Académique Documents
Professionnel Documents
Culture Documents
PART II DAMAGES
A. Concept
-
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
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
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.
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.
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.
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.
(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.
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.
When Recoverable
-
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.
-
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.
-
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.
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)