DAMAGES

GENERAL PROVISIONS

Damages comprehends all that are embraced in its meaning. It includes

any and all damages that a human being may suffer in any and all the
manifestations of his life: physical or material, moral or psychological,
mental or spiritual, financial, economic, social, political, religious.

Effect of non-payment of filing fees on claim for damages: the court acquired
no jurisdiction over the claims. However, compulsory counterclaims for
damages and attorneys fees are not subject of filing fees.

Art. 2195. The provisions of this Title shall be respectively applicable to all
obligations mentioned in Article 1157.

Art. 1157 Sources of Obli

Those who in the performance of their obli are guilty of fraud, negligence, or
delay and those who in any manner contravene the tenor thereof, are liable
for damages (Art. 1170). The delay in the performance of the obli, however,
must be either malicious or negligent.

Art. 2196. The rules under this Title are without prejudice to special
provisions on damages formulated elsewhere in this Code. Compensation for
workmen and other employees in case of death, injury or illness is regulated
by special laws. Rules governing damages laid down in other laws shall be
observed insofar as they are not in conflict with this Code.

In case of conflict bet. the civil code and special laws, the former prevails
insofar as issues of damages are concered. However, compensation for
workmen and other EEs in case of death, injury or illness shall be regulated
by special laws.
It has been held by the supreme court that the EE may either sue under the
Workmens Compensation Act or under the Civil Code. After having chosen
one, he cannot choose the other.
Labor arbiter or NLRC can entertain and decide claims for damages (arising
from ER-EE rel.) Las has jurisdiction to award not only the reliefs provided by
the labor laws but also damages governed by the Civil Code.
As a rule, moral damages are recoverable where the dismissal of the EE was
attended by bad faith or fraud or constituted an act of oppression to labor, or
was done in manner contrary to morals, good customs or public policy.
Exemplary damages may be awarded if the dismissal is effected in a
wanton, oppressive, or malevolent manner.
 Regular courts have jurisdiction over actions for damagers where the Er-Ee
rel is merely incidental and the cause of action proceeds from a different
source of obli, such as where the damages claimed were based on tort,
malicious prosecution, or breach of contract, or when the claimant seeks to
recover a debt from a former Ee or seeks liquidated damages for
enforcement of a prior employment contract.

Art. 2197. Damages may be:

(1) Actual or compensatory;

(2) Moral;
(3) Nominal;
(4) Temperate or moderate;
(5) Liquidated; or
(6) Exemplary or corrective.

Damages pecuniary compensation, recompense, or satisfaction for an

injury sustained by the injured party to be paid by the person who caused
the injury.

Refers to the pecuniary consequences imposed by law or by agreement of

the parties for breach of some duty or violation of some right.

Damages Damages or injury

Pecuniary compensation or recompense to The wrongful or tortuous act or the le
be paid to the injured party. wrong which caused the loss or harm to
It is a measure of recovery. aggrieved party.
Recompense or compensation awarded for Injury the legal invasion of a legal right
the damage suffered. Damage the loss, hurt, or harm wh
results from the injury
Aim of the law on damages: intended to repair the damages done by putting
the plaintiff in the same position, as far as pecuniary compensation can do,
that he would be, had the damage not been inflicted and the wrong not
committed.

Art. 2198. The principles of the general law on damages are hereby adopted
insofar as they are not inconsistent with this Code.

ACTUAL OR COMPENSATORY DAMAGES

Art. 2199. 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.

Pecuniary loss measurement in terms of money; may be in business, trade,

property, profession, job or occupation.
The indemnity provided in criminal law as civil liability is the equivalent of
actual or compensatory damages in civil law. It is separate and distinct from
any award of moral damages.
Purpose or aim of actual damages: simply make good or replace the loss
caused by the wrong.
Actual damages are not different from compensatory damages for they are
synonymous.
Claims for actual or compensatory damages must be especially alleged and
substantiated by proof. Generally, what is not alleged, may not be proved.
For actual damages to be received, it is necessary that the claimant produce
competent proof or the best evidence obtainable such as receipts to justify
an award therefor. Claimant must prove the actual amount of loss with a
reasonable degree of certainty premised upon competent proof and on the
best evidence obtainable. Actual damages cannot be anchored on mere
surmises, speculations or conjectures.
If in the complaint, what is prayed for are only moral damages, exemplary
damages, and attorneys fees w/o any specific mention of actual or
compensatory damages, the latter are deemed included if there is a general
prayer for such further relief as may be just and equitable under the
premises, if and when they are proved. However, in rape case, the
conventional requirement or allegata et probate in civil cases where the civil
aspect is included in the prosecution as the mental, physical and
psychological trauma suffered by the victim is too obvious to require the
recital thereof at the trial by the victim.
No filing fee is required for actual damages.
GR: actual or compensatory damages must be proved. They are not
presumed. Absolute certainty as to the amount is not required. It is enough
that the loss is proved and if the amount awarded by the court is fair and
reasonable, this will be allowed; the court cannot rely on its own
speculations as to the fact and amt of damages but must depend on the
actual proof of the damage suffered and the amount thereof.
Temperate damages, in lieu of actual damages, may be recovered when the
court finds that some pecuniary loss has been suffered but its amount
cannot be proved with certainty.
If there is no proof of the loss, the rule is, damages should not be awarded.
Neither, when the proof is flimsy and unsubstantial. It is elementary that
actual and compensatory damages, unlike moral and exemplary damages,
cannot be left to the sole discretion of the court.
 Civil liability ex delicto Actual or compensatory damages
Can be awarded w/o need of further To be recoverable must additionally
proof than the fact of commission of the established with reasonable degree
felony itself certainty.

Limitations on the award for damages: in no instance shall the judge grant
damages more than what had been proved in court.
When proof is not clear or satisfactory, the appellate court may remand the
case to the court of origin for new trial in order to ascertain the amount of
damages.
Damages may be awarded on the basis of hearsay evidence.
Except as provided by law or by stipulation indicates that there are cases
when actual or compensatory damages need not proved; GR: damages must
be proved is subject to the ff xpns:
1. When a penalty clause is agreed upon in the contract bet. the
parties (Art. 1226)
2. When liquidated damages have been agreed upon (Art. 2226)
3. When loss is presumed as when a child or spouse dies as a result
of the act or omission of a person;
4. Forfeiture of bonds in favor of the govt for the purpose of
promoting public policy or interest;
5. Death caused w/in the contemplation of Art. 2206.
In the above situations, actual or compensatory interest damages
need not be proven.
Effect of reservation to file civil action independently of the criminal action:
the grant of moral damages in the criminal case is improper because the
claim for civil liability in the criminal case is waived.
An award for actual damages be executed pending appeal may be executed
pending appeal. However, award for moral or exemplary damages cannot be
executed pending appeal because the same cannot be regarded as fixed or
definite until there is a final judgment. The grant depends upon the result of
the main case.
A person injured by breach of contract cannot recover damages for any loss
w/c he might have avoided w/ ordinary care at reasonable expenses.

Art. 2200. 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.

KINDS OF ACTUAL OR COMPENSATORY DAMAGES:

1. Damnum emergens (or dano emergente) the value of the actual

pecuniary loss for what the claimant already possesses before the
incident w/c must be supported by receipts or the best evidence
available.
 2. Lucrum cessans (or lucro cessante) refers to the expected profits
w/c were not realized by reason of the act of the offender or
tortfeasor.
- Not to be granted on the basis of mere speculation, conjecture or
surmise, but rather by reference to some reasonably definite
standard such as market value established experience, or direct
inference from the known circumstances.
- Example: good will average net profits for a period of
years is multiplied by a number being suitable and proper,
having reference to the nature and character of the
particular business under consideration.
- Loss of profit cannot be shouldered by the insurer
Actual (damnum emergens) and compensatory damages (lucrum cessans)
be granted at the same time to the plaintiff
Coverage of actual damages include all the natural and probable
consequences of the act or omission complained of, classified as one for the
loss of what a person already possess (dano emergente) and the other, for
the failure to receive, as a benefit, that which would have pertained to him
(lucro cesante).
In determining the amount of lost of income, the ff must be taken into
account:
1. The number of years for w/c the victim would otherwise have
lived; and
2. The rate of the loss sustained by the heirs of the deceased.
Basis of loss of earning capacity (not loss of earnings or income): it is not
necessary that the victim, at the time of injury or death, be gainfully
employed compensation of this nature is awarded not for loss of earnings
but for loss of capacity to earn money; Computation of loss of earning
capacity should be based not on the net monthly income of the deceased
but on his gross annual income minus the necessary and incidental living
expenses w/c the victim would have incurred if he were alive, estimated at
50% of the gross annual income.
Damages cannot be paid in kind
Receipts are the best evidence to prove actual damages

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.
- Applies to contracts and quasi-contracts thus presupposing the existence of
a pre-existing contractual relationship between the parties. While in quasi-
contract there is no consent given by the parties, it is the law w/c provides
for the missing consent referred to as presumptive consent
1st par. situation wherein the defendant is in gf
2nd par. when the defendant is in bf
Unlike the 1st par., there is no necessity of the damage being natural or
probable consequence of the act or omission complained of. Neither, is there
a necessity of the foreseeability of the consequences. It is sufficient that the
damage may be reasonably attributed to the breach or non-performance of
the obli.

1st par. 2nd par.

Mere carelessness Deliberate or wanton wrong-doing

Art. 2202. In crimes and quasi-delicts, the defendant shall be liable for all
damages which are the natural and probable consequences of the act or
omission complained of. It is not necessary that such damages have been
foreseen or could have reasonably been foreseen by the defendant.

- Applies to crimes and quasi-delicts

have broader consequences than contracts and quasi-contracts
in the preceding art., there is a contract existing bet. the parties, whereas in
the present art., there is none.

Art. 2203. The party suffering loss or injury must exercise the diligence of a
good father of a family to minimize the damages resulting from the act or
omission in question.

- Applies to crimes and quasi-delicts

Obligates the injured party to undertake measures that will alleviate and not
aggravate his condition after the infliction of the injury or nuisance, and
places upon him the burden of explaining why he did not do so.
It is the duty of the party injured by the unlawful act of another to take such
measures as prudent men usually take under such circumstances as would
reduce the damage as much as possible. The defendant, who caused the
injury, has the burden to show that the plaintiff might have reduced the
damages; In the absence of such proof, the amt of damages cannot be
reduced.
Only reasonable measures are expected of the victim in minimizing his
damage.
 Art. 2204. In crimes, the damages to be adjudicated may be respectively
increased or lessened according to the aggravating or mitigating
circumstances.

Effect of presence of aggravating or mitigating circumstances: aggravating

will have the effect of increasing the amount of damages payable to the
victim, whereas, mitigating has the effect of lessening the amount of
damages.
The presence of aggravating circumstance of cruelty warrants the award of
exemplary damages.
If there is no aggravating circumstance, exemplary damages shall not be
imposed.

Art. 2205. Damages may be recovered:

(1) For loss or impairment of earning capacity in cases of temporary or

permanent personal injury;

(2) For injury to the plaintiff's business standing or commercial credit.

- Coverage of actual damages

Actual or compensatory damages are recoverable in crimes, quasi-delict,
contracts and quasi-contracts w/c are all sources of civil obligation.
#1 the indemnification for loss of earning capacity partakes of the
nature of actual damages w/c must be duly proven
- Formula for computation of unearned income:

Net Earning Capacity (x) life expectancy x [gross annual income

- living expenses (50% of the gross annual income)]

Life expectancy is determined in accordance w/ the formula:

2/3 x (80 age of the deceased)

- If there is no proof of the living expenses of the deceased, the

net income is estimated to be 50% of the gross annual
income.
- Another factor considered in determining the award of loss or
earning capacity is the life expectancy of the deceased w/c
takes into account his work, lifestyle, age and state of health
prior to the accident.
- Indemnification for loss of earning capacity partakes of the
nature of actual damages w/c must be duly proven by
competent proof and the best evidence thereof, except:
1. Self-employed, earning less than the minimum wage under
current labor laws, and judicial notice may be taken of the
 fact that in the victims line of work, no documentary
evidence is available; or
2. Employed as a daily-wage worker earning less than the
minimum wage under current labor laws.

Art. 2206. 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:

(1) 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;

(2) 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;

(3) 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.

- Applies only in case of death of a person by reason of a crime or quasi-delict.

If the victim is merely injured, Art. 2206 is not applicable. He is however,
entitled to moral damages 1. It he physical injuries are caused by a crime;
2. By quasi-delict; or 3. By breach of contract if the defendant acted
fraudulently or in bf (2220)
Award of civil indemnity in case of death is separate and distinct from the
award of actual damages w/c is based on a different jural foundation.
This art. Applies to death of a passenger due to breach of contract of
common carrier.
Not applicable in frustrated murder
There can be no exact uniform rule for measuring the value of human life
and the measure of damages cannot be arrived at by precise mathematical
calculation but the amount recoverable depends on the particular facts and
circumstances.
Statutory minimum limit payable for the death of a person; En Banc
Resolution of the SC dated August 30, 1990, it was raised to P50,000.00.
o The presence of mitigating circumstances is immaterial. It
cannot affect the grant of civil indemnity for the death of the
victim.
 o No other proof is necessary other than the fact of the death of
the victim and the accuseds responsibility therefor.
o The heirs of the deceased are entitled to be indemnified for
the death of the victim w/o need of any evidence or proof
thereof (Civil indemnity for death of a person)
Other items of damages recoverable in addition to compensatory damages:
a. Indemnity for loss of earning capacity
Unbiased proof of the deceaseds average (not just
gross) income must be presented. In the absence
thereof, the court may not grant damages for loss of
income.
2 requisites that must be complied w/ before damages
may be awarded
Not only should the alleged expenses be
supported by receipts
But also they should have been genuinely
incurred in connection w/ death, wake and
burial of the victim.
In determining the amount of lost of income, the ff
must be taken into account:
1. The number of years for w/c the victim would
otherwise have lived; and
2. The rate of the loss sustained by the heirs of the
deceased.
Living and other ordinary expenses must be deducted
first.
Earning capacity will not be considered if the deceased
had no earning capacity at the time of his death. The
reason for the lack of earning capacity, however, must
not be due to the defendants fault.
Formula above, applies (Art. 2205).
b. Moral Damages
Art. 2217 recoverable from the tortfeasor.
The determination of which depends upon the sound
discretion of the court after evidence had been
presented establishing the factual basis thereof.
Not all close relatives are entitled to moral damages
for the mental anguish suffered by reason of the death
of the deceased. Only the surviving spouse,
descendants whether legitimate or illegitimate,
ascendants whether legitimate or illegitimate are
entitled to moral damages.
Brothers and sisters of the deceased are not accorded
the right to recover moral damges.
Moral damages to the heirs should be made
individually and in varying amounts.
 See art. 2205 re: discussion on loss of earning capacity
When death occurs due to a crime, the ff 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. Atty.s fees and expenses of litigation;
6. Interest, in proper cases.
Support to a recipient who is not an heir if the deceased is
obliged to give support to somebody in accordance w/ art. 195 of
the FC, the recipient of support who is not an heir is called to
decedents inheritance, will no longer enjoy the support he used
to receive from the deceased and bec. he is not an heir, he cannot
inherit from the deceased.
o The offender or tortfeasor should be ordered to continue
the giving of support for a period not to exceed 5yrs. But
the exact amt and period of w/c shall be determined by
the court using its sound discretion.
Factors in determining reasonableness of damages under Art.
1764 in conjuction w/ art. 2206 are:
a. Life expectancy (considering the health of the victim and
the mortality table w/c is deemed conclusive) and loss of
earning capacity
b. Pecuniary loss, loss of support and service; and
c. Moral and mental sufferings

Art. 2207. If the plaintiff's property has been insured, and he has received
indemnity from the insurance company for the injury or loss arising out of
the wrong or breach of contract complained of, the insurance company shall
be subrogated to the rights of the insured against the wrongdoer or the
person who has violated the contract. If the amount paid by the insurance
company does not fully cover the injury or loss, the aggrieved party shall be
entitled to recover the deficiency from the person causing the loss or injury.

- Founded on the Principle of Subrogation

The consent of the debtor is not required for the effectuation of subrogation.
The insurer will be subrogated to the rights of the assured to recover from
the wrongdoer to the rights of the assured to recover from the wrongdoer to
the extent that the insurer has been obliged to pay.
Payment by the insurer to the assured operates as an equitable assignment
to the former of all remedies w/c the latter may have against the 3 rd party
whose negligence or wrongful act caused the loss. The right of subrogation
is not dependent upon, nor does it grow out of, any privity of contract or
 upon written assignment of claim by the insurer. It occurs simply upon
payment of the insurance by the insurer.
Instances when the principle of subrogation does not apply:
1. When the assured by his own act releases the wrongdoer or 3 rd
person for the loss or damage, from liability.
2. When the insurer pays the assured the value of the loss goods
w/o notifying the carrier who has in gf settled the assureds claim
for loss;
3. When the insurer pays the assured for a loss w/c is not a risk
covered by the policy, the former has no right of subrogation
against the 3rd party liable for the loss.
Art. 2207 not applicable to loss of human life or injury to natural
persons.

Art. 2208. 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 costs are awarded;
(11) 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.

- Attorneys fees and litigation expenses. Judicial costs are excluded bec. they
are fixed by Rule 142 and their payment is ministerial
- Attorneys fees contemplated extraordinary attorneys fees w/c are items
of actual damages.
Extraordinary indemnity for damages ordered by the
court to be paid by the losing party to the prevailing
party in a litigation.
Made in favor of the litigant, not of his counsel.
 Ordinary reasonable compensation paid to a lawyer
by his client for the legal services he has rendered to
the latter.
The parties to a contract may stipulate on payment of atty.s fees. (may be
based on a certain percentage of the amt of the principal obligation)
In the absence of stipulation, atty.s fees are not recoverable, except in the
case mentioned in Art. 2208; in the absence of gross and evident bf in
defendants refusal to satisfy plaintiffs claim, and there being none of the
grounds enumerated in Art. 2208, such absence precludes a recovery of
atty.s fees in the trial court.
If not pleaded and prayed for in the complaint, atty.s fees are barred.
Ordinary atty.s fees payable even if not expressly agreed upon quasi-
contract; determination of the amt will be on the basis of quantum meruit.
The reason for the award of atty.s fees must be stated in the text of the
courts decision; otherwise, if it is stated only in the dispositive portion, the
same must be disallowed on appeal.
Atty.s fees must be alleged and prayed for.
General prayer, not sufficient to justify atty.s fees.
Moral damages and atty.s fees cannot be consolidated for they are diff. in
nature and each must be separately determined.
Charging exorbitant extraordinary atty.s fees denial is proper; if ordinary
atty.s fees the court has the authority to reduce the same to a reasonable
amount.

Art. 2209. 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.

Effects of delay in payment of sum of money the measure of damages is

limited
1. To the interest stipulated by the parties; OR
2. To the legal interest (6% per annum) provided in the absence of
any stipulation.
Reckoning period for the payment of interest from the date of
demand w/c could be judicial or extrajudicial. If there is no
evidence of an EJ demand, the period shall be counted from the
judicial demand.
In money judgment, rate of interest is 6% from finality

Art. 2210. Interest may, in the discretion of the court, be allowed upon
damages awarded for breach of contract.
 Reckoned from the date the judgment of the trial court was rendered.
If the parties agreed that no interest whatsoever shall be due, the
principal shall not bear interest.

Art. 2211. In crimes and quasi-delicts, interest as a part of the damages

may, in a proper case, be adjudicated in the discretion of the court.

Art. 2212. Interest due shall earn legal interest from the time it is judicially
demanded, although the obligation may be silent upon this point. (1109a)

Art. 2213. Interest cannot be recovered upon unliquidated claims or

damages, except when the demand can be established with reasonably
certainty.

Art. 2214. In quasi-delicts, the contributory negligence of the plaintiff shall

reduce the damages that he may recover.

Art. 2215. 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:

(1) That the plaintiff himself has contravened the terms of the contract;

(2) That the plaintiff has derived some benefit as a result of the contract;

(3) In cases where exemplary damages are to be awarded, that the

defendant acted upon the advice of counsel;

(4) That the loss would have resulted in any event;

(5) That since the filing of the action, the defendant has done his best to
lessen the plaintiff's loss or injury.

OTHER KINDS OF DAMAGES

Art. 2216. No proof of pecuniary loss is necessary in order that moral,

nominal, temperate, liquidated or exemplary damages, may be adjudicated.
The assessment of such damages, except liquidated ones, is left to the
discretion of the court, according to the circumstances of each case.

SECTION 1. - Moral Damages

Art. 2217. 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.

Art. 2218. In the adjudication of moral damages, the sentimental value of

property, real or personal, may be considered.

Art. 2219. Moral damages may be recovered in the following and analogous
cases:

(1) A criminal offense resulting in physical injuries;

(2) Quasi-delicts causing physical injuries;

(3) Seduction, abduction, rape, or other lascivious acts;

(4) Adultery or concubinage;

(5) Illegal or arbitrary detention or arrest;

(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 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.

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.

SECTION 2. - 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.

Art. 2222. 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.

Art. 2223. The adjudication of nominal damages shall preclude further

contest upon the right involved and all accessory questions, as between the
parties to the suit, or their respective heirs and assigns.

SECTION 3. - 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.

SECTION 4. - Liquidated Damages

Art. 2226. Liquidated damages are those agreed upon by the parties to a
contract, to be paid in case of breach thereof.

Art. 2227. Liquidated damages, whether intended as an indemnity or a

penalty, shall be equitably reduced if they are iniquitous or unconscionable.

Art. 2228. 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, and not the
stipulation.

SECTION 5. - Exemplary or Corrective Damages

Art. 2229. Exemplary or corrective damages are imposed, by way of

example or correction for the public good, in addition to the moral,
temperate, liquidated or compensatory damages.
Art. 2230. In criminal offenses, exemplary damages as a part of the civil
liability may be imposed when the crime was committed with one or more
aggravating circumstances. Such damages are separate and distinct from
fines and shall be paid to the offended party.

Art. 2231. In quasi-delicts, exemplary damages may be granted if the

defendant acted with gross negligence.

Art. 2232. In contracts and quasi-contracts, the court may award exemplary
damages if the defendant acted in a wanton, fraudulent, reckless,
oppressive, or malevolent manner.

Art. 2233. Exemplary damages cannot be recovered as a matter of right; the

court will decide whether or not they should be adjudicated.

Art. 2234. 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.

Art. 2235. A stipulation whereby exemplary damages are renounced in

advance shall be null and void.