DAMAGES Damages may be defined as the pecuniary compensation, recompense, or satisfaction for and injury sustained, or as otherwise expressed,

the pecuniary consequences which the law imposes for the breach of some duty or the violation of some right. In the Philippines, the old Civil Code embodies only few general principles on the measure of damages. The New Civil Code, however, devotes whole title on Damages. These provisions embody several principles of American law, as their courts have well-developed system of rules and principles on the adjudication of damages. The fundamental principle of law of damages is that one injured by a breach of contract or by the negligent act or omission shall have fair and just compensation commensurate with the loss sustained in the consequence of the defendants act which give to the action. Thus actual pecuniary compensation is the indemnity for his loss and to be placed as near as may be in condition which he would have occupied had he not suffered the injury complained of. On the other hand, the defendant shall not be liable for damages more than the actual loss which he has inflicted by his wrong. Only proximate, not remote, damages are recoverable. While the same faulty or negligent act or omission may give rise to multiplicity of suits, however under Art 2177, NCC, the plaintiff cannot recover damages twice for the same act or omission, If the plaintiff recovers from the defendant under the civil code, he cannot recover damage from the same defendant under Revised Penal Code on the premise that person criminally liable is also civilly liable.
The civil liability under quasi delict is contracted without agreement or consent, thus culpa extra contractual, on the principle that where harm, loss or damage has been caused to a person thru fault or negligent act the aggrieve party is entitled to be indemnified. (Cangco vs MRR, 38 Phil 768)

The Civil Code classifies damages into 6 kinds of damage, namely Actual or compensatory Moral Nominal Temperate or moderate Liquidated 6. Exemplary or corrective
1. 2. 3. 4. 5.

1. ACTUAL/COMPENSATORY - adequate compensation for a) the value of loss suffered b) profits which obligee failed to obtain Exception:

Tolentino, Civil Code of the Philippines 632 (1992) Jarencio, Torts and Damages 4th Edition (1977)

a. provided by law b.by stipulation

WHAT MUST BE DONE TO COLLECT ACTUAL DAMAGES: 1.) Plead or allege the loss

GENERAL DAMAGE - natural, necessary and logical consequences of a particular wrongful act which result in injury; need not be specifically pleaded because the law itself implies or presumes that they resulted from the wrongful act. Article 2216 of the Civil Code provides that no proof is needed SPECIAL DAMAGES - damages which are the natural, but not the necessary and inevitable result of the wrongful act; need to be pleaded

2.) Pray for the relief that claim for loss be granted 3.) Prove the loss WHEN LOSS NEED NOT BE PROVED: 1.) Liquidated damages previously agreed upon; liquidated damages take the place of actual damages except when additional damages incurred 2.) If damages other than actual are sought 3.) Loss is presumed (ex: loss if a child or spouse) 4.) Forfeiture of bonds in favor of the government for the purpose of promoting public interest or policy (ex: bond for temporary stay of alien)

CONTRACTS & QUASI CONTRACTS

a. Natural and probable consequence of breach of obligation, and b. Parties have forseen or could have reasonably forseen at time obligation was constituted 2. Damages in case of bad faith a. it is sufficient that damages may be reasonably attributed to the non-performance of the obligation
The unbroken line of decisions has established the doctrine constantly recognized that every judgment for damages, whether arising from a breach of contract or whether the results of some provision of the law,

Tolentino, Civil Code of the Philippines 632 (1992) Jarencio, Torts and Damages 4th Edition (1977)

must rest upon satisfactory proof of the existence in reality of the damages alleged to have been suffered (Sanz vs. Lavin, 6 Phil. 209)

CRIMES & QUASI-CRIMES defendant is liable for all damages that are natural and probable consequence of the act/omission complained of not necessary that damages have been forseen or could have been reasonably forseen a) VALUE OF LOSS SUFFERED - Destruction of things, fines or penalties, medical & hospital bills, attorney's fees, interests, cost of litigation Damages recoverable: 1. Medical & Hospital Bills 2. Loss or impairment of earning capacity (in case of physical disability) 3. Damages for death a) Minimum amount: P50,000 b) Loss of earning capacity unless deceased had permanent physical disability not caused by defendant so that deceased had no earning capacity at time of death c) Support, if deceased was obliged to give support (for period not more than 5 years) d) Moral damages 4. Attorney's fees - as a general rule, attorney's fees (other than judicial costs) are not recoverable, except: a) stipulation between parties b) when exemplary damages are awarded c) when defendant's act/omission compelled plaintiff to litigate with 3rd persons or incur expenses to protect his interest d) malicious prosecution e) clearly unfounded civil action or proceeding against plaintiff f) defendant acted in gross & evident bad faith in refusing to satisfy plaintiff's just & demandable claim g) legal support actions
Tolentino, Civil Code of the Philippines 632 (1992) Jarencio, Torts and Damages 4th Edition (1977)

h) recovery of wages of household helpers, laborers & skilled workers i) actions for indemnity under workmen's compensation and employer liability laws j) separate civil action to recover civil liability arising from crime k) when double judicial costs are awarded 5. Judicial costs 6. interest - discretionary on part of the court b) UNREALIZED PROFITS - future earnings WHEN IS DAMAGES MITIGATED: 1. Contributory negligence 2. In contracts. Quasi-contracts and quasi-delict a. plaintiff has contravened the terms of contract b. plaintiff derived some benefit as result of contract c. in case where exemplary damages are to be awarded, that the defendant acted upon the advise of counsel d. that the loss would have resulted in any event e. that since the filing of the action, the defendant has done his best to lessen the plaintiff's loss or injury

2. MORAL DAMAGES - (PBMF-MWSS)

a. Physical suffering b. Besmirched reputation c. Mental anguish d. Fright e. Moral shock f. Wounded feelings g. Social humiliation h. Serious anxiety
Corporation are not entitled to moral damages because an artificial person existing only in legal contemplation-legal fiction, have no feelings no emotions, no senses and therefore, it cannot experience physical suffering and mental anguish, sorrows and grief of life- all of which can not be suffered by artificial person. (National Power Corp vs Phil Brothers Oceanio, Inc, Nov 21, 2001)

Tolentino, Civil Code of the Philippines 632 (1992) Jarencio, Torts and Damages 4th Edition (1977)

Notes: Sentimental value of real or personal property may be considered in adjudicating moral damages The social and economic/financial standing of the offender and the offended party should be taken into consideration in the computation of moral damages Moral damages is awarded only to enable the injured party to obtain means, diversions or amusements that will serve to alleviate the moral suffering he has undergone, by reason of defendant's culpable action and not intended to enrich a complainant at the expense of defendant
Moral damages are not intended to enrich a complainant at the expense of the defendant. They are awarded only to enable the injured party to obtain means, diversion or amusements that will serve to alleviate the moral suffering he has undergone by reason of the defendants culpable action. (J. Paraz, Prudencio vs Alliance Transport, Mar 16 87)

Moral damages are not punitive in nature, but are designed to compensate and alleviate in some way the physical suffering, mental anguish, fright, serious anxiety, etc. This is so because moral damages are in the category of an award designed to compensate the claimant for actual injury suffered, not to impose a penalty in the wrongdoer. (Equitable Leasing Corp vs Suyom et al, Sept 5, 02)

IN WHAT CASES MAY MORAL DAMAGES BE RECOVERED (enumeration not exclusive): a. Criminal offense resulting in physical injuries b. Quasi-delicts causing physical injuries c. Seduction, abduction, rape or other acts of lasciviousness d. Adultery and concubinage e. Illegal or arbitrary detention or arrest f. Illegal search g. Libel, slander or other form of defamation h. Malicious prosecution i. Acts mentioned in art 309 of the RPC relating to disrespect of the dead and interference with funeral j. Acts and actions referred to in arts 21, 26, 27, 28, 29, 30, 32, 34 and 35
Tolentino, Civil Code of the Philippines 632 (1992) Jarencio, Torts and Damages 4th Edition (1977)

k. The parents of the female seduced, abducted, raped, or abused l. Spouse, descendants, ascendants and brother and sisters for acts mentioned in art 309 m. Art 2220 - in cases of willful injury to property or breaches of contract where defendant acted fraudulently or in bad faith

Moral damages cannot be award in the absence of any injury or factual basis. There must be pleading and proof of moral suffering, mental anguish, fright, wounded feelings ad similar injury. (Brent Hospital Inc vs NLRC, 292 SCRA 304, 98)

3. NOMINAL DAMAGES - 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

ELEMENTS: a. Plaintiff has a right b. Right of plaintiff is violated c. Purpose is not to identify but vindicate or recognize right violated
Nominal Damages are merely for the vindication of a right that has been violated, not for indemnification of the losses suffered. (ventanilla vs Centeno, Jan 28, 61

4. TEMPERATE OR MODERATE DAMAGES - more than nominal but less than compensatory where some pecuniary loss has been suffered but its amount can't be proved with certainty due to the nature of the case REQUISITES: a. Some pecuniary loss b. Loss is incapable of pecuniary estimation c. Must be reasonable 5. LIQUIDATED DAMAGES

Tolentino, Civil Code of the Philippines 632 (1992) Jarencio, Torts and Damages 4th Edition (1977)

-those agreed upon by the parties to a contract, to be paid in case of breach thereof WHEN LIQUIDATED DAMAGES MAY BE EQUITABLY REDUCED: a. iniquitous or unconscionable b. partial or irregular performance 6. EXEMPLARY OR CORRECTIVE DAMAGE - imposed by way example or correction for the public good, in addition to the moral, temperate, liquidated to compensatory damages EXEMPLARY DAMAGES MAY BE AWARDED IN THE FOLLOWING CASES: 1. In criminal actions, when the crime was committed with one or more aggravating circumstances 2. In quasi-delicts, if the defendant acted with gross negligence

3. In contracts and quasi-contracts, if the defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner
In this case the awarding of the exemplary damages is to serve a correction as well as an example for ship owners to look after the welfare of their employees first to that of their customers-cargo-owner. The rationale behind the exemplary damages is to provide an example or correction for public good and not to enrich the victim. (People vs Agustin, 350 SCRA 216, 01) Attys fees may be recovered when exemplary damages are awarded. (Coca cola bottlers Phil vs Roque, 305 SCRA 215)

Tolentino, Civil Code of the Philippines 632 (1992) Jarencio, Torts and Damages 4th Edition (1977)