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same can be REBUTTED BY PROOF OF THE EXERCISE

 Passengers and shippers who suffered damages OF DUE CARE IN THEIR SELECTION AND SUPERVISION.
because of breach of the Contractual obligation of the  Article 1903 is NOT APPLICABLE to obligations arising
carrier may file DAMAGES EX CONTRACTU, but only to extra-contractual
obligations or to use the technical form of expression,
 The source of obligation is CULPA CONTRACTUAL that article relates only to CULPA AQUILIANA and NOT
which is distinct from and separate from QUASI- to CULPA CONTRACTUAL
DELICT  Sources of Obligation
CULPA CONTRACTUAL: Contract
 QUASI DELICT under Article 2176 happens when one CULPA-AQUILIANA: Quasi-Delict
by act or omission causes damage to another, there
being at fault or negligence , is obliged to pay for the  Liability of Employee
damage done. Such fault or negligence , if there is no
pre-existing contractual relation between the parties, CULPA CONTRACTUAL: No liability there being no
is called a quasi-delict. ( Culpa Aquiliana) privity of contract
CULPA-AQUILIANA: Solidarily liable with Employer
 Culpa Contractual governed by Art. 1170 to 1174
 Availability of Defense
1170- Those who in the oerformance of their
obligations are guilty of fraud, negligence, or delay CULPA CONTRACTUAL: Due diligence in the selection
and those who in any manner contravene the tenor and supervision of the employee is not a
thereof defense

1171- Responsibility arising from fraud is demandable CULPA-AQUILIANA: Due diligence in the selection and
in all obligations. Any waiver of action for fture fraud supervison of the employee is a defense under Article
is void 1280: The owners ang managers of an establishment
or enterprise are likewise responsible for damages
1172- Responsibility arising from negligence in the caused by their employees in the service of the
performance of every kind of obligation is also branches in which the latter are employed or on the
demandable but such liability may be regulated by occasion of their functions.
courts
 In what capacity Liable
1173- The fault or negligence of the obligor consists
in the omission of that diligence which is required by CULPA CONTRACTUAL: Liable as a contracting party
the nature of the obligation and corresponds w/ CULPA-AQUILIANA: Liable as an Employer
circumstances of the persons of the time and of the
place. When negligence shows bad faith 1171 shall  Cause of Action of a passenger AGAINST common
governed and 2201 par. 2- in case of fraud ad faith, carrier can be CULPA CONTRACTUAL or CULPA
malice or wanton attitude the obligor shall be AQUILIANA
responsible for all damages w/c may be reasonably
attributed to the non-performance of the obligation While on the part of the driver is either CULPA
DELICTUAL or CULPA ACQUILIANA ( No privity of
1174- Except in cases expressly specified under the contract between him and the passenger/shipper
law or when it is otherwise declared by stipulation or
when it is otherwise declared by stipulation or when Owner /operator of ship as the employer is primarily
the nature of the obligation requires assumption of liable under Art 2180 in motor vehicle mishap –
risk , no person shall vbe responsible for those events Employers shall be liable for the damages caused by
which could not be foreseen or which though their employees and household helpers acting within
foreseen were inevitable. the scope of their assigned tasks, even though the
former are not engaged in any business or industry
 Foundation of legal liability of passengers and
shippers is the CONTRACT OF CARRIAGE. ( As cited in However, in Art 2184 (where owner is also a
Cangco vs. Manila Railroad Company) passenger) the owner (during vehicle mishap) is
 Breach of contract of carriage = failure of defendant solidarily liable with his driver, if foremer who was in
to exercise due care in its performance. the vehicle, could have by the use of due dilifence
 Liability is direct and immediate differing essentially preneted the misfortune. It is disputably presumed
in the legal viewpoint from that presumptive that a driver was negligent, if he had been found
responsibility for the negligence of the servants of guilty of reckless driving or violating traffic
carrier (Art 1903) AND BY REASON THEEREOF the
regulations at least twice within the next two CAUSE OF ATION MUST BE ALLEGED AND PROVED –
preceding months It is the act or omission in violation of the right of the
other party
If the owner was not in the motor vehicle Art 2180 1. a RIGHT in favor of the plaintiff by whatever
shall govern means and whatever law it arises
 Concurrence with THIRD PERSONS, IF 3RD PERSON 2. the correlative OBLIGATION of the defendant to
CONCURS with the BREACH ( CARRIER COLLIDED W/ respect such right
ANOTHER VEHICLE) the liability of the third person 3. the ACT or OMISSION of the defendant violates
who was drivi ng another vehicle and/or his employer the such right
is based on QUASI DELICT
Violation of right -Includes allegation of a breach of such
 Driver alone above may be held crim and civ liable
contract through negligence, fraud, delay, or any other acts or
and EMPLOYER is SUBDIARY liable
omissions that contravenes the tenor of the obligation.
 IN CASE OF INJURY TO A PASSENGER DUE TO
NEGLIGENCE OF DRIVER and the DRIVER OF ANOTHER Note: If the cause of action invoked is CULPA CONTRACTUAL
VEHICLE . it is not necessary for the plaintiff pass or shipper to allege
 The drivers and the owners of the two vehicle are and prove the negligent act of the carrier.
JOINTLY AND SOLIDARILY LIABLE FOR DAMAGES
What is necessary is to allege the PRESENCE OF THE
 No difference if one springs fr contract and other not
CONTRACY and the damage or injury to the plaintiff because
 THIRD PARTY COMPLAINT maybe filed to implead
breach is presumed. (presumption of negligence)
other driver of other vehicle
 MANY PARTIES MAY BE HELD LIABLE so long AS THE DAMAGES – pecuniary compensation recompense or
PLAINTIFF DOES NOT RECOVER TWICE FROM SAME satisfaction for an injury sustained or as otherwise expressed
INJURY the precuniary consequences that the law imposes for the
 MANDATORY INSURANCE coverage PURPOSE ; easy breach of some duty or violation of some rights
way of recovering damages, example is SEC. 14,
Purpose for provisions: To see whatever right is transgressed
Domestic Shipping Dev. Act of 2004 to meet
every manner of loss or injury is compensated for in some
d=financial responsibility of domestic shio operator
way or another.
fr breach of contract of carriage- governing or
requiring body is MARITIME INDUSTRY AUTHORITY EXTENT OF RECOVERY-
 Motor-vehicle Complusory Motor Vehicle Liability
Art 2201- Obligor (contracts and quasi-contracts) who acted
Insurance is mandated under Sec 374 to 389 of the
in good faith is liable shall be those that are the natural and
InsurANCE Code
probable consequences of the breach of the obligation and
w/c the parties have foreseen or could have foreseen at the
SAMPLE
time the obligation was contitutted
Taurus – ship In case of fraud, bad faith, malice or wanton attitude the
Master through negligence damaged WHARF and obligor shall be responsible for all damages which may be
MERCHANDISE loaded on deck reasonably attributed to the non-performance of the
obligation.
OWNER OF WHARF VS OWNER OF VESSEL &MASTER
=
Carrier- is only liable (if in good faith) to pay only for the
*SHIPOWNER may be held liable based on quasi- damages that are the natural and probable consequences of
delict under Art 2176 the breach of the obligation
*MASTER – caused damage thru negligence without
any preexisting contractual relations between If carruer is in bad faith or was guilty of gross negligence the
parties, the liability of shipowner may be predicated carrier is liable for all the damages
under Art 2180

OWNER OF MERCHANDISE VS OWNER OF VESSEL CARRIER RIGHT OF RECOURSE- has right of recourse against
&MASTER = the employee who committed negligent intentional or
fraudulent act
*SHipOWNER may be held for BREACH OF Art 2205. Damages may be recovered 1. For loss or
CONTRACT, carrier has an obligation to carry good impairment of earning capacity in cases of temporary or
safely to their destination. permanent personal injury; 2. For injury to the plaintif’s
business standing or commercial credit.
ELEMENTS OF CAUSE OF ACTION
DAMAGES CANNOT BE PRESUMED and courts in giving award court deems just without need for pleading or proof of the
must point out specific facts as basis- the burden of proof basis thereof (People v. Paredes, July 30, 1998).
rests on the plaintiff claiming for the same.

KINDS OF DAMAGES
Special/Ordinary
1. ACTUAL/ COMPENSATORY DAMAGES
Special
Purpose
NOTE: Special Damages are those which exist because of
Actual or compensatory damages simply make good or special circumstances and for which a debtor in good faith
replace the loss caused by the wrong. can be held liable if he had been previously informed of
such. circumstances.

Manner of Determination
3. NOMINAL DAMAGES
Claimant must produce competent proof or the best
evidence obtainable such as receipts to justify an award Purpose
therefore. Actual or compensatory damages cannot be
Vindicating or recognizing the injured party’s right to a
presumed but must be proved with reasonable certainty.
property that has been violated or invaded. (Tan v. Bantegui,
(People v. Ereno, Feb. 22, 2000)
473 SCRA 663)

Special/Ordinary
Manner of Determination
Ordinary
No proof of pecuniary loss is necessary. Proof that a legal
NOTE: Ordinary Damages are those generally inherent in a right has been violated is what is only required. Usually
breach of a typical contract awarded in the absence of proof of actual damages.

2 Kinds of Actual Damages

1. The loss of what a person already possesses (dano Special/Ordinary


emergente)
Special
2. The failure to receive as a benefit that would have
pertained to him (lucro cesante) NOTE: Special Damages are those which exist because of
special circumstances and for which a debtor in good faith
can be held liable if he had been previously informed of
2. MORAL DAMAGES such. circumstances.

Purpose

Awarded only to enable the injured party to obtain means, 4. TEMPERATE DAMAGES
diversion or amusement that will alleviate the moral
Purpose
suffering he has undergone, by reason of defendants
culpable action. (Robleza v. CA, 174 SCRA 354) When the court is convinced that there has been such a loss,
the judge is empowered to calculate moderate damages
rather than let the complainant suffer without redress. (GSIS
Manner of Determination v. Labung-Deang, 365 SCRA 341)

No proof of pecuniary loss is necessary. The assessment is


left to the discretion of the court according to the
Manner of Determination
circumstances of each case. However, there must be proof
that the defendant caused physical suffering etc. (Compania May be recovered when the court finds that some pecuniary
Maritima v. Allied Free Worker’s Union, G.R. No. L-31379, loss has been suffered but its amount cannot, from the
Aug. 29, 1988). GR: Factual basis must be alleged. Aside from nature of the case, be proved with certainty. No proof of
the need for the claimant to satisfactorily prove the pecuniary loss is necessary.
existence of the factual basis of the damages, it is also
necessary to prove its causal relation to the defendant’s act
(Raagas v. Trava, G.R. No. L-20081, Feb. 27,1968; People v. Special/Ordinary
Manero, G.R. Nos. 86883-85, Jan. 29, 1993).
Special

NOTE: Special Damages are those which exist because of


Exception: Criminal cases. Moral damages may be awarded special circumstances and for which a debtor in good faith
to the victim in criminal proceedings in such amount as the
can be held liable if he had been previously informed of  Art 2216 provides that no proof of pecuniary loss is
such. circumstances. necessary in order that moral, nominal , temperate
liquidated or exemplary damages may be
adjudicated.
5. LIQUIDATED DAMAGES
Note: The assessment of such damages is left to the court
Purpose except liquidated ones.

Liquidated damages are frequently agreed upon by the


parties, either by way of penalty or in order to avoid
controversy on the amount of damages. Determination of Amount of Liability

Article 372. The value of Goods which the carrier


Manner of Determination must pay in cases of loss / replacement shall be
determined with what was declared in the bill of
If intended as a penalty in obligations with a penal cause,
lading, not allowed to present proof that among
proof of actual damages suffered by the creditor is not
goods declared there were articles of greater value
necessary in order that the penalty may be demanded (Art.
1228, NCC). No proof of pecuniary loss is necessary.
All other principal and accessory means of
transportatiob shall be especially bound in favor of
the shipper
Special/Ordinary With respect to railroads said liability shall be
Special subordinated to the provisions of the laws of the
concession with respect to property and to what this
NOTE: Special Damages are those which exist because of Code established
special circumstances and for which a debtor in good faith
can be held liable if he had been previously informed of
such. circumstances. International carriage of goods- if value failed to
declared in bill of lading Sec 4, par 5 of COGSA
applies- “ neither the carrier nor the ship shall I any
6. EXEMPLARY/CORRECTIVE DAMAGES event be or become liable for any loss or damage to
or in connection with the transportation of godds in
Purpose
amount exceeding 500$
Exemplary or corrective damages are intended to serve as a
deterrent to serious wrongdoings. (People v. Orilla, 422 SCRA
620)

Manner of Determination

1. That the claimant is entitled to moral, temperate or


compensatory damages; and

2. That the crime was committed with 1 or more aggravating


circumstances, or the quasi-‐delict was committed with gross
negligence, or in contracts and quasi-contracts the act must
be accompanied by bad faith or done in wanton, fraudulent,
oppressive or malevolent manner. No proof of pecuniary loss
is necessary.

Special/Ordinary

Special

NOTE: Special Damages are those which exist because of


special circumstances and for which a debtor in good faith
can be held liable if he had been previously informed of
such. circumstances.

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