Damages

Aquino Book
-designed to repair the wrong that has been done NOT to impose a penalty

1.
2.

Difference between Damage and Damages

Damage- loss hurt or harm which results from injury
Damages- recompense or compensation awarded for the damage suffered
-complaint for damages is a personal action
-award must be in money (legal currency in the Phils)
2. DAMNUM ABSQUE INJURIA
-there is no liability even if there is damage bec. there is no injury

ART 2205
4.02. EXTENT AND MEASURE OF DAMAGES (limit of liability)
-limit of liability involving quasi-delict
ART 2202
a.

Restitutio in Integrum
-the amount to be awarded to the plaintiff should be that sum of
money which will put the party who has been injured or who has
suffered in the same position as he would have been in if he had
not sustained the wrong for which he is now getting his
compensation or reparation
-damage is measured on plaintiffs loss and not on defendants
gain

b.

Exception: defendants gain is the measure

-benefits derived by the defendant pertain to or could have been
received by the plaintiff because only the plaintiff is supposed to
profit from the activity involved

c.

Damages in breach of contract

ART 2201

Difference b/w Damage and Injury

-Injury is the legal invasion of a legal right
-Damage is the loss, hurt, or harm which results from the injury
-there can be damage without injury in those instances in which the loss or harm was not the result
of a violation of a legal duty
-if person exercised legal rights, it is damnum absque injuria (e.g. one filing a complaint in good
faith)
-concurrence of injury to the plaintiff and legal responsibility by the person causing it, in order to
maintain an action for the injuries

Loss of what a person already possesses (dao emergente

Failure to receive as a benefit that would have pertained to
him (lucro cesante)

-erroneous interpretation of law by public officers is damnum absque injuria

(1)

Nature of Breach of Contract

-in culpa contractual xxx the mere proof of the existence of
the contract and the failure of its compliance justify prima
facie a corresponding right of relief

(2)

Applicability of Proximate Cause

-proximate cause is applicable only in action for quasi-delict,
not in actions involving breach of contract
-however it is not correct to say however that prox. Cause is
not material in breach of contract cases
-while prox. Cause need not be established to prove breach
of contract, the moment breach of contract is established, the
plaintiff must also establish the causal connection between
the breach and the damage before he can recover

- adverse result of an action (nag file isang tao against you tas in favor sayo ang decision) does not
per se make the action wrongful and subject the actor (yung nag file ng action) to damages
3. KINDS OF DAMAGES
-involves any and all manifestations of life (physical, moral, mental, spiritual, etc.)
ART 2179
-proof of pecuniary loss necessary to recover ACTUAL damages
-no proof of pecuniary loss for moral, nominal, temperate, liquidated or exemplary
-assessment of damages is left to the discretion of the court EXCEPT liquidated ones
4. ACTUAL OR COMPENSATORY DAMAGES
ART 2199-2203, 2207, 2209

4.03. CERTAINTY OF DAMAGES

-only for such pecuniary loss actually suffered and duly proved
-must be proven with reasonable degree of certainty
-best evidence/competent proof obtainable of the actual amount thereof

1. Definition and Concept

-pecuniary compensation for an injury sustained
-pecuniary consequences which the law imposes for breach of some duty or violation of some rights

4.01. KINDS OF ACTUAL DAMAGES

-not only value of loss
-but also that of the profits that the obligee failed to obtain

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DAMAGES
-applicable to all obligations in 1157 (law, quasi contract, contract, delict, quasi delict)

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(e.g. medical expenses that will be incurred by a comatose person, continuous
rehabilitation and therapy to prevent complications)

a.
Burden of Proof
-claimant is duty-bound
-must establish by a preponderance of evidence
-not sufficient if claimant merely present an estimated amount needed

c.
Civil Indemnity
-proof of actual loss not necessary
-e.g. mandatory upon finding of the fact of rape, where the victim died
-however, civil indemnity is in addition to any actual or compensatory damages that may
be awarded
4.04. DAMAGE TO PROPERTY
a. Damage to or Loss of Personal Property
-plaintiff entitled to value of goods at the time of destruction
-what the plaintiff would have paid in the market for similar good plus, in proper cases,
damages for the loss of use
-in case of profit-earning chattel, value of the chattel to its owner as a going concern at
the time and place of loss
--> add the to the value thus assessed the anticipated profit
b. Damage to or Loss of Real Property
-for a permanent injury, ordinariliy the difference bet. The reasonable market value of the
property immediately before and after the injury
-in case of total loss, the value of the property at the time and place of the loss
c. Loss of Possession
-when plaintiff was merely deprived of his possession, said plaintiff is entitled to the value
of the use of the premises (e.g. trespass, illegal occupation of a house, deprivation of
possession of personal property)
-still entitled to damages even if trespass is intermittent
4.05. PERSONAL INJURY
a.
Actual medical and other expenses
-entitled to the amount of medical expenses as well as other reasonable expenses
b.
Plastic surgery
-award of damages may include amount spent for plastic surgery or any procedure to
restore the part of the body that was affected
c.
Future medical expenses and life care cost
-if the victim did not die but he or she will require medical assistance for the rest of his or
her life, it is proper to award life care cost because the tortfeasor is liable for all damages
which are natural and probable consequences of the acts or omissions complained of

Alternative Approaches of Providing for Future Medical Expense : Periodic v.

Lump Sum
-Periodic (Ramos v CA)
-->enforcement of periodic payment is problematic
-->might be difficult to enforce the award if the judgment debtor is not regular

in his payments
-Lump Sum (Mercury Drug v Spouses Huang)
--> better rule
--> although, oppositionists view is that lump sum awards often are
dissipated by improvident expenditures or investments before the injured person actually incurs the
future medical expenses
d.
Loss of Earning Capacity
-plaintiff entitled when act or omission resulted in permanent incapacity (e.g. loss of foot)
4.06. DAMAGES IN CASE OF DEATH
ART 2206
a. Damages That Can Be Awarded
-when death due to negligent act or a crime:
--> 1 civil indemnity ex delicto for death of the victim
2 actual or compensatory damages
3 moral damages
4 exemplary damages
5 attys fees and expenses of litigation
6 interest
--> Temperate damages may also be awarded in lieu of actual damages in
proper cases
b. Actual Expenses
-in case of death, entitled not only to reimbursement for medical expenses, but also to
the amount that he spent in wake and funeral of the deceased
-expenses after burial not compensable (e.g. 9th day,40th day, 1st year anniv)
c. Fixed Damages or Civil Indemnity
-fixed amount of damages (currently, P50,000 ) in addition to any damage that may have
resulted
-increased to P75000 in murder cases
--> also justified so long as the crime committed would justify the imposition of death
penalty
4.07. LOSS OF EARNING CAPACITY
ART 2206
a.
Formula
-important variables to determine the amount of loss earnings:

b.
Absence of Proof of Precise Amount
-uncertainty as to precise amount not necessarily fatal
-difficulty in assessment of damages is not sufficient reason for refusing to award
damages where right to them has been established

1.

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-court cannot rely on speculations as to fact and amount of damages

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--> 1. Number of years for which the victim would otherwise have lived (life
expectancy)
2. rate of loss sustained by the heirs of the deceased (net income)
-Formula (VillaRey Transit v CA)

-In People v Quilaton (assigned case), Justice Feliciano proposed a new

formula because the formula adopted in VillaRey is already obsolete
-however, the propsed formula did not gain acceptance in subsequent cases
-the SC reverted to VillaRey formula in cases decided after People v Quilaton

Net Earning Capacity = Life Expectancy x [Gross Annual Income less

Necessary Living Expenses]
b.
Life Expectancy
-computed by applying the formula (2/3 x [80 age at death])
-not based on retirement age
-presumption is that victim could have earned income even after retirement age
1.
Life Expectancy of Victim
-life of the deceased or victim that is the element of the formula not that of the
heirs

-People v Quilaton (assigned case)

--> the SC reduced the multiplier in one case because it
considered the fact that a man does not expect to work up to the final month or year of
his life in reducing the multiplier
-medical history of the victim/deceased can likewise reduce the multiplier
-nature of work may likewise reduce the multiplier (e.g. jeepney driver cannot
continue the backbreaking pace and unnerving nature of their work for many years)
-habit and manner of life should be taken into account (e.g. if the deceased
had been consistently engaged in dangerous and risky activities tending to shorten his
life)
-if no circumstance can be used to reduce, use the FORMULA
4. Alternative Formula for Life Expectancy

(1) Proof of Earnings

o
Sufficient evidence should be presented by the plaintiff to establish the net earnings of
the deceased
o
GR: Documentary evidence should be presented to substatntiate the claim for loss of
earning capacity. In this connection, it was ruled that the payroll o companies and the
Income Tax Returns consitutue best evidence of the salary of the deceased
o
XPN: (1) The award of temperate damages for loss of earning capacity in lieu of
documentary evidence; (2) Cases where the victim was earning less than the minimum
wage; (3) Non-working victims; (4) When testimonial evidence sufficiently establishes the
loss because a reasonable estimate of the income can be made on the basis of such
testimonies
(2) No Documentary Evidence of Earnings - The heirs can recover despite the nonavailability of documentary evidence if there is testimony that:
o
The victim was self-employed earning less than the minimum wage under the current
labor laws and judicial notice was taken of the fact that in the victims line of work, no
documentary evidence Is available
o
The victim was employed as a daily wage worker earning less than the minimum wage
under the current labor laws

2.
Factors that Reduce Life Expectancy
-reduction is usually made for 2 reasons:
1 some allowance must be made for the general vicissitudes of life,
that is to say, damaging events like early death or unemployment which might
have affected the plaintiff even if the defendant had not injured him
2 account must also be taken of the fact that the lump sum of
damage will itself produce an investment income

c. Net Earnings
o
The Court considered as an important element in measuring loss of earning capacity, the
net earnings of the deceased as well as the latters potentiality and capacity to increase
his future income.
o
It is therefore not the net monthly income that is actually received by the deceased that
will serve as basis of the computation. The proper computation should be based on the
gross income of the victim minus the necessary and incidental living expenses which the
victim should have incurred if he were alive.

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2. Rationale for Table of Mortality

-SC repeatedly used the American Expectancy Table of Mortality or the
Actuarial of Combined Experience Table of Mortality that are used by insurers
-since the tables are concerned with assessing the capital price of a future
stream of income, the information on which they are based can be easily used to
determine the present capital value of future stream of loss

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X = 2/3(15) x P200,000 P100,000 (Living Expenses)

X = 30/3 x P100,000
X = 10 x P100,000
X = P1M

f. Loss of Earning Capacity of Non-Working Victims

o
SC recognized the entitlement of the heirs of the deceased for loss of earning capacity of
the deceased for loss of earning capacity of the deceased even if the said deceased was
not working at the time of the accident.
o
What is important is that there is proof of loss of earning capacity and not necessarily
actual loss of income. Section 2206 of the Civil Code provides that the defendant shall
be liable for the loss of earning capacity of the deceased, and the indemnity shall be paid
to the heirs of the latter unless the deceased on account of permanent physical
disability not caused by the defendant, had no earning capacity at the time of his death.
o
Metro Manila Transit Corp vs CA, death of non-worjing minor child: SC used minimum
wage for non-agricultural workers in computing
o
Edgardo CAriaga vs Laguna Tayabas Bus Company, medicine student died: as regards
the income that he could possibly earn as a medical practitioner, it appears that,
according to Dr. Amado Doria, a witness for LTB, the amount of P300.00 could easily be
expected as the minimum monthly income of Edgardo had he finished his studies.
o
People vs Mayor Antonio Sanchez, senior agriculture students died: SC believed that it
would be fair and unreasonable to fix the monthly income that each of the victims would
earn in 1993 at P8k per month and their deductible living and other incidental expenses
at P3k per month.
g. Inflation and Reduction to Present Worth
o
There are two ways that reduction to the present worth of the award is accomplished.
First it is accomplished by reducing the multiplier that corresponds to the life expectancy.
Another method of reduction is by maintaining the amount of income at the last income
of the deceased or the permanently disabled.

4.09 ATTORNEYS FEES

o
The losing party should pay thr attorneys fees and expenses of litigation
a. Award is Due to Party not to Lawyer

The amount agreed upon by the plaintiff and his counsel does not control the
amount of attorneys fees that should be awarded. The plaintiffs counsel does not
have a right to enforce the award of attorneys fees because, as stated earlier, the
same is due to the plaintiff and not to his counsel.
b. Cases when attorneys fees can be awarded

Article 2208. In the absence of stipulation, attorneys fees and expenses of

litigation, other than judicial costs, cannot be recovered except:
(1) When 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 of malicious prosecution against the plaintiff;
(4) In case of 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 plainly valid, just and demandable claim;
(6) In actions for legal support;
(7) In actions for recovery of wages of household helpers, laborers and skilled
workers;
(8) In actions for indemnity under workmens compensation and employers liability
laws;
(9) In a separate civil action to recover civil liability arising from a 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.
c. Amount and Basis of Award
o
The amount of attorneys fees to be awarded is left to the discretion of
the courts. Necessarily, the award must be reasonable under the
circumstances. The plaintiff must allege the basis of his claim for

e. Examples of Award for Loss of Earning Capacity

In Philippine Hawk Corporation vs Lee, victim was leasing and operating a gasoline
station with an annual income of One Million Pesos before he died as evidenced by a Certf of
Creditable Income Tax Withheld at Source for the year 1990, presented by his wife.
Net Earning Capacity = Life Expectancy [2/ 3 (80-age at the time of death) x Gross Annual Income
(GAI) Reasonable and Necessary Expenses (80% of GAI)
X = [2/3 (80-65)] x P1M P800,000

4.08. LOSS OF PROFITS

o
Consolidated Dairy Products case: The amount of lost profits may be determined by
considering the average profit for the preceding years multiplied by the number of years
during which the business is affected by the wrongful act or breach. SC ruled that it was
reasonable to award as lost profit the average of the yearly profit for five (5) preceding
the closure of the business multiplied by the number of remaining year of the contract.
o
It is basic that unrealized profit cannot be awarded if the basis is too speculative and
conjectural to show actual damages for a future period. The plaintiff must therefore
present reports and documents that may show the average actual profits earned by the
business as well as other evidence of profitability which are necessary to prove plaintiffs
claim for said amount.

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d. Living Expenses

The amount of living expenses is fixed at 50% of the gross income in the ansence of
proof of the amount of living expenses to be deducted from the gross income

Amount less than 50% of the gross income cannot be used by the court in the absence
of proof thereof or in the absence of other circumstances that would justify the reduction
of the living expenses

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attorneys fees in the complaint. In making such award, the court must
state in its decision the legal and factual basis for the award.

d. Award when compelled to litigate

o
In the ordinary sense, attorneys fees represent the reasonable
compensation paid to a lawyer by his client for the legal services he has
rendered to the latter; while in its extraordinary concept , they may be
awarded by the court as indemnity for damages to be paid by the losing
party to the prevailing party.
o

Art. 2207. If the plaintiffs property has been insured, and he has received indemnity from the
insurance company for the injury or loss arising out of the wrong or breach of contract
complained of, the insurance company shall be subrogated to the rights of the insured against
the wrongdoer or the person who has violated the contract. If the amount paid by the
insurance company does not fully cover the injury or loss, the aggrieved party shall be entitled
to recover the deficiency from the person causing the loss or injury.
o
No right of subrogation applies with respect to life insurance. It is believed that the
Collateral Source Rule applies. It is submitted that the amount of life insurance received
by the insurance beneficiary of the deceased victim of tort should be ignored even if the
beneficiary is the same plaintiff in the tort case. The value of the life of the deceased can
never be quantified and any amount received as proceeds of life insurance can never be
equal to the value of the life of the victim.
o
If the injury is caused to an employee in the performance of his functions, the Collateral
Source Rule does not apply to the employees compensation benefits under the Labor
Code. An injured worker has a choice of either recovering the fixed amounts set by the
Employees Compensation Commission or from prosecuting an ordinary civil action
against the tortfeasor for higher damages but he cannot pursue both simultaneously.

5.01. DOCTRINE OF AVOIDABLE CONSEQUENCES

1.

Moral damages

5. MITIGATION IF LIABILITY
Art. 2203. The party suffering loss or injury must exercise the diligence of a good father
of a family to minimize the damages resulting from the act or omission in question.
Art. 2204. In crimes, the damages to be adjudicated may be respectively increased or
lessened according to the aggravating or mitigating circumstances
Art. 2214. In quasi-delicts, the contributory negligence of the plaintiff shall reduce the
damages that he may recover.
Art. 2215. In contracts, quasi-contracts, and quasi-delicts, the court may equitably
mitigate the damages under circumstances other than the case referred to in the preceding article,
as the following instances:
(1) That 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 the filing of the action, the defendant has done his best to lessen the
plaintiffs loss or injury.

5.02. COLLATERAL SOURCE RULE

o
Any amount of insurance, donation from friends or other benefit from other sources,
employees compensation benefit other than the defendant must be ignored in
awarding damages in favor of the plaintiff.
o
In the Philippines, there is no hard and fast rule relating to collateral benefits. The
effect of receipt of other benefits would depend on the nature and specific law that
governs such benefits and other prevailing circumstances.
o
It does not apply if damage consists in damage to property that is covered by an
insurance policy. The insurer shall indemnify the insured for the loss and shall be
subrogated to the rights of the insured.

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4.10. INTEREST
Article 2209. If the obligation consists in the payment of a sum of money, and the
debtor incurs in delay, the indemnity for damages, there being no stipulation to the
contrary, shall be the payment of the interest agreed upon, and in the absence of
stipulation, the legal interest, which is six percent per annum.
Article 2210. Interest may, in the discretion of the court, be allowed upon damages
awarded for breach of contract.
Article 2211. In crimes and quasi-delicts, interest as a part of the damages may, in a
proper case, be adjudicated in the discretion of the court.
Article 2212. Interest due shall earn legal interest from the time it is judicially
demanded, although the obligation may be silent upon this point.
Article 2213. Interest cannot be recovered upon unliquidated claims or damages,
except when the demand can be established with reasonable certainty.
o
Keng Hua Paper Products vs CA: The monetary award shall earn
interest at twelve percent per annum from the date of finality of the
judgment until its satisfaction, regardless of whether or not the case
involves a loan or forbearance of credit.

A party cannot recover damages flowing from consequences which the

party could reasonably have avoided. It has a reasonable corollary, that
is, a person who reasonably attempts to minimize his damages can
recover the expenses he has incurred. Although the result is the same, it
should be differentiated from contributory negligence because in the
latter, the plaintiffs act or omission occurs before or at the time of the act
or omission of the defendant. The acts of the plaintiff under the doctrine
of avoidable consequences occur after the act or omission of the
defendant.
The test that should be applied in determining if mitigation should result
is the test of a reasonable man. SC explained in one case that it is the
duty of one injured by the unlawful act of another to take such measures
as prudent man usually takes under such circumstances to reduce the
damages as much as possible. The burden of proof rests upon the
defendant to show that the plaintiff might have reduced the damages.

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iv.
v.
1.1

effect of death
1.1.1
effect of death extinguish moral damages that MAY be recovered
1.2 proof and causation
1.2.1
no assessment of pecuniary loss is necessary on the part of the
claimant, to be able to get moral damages such assessment is left
to the court. However, there must be a proof as to the fact that the
defendant caused the plaintiff to suffer any of the enumerated
above.
1.2.2
Without allegation and proof, no moral damages can recovered.
This is the general rule. The exception to this rule is the moral
damages given to victim in a criminal proceedings even without
allegation and proof (i.e. rape, murder)
. cases where moral damages may be recovered (art. 2219)
2.1 fraud or bad faith no moral damages may be awarded where the breach of
contract is not malicious or done with fraud or bad faith.
2.2 Requisites fro the award of moral damages
2.2.1
Injury (physical or mental, clearly, sustained by claimant/0
2.2.2
A culpable act or omission factually established
2.2.3
Act or omission is the proximate cause
2.2.4
Award of damages predicated on any of the cause in art. 2219
2.3 Thus, GR: no moral damages in breach of contract if not malicious, the XPN: if
such breach is resulting to physical injuries
2.4 Art. 1764 in relation to 2206, moral damages may be given to death of passenger
in breach of the contract of carriage.
2.5 There is also moral damages in culpa criminal if guilty of physical injury, acts of
lasciviousness, adultery or concubinage, detention, illegal arrest, etc.
2.6 Analogous cases 2119 is not an exclusive list
2.7 Unfounded suits GR: charges/suits does not automatically give rise to recovery
off moral damages even if unfounded o yung mga wala naman talagang cause of
action
2.8 Labor case theres moral damages where dismissal is attended with bad faith or
fraud or constitute an act of oppressive labor or was done contrary to morals, good
customs, or public policy
2.9 Criminal taking of life - no proof necessary to recoveer moral damages may be
awarded even in the absence of allegation and proof
2.10 Rape case same-same, no allegation or proof needed. Same with acts of
lasciviousness
2.11 Abuse of process wrongful attachment (civpro remedy) may warrant moral
damages
Factors in determining amount of moral damages
3.1 No hard and fast rule as each case governed by peculiar circumstances

3.2

4
5

Court has discretion, burt must not be excessive. Always must be reasonably
approximate to the extent of injury suffered
3.3 FACTORS
3.3.1
Extent of humiliation
3.3.2
Pain and suffering
3.3.3
Official, poltical, social and financial standing
3.3.3.1
Credit standing
3.3.3.2
Financial standing
3.3.4
Age
Fixed amount some case involves a fixed amount of Moral damges
Persons who may recover
5.1 Generally, the aggrieved only
5.1.1
The XPN: relative in par 3 and 9
5.1.2
Corporation (corporation not entitled to receive MD. Why?
Purpose of giving moral damages cannot be achieved)
5.1.2.1
Xpn to xpn: in libel cases, a corporation MAY recover
moral damages

7. NOMINAL DAMAGES

Based on the ground that every injury from its very nature legally imports damage; or
that the injury complained of would in the future be evidence in favour of the wrongdoer,
especially where, if continued for a sufficient length of time, the invasion of the plaintiffs
right would ripen into a prescriptive right of the defendant.

For every actionable injury, there is a corresponding right to damages and such injury
arises whenever a legal right of the plaintiff is violate; if there is no injury as to actual
damages or none appears on inquiry, the legal implication of damages remains and
nominal damages are given.

The assessment of ND is left to the discretion of the court according to the

circumstances of the case.

Generally, these are small sums fixed by court without regard to the extent of the harm
done to the injured party. However, it is generally held that a ND is a substantial claim, if
based upon the violation of a legal right, hence, the law presumes damage although
actual or compensatory damages are not proven.

Damages in name only and not in fact, and are allowed, not as an equivalent of wrong
inflicted, but simply in recognition of the existence of a technical injury.

The award of ND is also justified in the absence of competent proof of the specific
amounts of actual damages suffered.
Sample cases where ND are awarded

The award of ND is also justified in the absence of competent proof of the specific
amounts of actual damages suffered. SC observed that ND are proper whenever there
has been a violation of an ascertained legal right, although no actual damages resulted
or none are shown. (Case wherein there is attempted homicide where the victims ear
was mutilated and a permanent scar remained in the latters forearm.)

Manufacturer that was injured by a conspiracy to prevent use of his product, where the
actual damages cannot be determined and others also suffered whatever he suffered in
the same line of business so that he suffered no special damages whatsoever.

Plaintiffs sued airlines because the latter failed to transport them to Manila. The SC
acknowledged that the Mt. Pinatubo just erupted, however, the award was justified

ii.
iii.

includes physical suffering, mental anguish, fright, serious anxiety,

besmirched reputation, wounded feelings, moral shock, social
humiliation and similar injuries. All that is required is that such act
or omission is the proximate cause.
Designed to compensate injury and not to enrich the complainant
Awarded to enable injured party to divert attention and alleviate
moral sufferings
Not punitive in nature
Claim for moral damages is generally personal in nature

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because the airline filed to make necessary arrangements to transport plaintiffs on the
first available connecting flight to Manila.
First class ticket holder who was rudely compelled by the agents knowledge that the
plaintiff was a commissioner who was travelling in his official capacity. There was also no
proof of actual damages in the said case.

TD may be awarded in lieu of actual damages for loss of earning capacity where earning capacity is
plainly established but no evidence was presented to support the allegation of the injured party
8.3 Lost Earnings
The award of TD may be premised in the existence of pecuniary injury to business of the plaintiff
the amount of which nevertheless being difficult to prove with certainty.

Pertinent provisions of the Civil Code on Nominal Damages are as follows:

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 arising from any source
enumerated in Article 1157, or in every case where any property right has been invaded.
Art. 2223. 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.
7.1 Cannot Co-Exist with Actual Damages or Compensatory Damages

The purpose of ND is to vindicate or recognize a right that has been violated, in order to
preclude further contest thereof and for 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 plaintiffs right was violated, hence an award of ND is unnecessary and improper.

8.4 Fixed Temperate Damages

In murder cases, the SC pegged the amount of TD at P25000 if actual damages were
not established. The court held that when actual damages proven by receipts during trial
amount to less than P25,000, the award of temperate damages for 25000 is justified in
lieu if actual damages of a lesser amount.

8. TEMPERATE OR MODERATE DAMAGES

Art. 2224. Temperate or moderate damages, which are more than nominal but less than
compensatory damages, 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 provided with certainty.
Art. 2225. Temperate damages must be reasonable under the circumstances.

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. The
judge be empowered to calculate moderate damages in such cases, rather than that the
plaintiff should suffer, without redress, from the defendants wrongful act.

Thus, temperate damages to the heirs of the victim under Article 2224 of the Civil Code
where it has been shown that they suffered pecuniary loss nut the amount thereof cannot
be proved with certainty.
8.1 Anticipated Increase in Medical Expenses

Actual Damages may be awarded for future medical expenses if there is proof of such
expenses.

Temperate Damages can and should be awardee on top of actual and compensatory
damages in instances where the injury is chronic and continuing. And because of the
unique nature of such cases, no incompatibility arises when both actual and temperate
damages are provided for.
8.2 Loss of Earning Capacity

a. Example: Non-Involvement Clause

A non-involvement clause is not necessarily void for being in restraint of trade as long as there
are reasonable limitations as to time, trade, and place.
9.1 Reduction of Liquidated Damages
The court cannot change the amount of liquidated damages agreed upon by the parties. However,
Article 2227 of the NCC provides that liqu8idated damages, whether intended as an indemnity or a
penalty, an immoral stipulation is not the less immoral because it is called an indemnity
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 thee parties; and the like.
Courts may equitably reduce a stipulated penalty in the contract where the obligation has been
substantially performed and where the penalty is iniquitous.
a. When Reduction Not warranted
While liquidated damages may be equitably reduced in certain cases, the Court could not do so if it
appears that even from the start, the defendant had not shown the least intention to fulfil the noninvolvement clause in good faith.
b. Breach Not Contemplated
Article 2228 of the NCC provides the when the breach of the 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.
10. EXEMPLARY O CORRECTIVE DAMAGES (PUNITIVE DAMAGES American Law)

Required by public policy to supress wanton acts. They are antidotes so that the poison
of wickedness may not run through the body politic.
Imposed by way of example or correction for the public good, in addition to the other damages.
They are designed to reshape behaviour that is socially deleterious in its consequence
Intended to serve as a deterrent to serious wrongdoings and as an indication of undue sufferings
and wanton invasion of the rights of an injured or a punishment for those guilty of outrageous
conduct. Or others like him from similar conduct in the future.
10.1 Requisites for the award of ED

They may be imposed by way of example in addition to compensatory damages, and

only after the claimants right to them has been established

7.2 Labor Cases

ND may be appropriately awarded if the right to procedural due process of the employee
was violated. The award is proper where there is just or authorized cause but due
process was not accorded to the employee

9. LIQUIDATED DAMAGES

Those agreed upon by the parties to a contract, to be paid in case of breach thereof,
either with penalty or in order to avoid further controversy on the amount of damages.

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10.2 Statutory Provisions

Art. 2230. In 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.
Art. 2231. In quasi-delicts, exemplary damages may be granted if the defendant acted with gross
negligence.
Art. 2232. 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. Exemplary damages cannot be recovered as a matter of right; the court will decide
whether or not they should be adjudicated.
Art. 2234. 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 should be awarded. In case liquidated damages
have been agreed upon, although no proof of loss is necessary in order that such liquidated
damages may be recovered, nevertheless, before the court may consider the question of granting
exemplary in addition to the liquidated damages, the plaintiff must show that he would be entitled to
moral, temperate or compensatory damages were it not for the stipulation for liquidated damages.
Art. 2235. A stipulation whereby exemplary damages are renounced in advance shall be null and
void.
10.3 Cases When Available

The award of ED where there was gross carelessness negligence amounting to wanton
misconduct

SC awarded ED t a case where there is presence of fraudulent conduct in a case

involving contract of carriage of passengers to deter the airlines from the commission of
acts of discourtesy to passengers.

Criminal Case:

The Civil Code authorizes the imposition of ED in criminal cases where there is an
aggravating circumstance.

In fine relative to the civil aspect of the case, an aggravating circumstance, whether
ordinary or, should entitle the offended party to an ward of ED within the unbridled
meaning of article 2230 of CC.

The award of ED is also justified not only due to the presence of aggravating
circumstance, but also if the circumstances shown the depravity of the mind of the
accused. Hence ED where awarded against an accused who assaulted a pregnant
woman, the accused has shown moral corruption perversity and wickedness. It was also
imposed to deter fathers with perverse tendencies or aberrant sexual behaviour for
abusing their own daughters. The amount of P75,000 as ED is warranted for each
conviction of rape, which qualified by circumstances warranting the imposition of death
penalty.

In another case it was observed that while the circumstance of use of deadly weapon
cannot be appreciated for the purpose of imposing a heavier penalty, where it was not
alleged in the information, it can be considered as basis for an award of ED.
Quasi-Delict Case

Article 2231 provides in cases of quasi-delicts ED may be granted if the defendant

acted with gross negligence.
Quasi Contracts
In quasi contracts, such as solitio indebiti, ED may be imposed if the defendant acted in an
oppressive manner, such as when the creditor defendant acted oppressively by pestering the
debtor to pay interest and threatened to block the latters transaction if he/she would not pay
interest.

They cannot be recovered as a matter of right, their determination depending upon the
amount of compensatory damages that ma be awarded to the claimant
The act must be accompanied by bad faith or done in wanton fraudulent, oppressive or
malevolent manner

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