TABLE OF CONTENTS

Preface ....................................................................................... v
Preface to the Second Edition................................................... vii
Acknowledgments...................................................................... ix

CHAPTER 1 — GENERAL CONSIDERATIONS

1. Tort Defined ....................................................................... 1
2. Philippine Tort Law .......................................................... 2
A. Sources ......................................................................... 2
B. Scope and Applicable Laws......................................... 4
a. Catch-all Provisions.............................................. 5
b. Expanded Scope of Quasi-Delict .......................... 6
c. View that Art. 2176 is limited to negligence........ 10
3. Purposes of Tort Law......................................................... 10
A. Major Purposes ........................................................... 10
B. Balancing of Conflicting Interests............................... 11
4. Fundamental Principles .................................................... 12
A. Equity and Justice....................................................... 12
B. Democracy.................................................................... 14
C. Human Personality Exalted ....................................... 15
5. Justifications of Tort Liability .......................................... 15
A. Moral Perspective........................................................ 16
B. Social and Economic Perspective................................ 17
6. Persons who can sue and be sued for Tort........................ 19
A. Plaintiffs: Persons who are entitled to damages........ 19
B. Defendants: Persons who may be held liable ............ 19
7. Remedies ............................................................................ 20
8. Alternative Compensation Schemes ................................. 21
A. Insurance...................................................................... 21
B. Worker’s Compensation............................................... 22

CHAPTER 2 — NEGLIGENCE

1. Kinds of Negligence ........................................................... 23

A. Statutory Basis and Requisites................................... 23
xi
 a. Quasi-Delict........................................................... 23
b. Delict ................................................................... 23
c. Contract................................................................. 25
B. Distinctions.................................................................. 25
a. Culpa Aquiliana distinguished from
Culpa Contractual .......................................... 25
b. Culpa Aquiliana distinguished from Crimes ...... 26
C. Concurrence of Causes of Action ................................ 26
2. Concept of Negligence ....................................................... 28
A. Definition and Test of Negligence............................... 29
B. Negligence is Conduct ................................................. 31
C. Unreasonable or Undue Risks .................................... 32
D. Forseeability ................................................................ 32

Cases:
Ong vs. Metropolitan Water District ......................... 33
Civil Aeronautics Adm. vs. CA ................................... 37
E. Probability ................................................................... 41
3. Calculation of Risk............................................................. 42
A. Risk Benefit Analysis .................................................. 42
B. Rule in the Philippines ............................................... 44
a. Circumstances to consider.................................... 46
1) Time ............................................................. 46
2) Place ............................................................. 47
3) Emergency....................................................... 47
4) Gravity of Harm to be Avoided ...................... 48
5) Alternative Course of Action ......................... 49
6) Social Value or Utility of Activity.................. 49
7) Person Exposed to the Risk ........................... 51

Case:
Valenzuela vs. CA ....................................................... 57
4. Standard of Conduct: Good Father of a Family ............... 63
A. Attributes of a Good Father of a Family .................... 66
a. Knowledge and Experience of the Actor .............. 66
b. Children ................................................................ 67

Cases:
Julian Del Rosario vs. Manila Electric Co.................. 70
Taylor vs. Manila Electric Railroad and Light Co..... 72
Federico Ylarde vs. Edgardo Aquino........................... 78
c. Physical Disability ................................................ 81
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 Cases:
United States vs. Bonifacio......................................... 82
Roberts vs. State of Louisiana..................................... 84
d. Experts and Professionals..................................... 86

Case:
Culion Ice, Fish, & Electric Co. vs. Phil.
Motors Corp. ......................................................... 88
e. Nature of Activity.................................................. 91
f. Intoxication ........................................................... 92

Case:
E.M. Wright vs. Manila Electric R.R.
& Light Co.............................................................. 93
g. Insanity ................................................................. 96
h. Women ................................................................... 97
5. Standard vs. Specific Rules................................................ 101

Cases:
Baltimore & Ohio R.R. vs. Goodman ......................... 104
Pokora vs. Wabash Ry. Co........................................... 105
Preciolilta V. Corliss vs. The Manila
Railroad Co............................................................ 107
Cusi & Pobre vs. Phil. National Railways.................. 111
6. Other Factors to Consider in Determining
Negligence.................................................................... 115
A. Violation of Rules and Statutes................................... 115
a. Statutes and Ordinances ...................................... 115
b. Administrative Rules............................................ 116
c. Private Rules of Conduct ...................................... 117
d. Proximate Cause.................................................... 117

Case:
Vda. De Gregorio vs. Go Ching Bing .......................... 120
e. Negligence Per Se Rule Reconsidered.................. 123
B. Practice and Custom.................................................... 125

Case:

xiii
 S.D. Martinez vs. William Van Buskirk .................... 126
C. Compliance with Rules and Statutes ......................... 131
7. Degrees of Negligence........................................................ 131

Cases:
Negros Navigation Co., Inc. vs. CA............................. 132
Benguet Electric Cooperative, Inc. vs. CA.................. 135
8. Proof of Negligence............................................................. 138
A. Burden of Proof............................................................ 138
B. Presumptions............................................................... 139
C. Res Ipsa Loquitur ........................................................ 139
a. Rationale................................................................ 141
b. Cases when the doctrine was applied................... 142
c. Cases when doctrine was held inapplicable......... 148
d. Culpa contractual.................................................. 150

Cases:
Espiritu vs. Phil. Power and Dev. Co. ........................ 150
RCPI vs. CA ................................................................. 152

CHAPTER 3 — AFFIRMATIVE DUTIES

AND MISCELLANEOUS ACTIVITIES

1. Duty to Rescue ................................................................... 155

A. Duty to the Rescuer .................................................... 155
B. Duty to Rescue............................................................. 157
2. Owners, Proprietors and Possessors................................. 159
A. Trespassers................................................................... 159
a. Tolerated Possession ............................................ 160
b. Visitors................................................................... 161
c. Children and Attractive Nuisance Rule............... 163

Case:
Hidalgo Enterprises, Inc. vs. Balandan...................... 165
d. State of Necessity ................................................. 167
B. Use of Property that Injures Others .......................... 168
C. Liability of Proprietors of Buildings .......................... 169
3. Employers and Employees................................................. 170
A. Employers .................................................................... 170
B. Employees..................................................................... 171

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 Case:
Ma-ao Sugar Central Co. vs. Hon. CA ....................... 171
4. Banks ................................................................................ 173

Case:
Phil. Bank of Commerce vs. CA ................................. 175
5. Common Carriers............................................................... 176
6. Doctors ..........................................................................177
A. Standard of Care.......................................................... 178
B. Captain of the Ship Doctrine....................................... 180
C. Not Warrantors............................................................ 181
D. Proof.............................................................................. 183
E. Liability of Hospitals and Consultants....................... 188

Cases:
Cruz vs. Court of Appeals ........................................... 191

7. Lawyers...............................................................................
198
CHAPTER 4 — DEFENSES IN NEGLIGENCE CASES

1. Plaintiff’s Conduct and Contributory Negligence............. 200
A. Plaintiff’s Own Negligence as the
Proximate Cause ................................................... 200

Cases:
Phil. Long Distance Tel. Co. vs. CA............................ 202
Kim vs. Phil. Aerial Taxi Co........................................ 205
B. Contributory Negligence.............................................. 207

Cases:
Rakes vs. The Atlantic Gulf and Pacific Co................ 209
Phoenix Construction, Inc. vs. IAC ............................ 220
2. Imputed Contributory Negligence..................................... 224
3. Fortuitous Event................................................................ 226

Cases:
National Power Corp. vs. CA ...................................... 228
Southeastern College, Inc. vs. CA............................... 233
4. Assumption of Risk............................................................. 237

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 A. Requisites..................................................................... 237
B. Kinds............................................................................. 238
a. Express Waiver of the Right to Recover .............. 238
b. Implied Assumption ............................................. 239
(1) Dangerous Conditions..................................... 239

Cases:
Transporto vs. Mijares ................................................ 239
Murphy vs. Steeplechase Amusement Co. ................. 242
(2) Contractual Relations .................................... 243
(3) Dangerous Activities ...................................... 245
(4) Defendant’s Negligence.................................. 245
5. Effect of Death.................................................................... 246
6. Prescription......................................................................... 246
A. When period commences............................................. 246
B. Doctrine of Relations or Relations Back Doctrine...... 247
7. Involuntariness ..................................................................
248
CHAPTER 5 — CAUSATION

1. Definition of Proximate Cause........................................... 250

2. Distinguished from Other Terms...................................... 251
A. Remote Cause............................................................... 251

Cases:
Gabeto vs. Araneta....................................................... 251

B. Nearest Cause.............................................................. 253

C. Concurrent Causes....................................................... 254

Cases:
Sabido vs. Custodio...................................................... 256
Vinluan vs. CA............................................................. 259
3. Tests of Proximate Cause................................................... 259
A. Cause in Fact Tests...................................................... 263
a. Philosophical Foundations ................................... 263
b. Main Tests............................................................. 267
B. Policy Tests .................................................................. 273
4. Tests Applied in the Philippines........................................ 275
A. Cause-in-Fact Tests..................................................... 276

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 Case:
Pilipinas Bank vs. Hon. CA......................................... 277
B. Policy Tests................................................................... 279
a. Rule under the 1889 Civil Code............................ 279
b. Rule under the New Civil Code............................ 285
5. Cause and Condition.......................................................... 286
a. Types of Dangerous Conditions................................... 287

Case:
Rodrigueza vs. The Manila Railroad Co. ................... 288
6. Efficient Intervening Cause .............................................. 291
A. Definition and Concept................................................ 291
B. Foreseeable Intervening Cause................................... 294
a. Medical Treatment................................................ 294

Cases:
Vda. De Bataclan vs. Medina...................................... 295
Teague vs. Fernandez.................................................. 298
Urbano vs. Hon. IAC.................................................... 301
C. Unforeseen and Unexpected Act or Cause ................ 308
7. Contributory Negligence.................................................... 309
A. Plaintiff’s Negligence is the Cause.............................. 309
B. Compound Causes ....................................................... 309
C. Part of the Same Causal Set....................................... 309
D. Defendant’s Negligence is the Only Cause................. 311
8. Last Clear Chance.............................................................. 311
A. Alternative Views......................................................... 311
a. Prevailing View..................................................... 311
b. Minority View ....................................................... 312
c. Third View............................................................. 314
B. Cases When the Doctrine was Applied....................... 314

Case:
Glan People’s Lumber and Hardware vs. IAC........... 316
C. Cases When the Doctrine Was Held
Inapplicable........................................................... 321

Cases:
Pantranco North Express, Inc. vs. Baesa................... 322
LBC Air Cargo vs. CA.................................................. 326

xvii
 CHAPTER 6 — HUMAN RELATIONS:
INTENTIONAL TORTS

1. Reason for Chapter on Human Relations......................... 330
2. Catch All Provisions........................................................... 331
A. Concepts ...................................................................... 331
B. Damage ........................................................................ 334
3. Abuse of Right ................................................................... 335
A. Elements....................................................................... 335
B. Examples ..................................................................... 336

Cases:
University of the East vs. Jader.................................. 342
Valenzuela vs. The Hon. CA ....................................... 347
4. Acts Contra Bonus Mores .................................................. 350
A. Gen. Concepts............................................................... 350
B. Breach of Promise To Marry....................................... 350

Cases:
Tanjanco vs. CA .......................................................... 352
Baksh vs. CA................................................................ 355
C. Seduction and Sexual Assault..................................... 364

Case:
Cecilio Pe, et al. vs. Alfonso Pe ................................... 365
D. Desertion by a Spouse.................................................. 366
E. Trespass and Deprivation of Property........................ 367
a. Trespass to and/or Deprivation of Real
Property .......................................................... 367
b. Trespass to or Deprivation of Personal
Property .......................................................... 369
c. Disconnection of Electricity or Gas Service ........ 370

Case:
Manila Gas Corp. vs. CA............................................. 370
F. Abortion and Wrongful Death..................................... 372
Case:
Geluz vs. CA................................................................. 372
G. Illegal Dismissal........................................................... 375

xviii

Case:
Globe Mackay Cable & Radio Corp. vs. CA ............... 376
H. Malicious Prosecution ................................................. 379
a. Definition and Statutory Basis............................. 379
b. Elements ............................................................... 379
[1] Malice ............................................................. 380
[2] Acquittal.......................................................... 380

Cases:
Globe Mackay Cable & Radio Corp. vs. CA ............... 381
Drilon vs. CA................................................................ 383
Manila Gas Corp. vs. CA ............................................ 387
I. Public Humiliation ...................................................... 391

Cases:
Rafael Patricio vs. The Hon. Oscar Leviste................ 393
Grand Union Supermarket, Inc. vs. Espino, Jr.......... 394
Carpio vs. Valmonte..................................................... 398

CHAPTER 7 — HUMAN DIGNITY

1. Privacy ............................................................................... 406

A. Constitutional Right to Privacy.................................. 406
a. Scope of Protection ............................................... 406
b. Basis of Liability for Damages ............................. 409

Case:
Blas Ople vs. Ruben Torres......................................... 410
B. Violation of the Right to Privacy as
Independent Tort................................................... 418
a. Development as Tort............................................. 418
b. Persons Entitled to Relief .................................... 420
c. Reason for Protection............................................ 422
d. Reason for Rejection.............................................. 426
e. Standard ............................................................... 427
C. Classification of the Tort of Violation of the
Right to Privacy..................................................... 428
a. Intrusion ............................................................... 428
[1] Forms of Intrusion ......................................... 429
[2] Intrusion in Public Places............................... 429
[3] Persons Protected ........................................... 430

xix
 [4] Intrusion and Freedom of the Press.............. 430
[5] Intusion and Administrative
Investigation............................................. 430
[6] Electronic Devices and other similar
means........................................................ 431
[7] Public Records ................................................ 438
[8] Contract of Carriage....................................... 439
[9] E-Commerce.................................................... 440

Case:
Valmonte vs. Belmonte, Jr.......................................... 441
b. Publication of Private Facts ................................. 450
[1] Newsworthiness ............................................. 451
[2] Official Proceedings......................................... 452
[3] Official Functions............................................ 452

Cases:
Ayer Productions Pty. Ltd. vs. Hon. Capulong .......... 452
Cordero, et al. vs. Buigasco, et al. .............................. 460
c. False Light ............................................................ 469

Case:
St. Louis Realty Corp. vs. CA...................................... 470
Concepcion vs. CA........................................................ 473
d. Commercial Appropriation of Likeness................ 477
[1] Concept ........................................................... 477
[2] Policy Considerations...................................... 478
[3] Personal Right................................................. 479
2. Interference With Family and Other Relations ............... 479

Case:
Tenchavez vs. Escaño ................................................. 481
3. Vexation and Humiliation.................................................. 485
A. Infliction of Emotional Distress.................................. 486
B. Discrimination.............................................................. 490
a. Discrimination in Labor ....................................... 491
b. Discrimination of Disabled................................... 491
C. Sexual Harassment ..................................................... 493
a. Parties ................................................................... 495
[1] Principal by Inducement................................ 496
[2] Employer or Head of Office............................. 496
xx
 b. How Committed..................................................... 497
[1] Quid Pro Quo Cases........................................ 498
[2] Hostile Environment Cases............................ 498
[3] Civil Service Rules.......................................... 499
[4] Bases of Liability............................................. 501
[5] Standard of Conduct....................................... 504

Cases:
Jacutin v. People.......................................................... 504
Phil. Aeolus Automotive United Corp. vs. NLRC...... 509

CHAPTER 8 — TORTS WITH INDEPENDENT

CIVIL ACTION

1. Concept ............................................................................... 514

2. Art. 32: Violation of Civil and Political Rights ................ 517
A. Rationale...................................................................... 518
B. How Committed........................................................... 519
C. Persons Liable.............................................................. 520
a. Superior Officers ................................................... 522
b. Subordinate Officers ............................................. 523
D. State Immunity ........................................................... 524
E. Suspension of the Privilege of the Writ
of Habeas Corpus ........................................................ 524
F. Examples of Violations ............................................... 525
a. Due Process ........................................................... 525
b. Right Against Searches and Seizure ................... 526

Case:
Aberca, et al. vs. Gen. Ver .......................................... 527
3. Art. 33: Defamation, Fraud & Physical Injuries.............. 535
A. Defamation................................................................... 536
a. Definitions.............................................................. 536
b. Reason for liability ............................................... 537
c. Requisites............................................................... 537
[1] The Imputation is Defamatory....................... 538
[2] Publication ...................................................... 540
[3] Malice ............................................................. 541
[4] Identification of the Defamed......................... 542
[4.1] Group Libel .......................................... 544
[4.2] Deceased............................................... 546
d. Persons Liable ...................................................... 546
e. Proof of Truth........................................................ 547

xxi
 f. Defenses................................................................. 548
[1] Absolutely Privileged Matters ....................... 550
[2] Qualified Privilege.......................................... 551
[2.1] Complaints Against Public
Officials........................................... 554
[2.2] Report to a Superior Officer ................ 554
[2.3] Allegations in Pleadings...................... 555
[2.4] Publication of a Pleading..................... 555
[2.5] Fair Comment...................................... 559

Cases:
MVRS Publications vs. IDCPI..................................... 561
Borjal vs. CA ................................................................ 571
Manuel vs. Paño .......................................................... 586
B. Fraud............................................................................ 594

Case:
Silva vs. Peralta .......................................................... 596
C. Physical Injuries ......................................................... 600
4. Art. 34: Neglect of Duty ....................................................
603
CHAPTER 9 — CIVIL LIABILITY ARISING
FROM DELICT

1. Basis of Liability................................................................. 604
2. Persons Liable.................................................................... 606
3. What is Included in Civil Liability.................................... 608
4. Proximate Cause ............................................................... 609
5. Circumstances Affecting Civil Liability............................ 609
A. Justifying and Exempting Circumstances ................. 609

Case:
Tan vs. Standard Vacuum Oil Co. ............................. 613
B. Aggravating and Mitigating Circumstances ............. 617
6. Extinction and Survival of Liability.................................. 617
A. Effect of Death.............................................................. 618
B. Effect of Pardon............................................................ 618
Case:
People vs. Bayotas........................................................ 619
7. Concurrence of Causes of Action and Remedies .............. 622
A. Concurrence of Causes of Action ................................ 622
B. Remedies ..................................................................... 626
xxii
 a. The Rules .............................................................. 626
b. History and Justification of Reservation
Requirement ................................................... 632
8. Prejudicial Question .......................................................... 638

CHAPTER 10 — THE DEFENDANTS

1.
Concurrent Negligence or Acts ......................................... 640
A. Joint Tort-feasors ........................................................ 640
B. Motor Vehicle Mishaps................................................ 642
2.
Vicarious Liability ............................................................. 643
A. General Concepts......................................................... 643
B. Statutory Provisions.................................................... 645
a. Civil Code and Family Code ................................. 645
b. Revised Penal Code .............................................. 647
C. Parents and Other Persons Exercising Parental
Authority................................................................ 649
a. New Civil Code and Family Code ........................ 649
[1] Liability for Acts of Minors ............................ 649
[1.1] Basis of Liability ................................. 649
[1.2] Persons Liable ..................................... 649
[1.3] Nature of Liability................................ 650
[1.4] Other Requirements............................. 651
[2] Liability for Acts of Children of
Majority Age ............................................ 651
b. Civil Liability Ex Delicto....................................... 653
c. Defense of Exercise of Due Diligence .................. 654

Cases:
Cuadra vs. Monfort ..................................................... 656
Tamargo vs. CA ........................................................... 657
Libi vs. IAC .................................................................. 661
D. Liability of Guardians of Incapacitated Adults.......... 664
E. Schools, Teachers and Administrators ...................... 666
a. Family Code .......................................................... 666
[1] Persons Liable ................................................ 666
[2] Supervision, Instruction or Custody ............. 667
b. Civil Code .............................................................. 669
[1] Effect of Family Code ..................................... 669
[2] Rules Under Art. 2180.................................... 670
[3] Other Bases of Liability of Schools ............... 671
c. Liability of Teachers under the Revised
Penal Code ...................................................... 672

xxiii
 Cases:
Amadora vs. CA........................................................... 672
PSBA vs. CA................................................................. 681
St Mary’s Academy v. Carpituous............................... 685
F. Employers..................................................................... 687
a. Liability of Employers under the Civil Code ....... 688
[1] Proof of Employer-Employee Relationship.... 690
[2] Determination of Employer-Employee
Relationship.............................................. 692
[2.1] Working Scholars................................. 693
[2.2] Labor-only Contracting........................ 694
[3] Performance of Assigned Task....................... 697
[4] Presumption.................................................... 701
[5] Defense ........................................................... 702
[6] Solidary Liability............................................ 703
[7] Registered Owner Rule................................... 704

Cases:
Valenzuela vs. CA........................................................ 713
Sps. Africa vs. Caltex (Phils.)...................................... 716
Pilipinas Shell Petroleum vs. CA................................ 719
b. Liability of Employers under the Revised
Penal Code ...................................................... 723
[1] Requisites........................................................ 723
[1.1] Industry or Work.................................. 723
[1.2] Conviction and Binding Effect
of Findings...................................... 723
[1.3] Performance of Assigned Task............ 724
[1.4] Insolvency............................................. 724
[2] Enforcement of Subsidiary Liability ............. 726
G. Innkeepers and Hotelkeepers ..................................... 726
H. Partnership.................................................................. 727
I. Spouses ........................................................................ 728
a. Absolute Community Property............................. 728
b. Conjugal Partnership of Gains............................. 728
c. Regime of Separation of Property......................... 729
J. State.............................................................................. 729
K. Municipal Corporations............................................... 734
3. Public Officers ....................................................................
735
CHAPTER 11 — STRICT LIABILITY

xxiv
1. Animals............................................................................... 737

Case:
Vestil v. IAC................................................................. 740
2. Falling Objects ................................................................... 744
3. Liability of Employers........................................................ 744
4. Nuisance ............................................................................ 745
A. Definition...................................................................... 745
B. Kinds ............................................................................ 746
C. Strict Liability and Persons Liable ............................ 748
D. Abatement ................................................................... 748
a. Public Nuisance .................................................... 748
b. Private Nuisance .................................................. 749
c. Fire Code of the Philippines.................................. 749
d. Liability for Damages............................................ 750
E. Prescription and Estoppel........................................... 750

Case:
Velasco vs. Manila Electric Co.................................... 751

CHAPTER 12 — PRODUCT AND SERVICE

LIABILITY

1. Statutory Basis .................................................................. 758
2. Alternative Theories........................................................... 761
A. Fraud or Misrepresentation........................................ 761
a. Civil Code .............................................................. 761
b. Consumer Act ....................................................... 762
B. Warranties.................................................................... 764
a. Civil Code .............................................................. 764
b. Consumer Act ....................................................... 767
[1] Formalities...................................................... 767
[2] Duration ......................................................... 768
[3] Records and Reports....................................... 768
[4] Liability of Retailers....................................... 769
[5] Enforcement of Warranties and Breach........ 769
[6] Lack of Privity................................................. 770
C. Negligence ................................................................... 770
D. Delict ............................................................................ 773
E. Strict Liability.............................................................. 773
a. Civil Code .............................................................. 773
b. Consumer Act ....................................................... 778
xxv
 [1] Privity not Required ...................................... 780
[2] Persons Liable................................................. 780
[3] Reasons why Liability is Imposed
on Manufacturers..................................... 781
[4] Meaning of Defective Product ....................... 782
[4.1] Manufacturing Defect ......................... 783
[4.2] Design Defect ....................................... 783
[4.3] Packaging and Presentation................ 788
[4.4] Lack of Warning .................................. 788
Duty to Warn ....................................... 788
Knowledge of the Manufacturer.......... 790
[5] Proof of Defect ................................................ 790
[6] Defenses........................................................... 791

CHAPTER 13 — BUSINESS TORTS

1. Interference With Contract ............................................... 795

A. Statutory Provision and Rationale ............................. 795
B. History of the Rule....................................................... 795
C. Elements....................................................................... 798
a. Contract ................................................................ 798
b. Malice ................................................................... 798
c. Procurement.......................................................... 799
D. Legal Justification........................................................ 799
E. Extent of Liability........................................................ 800

Cases:
Philip Yu vs. CA........................................................... 801
Gilchrist vs. Cuddy...................................................... 804
Daywalt vs. La Corporacion........................................ 810
So Ping Bun vs. CA...................................................... 820
2. Interference With Prospective Advantage........................ 823
3. Unfair Competition............................................................ 824
A. Passing Off and Disparagement of Products ............. 825
B. Interference ................................................................. 826
C. Misappropriation......................................................... 826
D. Monopolies and Predatory Pricing ............................. 828

Cases:
Shell Company of the Phils. Ltd. vs. Insular
Petroleum Refining Co., Ltd. ............................... 829
4. Securities Related Torts..................................................... 835

xxvi
 A. Fraud............................................................................ 835
B. Misstatements ............................................................. 837
a. False Registration Statement............................... 837
[1] The Plaintiff.................................................... 837
[2] The Defendants............................................... 838
[3] Defenses........................................................... 838
[4] Damages.......................................................... 839
[4.1] Nature and Extent............................... 839
[4.2] Joint and Several Liability.................. 839
b. Prospectus and the like ........................................ 839
c. Statute of Limitation............................................. 840

CHAPTER 14 — DAMAGES

1. Definition and Concept....................................................... 843

2. Damnum Absque Injuria.................................................... 843

Case:
Sps. Custodio vs. CA.................................................... 845
3. Kinds of Damages .............................................................. 848
A. Actual or Compensatory.............................................. 849
a. Kinds ................................................................... 850
b. Extent and Measure of Damages.......................... 850
c. Certainty................................................................ 851
d. Damage to Property............................................... 852
e. Personal Injury and Death.................................... 854

Case:
Manzanares v. Moreta................................................. 855
[1] Fixed Damages................................................ 865
[2] Loss of Earning Capacity................................ 866
Formula........................................................... 866
Net Earnings .................................................. 867
Living Expenses.............................................. 869
Non-working Victims...................................... 869
Life Expectancy .............................................. 874
Alternative Formula ...................................... 875
Inflation and Reduction to Present Worth .... 876
f. Permanent Incapacity........................................... 877
g. Loss of Profits ....................................................... 877

Case:

xxvii
 Algarra vs. Sandejas.................................................... 878
h. Attorney’s Fees ..................................................... 886
i. Interests................................................................. 888
j. Mitigation of Liability........................................... 890
[1] Avoidable Consequences................................. 891

Case:
Velasco vs. Manila Electric Co.................................... 892
B. Moral Damages............................................................ 895
a. Concept................................................................... 895
b. Proof and Proximate Cause ................................. 897
c. Cases when Moral Damages are allowed............. 897
Unfounded Suits............................................. 901
Labor Cases..................................................... 901
Criminal Taking of Life.................................. 902
d. Factors to Consider in Determining Amount ...... 902
e. Persons who may Recover .................................... 906
f. Corporations.......................................................... 906
C. Nominal Damages........................................................ 907
D. Temperate Damages.................................................... 910

Cases:
Ramos vs. CA............................................................... 912
Araneta vs. Bank of America...................................... 914
E. Liquidated Damages.................................................... 919
F. Exemplary or Corrective Damages............................. 919
Notes ....................................................................................... 923
Subject Index............................................................................. 938

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