NEW CIVIL CODE: DAMAGES

(ARTS. 2195-2235)
(NCC: dissected & restructured)

GENERAL PROVISIONS
ART. 2195
The provisions regarding damages
shall be applicable to all obligations
arising from those mentioned in article
1157 (contract, quasi-contracts, quasidelict, etc.)
As a rule the obligee is only
entitled to actual damages except as
provided by law or by stipulation.

a. Shall be liable for those that

are natural and probable
consequence of breach of
obligation; &
b. Which
parties
have
foreseen or could have
reasonably foreseen at the
time the obligation was
constituted.
2. Obligor who acted in bad faith,
with fraud, bad faith, malice or
wanton attitude
a. Shall be responsible for
damages which may
reasonably attributed
non-performance
obligation.

all
be
to
of

ART. 2197
Kinds of Damages:
1.
2.
3.
4.
5.
6.

Actual/compensatory
Moral
Nominal
Temperate/moderate
Liquidated
Exemplary/corrective

ACTUAL DAMAGES
ART. 2199

ART. 2202
Liability for damages in crimes &
quasi-delicts:
The defendant shall be
liable for all damages which are
the
natural
and
possible
consequences of the act or
omission complained of. It is not
necessary that the defendant have
foreseen or could have reasonable
foreseen the damage.

Actual Damages (definition)

Adequate
compensation
for
pecuniary loss suffered by a person, as he
has duly proved.

ART. 2200

ART. 2203
One suffering from loss or injury
must exercise the diligence of a good
father of a family to minimize the
damages resulting from the act or
omission.

Indemnification for damages:

1. Value of loss suffered; &
2. Profits which the obligee failed to
obtain.

ART. 2204
In
crimes,
mitigating
and
aggravating circumstances can be
considered in lessening or increasing the
award for damages.

ART. 2201
Liability for damages in contracts &
quasi-contracts:
1. Obligor who acted in good faith

ART. 2205
Cases when damages may be recovered:
1. In case of loss or impairment of
earning capacity in cases of

Adah Gwynne P. Tobes COLLEGE OF LAW, UNIVERSITY OF EASTERN PHILIPPINES


temporary or permanent personal
injury.
2. In case of injury to plaintiffs
business standing or commercial
credit.

If the amount recovered from the

insurer does not fully cover the injury or
loss, the plaintiff may still recover the
deficiency from the one who caused the
damage.

ART. 2208
ART. 2206
Amount of damages in case of death
caused by a crime or quasi-delict:
The amount shall be at least
P3000 regardless of any mitigating or
aggravating circumstance.
Plus:

Recovery of attorneys fees and

expenses of litigation:
These cannot be recovered in the
absence of stipulation.
Exceptions:
1. When exemplary damages are
awarded.
2. In actions for legal support.

1. Defendant shall be liable for the

loss of earing capacity of the
deceased. The indemnity shall be
assessed and awarded by the court
in every case, unless the deceased
has no earning capacity at the
time of his death due to permanent
physical disability not caused by
the defendant.

3. When the defendants act or

omission has compelled the
plaintiff to litigate with third
persons or incur expenses to
protect his interest.
4. In criminal cases of malicious
prosecution against the plaintiff.

2. In case the deceased was obliged to

give support to a recipient that
was not an heir called to the
decedents
inheritance
by
succession, the recipient may
demand from the defendant such
support for a period not exceeding
5 years, the exact during shall be
fixed by the court.

5. In case of clearly unfounded civil

action or proceeding against the
plaintiff.

3. Moral damages may be demanded

from the defendant for the mental
anguish caused by the death of the
deceased,
by
the
spouse,
legitimate
or
illegitimate
descendants and ascendants of
the deceased.

7. In actions for recovery of wages of

household helpers, laborers and
skilled workers.

6. Where the defendant acted in

gross and evident bad faith in
refusing to satisfy the plaintiffs
plainly valid, just and demandable
claim.

8. In actions for indemnity under the

workmens compensation and
employers liability law.
9. In separate civil action to recover
civil liability arising from a crime.

ART. 2207
In case the plaintiffs property has been
insured:
The insurer or the insurance
company who indemnified the plaintiff
for the injury or loss caused by another,
shall be subrogated to the rights of the
insured against the wrongdoer or one
who violated the contract.

10. When at least double judicial costs

are awarded.
11. In any other cases where the court
deems it just and equitable that
attorneys fees and expenses of
litigation should be recovered.
*in all cases the amount must be
reasonable.

Adah Gwynne P. Tobes COLLEGE OF LAW, UNIVERSITY OF EASTERN PHILIPPINES

ART. 2209
Obligation consist in payment of sum of
money and debtor incurs in delay:
The indemnity for damages if
there is no stipulation to the contrary,
shall be the payment of the legal interest
agreed upon. Absence of stipulation the
legal interest is 6% per annum.

ART. 2210
Interest upon damages awarded
for breach of contract may be granted at
the discretion of the court.

ART. 2211
Interest as part of damages:
In crimes and quasi-delicts,
interest may be adjudicated at the
discretion of the court as part of the
interest.

ART. 2212
Interest due shall earn legal
interest from time it is judicially
demanded, although the obligation may
be silent upon this point.

ART. 2213
Interest cannot be recovered
upon unliquidated claims or damages,
except when demand can be established
with reasonable certainty.

and quasi-delicts other than the case

referred to in the preceding article:
1. The
plaintiff
himself
has
contravened the terms of the
contract.
2. That the plaintiff has derived
some benefit as a result of the
contract.
3. In
cases
where
exemplary
damages are to be awarded, that
the defendant acted upon the
advice of counsel.
4. That the loss would have resulted
in any event.
5. That since filing of the action, the
defendant has done his best to
lessen the plaintiffs loss or injury.

OTHER KINDS OF DAMAGES

ART. 2216
No proof of pecuniary loss is necessary
in:
1. Moral damages;
2. Nominal damages;
3. Temperate damages;
4. Liquidated damages; or
5. Exemplary damages

The
adjudication
of
the
abovementioned is left to the
discretion of the court, according to
the circumstances of each case,
except liquidated ones.

MORAL DAMAGES
ART. 2217
Moral
damages
enumeration):

ART. 2214
In
quasidelicts,
the
contributory negligence of the plaintiff
shall reduce the damages that he may
recover.

ART. 2215

(definition

by

Include physical suffering, mental

anguish,
fright,
serious
anxiety,
besmirched
reputation,
wounded
feelings, moral shock, social humiliation,
and similar injury.

Though not capable of pecuniary

computation, moral damages may be
recovered if they are the proximate
result of the defendants wrongful act or
omission.

Cases when the court may mitigate the

damages in contracts, quasi-contracts,

Adah Gwynne P. Tobes COLLEGE OF LAW, UNIVERSITY OF EASTERN PHILIPPINES


ART. 2218
In adjudication of moral damages,
the sentimental value of the real or
personal property may be considered.

ART. 2219
Analogous cases when moral damages
may be recovered:
1. Criminal offense
physical injuries.
2. Quasi-delicts
injuries.

resulting

causing

NOMINAL DAMAGES
ART. 2221
Nominal Damage (definition)
These damages are adjudicated in
order that the right of a plaintiff, which
has been violated or invaded by the
defendant may be vindicated or
recognized. The purpose is not to
indemnify the plaintiff for any loss or
injury suffered by him.

in

ART. 2222

physical

3. Seduction, abduction, rape, or

other lascivious acts.
4. Adultery or concubinage.
5. Illegal or arbitrary detention.
6. Illegal search.

Cases when nominal damages may be

adjudicated:
1. In every obligation arising from
those enumerated in article 1157;
or
2. In every case where any property
right has been invaded.

7. Libel, slander, or any other form of

defamation.

ART. 2223

8. Malicious prosecution.
9. Acts mentioned in article 309.
10. Acts referred to in articles 21, 26,
27, 28, 29, 30, 32, 34, & 35.

The parents of the victim referred to

in number 3 are also entitled to recover
moral damages.
The spouse, descendants, ascendants,
and brothers and sisters may bring the
action mentioned in number 9 in the
order named.

Effect of
damages:

adjudication

of

nominal

It shall preclude further contest

upon the right involved and all accessory
questions, as between the parties to the
suit, or their respective heirs or assigns.

TEMPERATE/MODERATE
DAMAGES
ART. 2224
Temperate damages (definition):

ART. 2220
In willful injury to property as well
as breaches of contract where the
defendant acted fraudulently or in bad
faith, the one who suffered may recover
moral damages if the court should find
that under the circumstances, such
damages are justly due.

These are damages that are more

than nominal but less than compensatory
damages, it 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.
Under article 2225, it must be
reasonable under the circumstances.

Adah Gwynne P. Tobes COLLEGE OF LAW, UNIVERSITY OF EASTERN PHILIPPINES

LIQUIDATED DAMAGES

ART. 2231

ART. 2226

In case of quasi-delicts, exemplary

damages may be granted if the defendant
acted with gross negligence.

Liquidated damages (definition)

These are damages agreed upon
by the parties to a contract, to be paid in
case of breach thereof.

ART. 2227
Liquidated
damages
whether
intended as indemnity or a penalty, shall
be reduced equitably if they are
iniquitous or unconscionable.

In contracts and quasi-contracts,

the court may award exemplary damages
if the defendant acted in a wanton,
fraudulent, reckless, oppressive, or
malevolent manner.

ART. 2233

ART. 2228
In case the breach of contract is not the
one contemplated in the stipulation of
the parties regarding liquidated
damages:
The law shall determine
measure of damages and not
stipulation.

ART. 2232

the
the

Exemplary damages cannot be

recovered as a matter of right; the court
will decide whether or not they should be
adjudicated.

ART. 2234
Pre-requisite
before
damages may be granted:

EXEMPLARY/CORRECTIVE
DAMAGES
ART. 2229
Exemplary damages (definition):
These damages are imposed by
way of example or correction for the
public good, I addition to moral,
temperate, liquidated or compensatory
damages.

exemplary

The
amount
of
exemplary
damages need not be proved. However,
before the court may consider the
granting of exemplary damages, the
plaintiff must first show that he is
entitled to moral, temperate, or
compensatory damages.
In case of considering to add
exemplary
damages
to
liquidated
damages, regardless of the necessity of
proof of loss, the plaintiff must first show
that he is entitled to moral, temperate, or
compensatory damages were it not for
the stipulation for liquidated damages.

ART. 2230
In criminal offenses, when it was
committed with one or more aggravating
circumstances, exemplary damages may
be imposed as part of the civil liability.
Such damages shall be separate and
distinct from fines and shall be paid to the
offended party.

ART. 2235
Advance waiver of exemplary
damages is null and void.

Adah Gwynne P. Tobes COLLEGE OF LAW, UNIVERSITY OF EASTERN PHILIPPINES