discretion of the court taking into
consideration
the
educational,
social and financial standing of the
parties.
- The SC expressly declared that
the amount of damages awarded
has
been
determined
by
considering the official, political,
social, and financial standing of the
offended parties on one hand and

Page 1 of 6

the business and financial position

of the offender on the other hand.
(Lopez vs. Pan American Airways,
March 30 1966)
The SC declared, the task of fixing
the moral and exemplary damages,
as well as attorneys fees, is
primarily with the trial court. Xxx
In order that moral damages may
be awarded, there must be
pleading and proof or moral
suffering, mental anguish, fright
and the like. Mere allegations do
not
suffice;
they
must
be
substantiated
by
clear
and
convincing proof.
In breaches of contract, moral
damages are awarded if the
defendant was shown to have
acted fraudulently or with malice or
bad faith.
The damage to the reputation and
social standing of the respondents
entitles them to moral damages.
Well-settled is the rule that the
financial credit of a businessman is
a prized and valuable asset, it
being a significant part of the
foundation of his business. Any
adverse
reflection
therein
constitutes some financial loss to
him. (Araneta vs. Bank of America,
40 S 144)
The following are the requisites for
the award of moral damages:
(1) There
is
injury,
whether
physical,
mental
or
psychological clearly sustained
by the claimant;
(2) There is a culpable act or
omission factually established;
(3) The wrongful act or omission of
the defendant is the proximate
cause of the injury sustained by
the claimant;

(4) Award of damages is predicated

on any of the cases stated in
Art. 2219, NCC.
Art. 2219 of the NCC which
provides that moral damages may
be
recovered
for
malicious
prosecution would more than
sufficiently serve as a basis for
relief in court against a party who
has maliciously caused another to
baselessly
and
unjustifiably
undergo a criminal prosecution for
an offense he knows the latter had
not committed.
GR: Moral damages and exemplary
damages are not recoverable in
damage actions predicated on a
breach of promise to marry
because it is not actionable.
o Exception: if the act of the
defendant
in
breaking
his
promise
to
marry
is
accompanied by any of the acts
enumerated in Art. 2219 of the
NCC,
such
as
seduction,
abduction, rape or lascivious
acts, or that the act is contrary
to morals, good customs or
public policy. This time, the
basis of the recovery will not be
breach of promise to marry.
Moral damages may be recovered
in culpa contractual where the
defendant acts in bad faith or
malice in the breach of contract.
With respect to the amount of
moral damages to be awarded, the
well-entrenched principle is that
the grant thereof depends upon the
discretion of the court considering
the circumstances of each case.
Moral damages may be recovered
under Art. 21 of the NCC which
provides that any person who

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willfully causes loss or injury to

another in a manner that is
contrary to morals, good customs
and public policy shall compensate
the latter for the damage.
o Accordingly, in Tenchaves vs.
Escano (15 S 355, 17 S 674),
the SC held that the acts of the
wife in not complying with her
wifely duties , her denial of
consortium and desertion of her
husband
are
acts
which
constitute a willful infliction of
injury upon the husbands
feelings in a manner contrary to
moral, good customs or public
policy for which No. 10 or Art.
2219 of the NCC authorizes an
award for moral damages.
A brother or a sister cannot recover
moral damages for mental anguish
by reason of the death or the
deceased. According to No. 3 of
Art. 2206 of the NCC, only 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.

3. Nominal damages, or an amount

awarded to a person in order that
his right, which had been violated
or invaded be vindicated or
recognized and not for the purpose
of indemnifying the plaintiff for any
loss suffered by him.
4. Temperate
or
moderate
damages, or the compensation
which is more than nominal but
less than compensatory damages,

awarded to a person when the

court finds that he has suffered
some pecuniary loss, but its
amount cannot, from the nature of
the case, be proved with certainty.
This may be recovered when the
court finds that some pecuniary
loss has been suffered but its
amount cannot, from the nature of
the case be proved with certainty.
Examples:
o In the case of Araneta vs. Bank
of America (40 S 144), injury to
ones commercial credit or the
goodwill of the business firm is
often hard to show in terms of
money.
o Rationale: that from the nature
of the case, definite proof of
pecuniary loss cannot be
adduced, although the court is
convinced that the aggrieved
party suffered some pecuniary
loss.
Temperate and nominal damages
are incompatible and cannot be
granted concurrently.

5. Liquidated damages, or that

agreed upon by the parties to a
contract, to be paid in case of
breach thereof.
6. Exemplary
or
corrective
damages, or that imposed by way
of example or correction for the
public good, in addition to the
moral, temperate, liquidated or
compensatory damages.
- They are awarded to serve as a
deterrent to serious wrong doings
and as a vindication of undue
sufferings and wanton invasion of
the rights of an injured or a

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punishment for those guilty of

outrageous conduct.
In Art. 2231, NCC, explicitly
authorizes the imposition of
exemplary damages in cases of
quasi-delicts if the defendant acted
with gross negligence.
The following are the rules
governing the award of exemplary
or corrective damages:
(1) Exemplary damages 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);
(2) In criminal offense, exemplary
as 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. (Art.
2230, NCC);
(3) In quasi-delicts, exemplary
damages may be granted if the
defendant acted with gross
negligence. (Art. 2232, NCC);
(4) In contracts and quasicontracts, the court may award
exemplary damages if the
defendant acted in a wanton,
fraudulent, reckless, oppressive,
or malevolent manner. (Art.
2232, NCC);
(5) Exemplary damages cannot be
recovered as a matter of right;
the court will decide whether or
not they should be adjudicated.
(Art. 2233, NCC);
(6) 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 may be
awarded.
In order that the principal or
master can be held liable for
exemplary damages based upon
the wrongful act of his agent or
servant,
he
should
have
participated in the doing of such
wrongful act or should have
previously
authorized
or
subsequently ratified it with full
knowledge of the facts.

Attorneys fees
-

The award of attorneys fees as

part of damages is considered just
and equitable when a party is
compelled to litigate or incur
expenses to protect his interest by
reason of an unjustified act of the
other party.
GR: in the absence of stipulation,
attorneys fees and expenses or
litigation, other than judicial costs,
cannot be recovered.
Exceptions:
1. When exemplary damages are
awarded, attorneys fees may
also
be
recovered
where
exemplary
damages
are
awarded;
2. When the defendants act or
omission has compelled the
plaintiff to litigate with third
persons or to incur expenses to
protect his interest;
3. In criminal cases or malicious
prosecution against the plaintiff;

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4. In case of a clearly unfounded

civil
action
or
proceeding
against the plaintiff;
5. Where the defendant acted in
gross and evident bad faith in
refusing to satisfy the plaintiffs
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
workmens compensation and
employers liability laws;
9. In 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 attorneys fees
and expenses of litigation
should be recovered.
In all cases, the attorneys fees and
expenses of litigation must be
reasonable. (Art. 2208, NCC)

Cases:
1. Air France vs. Carrascoso:
A
contract
to
transport
passengers is quite different
kind and degree from ny other
contractual relation. And this,
because of the relation which an
air-carrier sustains with the
public. Its business is mainly
with the travelling public. It
invites people to avail of the
comforts and advantages it
offers. The contract of air

carriage, therefore, generates a

relation attended with a public
duty. Neglect or malfeasance of
the
carriers
employees
naturally could give ground for
an action for damages.
So it is, that any rude or
discourteous conduct on the
part of the employees towards a
passenger gives the latter an
action for damages against the
carrier.
Notes:
A. When death occurs as a result of a
crime, the heirs of the deceased
are entitled to the following items
of damages:
1. As indemnity for the death of the
victim of the offense imposed
even without the need of any
evidence or proof of damages, and
even though there may have been
mitigating circumstances attending
the commission of the offense;
2. As indemnity for loss of earning
capacity of the deceased an
amount
fixed
by
the
court
according to the circumstances of
the deceased related to his actual
income at the time of death and his
probable like expectancy, the said
indemnity to be assessed and
awarded by the court as a matter
of duty, unless the deceased had
no earning capacity at said time on
account of permanent disability not
caused by the accused. If the
deceased was obliged to give
support, under Art. 291, NCC, the
recipient who is not an heir, may
demand support from the accused
for not more than five (5) years,

Page 5 of 6

3.

4.

5.

6.
7.

the exact duration to be fixed by

the court.
As moral damages for mental
anguish an amount to be fixed by
the court. They may be recovered
even
by
the
illegitimate
descendants and ascendants of the
deceased.
As exemplary damages, when the
crime is attended by one or more
aggravating circumstances an
amount to be fixed in the discretion
of the court, the same to be
considered separate from fines.
As attorneys fees and expenses of
litigation the actual amount
thereof (but only when a separate
civil action to recover civil liability
had been filed or when exemplary
damages are waived.)
Interests in the proper cases.
It must be emphasized that he
indemnities for loss of earning
capacity of the deceased and for
moral damages are recoverable

separately from and in addition to

the fixed sum of --B. It is well-settled that the defense of
due diligence in the selection and
supervision of employees is not
available as a defense in damage
actions based on culpa contractual.
It is, of course, available in actions
based on culpa aquiliana where
there is a disputable presumption
to the effect that the fault or
negligence of the employee is the
fault of negligence of the employer,
but in actions based on culpa
contractual, the fault or negligence
of the employee is conclusively
presumed to be the fault or
negligence of the employer.
- Art. 1759 of the NCC expressly
declares that the liability of
common carriers does not cease
upon proof that they exercised
due diligence in the selection
and
supervision
of
their
employees.

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