KINDS

OF
DAMAGES
Art. 2197. Damages may be:

1) Actual or compensatory;
2) Moral;
3) Nominal;
4) Temperate or moderate;
5) Liquidated; or
6) Exemplary or corrective.
1) Actual or Compensatory
Damages
Article 2199 of the Civil Code provides that
“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 damages.”
Purpose of the law in awarding actual
damages is to repair the wrong that has been
done, to compensate for the injury inflicted,
and not to impose a penalty.
Classification of Actual
Damages
1) Dano Emergente or the loss of what a person
already possesses.
2) Lucro Cesante or the failure to receive as a
benefit tha t would have pertained to him. It
shall also include loss or impairment of
earning capacity in cases of temporary or
permanent personal injury.
Both items of damages may be awarded in
the same case in favor of the same injured
party.
Extend and Measure of
Damages

Art. 2202. In crimes and quasi- delicts, the

defendant shall be liable for all damages
which are the natural and probable
consequences of. It is not necessary that such
damages have been foreseen or could have
reasonably been foreseen by the defendant.
General Rule: The damage is measured on
plaintiff’s loss and not on defendant’s gain.

Exception: Damages are measured by the benefit

that has accrued to the defendant in certain
cases.
Example: In Intellectual Property Code allows
recovery of the amount that was earned by the
defendant who infringed the right of the owner
of the mark.
Damages in Breach of Contract
Art. 2201. In contracts and quasi-contracts, the
damages for which the obligor who acted in
good faith is liable shall be 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.
In case of fraud, bad faith, malice or wanton
attitude, the obligor shall be responsible for all
damages which may be reasonably attributed to
the non-performance of the obligation.
Certainty of Damages

 A party is entitled to adequate compensation

only for such pecuniary loss actually suffered
and duly prove.
 The claimant is duty-bound to point out
specific facts that afford a basis for
measuring whatever compensatory damages
are borne.
 Proof of actual loss is not necessary in cases
where the law or jurisprudence allows the
award of civil indemnity
Damage to Property
 Damage to or Loss of Personal Property
Where goods were destroyed by the wrongful act of the
defendant, the plaintiff is entitled to their value at the
time of destruction.
 Damage to or Loss of Real Property
In case of total loss, the value of the real property at the
time and place of the loss must be assessed and such
assessed value is the measure of the damage due to the
plaintiff.
 Loss of Possession
Where the plaintiff was merely deprived of his
possession said plaintiff is entitled to the value of use of
the premises.
Personal Injury

If the plaintiff is asking for damages for his

own injury, said plaintiff is entitled to the
amount of medical expenses as well as other
reasonable expenses that he incurred to treat
his or his relative’s injuries.
Damages in Case of Death

 When death occurs due to a negligent act or a

crime, the following damages may be recovered:
1) civil indemnity ex delicto for the death of the
victim;
2) actual or compensatory damages;
3) moral damages;
4) exemplary damages;
5) attoney’s fees and expenses of litigation; and
6) interest, in proper cases.
Loss of Earning Capacity

 Formula for the computation of the awarded

damages for loss of earning capacity

Net Earning Capacity = Life Expectancy x

[Gross Annual less Necessary Living Expenses]
Loss of Profits

 This may take in the form of commissions

that were lost by reason of the acts or
omissions of the defendant. This may also
take the form of income that was stipulated
in the contract that was terminated in a
wanton and fraudulent manner.
 Damages may include the cost of lost
opportunity consisting of the profits that the
plaintiff failed to obtain due to a contract’s
early termination.
Attorney’s Fees

 GR: In the absence of stipulation, attorney’s fees and

expenses of litigation, other than judicial costs,
cannot be recovered.
 Except:
1) When exemplary damages are awarded;
2) When the defendant’s 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
plaintiff’s 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 workmen’s
compensation and employer’s liability laws;
9) In a separate civil action to recover civil
liability arising from a crime;
10) When at least double judicial cost are
awarded;
11) In any other cases where the court deems it
just and equitable that attorney’s fees and
expenses of litigation should be recovered.

In all cases, the attorney’s fees and expenses

of litigation must be reasonable.
Interest

Interest may be paid only either as a

compensation for the use of money
(monetary interest) or as damages
(compensatory interest).
Monetary interest refers to the price paid for
the use of money for a period of time and are
expressed as a percentage of the total
outstanding balance that is either fixed or
variable.
2) Moral Damages

Moral damages include physical suffering,

mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings,
moral shock, social humiliation and similar
injury.
Effect of Death

 A claim for moral damages does not survive

the death of the plaintiff.

Reason: It is extremely personal to the injured

party.
Elements

1) There must be an injury, whether physical,

mental or psychological, clearly sustained by
the claimant;
2) There must be a culpable act or omission
factually established;
3) The wrongful act or omission of the
defendant is the proximate cause of the
injury sustained by the claimant; and
4) The award of damages is predicted on any of
the cases stated in Art. 2219.
Proof and Causation

 The assessment of the damage is left to the

discretion of the court, according to the
circumstances of each case.
Cases When Moral Damages May
Be Awarded
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;
6) Illegal search;
7) Libel, slander or any other form of defamation;
8) Malicious prosecution;
9) Acts mentioned in Article 309;
10) Acts and actions referred to in Arts. 21, 26,
27, 28, 29, 30, 32, 34 and 35.
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, descendants, ascendants, and
brothers and sisters may bring the action
mentioned in No.9 of this article, in the order
named.
 Art. 2220. 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.
Factors in Determining
Amount
 Factors specified by law and established by
jurisprudence that could affect the amount
recovered.
1) Extent of Humiliation
2) Pain and suffering
3) Official, Political, Social and Financial
Standing
4) Age
Fixed Amount

 In murder cases, fixed amount of moral

damages is P500,000.
 In case of moral damages for separate civil
actions for quasi-delict where the victim died
is P500,000.
 In case of moral damages for each conviction
of rape which is qualified by circumstances
warranting the imposition of the death
penalty (even if the same penalty is no longer
imposable) is P100,000.
Persons who may Recover

 Generally, the person who endured physical

suffering, mental anguish, fright, serious
anxiety, besmirched reputation, wounded
feelings, moral shock, social humiliation and
similar injury is the person who can recover
moral damages.
 If the basis of the claim is suffering, only the
one who suffered and not his or her spouse
may recover.
a) Relatives
Exceptions:
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, descendants, ascendants, and
brothers and sisters may bring the action
mentioned in No.9 of this article, in the order
named.
The acts mentioned in No. 9 those covered by
Art. 309 of the NCC provides that “any person
wh0 shows disrespect to the dead, or wrongfully
interferes with a funeral shall be liable to the
family of the deceased for damages, material
and moral.”
In addition, Art. 2209 provides that the spouse,
legitimate and illegitimate descendants and
ascendants of the deceased may demand
moral damages for mental anguish by reason
of the death of the deceased.
b) Corporation

GR: Corporations and other artificial beings are

not entitled to recover damages.

Exception:
The only exception to the rule is when the
corporation has a reputation that is debased,
resulting in its humiliation in the business
realm.
3)Nominal Damages

 Art. 2221. 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.
Nature of Nominal Damages

It is generally held that a nominal damages is

a substantial claim, if based upon the
violation of a legal right; in such case, the law
presumes damage although actual or
compensatory damages are not proven.
Amount to be awarded

Generally, nominal damages by their nature

are small sums fixed by the court without
regard to the extent of the harm done to the
injured party.
Example when Nominal Damages
was awarded
In the case of A. T. Stearns Lumber Co. vs
Howlett the court ruled that “only nominal
damages can be recovered by a manufacturer
that was injured by a conspiracy to prevent
use of his product, where the actual damages
cannot be determined and others also
suffered whatever he suffered in the same
line of business so that he suffered no special
damages whatsoever.”
Cannot Co-Exist with Actual
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 the plaintiff for any loss suffered by
him. An award of compensatory damages is a
vindication of right. It is in itself recognition that
plaintiff’s right was violated, hence, the award of
nominal damages is unnecessary and improper.
Labor Cases

Nominal damages may be appropriately

awarded if the right to procedural due
process of the employee was violated. This
award is proper where there is just or
authorized cause but due process was not
accorded to the employee.
4)Temperate or Moderate
Damages
 Art. 2224. 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 amount can not,
from the nature of the case, be provided with
certainty.
 Art. 2225. Temperate damages must be
reasonable under the circumstances.
Loss of Earning Capacity

 Temperate damages may be awarded in lieu

of actual damages for loss of earning capacity
where the earning capacity is plainly
established but no evidence was presented to
support the allegation of the injured party.
Lost Earnings

 Temperate damages can be awarded 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.
Fixed Temperate Damages

 In murder cases, the Supreme court pegged

the amount of temperate damages at
P25,000 if actual damages were not
established.
 In cases where the amount of actual damages
for funeral expenses cannot be determined
because of the absence of receipts to prove
them, temperate damages may be awarded
in the amount of P25,000.
Injury to Business or Credit
Standing
 The Court in one case ruled that “in an action
by a depositor against a bank for damages
resulting from the wrongful dishonor of the
depositor’s check, temperate damages for
injury to business standing or commercial
credit may be recovered even in the absence
of definite proof of direct pecuniary loss to
the plaintiff, under Article 2205 of the New
Civil Code.”