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Torts Notes 10

PART II DAMAGES
A. Concept
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Injury = the violation of a right OR a breach of duty


Damage = the loss/harm which results from the injury
Damages may mean either:
o The injury/loss caused to another by violation of his legal rights; or
o The sum of money which the law awards or imposes as pecuniary compensation,
recompense, or satisfaction for an injury done or wrong sustained as a
consequence either of a breach of contractual obligation or a tortuous act
Upon the measure of damages depends that just compensation be given for every wrong
or breach of contract.
Under the proposed Code, there are 6 kinds of damages:
o Actual/Compensatory
o Moral
o Nominal
o Temperate/Moderate
o Liquidated
o Exemplary/Corrective
Rules governing damages laid down in other laws shall be observed insofar as they are
NOT in conflict with the NCC.
o Ex. Compensation for workmen and other employees in case of death, injury or
illness
Classification:
Under Art. 2197 a) actual/compensatory; b) moral; c) nominal; d) temperate/moderate;
e) liquidated; and f) exemplary
According to Purpose:
o As adequate reparation of the injury a) compensatory or b) moral
Compensatory IF intended for reparation of pecuniary losses duly
proved.
Moral for reparation of non-pecuniary losses (e.g. wounded feelings,
serious anxiety, or physical suffering)
o For less than adequate reparation moderate/temperate damages
o For vindication of a right violated nominal damages may be awarded
o To provide an example or by way of correction for public good exemplary
damages
According to Manner of Determination (of Indemnity):
o Liquidated/Conventional which is stipulated by the parties in a contract
o Non-conventional if NOT agreed upon or predetermined
Statutory = fixed by law
Judicial = fixed by the courts

Lazatin vs. Twano (1961)


Heirs of Borlado vs. Vda. de Bulan (Aug. 2, 2001)
People vs. Dianos (1998)
B. Actual or Compensatory Damages
Article 2199
Qualifier: Except as provided by law or by stipulation,
Trigger: One is entitled to an adequate compensation
Effect: Only for such pecuniary loss suffered by him as he has duly proved. Such
compensation is referred to as actual or compensatory damages.
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They are an adequate compensation for such pecuniary loss suffered by a person as he
has duly proved.
Interest on damages is allowed (2210 and 2211) as it is a part of the loss suffered.
Fundamental Rule of the Law of Damages: one injured by a breach of a contract OR
by a wrongful or negligent act/omission shall have fair and just compensation
commensurate with the loss sustained in consequence of the defendants act which
gives rise to the action.
o General Rule: Actual pecuniary compensation
Regardless whether the action arises from a contract or from tort
o Exception: where the circumstance warrants the award of exemplary damages
Generally, damages awarded should be equal to and precisely commensurate with the
injury sustained.
o The injured party is to be placed as near as may be in the condition which he
would have occupied had he not suffered the injury complained of.
o Nothing more should be given unless in case of punitive damages.
However, rules of law on damages are framed with reference to the just rights of both
parties on what is just to compel the other party to pay, to afford just compensation for
his injury.
o SUM: The law will NOT put him in a better position than he would be had the
wrong not been done or the contract not been broken.
1. Requisites

i. Alleged and Proved with Certainty


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Every judgment for damages must rest upon satisfactory proof of the existence in reality
of the damages alleged to have been suffered.
Except in those cases where the law authorized the imposition of punitive/exemplary
damages, it must be established by competent evidence the amount of such damages and

courts CANNOT rely on speculation/conjecture/guesswork as to the fact and amount of


damages.
o Courts must depend on actual proof that damages had been suffered and on
evidence of the actual amount.
o Actual/compensatory damages cannot be presumed but must be duly proved.
Scott Consultants & Resource Dev.t Corp vs. CA (1998)
Basilan Lumber Co vs. Cagayan Timber Co. (1961)
MCC Industrial Sales Corp. vs. Ssangyong Corp. (Oct. 17, 2007)
ii. Proximate
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Proximate damages = the ordinary and natural result of the omission/commission of acts
of negligence and such as are usual and might have been reasonably
expected/contemplated.
Remote damages = the unusual unexpected result NOT reasonably to be anticipated from
an accidental/unusual combination of circumstances with a result beyond and over which
the negligent party has no control.
Test: whether the facts shown constitute a continuous succession of events so tied
together as to make a natural whole or intervening between the wrong and the injury.
The law does NOT regard an injury from a remote cause and denied the allowance
of damages for injuries remotely consequent upon the wrong.
o However, damages which are the legal and natural result of the act done, though
to some extent contingent, are NOT too remote to be recovered.

Songco vs. Sellner (1917)


Abesamis vs. Woodcraft Works Ltd. (1969)
iii. Not Speculative
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Speculative = prospective or anticipated damages from the same acts/facts constituting


the present cause of action but which depends upon future developments which are
contingent, conjectural, or improbable.

Seavan Carrier, Inc. vs. GTI Sportswear Corp. (1984)


Siguenza vs. CA (1985)
2. Component Elements
i. Value of Loss; Unrealized Profits
Article 2200

Trigger: Indemnification for damages


Effect: Shall comprehend not only the value of the loss suffered, but also that of the
profits which the obligee failed to obtain.
Article 2205
Effect: Damages may be recovered:
Triggers:
(1) For loss or impairment of earning capacity in cases of temporary or permanent
personal injury;
(2) For injury to the plaintiffs business standing or commercial credit.
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Article 2205 provides 2 kinds of actual/compensatory damages:


o Loss suffered
This is also known as dano emegente (damnum energens)
o The profits which the obligee failed to obtain by reason of breach of contract OR
as a consequence of the quasi-delict
This is also known as lucro cesante (lucrum cesans)
The injured person is entitled to compensation for loss of earning derived from personal
effort, skill or ability or for the destruction or impairment of his ability to perform/render
service which is essentially and fundamentally personal in character.
The process of ascertaining the amount of compensation to be awarded for impairment of
the capacity to work requires:
o Determination of the extent to which such capacity has been diminished; and
o The giving of the amount of money which will compensate for the determined
extent of impairment
The extent of the diminution/impairment of earning capacity is generally to be arrived at
by comparing what the injured party was capable of earning at or before the time of the
injury with what he was capable of earning after it occurred.
Art. 2205 also provides the damages that may be recovered to plaintiffs business
standing or commercial credit.
o By its very nature, this kind of damage is often hard to prove in terms of money.
o In cases like these, the court will fix the amount of the damage taking into account
the circumstances of the case.

General Enterprises, Inc. vs. Lianga Bay Logging Co. Inc. (1964)
Magat vs. Guerrero (Aug. 4, 2000)
ii. Attorneys Fees and Expenses of Litigation
Article 2208
Trigger: In the absence of stipulation,

Effect: Attorneys fees and expenses of litigation, other than judicial costs, cannot be
recovered,
Qualifier: 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 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 plainly 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 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.
Effect 2: In all cases, the attorneys fees and expenses of litigation must be reasonable.

Solid Homes, Inc. vs. CA (1994)


First Metro Investment Corp. vs. Este Del Sol Mountain Reserve, Inc. (Nov. 15, 2001)
PCI Bank vs. Alejandro (Sept. 21, 2007)
Prudential Bank vs. Tupasi-Valenzuela (2000)
iii. Interest
Article 2209

Trigger: If the obligation consists in the payment of a sum of money,


Trigger 2: and the debtor incurs in delay,
Effect: the indemnity for damages, there being no stipulation to the contrary, shall be the
payment of the interest agreed upon,
Alt. Effect: and in the absence of stipulation, the legal interest, which is six per cent per
annum.
Article 2210

Effect: Interest may, in the discretion of the court, be allowed


Trigger: Upon damages awarded for breach of contract.
Article 2211
Trigger: In crimes and quasi-delicts,
Effect: Interest as a part of the damages may (in a proper case) be adjudicated in the
discretion of the court.
Article 2212
Trigger: Interest due
Effect: Shall earn legal interest from the time it is judicially demanded although the
obligation may be silent upon this point.
Article 2213
Effect: Interest cannot be recovered upon unliquidated claims or damages,
Qualifier: EXCEPT when the demand can be established with reasonable certainty.
See: BSP-MB Circular 799 (2013)
In the absence of an express stipulation as to the rate of interest that would govern
the parties, the rate of legal interest for loans or forbearance of any money, goods or credits
AND the rate allowed in judgments shall now be six percent (6%) per annum effective July 1,
2013.
The new rate could only be applied prospectively and not retroactively. Consequently, the
twelve percent (12%) per annum legal interest shall apply only until June 30, 2013. Come July 1,
2013 the new rate of six percent (6%) per annum shall be the prevailing rate of interest when
applicable.
Nonetheless, with regard to those judgments that have become final and executory prior to July
1, 2013, said judgments shall not be disturbed and shall continue to be implemented applying the
rate of interest fixed therein. This applies also to lower court judgments even if the SC
eventually has a different judgment which applies 6% interest only.
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If the obligation consists in the payment of a sum of money the indemnity shall be the
amount stipulated by the parties (as liquidated damages)
o If no liquidated damages had been stipulated by the parties the indemnity shall
consist in the payment of the interest agreed upon
If there is no stipulation as to the interest the indemnity shall be the
payment of interest at 6% per annum.
Art. 2213 is at courts discretion.

Interest due shall earn legal interest from the time it is judicially demanded although the
obligation may be silent on the point of that allowed by the Usury Law.

Reformina vs. Tomol, Jr. (1985)


Castelo vs. CA (1995)
Eastern Assurance and Surety Corporation vs. Calumpang (2000)
International Container Terminal Services, Inc. vs. FGU Insurance Corp. (2009)
Macalinao vs. BPI (2009)
Siga-an vs. Villanueva (2009)
Nacar vs. Gallery Frames (Aug. 13, 2013)
Estores vs. Sps. Supangan (Apr. 18, 2012)
PCI Leasing and Finance, Inc. vs. Trojan Metal Industries, Inc. (Dec. 15, 2010)
3. Extent or Scope of Actual Damages
i. Contracts and Quasi-Contracts
Article 2201
Trigger: In contracts and quasi-contracts,
Trigger 2: The damages for which the obligor who acted in good faith is liable
Effect: Shall be those that are the natural and probable consequences of the breach of the
obligation, AND which the parties have foreseen or could have reasonably foreseen at the
time the obligation was constituted.
Trigger: In case of fraud, bad faith, malice or wanton attitude,
Effect: The obligor shall be responsible for all damages which may be reasonably
attributed to the non-performance of the obligation.
Article 2215
Trigger: In contracts, quasi-contracts, and quasi-delicts,
Effect: The court may equitably mitigate the damages under circumstances other than the
case referred to in the preceding article, as in 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.

In contracts and quasi-contracts the law distinguishes the liability of a debtor in good
faith who is liable ONLY for damages which are the natural and probable consequences
for the breach to the non-performance of the obligation with regard to whether such
damages could be foreseen or not.
Whether the debtor is in good faith or in bad faith, the damages for which he is liable are
only those which represent the loss suffered and profits which the obligee failed to
obtain.
o In other words the damages recoverable under Art. 2201 is limited to he kinds of
damages specified in Art. 2200.

Mendoza vs. Philippine Airlines (90 PH 836)


Cariaga vs. LTB (110 PH 346)
Villa Rey Transit vs. CA (31 SCRA 511)
Philippine Airlines vs. CA (185 SCRA 110)
ii. Crimes and Quasi-delicts
Article 2202
Trigger: In crimes and quasi-delicts,
Effect: The defendant shall be liable for all damages which are the natural and probable
consequences of the act or omission complained of.
Effect 2: It is not necessary that such damages have been foreseen or could have
reasonably been foreseen by the defendant.
Article 2203
Trigger: The party suffering loss or injury
Effect: Must exercise the diligence of a good father of a family to minimize the
damages resulting from the act or omission in question.
Article 2204
Trigger: In crimes,
Effect: The damages to be adjudicated may be respectively increased or lessened
according to the aggravating or mitigating circumstances.
Article 2215
Trigger: In contracts, quasi-contracts, and quasi-delicts,
Effect: The court may equitably mitigate the damages under circumstances other than the
case referred to in the preceding article, as in 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.
People vs. Prades (1998)
People vs. Cepeda (2000)
People vs. Balgos (2000)
People vs. Delos Santos (1998)
iii. Crimes and Quasi-Delicts Resulting in Death
Article 2206
Trigger: The amount of damages for death caused by a crime or quasi-delict
Effect: Shall be at least three thousand pesos, even though there may have been
mitigating circumstances.
Effect 2: In addition:
(1)
Effect 1: The defendant shall be liable for the loss of the earning capacity of the
deceased, AND the indemnity shall be paid to the heirs of the latter;
Effect 2: Such indemnity shall in every case be assessed and awarded by the court
UNLESS the deceased on account of permanent physical disability not caused
by the defendant, had no earning capacity at the time of his death;
(2)
Trigger: If the deceased was obliged to give support according to the provisions of
article 291,
Trigger 2: The recipient who is NOT an heir called to the decedents inheritance
by the law of testate or intestate succession,
Effect: May demand support from the person causing the death, for a period not
exceeding 5 years, the exact duration to be fixed by the court;
(3)
Trigger: The spouse, legitimate and illegitimate descendants and ascendants of the
deceased
Effect: May demand moral damages for mental anguish by reason of the death of
the deceased.

Heirs of Raymundo Castro vs. Bustos (27 SCRA 327)


People vs. Quilaton (205 SCRA 279)
Sps. Perena vs. Sps. Zarate (Aug. 29, 2012)
C. Moral Damages
Article 2216
Effect: No proof of pecuniary loss is necessary
Trigger: In order that moral, nominal, temperate, liquidated or exemplary damages, may
be adjudicated.
Trigger: The assessment of such damages, except liquidated ones,
Effect: Is left to the discretion of the court, according to the circumstances of each case.
Article 2217
Effect: Moral damages include physical suffering, mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings, moral shock, social humiliation, and similar
injury.
Effect 2a: Though incapable of pecuniary computation, moral damages may be recovered
Trigger 2a: If they are the proximate result of the defendants wrongful act or omission.
Article 2218
Trigger: In the adjudication of moral damages,
Effect: The sentimental value of property, real or personal, may be considered.
Article 2219
Effect: 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;
(10) Acts and actions referred to in articles 21, 26, 27, 28, 29, 30, 32, 34, and 35.

Trigger: The parents of the female seduced, abducted, raped, or abused, referred to in No.
3 of this article,
Effect: May also recover moral damages.
Trigger: The spouse, descendants, ascendants, and brothers and sisters
Effect: May bring the action mentioned in No. 9 of this article in the order named.
Article 2220
Trigger: Willful injury to property
Effect: May be a legal ground for awarding moral damages
Trigger 2: If the court should find that, under the circumstances, such damages are justly
due.

Effect B: The same rule applies to breaches of contract


Trigger B: Where the defendant acted fraudulently or in bad faith.
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The purpose of moral damages is essentially indemnity or reparation NOT punishment


or correction.
o It is NOT intended to enrich a complainant at the expense of defendant they are
awarded only to enable the injured party to obtain means, diversions or
amusements that will serve to alleviate the moral suffering he has undergone by
reason of defendants culpable action.
o It must be proportionate to the suffering as it aims to restore the plaintiff.
It is incapable of pecuniary estimation but it may be recovered if they are the proximate
result of defendants wrongful act/omission.
o There is NO need for proof of pecuniary loss.

When Recoverable
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Articles: 219, 2210, 1764, and 2206


Generally, only the person suffering the bodily hurt may recover moral damages.
o Distress caused by sympathy to anothers suffering cannot be a basis for recovery
of moral damages.
o It cannot be recovered by artificial persons since physical and mental suffering
may be experience by natural persons only.
The pain and suffering of the plaintiff must be the proximate result of the defendants
wrongful act.
Damages for future pain may also be recovered IF the pain and suffering are reasonably
certain or probable to continue beyond the date of the trial even when the injury is NOT
permanent.
Moral damages may be recovered ONLY IF they are specifically prayed for in the
complaint.

o It is essential that the claimant satisfactorily prove the existence of the factual
basis for the damages and its causal relation to defendants acts.
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In Breach of Contract Carriage moral damages may be recovered ONLY IF:


o The mishap results in the death of a passenger; AND
o It is proved that the carrier is guilty of fraud or bad faith even if death does NOT
result
Factors to Consider in Determining Amount of Moral Damages:
o Wanton negligence of tortfeasor
o Repeated violation of law and established practice
o Social standing of the victim
o Purchasing power of peso
In seduction, abduction, rape and other lascivious acts:
o The conviction of the accused in this case is sufficient basis to adjudge moral
damages to the victim and the parents.
o With respect to bigamy there is NO basis for the award of moral damages.
o This award of damages is based on Art. 21 in relation to Art. 2219 (10).
In acts and actions referred to in Articles 21, 26, 27, 28, 29, 30, 33, 34, and 35
In cases of malicious prosecution

Lopez vs. Pan American World Airways (1966)


Zulueta vs. Pan American World Airways (1972)
Mambulao Lumber Co. vs. PNB (1968)
First-Lepanto-Taisho Insurance (FLT Prime Insurance Corp) vs. Chevron Phils. (Jan. 18, 2012)
Sweet Lines, Inc. vs. CA (1983)
Vasquez Vda. De Arroyo vs. CA (1983)
Magbanua vs. IAC (1985)
Mayo vs. People (1991)
Domingding vs. Ng (1958)
San Andres vs. CA (1982)
Tan Kapoe vs. Masa (1985)
When NOT Recoverable

Mercado vs. Lira (1961)


Philippine Rabbit Bus Lines vs. Esguerra (Oct. 23, 1982)
Bagumbayan Corp. vs. IAC (1984)
Equitable Banking Corp. vs. IAC (1984)
Guita vs. CA (1985)
LBC Express, Inc. vs. CA (1994)
Lufthansa Herman Airlines vs. CA (1995)

D. Nominal Damages
Article 2216
Effect: No proof of pecuniary loss is necessary in order that moral, nominal, temperate,
liquidated or exemplary damages, may be adjudicated.
Trigger: The assessment of such damages, except liquidated ones,
Effect: Is left to the discretion of the court, according to the circumstances of each case.
Article 2221
Effect: 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,
Effect 2: And NOT for the purpose of indemnifying the plaintiff for any loss suffered by
him.
Article 2222
Effect: The court may award nominal damages
Trigger: In every obligation arising from any source enumerated in article 1157, OR in
every case where any property right has been invaded.
Article 2223
Trigger: The adjudication of nominal damages
Effect: 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.
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Nominal damages are either:


o Those damages recoverable where a legal right to be vindicated against an
invasion that has produced no actual present loss of any kind; OR
o Where from the nature of the case, some compensable injury has been shown
BUT the amount thereof has NOT been proved.
Where an actionable wrong by the defendant is shown the plaintiff may recover
nominal damages by the mere fact of such wrong.
Nominal damages means in name only and NOT in amount.
Court may award nominal damages:
o 1) in every obligation arising from those mentioned in 1156; OR
o 2) in cases where any property rights have been invaded.
There must be an unlawful invasion of right.

o However, nominal damages CANNOT co-exist with compensatory damages. It


also precludes the award of temperate/moderate damages.
o Nominal damages may be recovered UNLESS actual damages or substantial
injury is shown.
- Nominal damages may NOT be recovered in cases where damage is an element of the
cause of action and plaintiffs failed to prove the same.
o Thus in a suit for negligence where damage is an essential element nominal
damages may NOT be awarded if the damages are not proved.
Vda. De Medina vs. Cresencia (99 PH 507)
Northwest Airlines vs. Cuenca (14 SCRA 1063)
Cogeo-Cubao Operators and Drivers Association vs. CA (207 SCRA 343)
E. Temperate or Moderate Damages
Article 2224
Effect: Temperate or moderate damages, which are more than nominal but less than
compensatory damages, may be recovered
Trigger: 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.
Article 2225
Effect: Temperate damages must be reasonable under the circumstances.
-

Temperate damages may be awarded in cases where without proof of actual/special


damage where the wrong done must have in fact caused actual damage to the plaintiff
BUT the latter (plaintiff) CANNOT furnish independent and distinct proof thereof.

Araneta vs. Bank of America (1971)


Manila Banking Corp. vs. IAC (1984)
People vs Torres (2007)
Ramos vs. CA (Dec. 29, 1999)
Tan vs. OMC Carriers, Inc. (Jan. 12, 2011)
F. Liquidated Damages
Article 2226
Definition: Liquidated damages are those agreed upon by the parties to a contract, to be
paid in case of breach thereof.
Article 2227

Trigger: Liquidated damages, whether intended as an indemnity or a penalty,


Effect: Shall be equitably reduced if they are iniquitous or unconscionable.
Article 2228
Trigger: When the breach of the contract committed by the defendant
Trigger 2: Is NOT the one contemplated by the parties in agreeing upon the liquidated
damages,
Effect: The law shall determine the measure of damages and NOT the stipulation.
-

In obligations with a penal clause the penalty shall substitute the indemnity for damages
and the payment of interest in case of non-compliance IF there is NO stipulation to the
contrary.
Nevertheless, damages may still be awarded IF the tortfeasor refuses to pay the penalty
OR is guilty of fraud in the fulfillment of obligation.
When there is partial/irregular performance in a contract providing for liquidated
damages the court may mitigate the sum stipulated in the contract since it is to be
presumed that the parties contemplated ONLY a total breach of the contract.

NPC vs. National Merchandising Corp. (1982)


Titan vs. Uni-Field (Mar. 1, 2007)
G. Exemplary or Corrective Damages
Article 2229
Definition: 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.
-

Exemplary damages are defined as those damages awarded in addition to moral,


temperate or compensatory damages awarded to set an example or correct a wrong.
Public policy requires this kind of damages so that wanton acts may be suppressed and
wickedness would NOT run through the body politic.
Requisites:
1) The claimant must first prove or establish his right to moral, temperate or
actual/compensatory damages.
a. Exemplary damages, therefore, necessarily co-exist with these other kinds
of damages.
2) There must be a determination of actual damages from which the amount of
exemplary damages to be awarded shall depend.
a. Exemplary damages maybe imposed only in addition to actual damages.

3) The wrongful act must be:


a. Accompanied by one or more aggravating circumstances in cases arising
out of criminal offense
b. Committed with gross negligence in cases in a wanton, fraudulent,
reckless, oppressive, and malevolent manner in cases arising out of
contracts and quasi-contracts.
(Report of the Code Commission)
When Recovered:
o In criminal offenses - 2230
o In quasi-delicts - 2231
o In contracts and quasi-contracts 2232
Requisites 2233 and 2234

Article 2230
Trigger: In criminal offenses,
Effect: Exemplary damages as a part of the civil liability may be imposed when the crime
was committed with one or more aggravating circumstances.
Effect 2: Such damages are separate and distinct from fines and shall be paid to the
offended party.

Article 2231
Trigger: In quasi-delicts,
Effect: Exemplary damages may be granted
Trigger 2: If the defendant acted with gross negligence.
Article 2232
Trigger: In contracts and quasi-contracts,
Effect: the court may award exemplary damages
Trigger 2: If the defendant acted in a wanton, fraudulent, reckless, oppressive, or
malevolent manner.
Article 2233
Effect: Exemplary damages cannot be recovered as a matter of right;
Effect 2: The court will decide whether or not they should be adjudicated.

Article 2234

Effect: While the amount of the exemplary damages need NOT be proved,
Effect 2: 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.

Trigger: In case liquidated damages have been agreed upon although no proof of loss is
necessary in order that such liquidated damages may be recovered,
Effect: Nevertheless, before the court may consider the question of granting exemplary in
addition to the liquidated damages,
Trigger 2: The plaintiff must show that he would be entitled to moral, temperate or
compensatory damages were it NOT for the stipulation for liquidated damages.
Article 2235
Trigger: A stipulation whereby exemplary damages are renounced in advance
Effect: Shall be null and void.
Singson vs. Aragon (1953)
Munsayac vs. De Lara (1968)
Octot vs. Ybanez (1982)
Sarkies Tours Phils. Inc. vs. IAC (1983)
San Miguel Brewery vs. Magno (21 SCRA 292)
People vs. Alfredo (Dec. 15, 2010)

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