DAMAGES Reviewer

DAMAGES (Arts. 2195 2235) DAMAGES refers to pecuniary recompense or satisfaction for an injury sustained. General Classifications of Damages: 1. Damages capable of pecuniary estimation those that are estimable and which must be duly established or proven. (Actual or compensatory damage and Loss of earning capacity) 2. Damages incapable of pecuniary estimation those which no proof is needed and the assessment is left to the discretion of the court. (Moral, Nominal, Temperate / Moderate, Exemplary / Corrective)

GENERAL PROVISIONS (2195 2198) Art. 2195 The provisions of this title shall be respectively applicable to all obligations mentioned in Art. 1157. - Article 1157 enumerates the sources of Obligation: LAW, CONTRACTS, QUASI CONTRACTS, DELICTS (acts or omissions punishable by law), and QUASI DELICTS. Art. 2196 Coverage of the Rules on Damages: - The rules under this title are without prejudice to special provisions on damages formulated elsewhere in the Code. - Workmens compensation and Employees compensation in case of death, injury or illness is regulated by special laws - Rules governing damages in other laws shall be observed insofar as they are not in conflict with this code. Art. 2197 Kinds of Damages: - Damages may be: a. Actual or Compensatory b. Moral c. Nominal d. Temperate or Moderate e. Liquidated f. Exemplary or Corrective Art. 2198 The principles of the general law on damages are hereby adopted insofar as they are not inconsistent with the Code.

I.

ACTUAL or COMPENSATORY DAMAGES (2199 2215)

Art. 2199 What constitutes actual damage. - Except as provided by law or by stipulation, one is entitled to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved. - Such compensation is referred to as Actual or Compensatory Damage. Art. 2200 Coverage - Indemnification for damages covers the following: a. The value of the loss suffered b. The profits that the obligee failed to obtain

Abel Francis M. Olea

DAMAGES Reviewer

Art. 2201 Damages in contracts and quasi-contracts; liability of obligor. a. Obligor acted in good faith o Liable to 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. b. Obligor acted in bad faith, with fraud, malice or wanton attitude o Responsible for all damages which may be reasonably attributed to the non-performance of the obligation Art. 2202 Damages in Crimes and Quasi delicts - The defendant is liable for all the damages which are the natural and probable consequences of the act or omission complained of. - It is not necessary that such damages have been foreseen or could have reasonably been foreseen by the defendant Art. 2203 Duty of a party who suffered damages - The party suffering loss or injury must exercise the diligence of a good father of the family in order to minimize the damage resulting from the act or omission in question. Art. 2204 Effect of mitigating or aggravating circumstances: - In crimes, the damages to be adjudicated may be respectively increased or lessened according to the aggravating or mitigating circumstances. Art, 2205 Instances where Damages may be recovered: a. For loss or impairment of earning capacity in cases of temporary or permanent personal injury b. For injury to the plaintiffs business standing or commercial credit Art. 2206 Liability of the defendant for death caused by a crime or quasi-delict. - Amount for damages for death caused by a crime or quasi-delict shall be at least three thousand pesos even though there may have been mitigating circumstances. In addition: a. The defendant shall also be liable for the loss of the earning capacity of the deceased and the indemnity shall be paid to the heirs of the latter; o 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. b. If the deceased was obliged to give support according to the provisions of Art. 291 o The recipient who is not an heir called to the decedents inheritance by the law of testate or intestate succession, may demand support from the person causing the death, for a period not exceeding five (5) years, the exact duration to be fixed by the court. c. The spouse, legitimate and illegitimate descendants and ascendants of the deceases may demand moral damages for mental anguish by reason of the death of the deceased.

Abel Francis M. Olea

DAMAGES Reviewer

Art. 2207 Rights of the Insurer, subrogation; Insurance does not cover the injury in full a. If the plaintiffs property have 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. b. 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. Art. 2208 Rules on the recovery of attorneys fees. General Rule: - In the absence of stipulation, attorneys fees and expenses of litigation, other than judicial costs cannot be recovered. Exceptions: a. When exemplary damages are awarded b. When the defendants act or omission has compelled the plaintiff to litigate with third persons or to incur expenses to protect his interest c. In criminal cases of malicious prosecution against the plaintiff d. In case of clearly unfounded civil action against the plaintiff e. When the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiffs plainly valid, just and demandable claim f. In actions for legal support g. In actions for the recovery of wages of household helpers, laborers and skilled workers h. In actions for indemnity under workmens compensation and employers liability laws i. In a separate civil action to recover civil liability arising from a crime j. When at least double judicial costs are awarded k. In any other case where the court deems it just and equitable to award attorneys fees. In all cases, the attorneys fees and expenses for litigation must be reasonable. Art. 2209 Delay in the payment of a sum of money; Interest pays for the damage If the obligation consists in the payment of a sum of money, and the debtor incurs delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the interest agreed upon. In the absence of stipulation as to interest: the legal interest of 6% per annum.

Art 2210 Interest in breach of contract, when allowed. - In the discretion of the court, interest may be allowed upon damages awarded for breach of contract Art. 2211 Interest for damages in delicts and quasi-delicts - 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. Art. 2212 Compounded interest - Interest due shall earn legal interest from the time it is judicially demanded, although the obligation may be silent upon this point.

Abel Francis M. Olea

DAMAGES Reviewer

Art. 2213 Interest on unliquidated claims General Rule: o Interest cannot be recovered upon unliquidated claims or damages Exception: o When the demand can be established with reasonable certainty Art. 2214 Effect of contributory negligence in quasi-delicts - In quasi-delicts, the contributory negligence of the plaintiff shall reduce the damages that he may recover. Art. 2215 Other circumstances which mitigate damages - In contracts, quasi-contracts, and quasi-delicts, the court may equitably mitigate the damages under the circumstances other than the case referred to in the preceding article, as in the following instances: a. That the plaintiff himself has contravened the terms of the contract b. That the plaintiff has derived some benefit as a result of the contract c. In cases where exemplary damages are to be awarded, that the defendant acted upon the advice of counsel d. That the loss would have resulted in any event e. That since the filing of the action, the defendant has done his best to lessen the plaintiffs loss or injury. Art. 2216 When proof of pecuniary loss NOT necessary; Assessment of Damages - No proof of pecuniary loss is necessary in order that MORAL, NOMINAL, TEMPERATE, LIQUIDATED, or EXEMPLARY DAMAGES may be adjudicated. - The assessment of such damages, except liquidated ones, is left to the discretion of the court, according to the circumstances of each case. MORAL DAMAGES (2217 2220)

II.

Art. 2217 Coverage of moral damages. - Moral damages include: a. physical suffering, b. mental anguish, c. fright, d. serious anxiety, e. besmirched reputation, f. wounded feelings, g. moral shock, h. social humiliation and i. similar injury Though incapable of pecuniary computation, moral damages may be recovered if they are the proximate result of the defendants wrongful act or omission.

Art. 2218 Sentimental value of property - In the adjudication of moral damages, the sentimental value of the property real or personal, may be considered. Art. 2219 Analogous cases 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 Abel Francis M. Olea

DAMAGES Reviewer

6. 7. 8. 9. 10.

Illegal search Libel, slander or any form of defamation Malicious prosecution Acts mentioned in Art. 309 (disrespect for the dead or wrongful interference with a funeral) Acts and Actions referred to in the following Articles: a. Art. 21 Any person who willfully causes loss or injury to another in a manner that is contrary to morals, good custom b. Art. 26 Respect for the dignity, personality, privacy and peace of mind c. Art. 27 Loss suffered due to failure of public servant or employee to perform his official duty d. Art. 28 Unfair completion in agricultural, commercial or industrial enterprise or in labor through the use of force, intimidation, deceit, machination or other unjust means e. Art. 29 Civil liability of the accused who is acquitted in a criminal case on the ground that his guilt has not been proved beyond reasonable doubt. f. Art. 30 Separate civil action to demand civil liability arising from a criminal offense g. Art. 32 Violation of the rights and liberties of another by a public officer or employee h. Art. 34 Failure a peace officer to render assistance, and i. Art. 35 Delict with no independent civil action granted and the justice of peace finds no reasonable ground that a crime has been committed.

The parents of the female seduced, abducted, raped or abused, referred to in no. 3 of this article, may also recover moral damages. The spouse, ascendants, descendants and brother and sisters may bring the action mentioned in no. 9 of this article in the order named.

Art. 2220 Willful injury to property - Willful injury to property may be a legal ground for awarding moral damages if the court should find that, under the circumstances, such damages are justly due. - The same rule applies to breaches of contract where the defendant acted fraudulently or in bad faith. NOMINAL DAMAGES (2221 2223)

III.

Art. 2221 Nominal damages, when proper - 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 Nominal Damages; Property rights - The court may award nominal damages in every obligation arising from any source enumerated in Art. 1157, or in any case whenever property right has been invaded. Art. 2223 Effect of adjudication of nominal damages - 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. TEMPERATE or MODERATE DAMAGES (2224 2225)

IV.

Art. 2224 Characteristics, when proper - 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 amounts can not, from the nature of the case, be proved with certainty Art. 2225 Limitation - Temperate damages must be reasonable under the circumstances.

Abel Francis M. Olea

DAMAGES Reviewer

V.

LIQUIDATED DAMAGES (2226 2228)

Art. 2226 Characteristics - Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof Art. 2227 Limitations - Liquidated damages whether intended as an indemnity or a penalty, shall be equitable reduced if they are iniquitous or unconscionable Art. 2228 What determines liquidated damages in case of breach not contemplated by the parties - When the breach of 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 or damages and not the stipulation.

VI.

EXEMPLARY or CORRECTIVE DAMAGES (2229 2235)

Art. 2229 Characteristics, when proper - 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. Art. 2230 Applicability in criminal offenses; conditions - 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 Applicability in quasi-delicts - In quasi-delicts, exemplary damages may be granted if the defendant acted with gross negligence Art. 2232 Applicability in contracts and quasi-contracts - In contracts and quasi-contracts, the court may award exemplary damages if the defendant acted in wanton, fraudulent, reckless, oppressive or malevolent manner. Art. 2233 Exemplary damages not a matter of right; discretion of the court - Exemplary damages cannot be recovered as a matter of right. - The court will decide whether or not they should be adjudicated Art. 2234 Requisites for the award of exemplary damages - While the amount for 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 liquidated damages, the plaintiff must show that he would be entitled to moral, temperate or compensatory damages were it not for the liquidated damages. Art. 2235 Advance waiver of exemplary damages, void. - A stipulation whereby exemplary damages are renounced in advance shall be null and void.

Abel Francis M. Olea