Damages:

Meaning - pecuniary compensation for an injury

sustained, or for breach of some duty or violation
of some right.

Nature – to compensate for every wrong done, or

right transgressed, or every manner of loss or
injury. (Indemnification)

Award- In terms of legal tender not in any form

Complaint for damages – personal action

Damnum Absque Innjuria – there is damage but
no legal injury (wrong is absent –acting in good
faith in the exercise of right ) no recompense in
law.

Acting in Good faith:

Erroneous Interpretation of law: DAI

Inconvenience of Litigation – qui jure utitur nullum

damnum facit – one who exercise a right does no
injury.
Kinds of Damages:

Art. 2197

Actual or compensatory
Moral
Nominal
Temperate or moderate
Liquidated
Exemplary or corrective
Proof of pecuniary loss when and when not
necessary:

Actual or compensatory damages – needs proof

Component of actual damages:

1. Value of the loss suffered (Dano emergente)
2. Profits failed to realized (Lucro cesante)
(May be both awarded at the SAME TIME)
Damnum emergens & lucrum cessans)

Includes loss or impairment of earning capacity in

cases of temporary or permanent personal injury.
Business Standing and Commercial Credit:

Actual or Compensatory damages can be had

but hard to support by documented proof.

Instead what is given is temperate or moderate

damages.

Caused the check issued to bounce wherein

there is sufficient fund. - Moral damages can be
awarded instead of Actual damages.
Limit of liability in 2176 for quasi delicts Art. 2202

1. Restitutio in Integrum

Amount of money to restore such state prior to

the injury. Not more not less. EQUITY

2. Exception: - Defendant’s gain is measured

ex. Infringement of mark.

3. Damages breach of contract – basis violation of

the tenor of the contract – commensurate to.
Breach of Contract: including quasi contract

Two ways: 2201

Acted in good faith

Acted with malice, fraud, bad faith, wanton attitude

Culpa Contractual – proof of existence of a contract

and the failure of its compliance justify, (prima facie) a
corresponding right of relief.

(Doctrine of proximate cause doesn’t apply)

Actual-compensatory damages:

Certainty of damages - actual pecuniary loss must

be duly proved.

Best evidence obtained – court cannot rely on

speculations, conjectures, quesswork .

Burden of proof: Claimant

Quantum of evidence required – preponderance of

evidence.
Absence of proof of precise amount:
 Uncertainty as to the precise amount is not
necessarily fatal.

 Difficulty in the assessment of damages is not

sufficient to refuse award of damages.

 Effect of stipulation – there must be a breach

before compliance.

 Civil indemnity – like rape – homicide

actual/compensatory –mandatory upon factual
finding of the crime of rape – no proof of actual
loss is necessary.
Damage/Loss to property:

Personal Property: by wrongful act of the

defendant:

 Value at the time of the loss/damage

 Damages for loss of use during the period
before replacement

Real property:
Market value immediately before and after the
injury.
Total loss – time and place of loss - FMV
Loss of Possession: (real or personal property)

Entitled to the value of use- Fair rental value if

rented.

Damage to property special law: (RA 10642) L. Law

Compensation for the non-use of a vehicle under

repair.
PERSONAL INJURIES:

1. Medical expenses
2. Plastic surgery
3. Future medical expenses and life care
4. Alternative approach (periodic or lump sum)
Ramos v CA 8K/ month life support
Mercury v CA – lump sum

5. Loss of earning capacity - Borromeo v Manila

Electric Railroad and Light Co.
Art. 2206 death by crime or quasi-delict

Damages can be awarded: Civil indemnity/actual

/moral/exemplary/ attorney’s fee/ interest/
(temperate may b awarded in lieu of actual
damages)

 Civil indemnity ex delicto –death of the victim

 Actual / compensatory damages – pre-death

medical expenses / wake/funeral expenses (but
after burial expenses not included 9th 40th first
death anni.)
LOSS OF EARNING CAPACITY:

Death or permanent incapacity of the victim:

Formula:

Net earning capacity = life expectancy x (loss

annual income less necessary living expenses (50%
of the gross income) but cannot use actual lesser
expenses if no proof … use 50%

 (2/3 x (80-age at death)

 Proof of earning and expenses
If not working – no loss of earning capacity

But in cases:
Non working minor:
Metro manila transit corp. vs ca – based on
minimum wage for non-agricultural worker.

PP vs. Teehankee - up high school grad and

enrolled to a flying school

Cariaga v Laguna Tayabas Bus company

Medical stud yes 300 monthly income if he had
finished medicine .
Loss of profit:

In case of doubt in the computation – average 5

years preceding closure x number of remaining
years of the contract.

Also:

Lucro cesante – lost opportunity to earn profit…

early termination of contract.
ATTORNEY’S FEE

This is due to the plaintiff not the lawyer:

Art. 2208

11 enumerations

Amount court’s discretion

Not exactly the amount paid by the litigant to
his/her attorney
INTEREST:
 2209 – PAYMENT OF SUM OF MONEY – stipulated
interest in the absence of =6% per annum

 2210 breach of contract court discretion

 2211 crimes/quasi delict = court discretion

 2212 interest due will earn legal interest from the

time it is judicially demandable. 6% n-1
 2213 – no interest on unliquidated claims or
damages, except when the demand can be
established w reasonable certainty.
Kinds of interest:
Monetary and penalty interest:

 Monetary interest for use of money

(no more usury law)

 Compensatory interest – 2209

Obligation is breached and it consists in the

payment of a sum of money, loan or forbearance,
the interest is what it is in writing, no stipulation –
interest will be 6% n-1 from default judicial or
extrajudicial demand.
Upon finality of ruling , the rate of interest will be
6% n-a for the entire judgment until its full
satisfaction .

Nacar v Gallery frames Inc. based on BSP – MB

circular no. 799 dated June 21, 2013

NO interest applicable on unliquidated claims,

except the demand can be established with
certainty .
Mitigation of Liability - 2203-2204-2214- & 2215

Doctrine of avoidable consequences:

Art. 2203
After the act or omission of defendant, the plaintiff
must act to minimize the damage,
If the plaintiff can act with reasonableness to lessen
the damage and he did not, it will have an effect in
the claim of the plaintiff, this is anchored on equity /
unjust enrichment / but it does not include yielding
to a wrongful demand of wrongdoer to save him
from liability.
Collateral source rule:

A tortfeasor has o right to any mitigation of

damages because of payment received by the
injured person from an independent source:

Insurance: art. 2207

Principle of subrogation
*
Subrogation to the amount paid only
If not sufficient the plaintiff will go after the
defendant for the uncovered amount of damages.
Employees Compensation Benefits:

 Employee injured in the performance of his

function.
 In the alternative: 1 claim under the employee’s
compensation benefits Labor code or file a civil
action against the employer for tort. (cannot file
simultaneous actions) filling one deemed waive the
other remedy. GR
 Exception: lack knowledge of remedies/ and
availed ECB nullifies the election of remedies, but it
was not an intelligent choice, he can still file Civil
action, but the amount recovered in ECB will be
deducted.
MORAL DAMAGES:

Includes:
 Physical suffering
 Mental Anguish
 Fright
 Serious Anxiety
 Besmirched Reputation
 Wounded Feelings
 Moral shock
 Social humiliation
 And similar injury
Award – is incapable of pecuniary estimation-but
calculated compensation- not punitive in nature

Purpose – diversion or amusement to alleviate the

moral suffering. (GR personal in nature)

 Restoration of the SPIRITUAL STATUS QUO ANTE

 Spanish civil code NO PROVISION OF MORAL
DAMAGES
 American jurisprudence –source- proximate
cause of the guilty party’s wrongful act or
omission. – (delict/2176/ breach of contract)
ELEMENTS:

 INJURY – PHYSICAL MENTAL OR PSYCHOLOGICAL

 CULPABLE ACT OR OMMISSION MUST BE ESTABLISHED
 ACT OR OMISSION IS THE PROXIMATE CAUSE OF THE
INJURY
 AWARD BASIS 2219

PROOF AND CAUSATION:

 Can be adjudicated even without proof of pecuniary loss
 But prove it by testimonial evidence
 It must be alleged in the complaint – BUT in Murder and
rape – mandatory award of moral damages even without
allegation and presentation of proof.
 Also- prove proximate causation
Take note: in breach of contract/ willful injury to
property – award of MD – presence of bad faith or
fraudulent act must be present.

Mere contractual negligence – NO BAD FAITH OR

WILFULL ACT TO INNURE – NO MD

In 2176 – md – YES –PHYSICAL INJURIES/

INTENTIONAL TORT

Culpa Criminal – accused found guilty – physical

injuries/lascivious acts/adultery/concubinage/
libel/ malicious prosec.
 Unfounded suits – MD yes/ but filing of suit
with no basis is subject for malicious
prosecution / but if no COA- NO md IF FILED IN
Good faith even if done erroneously.

 Labor cases – MD yes dismissal without valid

cause (constructive dismissal MD YES!)

 Criminal taking of life – evidence need to be

adduced as a GR / but in case of violent death /
rape not required.
> Qualified rape – MD automatic 75K
Factors in determining the amount of MD

 Extend of humiliation (slapping of face)

 Pain and suffering (biting of ear/ amputation
in Valenzuela v. CA awarded MD at 1M
amputation as MD)
 Official, political, social and financial standing
 Age – child/ of age/
 Fixed – delict murder 50K
civil case 2176 50K
rape 75k per count of rape
Persons who may recover –
 Personal as a GR

 Relatives – parents of female

seduced/abducted/raped or abused/ =No. 3 of art.
2219, also parents of a fetus aborted subject to
MD –disappointment of parental expectation. In
Geluz vs CA vluntary abortion of the wife – DM
against the physician (no MD because of the
indifference of the father in the first abortion)

 Spouse, descendant, ascendants, brothers and

sisters may bring the action in No. 9 of 2219
covered by Art. 309 of the CC
 Corporation – No and Yes -impossible no
nervous system/ debased good reputation -
based on libelous act. Mambulao case Obiter
dicta:

 Stated that PP v Manero and Mambulao

Lumber v. PNB “ corporation may recover MD if
it “has a good reputation and is debased,
resulting in social humiliation” is an obiter
dictum. They awarded MD as a way of
exception in defamation cases in Art. 2219 (7)
 No distinction as to natural person or ABCFL.
NOMINAL DAMAGES:

SUBSTANTIAL CLAIM BASED ON THE VIOLATION OF A

LEGAL RIGHT (technical injury)

Art. 2221 2222 2223

Concept: NOT TO COMPENSATE ACTUAL LOSS SUFFERED

(ACTUAL DAMAGES) BUT TO VINDICATION OR
RECOGNITION OF THE RIGHT VIOLATED OR INVADED.

*** therefore cannot co-exist with actual damages,

discretionary on the court to the extend -amount

EX. Physical injuries which cannot be proved as to actual

damages – nominal damages were given
Labor cases – NOMINAL DAMAGES – NON OBSERVANCE
OF DUE PROCESS IN VALID TERMINATION 30k FOR JUST
CAUSE AND 50k FOR AUTHORIZED CAUSES.

Due process is the two notice rule

1st notice – informing the respondent employee his

violation that can be a ground for valid termination, and
time given to rebut and explain his side and why he /
she should not be terminated.

2nd notice
notice of termination
Temperate/Moderate Damages:

Art. 2224 in-between actual and nominal

Art. 2225

There is pecuniary loss but cannot be

ascertained –

But the court is convinced that there has been

such pecuniary loss.

Remedy award temperate damages

Can temperate damages be awarded on top of
actual damages? YES

If during the litigation – actual damages can be

ascertained then the court should award actual
damages.

If the injury is continuing, meaning possible future

complications directly arising from the injury.

The court can award temperate damages also.

Ramos v CA GR 124354 1999
Loss of earning capacity – considered as actual
damages

But if no evidence presented to establish lost of

earning capacity.

Temperate damages can be awarded in lieu of

Actual damages.

Temperate damages for loss of earning capacity.

Pleno v CA GR L-56505 1988

Funeral expenses without receipt – temperate
damages can be award at 25K PP vs. Abrazalda
397 scra 137

In murder – no actual receipt to compensatory

damages – court awarded Temperate damages at
25k in lieu of Actual damages,

Note is the receipt is less than 25K asking for

actual damages the court must award 25k as
temperate damages.
PP vs del Rosario GR 189580 2011
Injury to business or credit standing:

Araneta v Bank of America 1971

Twice check issued by Mr. Araneta bounced

despite of sufficiency of funds.

Filed civil case for damages: compensatory/

moral/ temperate/ exemplary/ attorney’s fee/

SC no actual damages – did not ascertained

actual damages/ but he court awarded
temperate damages at 5K
Liquidated damages:

Agreed upon by parties stated in the contract to

be paid incase of breach.

 This is in the form of a penalty in order to

avoid further controversy on the amount of
damages.

 Obligor bound to pay the amount without

need of proof or to measure the extend of
damages caused by the breach.
Purpose of Liquidated damages:

1. To ensure performance
2. To provide a fixed amount of rate as
liquidated damages.
3. To strengthen the coercive force of the
obligation by threat of greater responsibility
in case of breach.
4. As a penalty
5. Fixed amount to recover without proof.

Nature obligation with a penal clause.

Example:
Lease – abandonment / pre –termination of the
lease by the lessee less than 1 month of lease –
penalty as liquidated damages – forfeiture of the
advance rental or the security deposit.

Employment contract – with NON –

INVOLVEMENT CLAUSE

CAN SPECIFY a liquidated damages as a form of

a penalty.

Tui v Platinum plans

Reduction of liquidated damages:

GR – court cannot change liquidated damages

Exception if it is iniquitous or unconscionable

The court did not adjust the liquidated damages

because from the start the respondent has no
intention to perform.

Tiu v. Platinum GR 163512 2007

Art. 2228

When breach of the contract committed by the

defendant is not the one contemplated by the
parties in agreeing upon the liquidated damages.

The court will determine the measure of

damages. And will not based it to the liquidated
damages stated in the ocntract.
EXEMPLARY DAMAGES;

Corrective damages – in US Law Punitive

damages

We use corrective damages:

 Required by PUBLIC POLICY TO SUPRESS

WANTON ACT
 They are antidotes so that the poison of
wickedness may not run through the body
politic.
 To curb social deleterious actions
HONESTE VIVERE, NON ALTERUM LAEDERE ET JUS
SUUM CUIQUE TRIBUERE.

“To live virtuously, not to injure others and to give

everyone his due”

 May be awarded in addition to actual damages

 Cannot be recovered as a matter of right, the
basis on the amount is in reference with the
actual damages awarded.
 Act must be with bad faith , wanton,
fraudulent, oppressive or malevolent manner.
Statutory provisions: award of exemplary
damages is governed by the ff:

1. 2230 - Criminal offense – civil liability in crime

committed with one or more aggravating
circumstances.
2. 2231 – in 2176 where the defendant acted
with gross negligence
3. 2232 – defendant acted wanton, fraudulent,
oppressive manner
4. 2233 – cannot be recovered as a matter of
right discretionary on the part of the court.
Art. 2234 – exemplary damages in not be proved,
But plaintiff must show that he is entitled to
Moral, temperate and actual damages before the
court may consider awarding or not exemplary
damages.

can co exist all kinds of damages except nominal

with actual.

Art. 2235 – a stipulation of exemplary damages

are renounced in advance shall be null and void.
Ex. Exemplary damages awarded by the court.

 Discourtesy to passengers Northwestern

airlines v
CA 186 scra 440 1990

 YUCHENCO V THE MANILA CHRONICLES

PUBLISHING CORP. GR 184315 2011
Libel court awarded – 10m as exemplary damages

> Gross negligence – 2231 – Far east bank and

trust co. vs CA GR 108164 1995
In January 2018, Mrs. A, a married woman on her sixth (6th) month of
pregnancy, was crossing the street when she was suddenly hit by a car being
recklessly driven by Mr. X. As a result, Mrs. A sustained serous injuries and
further, suffered an unintentional abortion. Mrs. A hospitalized for two (2)
months, during which she incurred P400,000.00 in medical fees. Her expenses
were all duly substantiated by official receipts. During the two-month period of
her confinement, she was unable to report for work and earn any salary.
Which was established at the rate of P50,000.00 per month. Mrs. A then filed
a civil case for damages against Mr. X.

a) Based on the case filed by Mrs. A, what is the source of Mr. X’s obligation
to her as a result of his acts?
b) May Mrs. A claim actual damages from Mr. X? if so, how much can Mrs. A
claim?
c) May Mrs. A claim damages on behalf of her unborn baby ?
d) What must Mrs. A prove if she wants to recover moral damages from Mr. X?
e) Assuming that Mrs. A is awarded actual and moral damages by the trial
court, may she also claim interest if the final and executory judgment award
remains unpaid by Mr. X? if so, when should the interest be reckoned and what
is the rate of the interest?