SUMMARY ON THE LAW ON DAMAGES (Articles 2195-2235)

General Provisions on Damages: Latin Term is DAMNUM or DEMO which means to take away. Damages: It is the sum of money which the law awards or imposes as pecuniary compensation or satisfaction for an injury done or wrong sustained as a consequence of the breach of some duty or the violation of some right. (15 Am. Jur. 387) It is compensation in money imposed by a court for loss or injury caused by the fault of another. (Hemphills Dictionary of Practical Law).

BASIS OR RATIONALE: The fundamental principle of the law on damages is that one injured by a breach of contract or by a wrongful or negligent act or omission shall have a fair and just compensation commensurate with the loss sustained as a consequence of the defendants act. Hence, actual pecuniary compensation is the general rule, whether the action is based on contract or in tort, except where the circumstances warrant the allowance of other kinds of damages. In general, the damages awarded should be equal to, and precisely commensurate with the injury sustained. However, rules of law respecting the recovery of damages are framed and reference to just rights of BOTH PARTIES, not merely what may be right for an injured person to receive, but also what is just to compel the other party, to accord just compensation for the injury.

Distinction between DAMAGES and INJURY Injury denotes the illegal act, while damages mean the total amount recoverable for the injury committed. Damages are measure of recovery while injury is the legal wrong to be redressed. There may be damages without an injury, and an injury without damages.

Note: There can be damage without injury. (Damnum absque injuria)

Article 2195: This provision provides that the Chapter on Damages shall be applicable to all obligations mentioned in Article 1157. Obligations arise from the following sources in accordance with said provision:
Law Contracts Quasi-contracts Acts or omission punishable by law; and Quasi-delicts

Article 2196: It is to be observed that in case of conflict between the Civil Code and the Special Laws, it is the Civil Code that prevails insofar as damages are concerned. Exception in the case of compensation for workmen and other employees. Article 2197: Damages are the following:
Actual or compensatory; Moral Nominal Temperate or moderate Liquidated; or Exemplary or corrective

Article 2198: The principle of the general law on damages are hereby adopted insofar as they are not inconsistent with the Civil Code.

A.

ACTUAL OR COMPENSATORY DAMAGES (Articles 2199-2215)

They are those recoverable because of pecuniary loss in business, trade, property, profession, job or occupation. They include:

The value of the loss suffered (Dao Emergente) Profits which were not obtained or realized (Lucro Cesante)
The above are also identified as the kinds of actual or compensatory damages. (Article 2200) Examples of Dao Emergente: Destruction of things Fines or penalties that had to be paid Medical and hospitalization expenses

Examples of Lucro Cesante:

Profits that could have been earned had there been interruption in the plaintiffs business evidenced by the reduced receipts of the enterprise. Interest on rentals that were not paid.

Article 2201 provides for the liability of debtor in contracts and quasi-contracts: Liability of debtor if there is good faith but damages are sustained by the injured party: It is essential that the damages be the NATURAL and PROBABLE CONSEQUENCES of the act or omission complained of.

Article 2202: 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.

Article 2206: The amount of damages for death caused by a crime or quasi-delict shall be at least three thousand pesos (now P 50,000*), 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 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 in according to the provisions of Article 291, the recipient who is not an heir called to the decedents 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.

PP vs. Ortis, 361 SCRA 274, July 17, 2001, PP vs. Maxion, 361 SCRA 414, July 19, 2001. These are jurisprudences of the Supreme Court stating that in case of death, the indemnity for actual damages is P50,000. civil indemnity for the death of husband, which has been fixed by current jurisprudence at P50,000.00 (PHILIPPINE HAWK CORPORATION VS VIVIAN TAN LEE, G.R. No. 166869, February 16, 2010)

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. (Art. 2216) Note: Proof of pecuniary loss is only necessary in actual or compensatory damages but not so in other damages above mentioned. Such damages then can be recovered based on the sound discretion of the court after evaluating the circumstances of such cases.

B. MORAL DAMAGES (Articles 2217-2220) Article 2216: 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 defendants wrongful act or omission.

Moral damages may be awarded to compensate one for manifold injuries such as physical suffering, mental anguish, serious anxiety, besmirched reputation, wounded feelings and social humiliation. These damages must be understood to be in the concept of grants, not punitive or corrective in nature, calculated to compensate the claimants for the injury suffered.

Although incapable of exactness and no proof of pecuniary loss is necessary in order that moral damages may be awarded, the amount of indemnity being left to the discretion of the court, it is imperative nevertheless, that: Injury must have been suffered by the claimant and Such injury must have been sprung from any cases expressed in Articles 2219 and 2220 of the Civil Code A causal relation must exist between the actor omission referred in the Code which underlines or gives rise to, the case or proceeding, on the one hand, and the resulting injury, on the other; i.e. the first must be the proximate cause and latter the direct consequence thereof. (Del Mundo v. Court of Appeals, G.R. No. 104576, January 20, 1995).

In the adjudication of moral damages, the sentimental value of the property, real or personal, may be considered. (Art. 2218) Moral damages may be recovered on the following and analogous cases: A criminal offense resulting to physical injuries; Quasi-delicts causing physical injuries; Seduction, abduction, rape and other lascivious acts; Adultery or concubinage; Illegal or arbitrary detention or arrest; Illegal search;

libel, slander, or any other form of defamation; Malicious prosecution; Acts mentioned in Article 309; Acts and action referred to in Articles 21, 26, 27, 28, 29, 30, 32, 34 and 35.

Article 2218: The spouse, descendants, ascendants, and brothers and sisters may bring the action mentioned in no. 9 of this article, in the order named.

Willful injury to the 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.

References: The below stated articles indicate instances where moral damages may be claimed in addition to the indemnity which the court may grant:

Article 309: Any person who 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. Article 21: Any person who willfully causes loss or injury to another in a manner that is contrary to morals, good customs or public policy shall compensate the latter the damage.

Article 26: Every person shall respect the dignity, personality, privacy and peace of mind of his neighbors and other persons. The following and similar acts, though they may not constitute criminal offense, shall produce a cause of action for damages, prevention and other relief: Prying into the privacy of anothers residence; Meddling with or disturbing the private life or family relations of another; Intriguing to cause another to be alienated from his friends; Vexing or humiliating another on account of his religious beliefs, lowly station in life, place of birth, physical defect or other personal condition.

Article 27: Any person suffering material or moral loss because a public servant or employee refuses or neglects without just cause, to perform his official duty may file an action for damages and other relief against the latter, without prejudice to any disciplinary administrative action that may be taken. Article 28: Unfair competition on agricultural and commercial or industrial enterprises or in labor through the use of force, intimidation, deceit, machinations or any other unjust, oppressive or highhanded method shall give rise to a right of action by the person who thereby suffers damage.

Article 29: When the accused in a criminal prosecution is acquitted on the ground that his guilt has not been proved beyond reasonable doubt, a civil action for damages for the same act or omission may be instituted. Such action requires only preponderance of evidence. Upon motion of the defendant, the court may require the plaintiff to file a bond to answer for damages in case the complaint should be found malicious. If in the criminal case, the judgment of acquitted is based on reasonable doubt, the court shall declare so. In the absence of any declaration to that effect, it may be inferred from the text of the decision whether or not the acquittal is due to that ground.

Article 30: When a separate civil action is brought to demand civil liability arising from the criminal offense, and no criminal proceedings are instituted during the pendency of the civil case, a preponderance of evidence shall likewise be sufficient to prove the act complained of.

Article 32: Any public officer or employee, or any private individual, who directly or indirectly obstructs, defeats, violates or in any manner impedes or impairs any of the following rights and liberties of another person shall be liable to the latter for damages: Freedom of religion; Freedom of speech; Freedom to write for the press or to maintain a periodical publication;

 Freedom from arbitrary or illegal detention; Freedom to suffrage; The right against deprivation of property without due process of law; The right to a just compensation when the private property is taken for public use; The right to equal protection of the laws; The right to secure in ones person, house, papers and effects against unreasonable searches and seizures;

 The liberty of abode and changing the same; The privacy of communication and correspondence; The right to become a member of associations or societies for purpose not contrary to law; The right to take part in a peaceful assembly to petition the government for redress of grievances; The right to be free from involuntary servitude to any form; The right of the accused against excessive bail;

 The right of the accused to be heard by himself and counsel, to be informed of the nature and cause of the accusation against him; to have a speedy and public trial; to meet the witnesses face to face and to have compulsory process to secure the attendance of witness in his behalf; Freedom from being compelled to be a witness against ones self, or from being forced to confess guilt, or from being induced by a promise of immunity or reward to make such confession, except when the person confessing becomes a state witness; Freedom from excessive fines or cruel and unusual punishment, unless the same is imposed or inflicted in accordance with a statute which has not been judicially declared unconstitutional; and freedom of access to the courts.

 In any of the cases referred to in this article, whether or not the defendants act or omission constitutes a criminal offense, the aggrieved party has the right to commence an entirely separate and distinct civil action for damages and other relief. Such civil action shall proceed independently of any criminal prosecution (if the latter be instituted), and may be proved by a preponderance of evidence.
The indemnity shall include moral damages. Exemplary damages may also be adjudicated. The responsibility herein set forth is not demandable from a judge unless his act or omission constitutes a violation of the Penal Code or other penal statute.

Article 34: When a member of a city or municipal police force refuses or fails to render aid or protection to any person in case of danger to life or property, such peace officer shall be primarily liable for damages and the city or municipality shall be subsidiarily responsible therefore. The civil action herein recognized shall be independent of the criminal proceedings and a preponderance of evidence shall suffice to support such action.

Article 35: When the person claiming to be injured by a criminal offense, charges another with the same, for which no independent civil action is granted in this Code or any special law, but the justice of peace finds no reasonable grounds to believe that a crime has been committed, or the prosecuting attorney refuses or fails to institute criminal proceedings, the complainant may bring a civil action for damages against the offender. Such civil action may be supported by a preponderance of evident. Upon the defendants motion, the court may require the plaintiff to file a bond to indemnify the defendant in case the complaint should be found to be malicious. If during the pendency of the civil action, an information should be presented by the prosecuting attorney, the civil action shall be suspended until the termination of the criminal proceedings.

C. Nominal Damages (Articles 2221-2223) Article 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. Article 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. Article 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.

Nominal damages are granted as there are instances when the vindication or recognition of the plaintiffs right is of utmost importance to him as in the case of trespass upon real property. If compensatory and exemplary damages have been awarded, this award is by itself a judicial declaration that the plaintiffs right has been violated. Therefore a further award of nominal damages, is unnecessary and improper. It should be remembered that nominal damages are merely for the VINDICATION of a right that has been violated, not for the indemnification of the loss suffered.

The assessment of nominal damages is left to the discretion of the court, according to the circumstances of the case. An award of nominal damages precludes the recovery of actual, moral, temperate or moderates damages. In fact, nominal damages may be awarded although plaintiff is not entitled to actual, moral, temperate or exemplary damages.

C. TEMPERATE OR MODERATE DAMAGES (Articles 2224-2225) Article 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 cannot, from the nature of the case, be proved with certainty.

Explanation: There are cases where from the nature of the case, definite proof of pecuniary loss cannot be offered, although the court is convinced that there has been such loss. For instance, injury to ones commercial credit or goodwill of a business firm is often hard to show with certainty in terms of money. Now the query is, should damages be denied on this reason? In this instance, the court should be empowered to calculate moderate damages in such cases, rather than that the plaintiff should suffer, without redress, from the defendants wrongful act.

Article 225: Temperate damages must be reasonable under circumstances. What is reasonable is a question of fact, depending to the relevant circumstances.

D. LIQUIDATED DAMAGES (Articles 2226-2228) Article 2226: Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof.

In effect, liquidated damages and penalty are the same. Neither requires proof of actual damages. After all, they had been previously agreed upon.

Article 2227 - Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable.

Article 2228 - When the breach of the contract committed by the defendant is not the one contemplated by the parties in the agreeing upon the liquidated damages, the law shall determine the measure of damages, and not the stipulation.

E. EXEMPLARY OR CORRECTIVE DAMAGES (Articles 2229-2235) Article 2229: Exemplary or corrective damages are imposed, by way of example or correction, for the public good, in addition to moral, temperate, liquidated or compensatory damages. Exemplary damages are also called as punitive damages. They are required by public policy for wanton acts must be suppressed.

In the absence of moral, temperate, liquidated or compensatory damages, no exemplary damages can be granted, for exemplary damages are allowed only in addition to any of the four kinds of damages mentioned. Exemplary damages are designed to provide example or correction for the public good.

Examples: 1. A corporation which persisted in oppressively invading anothers rights despite cease and desist orders from the Public Service Commission. The imposition of exemplary damages would be a reminder that economic power will never justify a reckless disregard of the rights of others. 2. Exemplary damages may be awarded if the dismissal is effected in a wanton, oppressive or malevolent manner. (Lopez vs. NLRC, 297 SCRA 508)

Article 2230: Exemplary damages may be imposed as part of the civil liability in criminal offenses, when the crime committed is accompanied with one or more aggravating circumstances. It is separate and distinct from the other damages or fine the offender has to pay. Article 2231: It can also be granted in quasi-delicts in case defendant acted with gross negligence.

Article 2232: It can be granted in contracts and quasicontracts, if the defendant acted in a wanton, fraudulent, reckless, oppressive or malevolent manner.
Article 2233: Exemplary damages cannot be recovered as a matter of right; the court will decide whether or not they should be adjudicated.