DAMAGES

• Proof of pecuniary loss is necessary to successfully recover actual damages from the defendant.
No proof of pecuniary loss is necessary in case of moral, nominal, temperate, liquidated or
I. Concept of Damages exemplary damages.

• The assessment of damages, except liquidated ones, is left to the discretion of the court according
DAMAGE – the detriment, injury or loss which is occasioned by to the circumstances of each case.
reason of fault of another in the property or person
• In actions for damages, courts should award an amount to the winning party and not its
equivalent in property. The damages that should be awarded should be the money value of such
DAMAGES – the pecuniary compensation, recompense, or damages.
satisfaction for an injury sustained, or as otherwise expressed, the
pecuniary consequences which the law imposes for the breach of
II. Kinds of Damages
some duty or violation of some rights. ( People vs. Ballesteros, 285
SCRA 438, 448 [1998]). The word “damages” involve any and all manifestations of life: physical or material, moral or
psychological, mental or spiritual, financial, economic, social, political and religious. (Castro vs. Acro
Taxicab Co., 82 Phil. 359, 381). It is in recognition of these different facets of damages that the Civil
Code identified and defined all the different kinds of damages that may be awarded in this jurisdiction.
Thus, Article 2197 of the Civil Code provides:
DAMNUM ABSQUE INJURIA or Damage without Injury – a person may have
suffered physical hurt or injury, but for as long as no legal injury or wrong has Art. 2197. Damages may be:
been done, there is no liability.
“Damage without injury”. A person may have suffered physical hurt or (1) Actual or compensatory;
injury, but for long as no legal injury or wrong has been done, there is no (2) Moral;
liability.
(3) Nominal;
Where the conjunction of damages and wrong is absent there can be no
(4) Temperate or moderate;
actionable wrong if either one or the other is wanting.
There is a material distinction between damages and injury. Injury is the (5) Liquidated; or
illegal invasion of a legal right; damage is the loss, hurt, or harm which results (6) Exemplary or corrective.
from the injury; and damages are the recompense or compensation awarded
Proof of pecuniary loss is necessary to successfully recover actual damages from the defendant. “No
for the damages suffered. proof of pecuniary loss is necessary in order that moral, nominal, temperate, liquidated or exemplary
Thus, there can be damage without injury in those instances in which the damages, may be adjudicated. The assessment of such damages, except liquidated ones, is left to the
loss or harm was not the result of a violation of a legal duty. In such cases, the discretion of the court, according to the circumstances of each case.” (Article 2216, Civil Code).
consequences must be borne by the injured person alone, the law affords no
remedy for damages resulting from an act which does not amount to a legal
injury or wrong. These situations are often called damnum absque injuria.
A. ACTUAL OR COMPENSATORY DAMAGES

INJURY DAMAGE DAMAGES Article 2199, New Civil Code

Except as provided by law or by stipulation, one is entitled to an
Legal invasion of Loss, hurt or harm The recompense or adequate compensation only for such pecuniary loss suffered by him
a legal right which results from the compensation awarded for the as he has duly proved. Such compensation is referred to as actual or
injury damage suffered compensatory damages. ------- Such compensation is referred to as
actual or compensatory damages.

NOTE:
PURPOSE: To repair the wrong that has been done, to compensate for the injury inflicted, and not to
• A complaint for damages is a personal action and may be commenced and tried where the impose a penalty. Actual damages are not dependent on nor graded by the intent with which the
defendant or any of the defendant resides or may be found, or where the plaintiff or any of the wrongful act is done.” (Field vs. Munster, 11 Tex. Civ. Appl., 341, 32 S. W., 417).
plaintiffs resides at the election of the plaintiff. (Baritua vs. Court of Appeals, 267 SCRA 331
[1997]).
 ‘Compensatory damages’ as indicated by the word employed to characterize them, d. Forfeiture of bonds in favor of the government for the purpose of promoting public interest
simply make good or replace the loss caused by the wrong. They proceed from a sense of or policy (ex: bond for
natural justice, and are designed to repair that of which one has been deprived by the temporary stay of alien)
wrong of another.” (Reid vs. Terwilliger, 116 N. Y., 530; 22 N. E., 1091). “‘Compensatory
damages’ are such as are awarded to compensate the injured party for injury caused by
the wrong, and must be only such as make just and fair compensation, and are due when
the wrong is established, whether it was committed maliciously — that is, with evil CONTRACTS AND QUASI-CONTRACTS
intention — or not.” (Wimer vs. Allbaugh, 78 Iowa, 79; 42 N.W., 587; 16 Am. St. Rep., Damages in case of Good Faith
422). 1. Natural and probable consequences of breach of obligations
2. Parties have foreseen or could have reasonably foreseen at the time the obligation was
created
“The words ‘actual damages’ shall be construed to include all damages that the plaintiff may show he
has suffered in respect to his property, business, trade, profession, or occupation, and no other damages Damages in case of Bad Faith
whatever.” (Gen. Stat. Minn., 1894, sec. 5418). 1. It is sufficient that damages may be reasonably attributed to the nonperformance of the
obligation.
WHEN AWARDED:
When there is pecuniary loss suffered and it has been duly proved. (includes all damages CRIMES AND QUASI-CRIMES
that the plaintiff may show he has suffered in respect to his property, business, trade, profession, or a. Defendant is liable for all damages that are natural and probable consequences of the act
occupation, and other damages whatever) complained of;
b. Not necessary that damages have been foreseen or could have been reasonably foreseen.
PROOF REQUIRED/REQUIREMENTS FOR THE AWARD:
i. Need to be pleaded
VALUE OF LOSS SUFFERED
ii. Pray for the relief that claim for loss be granted
• Destruction of things, fines or penalties, medical & hospital bills, attorney's fees, interests, cost of
iii. Prove the loss
litigation
I. PROOF REQUIRED:
There must be pleading and proof of actual damages suffered for the same to be recovered.
It must also be actually proven with a reasonable degree of certainty, premised upon competent proof LOSS OF EARNING CAPACITY:
or the best evidence • Variables to consider are:
obtainable. a. life expectancy
b. net income/earnings – total of the earnings less expenses necessary for the creation of such
earnings and less living or other
Damages cannot be presumed and courts, in giving an award, must point out specific facts
that could afford a basis for measuring whatever compensatory or incidental expenses
actual damages are borne.

Pecuniary Loss Formula:

Loss of money or something by which money or something of money value may be acquired. [2/3 x 80 – (age at the time of death)] x monthly earnings x 12 =
GROSS EARNINGS
Proof of Pecuniary Loss Required
To justify an award for actual damages. GE - Approximate Expenses (50% of GE) = Net Earnings

Burden of Proof LOSS OF PROFITS (Lucrum Cessans)

The burden of proof of the damage suffered is imposed on the party claiming the same who should • May be determined by considering the average profit for the preceding years multiplied by the
adduce the best evidence available in support thereof, like sales and delivery receipts, cash and check number of years during which the business was
vouchers and other pieces of documentary evidence of the same nature. affected by the wrongful act or breach

WHEN LOSS NEED NOT BE PROVED:

a. Liquidated damages previously agreed upon; liquidated damages take the place of actual ATTORNEY’S FEES
damages except when additional damages incurred
• They are actual damages. It is due to the plaintiff and not to counsel
b. If damages other than actual are sought
• Plaintiff must allege the basis of his claim for attorney’s fees in the complaint; the basis should
c. Loss is presumed (ex: loss if a child or spouse)
 by one of the cases under Art. 2208 A party is entitled to adequate compensation only for such pecuniary loss actually suffered
and duly proved.

WHEN ARE ATTORNEY’S FEES RECOVERABLE:

• In the absence of stipulation, attorney's fees and expenses of litigation, other than judicial costs, Basic is the rule that to recover actual damages, the amount of loss must not only be capable
cannot be recovered, except: of proof but must actually be proven with a reasonable degree of certainty, premised upon competent
a. When exemplary damages are awarded; proof or best evidence obtainable of the actual amount thereof.1
b. When the defendant's 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; Indemnification for damages shall comprehend not only the value of the loss suffered, but
d. In case of a clearly unfounded civil action or proceeding against the plaintiff; also that of the profits which the obligee failed to obtain.2
e. Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff's
plainly valid, just and demandable claim;
f. In actions for legal support;
III. IN CONTRACTS AND QUASI-CONTRACTS
g. In actions for the recovery of wages of
household helpers, laborers and skilled workers; Bar 1994
Article 2201, New Civil Code
h. In actions for indemnity under workmen's compensation and employer's liability laws; In contracts and quasi-contracts, the damages for which the obligor
i. In a separate civil action to recover civil liability arising from a crime; who acted in good faith is liable shall be those that are the natural
j. When at least double judicial costs are and probable consequences of the breach of the obligation, and
awarded; 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
WHEN IS ACTUAL DAMAGES MITIGATED: shall be responsible for all damages which may be reasonably
a. Contributory negligence attributed to the non-performance of the obligation.
b. In contracts. Quasi-contracts and quasi-delict
i. Plaintiff has contravened the terms of contract
ii. Plaintiff derived some benefit as result of contract A common carrier which allowed overbooking without informing its passengers that they
iii. In case where exemplary damages are to be awarded, that the defendant acted upon can breach the contract should be responsible for all damages which may be reasonably attributed to
the advise of counsel the non-performance of its obligation pursuant to Article 2201.3
iv. That the loss would have resulted in any event
v. That since the filing of the action, the defendant has done his best to lessen IV. IN CRIMES AND QUASI-DELICT
the plaintiff's loss or injury
Article 2202, New Civil Code
In crimes and quasi-delicts, the defendant shall be liable for all damages which are the natural and
DAMAGES RECOVERABLE IN CASE OF DEATH: probable consequences of the act or omission complained of. It is not necessary that such damages
1. Medical & Hospital Bills have been foreseen or could have reasonably been foreseen by the defendant.
2. Damages for death
a. Minimum amount: P50,000
b. Loss of earning capacity unless deceased had permanent Article 2204, New Civil Code
physical disability not caused by defendant so that In crimes, the damages to be adjudicated may be respectively increased or lessened according to the
deceased had no earning capacity at time of death aggravating or mitigating circumstances.
c. Support, if deceased was obliged to give support (for
period not more than 5 years)
d. Moral damages According to law and jurisprudence, civil indemnity is in the nature of actual and compensatory
damages for the injury caused to the offended party and that suffered by her family, and moral
II. LOSS COVERED damages are likewise compensatory in nature.4
Article 2200, New Civil Code
Indemnification for damages shall comprehend not only the value of the loss suffered,
but also that of the profits which the obligee failed to obtain. 1 PNOC v. CA, G.R. No. 107518, 8 Oct 1998.
2 Candano v. Sugata-on, G.R. No. 163212, 13 Mar 2007.
3 Spouses Zalamea v. CA,G.R. No. 104235, 18 Nov 1993.
208
4 People v. Sarcia, G.R. No. 169641, 10 Sept 2009. Ibid.
The principal consideration for the award of damages is the penalty provided by law or imposable for
the offense because of its heinousness, not the public penalty actually imposed on the offender.208
V. EARNING CAPACITY
Bar 1993
Article 2205, New Civil Code
Damages may be recovered:
● For loss or impairment of earning capacity in cases of
temporary or permanent personal injury;
● For injury to the plaintiff's business standing or commercial
credit.
Loss or impairment of earning capacity
The indemnity for loss of earning capacity of the deceased is awarded not for loss of earning, but for
loss of capacity to earn money.5
The important variables taken into account in determining the compensable amount of lost earnings
are:
● The number of years for which the victim would otherwise have lived (life expectancy); and
● The total of the earnings less expenses necessary for the creation of such earnings and less living
or other incidental expenses (net income/earnings).
Formula
{2/3 x (80 – age of death)} x (mo. Earnings/2) x 12
General Rule: Documentary evidence should be presented to substantiate the claim for damages for
loss of earning capacity.
Exception: Damages for loss of earning capacity may be awarded despite the absence of documentary
evidence when:
● The deceased is self – employed and earning less than the minimum wage under current labor
laws, in which case, judicial notice may be taken of the
fact that in the deceased’s line of work no documentary evidence is available; or
● The deceased is employed as a daily wage worker earning less than the minimum wage under
current labor laws.6
To determine the amount for the award for damages of loss or impairment of his earning capacity, the
court must consider his age, probable life expectancy, the state of his health, and his mental and
physical condition before the accident.7
5 Philippine Hawk v. Lee, G.R. No. 166869, Feb. 16, 2010.
6 Philippine Hawk Corporation, v. Lee, G.R. No. 166869, Feb. 16, 2010.
7 Mercury Drug v. Huang, G.R. No. 172122, 22 Jun 2007.
VI. DEATH BY CRIME OR QUASI – DELICT
Bar 1992, 93, 2007
Article 2206, New Civil Code
The amount of 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:
● The defendant shall be liable for the loss of the earning
capacity of the deceased, and the indemnity shall be paid to
the heirs of the latter; such 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;
● If the deceased was obliged to give support according to the
provisions of Article 291, the recipient who is not an heir called
to the decedent's inheritance by the law of testate or intestate
succession, may demand support from the person causing the
death, for a period not exceeding five years, the exact duration
to be fixed by the court;
● 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.
Civil/Death Indemnity
Civil indemnity due to a crime is in the nature of actual damages and is mandatorily granted to the heirs
upon proving of the fact of the crime. It is granted without any need of proof other than the
commission of the crime.8
The current amount of fixed damages is P50,000. The amount of P3,000 is the minimum. The Supreme
Court had repeatedly increased the amount of indemnity in order to reflect the current value of
currency and prevailing inflation.9
The award of P75,000 as civil indemnity is proper in cases where the proper imposable penalty is
death.10
Loss of Earning Capacity
The rule is that documentary evidence should be presented to substantiate a claim for loss of earning
capacity. 215
8 People v. Buban, G.R. No. 170471, May 11, 2007.
9 Aquino, 2009.
10 People v. Apacible, G.R. No. 189091, Aug. 25, 2010 215 People v. Lopez, G.R. No. 188902, 16
Feb 2011.
 It is well-settled in jurisprudence that the factors that should be taken into account in determining the
compensable amount of lost earnings are: (1) the number of years for which the victim would
otherwise have lived; and (2) the rate of loss sustained by the heirs of the deceased.11
VII. IN RAPE CASES
Civil indemnity due to a crime, rape, is in the nature of actual damages and is mandatorily granted to
upon proving of the fact of the crime. It is granted without any need of proof other than the
commission of the crime.
Jurisprudence has consistently upheld the ruling that the civil indemnity for Simple Rape is
P50,000 while P75,000 for Qualified Rape.12
The award of moral damages is separate and distinct from the civil indemnity awarded to rape victims.
The moral damages cannot take the place of the civil indemnity. While the award of moral damages is
discretionary on the part of the court, the civil indemnity, which is actually in the nature of actual or
compensatory damages, is mandatory upon the finding of the fact of rape.13
VIII. ATTORNEY’S FEES
Bar 1991, 94, 2002
Article 2208, New Civil Code
In the absence of stipulation, attorney's fees and expenses of litigation, other than judicial
costs, cannot be recovered, except:
● When exemplary damages are awarded;
● When the defendant's act or omission has compelled the plaintiff to litigate with third
persons or to incur expenses to protect his interest;
● In criminal cases of malicious prosecution against the plaintiff;
● In case of a clearly unfounded civil action or proceeding against the plaintiff;
● Where the defendant acted in gross and evident bad faith in refusing to satisfy the
plaintiff's plainly valid, just and demandable claim;
● In actions for legal support;
● In actions for the recovery of wages of household helpers, laborers and skilled workers;
● In actions for indemnity under workmen's compensation and employer's liability laws;
● In a separate civil action to recover civil liability arising from a crime;
● When at least double judicial costs are awarded;
● In any other case 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.
KINDS OF ATTORNEYS FEES:
Ordinary – the attorney’s fee is the reasonable compensation paid to a lawyer by his client for the legal
services he has rendered to the latter.
11 Pleyto v. Lomboy, G.R. No. 148737, 16 Jun 2004.
12 People v. Astrologo, G.R. No. 169873, June 8, 2007.
13 People v. Banago, G.R. No. 128384, 29 Jun 1999.
Extraordinary – the attorney’s fee is an indemnity for damages ordered by the court to be paid by the
losing party in a litigation to the prevailing party.
Payable not the lawyer but to the client, unless they have agreed that the award shall pertain to the
lawyer as additional compensation or as part thereof.14
Article 2208 of the Civil Code demands factual, legal and equitable justification; its basis cannot be left
to speculation or conjecture.
When granted, the court must explicitly state in the body of the decision, and not only in the dispositive
portion thereof, the legal reason for the award of attorney’s fees.15
In all cases, the attorney’s fees and expenses of litigation must be reasonable.
IX. INTEREST
Article 2209, New Civil Code
If the obligation consists in the payment of a sum of money, and the
debtor incurs in delay, the indemnity for damages, there being no
stipulation to the contrary, shall be the payment of the interest
agreed upon, and in the absence of stipulation, the legal interest,
which is six per cent per annum.
Bar 2002
Article 2210, New Civil Code
Interest may, in the discretion of the court, be allowed upon
damages awarded for breach of contract.
Bar 2002
Article 2211, New Civil Code
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.
Article 2212, New Civil Code
Interest due shall earn legal interest from the time it is judicially
demanded, although the obligation may be silent upon this point.
Article 2213, New Civil Code
Interest cannot be recovered upon unliquidated claims or damages,
except when the demand can be established with reasonably
certainty.
No interest shall be due unless it has been expressly stipulated in writing. 16
14 Benedicto v. Villaflores, G.R. No. 185020, 6 Oct. 2010.
15 Briones v. Macabagdal, G.R. No. 150666, Aug. 3, 2010
16 Pan Pacific v. Equitable, G.R. No. 169975, March 18, 2010
Brief Rulings on Compensatory Damages measures as prudent men usually take under such circumstances to reduce the damage as much as
● Actual damages must be specifically prayed for. possible.18
● May be executed pending appeal but not an award for moral or exemplary damages which
cannot be disregarded as fixed until there is a final judgment.

What is “The Abrazaldo Doctrine” ?

Where the amount of the actual damages cannot be determined because of the absence of receipts to
B. MORAL DAMAGES
prove the same, but it is shown that the heirs are entitled thereto, temperate damages may be
awarded.17
To be entitled to moral damages, a party must have a right based upon law. 19

X. MITIGATION OF LIABILITY Purpose

Article 2203, New Civil Code Moral damages are awarded to enable the injured party to obtain the means, diversions, or
The party suffering loss or injury must exercise the diligence of a amusements that will serve to alleviate the moral suffering he has undergone by reason of the tragic
good father of a family to minimize the damages. event.20

Article 2204, New Civil Code
In crimes, the damages to be adjudicated may be respectively
increased or lessened according to the aggravating or mitigating
circumstances.
Article 2214, New Civil Code
In quasi-delicts, the contributory negligence of the plaintiff shall reduce the damages that he may
recover.
Article 2215, New Civil Code
In contracts, quasi-contracts, and quasi-delicts, the court may equitably mitigate the damages under
circumstances other than the case referred to in the preceding article, as in the following instances:
● That the plaintiff himself has contravened the terms of the contract;
● That the plaintiff has derived some benefit as a
Moral damages are in the category of an award designed to compensate the claimant for actual injury
suffered, and not to impose a penalty on the wrongdoer.21
When Recoverable
Such damages must be the proximate result of a wrongful act or omission the factual basis of which is
satisfactorily established by the aggrieved party.
Bar 1991, 2002, 03
Article 2217, New Civil Code
Moral damages include physical suffering, mental anguish, fright,
serious anxiety, besmirched reputation, wounded feelings, moral
shock, social humiliation, and similar injury. Though incapable of
pecuniary computation, moral damages may be recovered if they
are the proximate result of the defendant's wrongful act for
omission.

result of the contract;

● In cases where exemplary damages are to be awarded, that Bar 1992, 93, 96, 2002, 04, 06
the defendant acted upon the advice of counsel; Article 2219, New Civil Code
Moral damages may be recovered in the following and analogous
● That the loss would have resulted in any event; cases:
● That since the filing of the action, the defendant has done his ● A criminal offense resulting in physical injuries;
best to lessen the plaintiff's loss or injury. ● Quasi-delicts causing physical injuries;
● Seduction, abduction, rape, or other lascivious acts;

● Adultery or concubinage;
Doctrine of Avoidable Consequences
It is a well-recognized principle of law that damages resulting from avoidable consequences of the
18 Cerrano v. Tan, 38 Phil 392.
breach of a contract are not recoverable. It is the duty of one injured by the act of another to take such
19 Kierulf v. CA, G.R. No. 99301, 13 Mar 1997.
20 Sulpicio Lines v. Curso, G.R. No. 157009, March 17, 2010
17 People v. Abrazaldo, 397 SCRA 137, 149-150 21 ABS – CBN v. Court of Appeals, G.R. No. 128690, Jan. 21, 1999
● Illegal or arbitrary detention or arrest; Moral damages are recoverable in breach of contracts
● Illegal search;
● Libel, slander or any other form of defamation; where defendant acted fraudulently or in bad faith.25
● Malicious prosecution;
● Acts mentioned in Article 309;
● Acts and actions referred to in Articles 21, 26, 27, 28, 29, 30, 32, 34, and 35. Moral damages are in the category of an award designed to compensate the claimant for actual injury
suffered and not to impose a penalty on the wrongdoer. The person claiming moral damages must
prove the existence of bad faith by clear and convincing evidence for the law always presumes good
The parents of the female seduced, abducted, raped, or abused, referred to in No. 3 of this article, may faith. It is not enough that one merely suffered sleepless nights, mental anguish, serious anxiety as the
also recover moral damages. result of the actuations of the other party. Such action must be shown to have been wilfully done in
The spouse, descendants, ascendants, and brothers and sisters may bring the action mentioned in No. 9
of this article, in the order named. bad faith or with ill motive.26

Bar 1994, 2004, 05
Article 2220, New Civil Code
Wilful 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.
Article 1764 of the New Civil Code provides that moral damages may also be awarded in case the death
of a passenger results from a breach of a contract of carriage.
MORAL DAMAGES IN CULPA AQUILIANA
When an act or omission causes physical injuries or where the defendant is guilty of intentional tort,
moral damages may be aptly recovered.27

General Rule
MORAL DAMAGES IN CULPA CRIMINAL
The plaintiff must allege and prove:
Moral damages are automatically granted in rape cases without the need of further proof other than
● The factual basis for moral damages; and ● Its causal relation to the defendant’s act. the commission of the crime because it is assumed that a rape victim has actually suffered moral
injuries entitling her to such award.28
Exception

Moral damages may be awarded to the victim in criminal proceedings without the need for pleading of Art. 2219 of the Civil Code provides that moral damages may be recovered in cases of illegal detention;
especially so when the victim is shown to have suffered serious anxiety and fright when she was
proof of the basis thereof. 22 detained for more than five months.29

Moral damages are recoverable where the dismissal of the employee was attended by bad faith or
fraud or constituted an act oppressive to labor, or was done in a manner contrary to morals, good
customs or public
policy.23
MORAL DAMAGES IN LABOR CASES
Moral damages are recoverable where the dismissal of the employee was attended by bad faith or
fraud or constituted an act oppressive to labor or was done in a manner contrary to morals, good
customs, or public policy.30

The award of moral damages is unsupported where the widow of the victim did not testify on any FACTORS CONSIDERED IN DETERMINING AMOUNT
mental anguish or emotional distress, which she suffered as a result of her husband’s death. 24

25 Lopez v. Pan American, 16 SCRA 431

MORAL DAMAGES IN CULPA CONTRACTUAL 26 Spouses Valenzuela v. Spouses Mano, G.R. No. 172611, 9 Jul 2010.
27 De Leon, Torts.
22 Aquino, 2009. 28 People v. Lizano, G.R. No. 174470, 27 April 2007.
23 Triple Eight v. NLRC, 299 SCRA 608 29 People v. Madsali, G.R. No. 179570, 4 Feb 2010.
24 People v. Pirame, 327 SCRA 552 30 Triple Eight v. NLRC, G.R. No.129584, 3 Dec 1998.
 The claimant must be able to satisfactorily prove that he has suffered moral damages and that the Article 2279, par. 7 of the Civil Code expressly authorizes the recovery of moral damages in cases of
injury causing it has sprung from any of the cases listed in libel, slander or any other form of defamation. But there must be evidence to prove it to justify the
award.33
Articles 2219 and 2220 of the Civil Code

C. NOMINAL DAMAGES
Conditions for awarding moral damages are:
N ATURE AND PURPOSE
● There must be an injury, whether physical, mental, or psychological, clearly substantiated by the Nominal damages are not intended for indemnification of loss suffered but for the vindication or
claimant;
recognition of a right violated or invaded.
● There must be a culpable act or omission factually established;
● The wrongful act or omission of the defendant must be the proximate cause of the injury
sustained by the claimant; and
● The award of damages is predicated on any of the cases stated in Article 2219 of the Civil Code.31 They are recoverable where some injury has been done 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.34
WHO MAY RECOVER
1. Relatives of Injured Persons
Nominal damages by their nature are small sums fixed by the court without regard to the extent of the
Art. 2219, New Civil Code
harm done to the injured party. However, nominal damage is a substantial claim, if based upon the
Moral damages may be recovered in the following and analogous
violation of a legal right; in such a case, the law presumes damage although actual or compensatory
cases:
damages are not proven.
(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; Bar 1991, 94, 2005
(5) Illegal or arbitrary detention or arrest; Article 2221, New Civil Code
Nominal damages are adjudicated in order that a right of the
(6) Illegal search;
plaintiff, which has been violated or invaded by the defendant,
(7) Libel, slander or any other form of defamation;
(8) Malicious prosecution; may be vindicated or recognized, and not for the purpose of
(9) Acts mentioned in Article 309; indemnifying the plaintiff for any loss suffered by him.
(10) Acts and actions referred to in Articles 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.
WHEN AWARDED
The spouse, descendants, ascendants, and brothers and sisters
may bring the action mentioned in No. 9 of this article, in the Article 2222, New Civil Code
order named. The court may award nominal damages in every obligation arising from any source enumerated in
Article 1157, or in every case where any property right has been invaded.
2. Juridical Persons
General Rule Where a legal right is technically violated and must be vindicated against an invasion that has produced
no actual present loss of any kind or where there has been a breach of contract and no substantial
A corporation may not be awarded moral damages, it being a juridical person thus it cannot suffer from injury or actual damages whatsoever have been or can be shown.
wounded feelings, serious anxiety, mental anguish or moral shock. 32
EFFECT OF AWARD
Exception
Article 2223, New Civil Code

31 Sulpicio Lines v. Curso, G.R. No. 157009, 17 March 2010 33 Filipinas Broadcasting Network Inc. v. Ago Medical and Education Center, G.R. No. 141994, 17 Jan 2005.
32 Manila Electric Co. v. T.E.A.M. Corporation, G.R. No. 131723, 13 Dec 2007. 34 Robes – Francisco v. Court of First Instance, 86 SCRA 59.
The adjudication of nominal damages shall preclude further contest upon the right involved and all (1) The deceased is self-employed and earning less than the minimum wage under current labor
acessory questions, as between the parties to the suit, or their respective heirs and assigns. laws, in which case, judicial notice may be taken of the fact that in the deceased's line of work, no
WHEN INAPPLICABLE documentary evidence is available; or
(2) The deceased is employed as a daily wage worker earning less than the minimum wage
When there is an award of actual or compensatory damages. Nominal damages cannot coexist with under current labor laws. 38
actual or compensatory damages. The law presumes damage although actual or compensatory
damages are not proven.
FACTORS IN DETERMINING AMOUNT

In cases where the resulting injury might be continuing and possible future complications directly
D. TEMPERATE DAMAGES arising from the injury, while certain to occur are difficult to predict, temperate damages can and
should be awarded on top of actual or compensatory damages; in such cases there is no incompatibility
Definition
between actual and temperate damages.39
These are damages, which are more than nominal but less than compensatory, and maybe allowed in
cases where from the nature of the case, definite proof of pecuniary loss cannot be adduced, although
the court is convinced that the aggrieved party suffered some pecuniary loss. 35 If actual damages, proven by receipts during the trial, amount to less than P25, 000, the victim shall be
entitled to temperate damages in the amount of P25, 000, in lieu of actual damages.40
WHEN RECOVERABLE
Bar 1994
Article 2224, New Civil Code WHEN INAPPLICABLE
Temperate or moderate damages which are more than nominal but When there is an award of actual or compensatory damages. Temperate and actual damages are
less than compensatory damages, may be recovered when the court mutually exclusive in that both may not be awarded at the same time.41
finds that some pecuniary loss has been suffered but its amount
cannot, from the nature of the case, be proved with certainty.

Article 2225, New Civil Code

Temperate damages must be reasonable under the circumstances.

Temperate damages in lieu of actual damages for loss of earning capacity may be awarded where
earning capacity is plainly established but no evidence was presented to support the allegation of the
injured party’s actual income.36
E. LIQUIDATED DAMAGES
Definition
Also, when actual damages proven by receipts during the trial amount to less than P25,000, the award
of temperate damages for P25,000 is justified in lieu of Article 2226, New Civil Code
Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach
actual damages of a lesser amount.37 thereof.

Purpose
CASES WHERE AMOUNT OF LOSS IS NOT PROVEN
To prevent breach of obligations between the contracting parties. REDUCING THE AMOUNT
General Rule
Article 2227, New Civil Code
Documentary evidence should be presented to substantiate the claim for loss of earning capacity. Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if
they are iniquitous or unconscionable.
Exception

38 Tan v. OMC Carriers

35 Adriano v. Lasala, G.R. No. 197842, 9 Oct 2013. 39 Ramos v. Court of Appeals, G.R. No. 124354
36 Tan v. OMC Carriers, G.R. No. 190521, Jan. 12, 2011. 40 Serrano v. People, G.R. No. 1752021, July 5, 2010
37 People v. Barde, 631 SCRA 187 41 People v. Gutierrez, G.R. No. 188602, 4 Feb 2010.
Article 2228, New Civil Code
Article 2233, New Civil Code
When the breach of the 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 of damages, Exemplary damages cannot be recovered as a matter of right; the court will decide whether or not
and not the stipulation. they should be adjudicated.

The determination of whether the penalty is iniquitous or unconscionable is addressed to the sound
discretion of the court and depends on several factors such as the type, extent, and purpose of the
penalty, the nature of the obligation, the mode of breach and its consequences.4243
F. EXEMPLARY OR CORRECTIVE DAMAGES
Purpose
Article 2229, New Civil Code
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.
They are designed to reshape behavior that is socially deleterious in its consequence. 44
ii. In addition to other damages
Bar 1991
Article 2234, New Civil Code
While the amount of the exemplary 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 the liquidated damages, the
plaintiff must show that he would be entitled to moral, temperate or
compensatory damages were it not for the stipulation for liquidated
damages.

Jurisprudence has set down the requirements for exemplary damages to be awarded:

WHEN IMPOSED ● They may be imposed by way of example in addition to compensatory damages, and only after
i. In General the claimant’s right to them has been
established;
Bar 2003, 05
Article 2229, New Civil Code ● They cannot be recovered as a matter of right, their determination depending upon the amount
Exemplary or corrective damages are imposed, by way of compensatory damages that may be awarded to the claimant;
of example or correction for the public good, in addition to the moral, temperate, liquidated or ● The act must be accompanied by bad faith or done in a wanton, fraudulent, oppressive or
compensatory damages. malevolent manner.45
iii. Renunciation Not Allowed
iv.
Article 2230, New Civil Code
Article 2235, New Civil Code
In criminal offenses, exemplary damages as a part of the civil liability may be imposed when the crime
A stipulation whereby exemplary damages renounced in ar
was committed with one or more aggravating circumstances. Such damages are separate and distinct
from fines and shall be paid to the offended party. advance shall be null and void. e
v. In Crimes
Article 2230, New Civil Code
Article 2231, New Civil Code
In criminal offenses, exemplary damages as a part of the civil liability may be imposed when the crime
In quasi-delicts, exemplary damages may be granted if the defendant acted with gross negligence.
was committed with one or more aggravating circumstances. Such damages are separate and distinct
from fines and shall be paid to the offended party.
Article 2232, New Civil Code
In contracts and quasi-contracts, the court may award exemplary damages if the defendant acted in a An aggravating circumstance, whether ordinary or qualifying, should entitle the offended party to an
wanton, fraudulent, reckless, oppressive, or malevolent manner. award of exemplary damages within the unbridled meaning of Article 2230 of the Civil Code. 46

42 Titan Construction Corporation v. Uni – Field Enterprises, G.R. No.

43 , March 1, 2007 45 PNB v. CA, G.R. No. 108630, 2 Apr 1996.
44 Mevenas v. Court of Appeals 46 People v. Catubig, G.R. No. 137842, 23 Aug 2001.
Courts may still award exemplary damages based on Article 2230, even if the aggravating circumstance
has not be alleged, so long as it has been proven, in criminal cases instituted before the effectivity of
the

Revised Rules which remained pending thereafter. 47

Being corrective in nature, exemplary damages, therefore, can be awarded, not only in the presence of
an aggravating circumstance, but also where the circumstances of the case show the highly
reprehensible or outrageous conduct of the

offender.252

v. In Quasi-Delicts
Article 2231, New Civil Code
In quasi-delicts, exemplary damages may be granted if the defendant acted with gross negligence.

vi. In Contracts and Quasi – contracts

Article 2232, New Civil Code
In contracts and quasi – contracts, the court may award exemplary damages if the defendant acted in
a wanton, fraudulent, reckless, oppressive, or malevolent manner.

A principal or master can be held liable for exemplary or punitive damages based upon the wrongful act
of his agent or servant only where he participated in the doing of such wrongful act or has previously
authorized or subsequently ratified it with full

knowledge of the facts.48

252
47 People v. Dalisay, G.R. No. 188106, 25 Nov 2009 Ibid.
48 Munsayac v. De Lara, G.R. No. L-21151, 26 Jun 1968.