DAMAGES

DAMAGES, defined

The sum of money which the law awards or imposes as pecuniary compensation, recompense, or satisfaction for an injury done Some actionable loss, injury or harm which results from the unlawful act, omission, or negligence of another. Pecuniary consequences which the law imposes for the breach of some duty or the violation of some right

DAMAGE AND DAMAGES

Damage is the loss, injury or deterioration caused by negligence, design or accident of one person to another in respect of the latters property while damages signifies compensation in money for the loss or damage Damage is the occasion of the damages

DAMAGES AND INJURY

Injury is the wrongful act or tort which causes loss or harm to another while damages is an indemnity to the person who suffers loss or harm from the injury Injury denotes the illegal act while damages refers to the sum recoverable which amends the wrong Injury is the legal wrong to be redressed while damages is the scale or measure of recovery

Damnum means harm, hurt, loss, damage while injuria means something done against the right of the party, producing damage Unless a right is violated, even though there is damage, it is damnum absque injuria

DAMNUM ABSQUE INJURIA

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 damage results from a persons exercising his legal rights, it is damnum absque injuria Injured party suffers the consequences

PRINCIPLES

Just compensation is the fundamental principle or theory on which damages are based The purpose of the law in awarding actual damages is to repair the wrong that has been done or to compensate for the injury inflicted but not to impose a penalty Damages is intended to repair the damage done by putting the plaintiff the plaintiff in the same position as far as pecuniary compensation can do, that he would be, had the damage not been inflicted and the wrong not committed There is no right to damages where there is no wrong

Kinds of Damages
Actual or compensatory damages Moral damages Nominal damages Temperate or moderate damages Liquidated damages Exemplary or corrective damages (ART 2197 of the Civil Code)

ACTUAL DAMAGES

Actual and compensatory damages are those recoverable because of pecuniary loss in business, trade, property, profession, job or occupation. One is entitled only to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved except as provided by law or by stipulation Comprehends both the value of the loss suffered and the profits which obligee failed to obtain

Except for actual or compensatory damages which must be proved,no proof of pecuniary loss is necessary in order that moral, nominal, temperate, liquidated or exemplary damages maybe adjudicated The assessment of such damages except for liquidated ones is left to the discretion of the court according to the circumstances of each case

NECESSITY OF PLEADING

To be recoverable, actual damages must be pleaded or prayed for. The term such other relief just and equitable include actual damages when they are proved

NECESSITY OF PROOF

Actual damages must be proved, otherwise, if the proof is flimsy and nonsubstantial, no damages will be awarded. Actual and compensatory damages require evidential proof. They cannot be presumed The damages given must be based on the evidence presented and not on the personal knowledge of the court

Without the actual proof of loss, the award of actual damages becomes erroneous The burden of proof of the damages suffered is on the party claiming the same Actual damages is not proved by mere testimony of witness

EXCEPTIONS TO NECESSITY OF PROOF

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Liquidated damages previously agreed upon Damages other than actual In case loss is presumed as when a child or a spouse dies In case of forfeiture of bonds in favor of the government for purpose of promoting public interest or policy

Kinds of Actual Damages

Losses suffered (dano emergente) like destruction of things, fines or penalties that had to be paid, medical and hospitalization expense, rents and agricultural products not received in an agricultural lease Unrealized profits (lucro cesante) like profits that cound have been earned had there been no interruption of business as evidenced by reduced receipts of enterprises; interest on rentals that were not paid

Loans or forbearance of money, goods or credits and court judgments thereon- 12% legal interest (CB Circular 416); does not apply to court judgment for damages arising from injury to persons or loss of property which does not involve loan which is covered by Art 2209 CC 6% Final judgment of the court awarding a sum of money legal interest of 12% from finality in both cases

Damages maybe recovered for loss or impairment of earning capacity in cases of temporary or permanent personal injury; and for injury to the plaintiffs business standing or commercial credit ( Art 2205) Recoverable amount for loss of earning capacity is the loss of net earnings which is the gross earnings less necessary expenses in the creation of such earnings and less living and other incidental expenses during the victims average life span (24 SCRA 888, 49 SCRA 497)

EXTEND OF RECOVERABLE DAMAGES

In contracts and quasi-contracts, the damages for which the obligor who acted in good faith is liable shall be those that re 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. In case of fraud bad faith, malice or wanton attitude, obligor shall be responsible for all damages which may be reasonably attributed to the non-performance of the obligation(11 SCRA 733)

In crimes and quasi-delicts, defendant shall be liable for all 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 been foreseen by the defendant (Art 2202). In crimes, damages may be increased or decreased according to aggravating or mitigating circumstances available.

Art 2206 - damages for death in crimes and quasi delict is P3,000 increased to P50,000 by SC en banc Aug 30, 1990 plus loss of the earning capacity of deceased; obligation to give support if deceased was obliged to; moral damages to the heirs

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Art 2208. In the absence of stipulation, attorneys fees and expenses of litigation, other than judicial costs cannot be recovered, except: When exemplary damages are awarded When defendants act of omission has compelled to the plaintiff to litigate with 3rd persons or to incur expenses to protect the interest In criminal cases for malicious prosecution against the plaintiff In a case of a clearly unfounded civil action or proceeding against the plaintiff

5. Where defendant acted in gross and evident bad faith. 6. In actions for legal support 7. In actions for recovery of wages, of household helpers, laborers.. 8. In actions for indemity under workmens compensation 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

General rule: attorneys fees cannot be recovered as part of damages because of the policy that no premium should be placed on the right to litigate. When recoverable, they are in the nature of actual damages which must be duly proved; in favor of litigant not his counsel; reason for award must be stated in the courts decision and not simply in the dispositive portion

FORMULA IN COMPUTING LOST INCOME

NET EARNING CAPACITY = 2/3 X (80AGE at time of death) X (gross annual income-reasonable and necessary living expenses Applied in P v Sia, et al (GR 137457) P v Orpilla (GR 118073) etc

Net earning capacity = 2/3 (80-57)x (P89,000-44,500) Net earning capacity = 2/3(23) x 44,500 Net earning capacity = 15.3 x 44,500 Net earning capacity = P 680, 850.00

MORAL DAMAGES

Include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation and similar injury Incapable of pecuniary estimation but may be recovered if they are the proximate result of the defendants wrongful act or omission

MORAL DAMAGES; NATURE

Not awarded to punish the defendant but to compensate the victim in the concept of grants Awarded to enable the victim to obtain means, diversions or amusements to alleviate the moral suffering not meant to enrich the complainant at the expense of defendant

No proof of pecuniary loss is necessary for its adjudication Assessment is left to the discretion of the court according to the circumstances of each case Proof that defendant caused moral suffering is required Allegations of moral suffering needed to grant moral damages Exception: criminal cases No moral damages to corporation and othe artificial being

Cases where moral damages are allowed

Criminal offense resulting in physical injuries Quasi-delicts causing physical injuries Seduction, abduction, rape or other lascivious acts(incl parents of victim) Adultery or concubinage Illegal or arbitrary detention or arrest Illegal search

Libel, slander, or any other form of defamation Malicious prosecution Acts mentioned in Art 309 Acts referred to in Art 21, 26, 27, 28, 29, 30, 32, 34 and 35 Art 2219 Willful injury to property and breach of contract when defendant acted fraudulently or in bad faith (Art 2220)

FACTORS TO CONSIDER IN DETERMINING THE AMOUNT

Extent of humiliation Extent of pain and suffering Official, political, social and financial standing

NOMINAL DAMAGES

Those recoverable where a legal right is to be vindicated against an invasion that has produced no actual present loss of any kind or where from the nature of the case, some injury has been done, the amount of which the proofs fail to show. The law infers some damage from the breach of an agreement or invasion of a right, and if no evidence is given of any particular amount of loss, it declares the right by awarding nominal damages

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 for any loss suffered by him (Art 2221) The court may award nominal damages in every obligation or in every case where any property right has been invaded (Art 2222)

They are recoverable where some injury has been done but the amount of which the evidence fails to show, the assessment of damages being left to the discretion of the court according to the circumstances of the case Cannot co-exist with compensatory damages

Cases awarding Nominal Damages

failure to accommodate an airline passenger who was immediately booked for the next morning flight A lawyer who negligently fails to deposit on time the appeal bond and to file the record of appeal within the extension period Unable to adduce evidence showing actual damages, nominal damages maybe recovered

failure to remit insurance premium received by personnel even if later on insurance was reinstated Failure to deliver on the wedding day the wedding cake because the order slip was lost

TEMPERATE OR MODERATE DAMAGES

Those which are more than nominal but less than compensatory damages, maybe recovered 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 (Art 2224) May co-exist with actual or compensatory damages when injury is chronic and continuing

Actual damages not supported by receipts, temperate damages maybe adjudicated Temperate damages computed as half the amount of civil indemnity involving death, so P25,000 No evidence for burial and funeral expenses, medical services,etc, temperate damages is proper Actual or compensatory if not temperate damages if not then boils down to nominal damages

Nominal damages and temperate/moderate damages are incompatible and cannot be granted concurrently

LIQUIDATED DAMAGES

Are those that parties agree to be paid in case of a breach; answers for damages suffered by a party; take the nature of penalties to ensure performance No proof of loss is necessary for its recovery; no controversy on the amount of damages Can be equitably reduced if obligation is party or irregularly complied with

May also be reduced (as penalty) if the court finds the same to be iniquitous or unconscionable If breach of the contract committed by defendant is not the one contemplated by the parties in the liquidated damages, the law shall determine the measure of damages and not the stipulation

EXEMPLARY DAMAGES

Exemplary damages are imposed , by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages (Art 2229) Punitive, vindictive, intended o serve as a deterrent to serious wrongdoings and as a vindication of undue sufferings and wanton invasion of the rights of an injured or a punishment for those guilty of outrageous conduct

Requisites: claimants right is established; determination depending upon the amount of damages that may be awarded; act is accompanied by bad faith or done in wanton, fraudulent, oppressive, or malevolent manner.

Award of Exemplary Damages; Allowed

Art 2230- criminal offenses when crime was committed with one or more aggravating circumstances as part of civil liability Art 2231-quasi-delicts when defendant acted with gross negligence Art 2232- contracts and quasi-contracts when defendant acted in wanton, fraudulent, reckless, oppressive or malevolent manner

Art 2233- exemplary damages cannot be recovered as a matter of right, court will decide whether or not they should be adjudicated Art 2234- amount need not be proved but plaintiff must show that he is entitled to moral, temperate or compensatory damages before the court may award exemplary damages. In case liquidated damages have been agreed upon, xx, plaintiff must show that he would be entitled to moral, temperate, or compensatory damages were it not for the stipulation for liquidated damages as basis for award of exemplary damages