DAMAGES

General Principles:
1. Damages must be proved.
2. Amount of damages must be fair and commensurate to the loss.
3. Damages must be a consequence of the tortuous act.
4. Remote and speculative damages are not allowed.

Filinvest Credit vs. IAC, 166 SCRA 155 that "there is no hard and fast rule in the determination of
what would be a fair amount of moral damages, since each case must be governed by its own
peculiar circumstances." 25 Be that as it may and in amplification of this generalization, we set
the criterion that "in the case of moral damages, the yardstick should be that the "amount
awarded should not be palpably and scandalously excessive" so as to indicate that it was the
result of passion, prejudice or corruption on the part of the trial court ... . Moreover, the actual
losses sustained by the aggrieved parties and the gravity of the injuries must be considered in
arriving at reasonable levels ... ."

Dichoso vs. CA, 192 SCRA 169 conclusions must not be based on speculations, surmises, and
conjectures.

PNB vs. Utility Assurance, 177 SCRA 208 creditors suing on a suretyship bond may recover from
the surety as part of their damages, interest at the legal rate even if the surety would thereby
become liable to pay more than the total amount stipulated in the bond

Lao vs. CA, 199 SCRA 58

Consolidated Plywood vs. CA, 214 SCRA 209

Country Bankers vs. CA, 201 SCRA 458

De Leon vs. CA, 165 SCRA 166

Actual Damages (See Arts. 2199-2203, 2207 and 2209)

1. Value of loss (Damnun Emergens)

People vs. Quilatan, 205 SCRA 279 civil indemnity is mandatory upon the finding of
the fact of rape; it is distinct from and should not be denominated as moral damages
which is based on different jural foundations and assessed by the court in the exercise
of sound discretion. If the crime of rape is committed or effectively qualified by any of
the circumstances under which the death penalty is authorized by law, the indemnity
for the victim shall be P75,000.00.

2. Unrealized Profits (Lucrum Cessans)

3. Loss of Earning Capacity
4. Injury to Business Standing/Credit
5. Indemnity for Death currently at P50,000
 6. Lost Income = Life Expectancy * Net Income

Life Expectancy = 2/3 (100 age at time of death)

Net Income = Gross Income Personal Expenses of Deceased

7. Support for Compulsory Heirs five (5) years

Rules on Interest

1. No interest may be awarded unless:

a. stipulated; or
b. delay or default.
2. if there is stipulated rate, apply that rate. If no stipulation, apply legal rate (6%). In both
cases, interest accrues upon demand.
3. Upon finality of decision, interest rate is 12% (CB Circular: forbearance of money).
4. See Dacar vs Gallery Frames, G.R. No. 189871, 13 August 2013

Eastern Shipping vs. CA, 234 SCRA 78

1. When the obligation is breached, and it consists in the payment of a sum of money,
i.e., a loan or forbearance of money, the interest due should be that which may have
been stipulated in writing. 21 Furthermore, the interest due shall itself earn legal interest
from the time it is judicially demanded. 22 In the absence of stipulation, the rate of
interest shall be 12% per annum to be computed from default, i.e., from judicial or
extrajudicial demand under and subject to the provisions of Article 1169 23 of the Civil
Code.
2. When an obligation, not constituting a loan or forbearance of money, is breached, an
interest on the amount of damages awarded may be imposed at the discretion of the
court 24 at the rate of 6% per annum. 25 No interest, however, shall be adjudged on
unliquidated claims or damages except when or until the demand can be established
with reasonable certainty. 26 Accordingly, where the demand is established with
reasonable certainty, the interest shall begin to run from the time the claim is made
judicially or extrajudicially (Art. 1169, Civil Code) but when such certainty cannot be so
reasonably established at the time the demand is made, the interest shall begin to run
only from the date the judgment of the court is made (at which time the quantification
of damages may be deemed to have been reasonably ascertained). The actual base for
the computation of legal interest shall, in any case, be on the amount finally adjudged.
3. When the judgment of the court awarding a sum of money becomes final and
executory, the rate of legal interest, whether the case falls under paragraph 1 or
paragraph 2, above, shall be 12% per annum from such finality until its satisfaction, this
interim period being deemed to be by then an equivalent to a forbearance of credit.

Attorneys Fees

- must be stipulated except Art. 2208.

Zalamea vs. CA, 228 SCRA 23 A tortfeasor is responsible for all damages which may be reasonably
attributed to the non-performance of his obligation

Occena vs. Icamina, 181 SCRA 328 Underlying the legal principle that a person who is criminally
liable is also civilly liable is the view that from the standpoint of its effects, a crime has dual
character: (1) as an offense against the state because of the disturbance of the social order; and
(2) as an offense against the private person injured by the crime unless it involves the crime of
treason, rebellion, espionage, contempt and others wherein no civil liability arises on the part of
the offender either because there are no damages to be compensated or there is no private
person injured by the crime. 3 In the ultimate analysis, what gives rise to the civil liability is really
the obligation of everyone to repair or to make whole the damage caused to another by reason
of his act or omission, whether done intentional or negligently and whether or not punishable by
law.

Moral Damages (See Arts. 2217-2220)

PAL vs. Miano, 242 SCRA 235 In breach of contract of carriage by air, moral damages are
awarded only if the defendant acted fraudulently or in bad faith. Bad faith means a breach of a
known duty through same motive of interest or ill will.

Nominal Damages (See Arts. 2221-2223)

1. a legal right is violated;

2. no loss or damage is suffered; and
3. award is to vindicate the right violated.

- award of nominal damages is IN LIEU of actual, moral, temperate or liquidated damages.

Temperate Damages (See Arts. 2224-2225)

- actual damage the amount of which cannot be ascertained

Liquidated Damages (See Arts. 2226-2228)

- awarded only if agreed upon

- no need to prove the amount, just prove the breach
- may be reduced if unconscionable

Jison vs. CA, 164 SCRA 399 While the resolution of the contract and the forfeiture of the
amounts already paid are valid and binding upon petitioners, the Court is convinced that
the forfeiture of the amount of P5.00 although it includes the accumulated fines for
petitioners' failure to construct a house as required by the contract, is clearly iniquitous
considering that the contract price is only P6,173.15 The forfeiture of fifty percent (50%)
of the amount already paid, or P3,283.75 appears to be a fair settlement. In arriving at
this amount the Court gives weight to the fact that although petitioners have been
delinquent in paying their amortizations several times to the prejudice of private
respondent, with the cancellation of the contract the possession of the lot review.... to
 private respondent who is free to resell it to another party. Also, had R.A. No. 65856, been
applicable to the instant case, the same percentage of the amount already paid would
have been forfeited [Torralba 3(b).]

Exemplary Damages (See Arts. 2229-2234)

- may not be awarded unless accompanied by actual, moral or liquidated damages

Air France vs. CA, 171 SCRA 399 The responsibility of an employer for the tortous act of
its employees need not be essayed. It is well settled in law. For the willful malevolent act
of petitioner's manager, petitioner, his employer, must answer.

Mitigation of Damages (See Arts. 1192, 2203, 2204, 2214 and 2215)

Jison vs. CA, 164 SCRA 399 The Court's decision to reduce the amount forfeited finds
support in the Civil Code. As stated in paragraph 3 of the contract, in case the contract is
cancelled, the amounts already paid shall be forfeited in favor of the vendor as liquidated
damages. The Code provides that liquidated damages, whether intended as an indemnity
or a penalty, shall be equitably reduced if they are iniquitous or unconscionable [Art.
2227.]