8. MORAL DAMAGES.

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.

a) Effect of Death. A claim for moral damages does not survive the death of the plaintiff. The
right to moral damages is not transmissible to the injured party’s substitutes because it is
extremely personal to injured party.

b) REQUISITES. The requisites that must be established for the award of moral damages are as
follows:

(1) There must be an injury, whether physical, mental or psychological, sustained by the
claimant;

(2) There must be culpable act or omission factually established;

(3) The wrongful act or omission of the defendant is the proximate cause of the injury
sustained by the claimant; and

(4) The award of damages is predicted on any of the cases stated in Article 2219.

8.01 CASES WHEN MORAL DAMAGES MAY BE AWARDED. Articles 2219 and 2220 of the Civil Code
enumerate the cases when moral damages may be awarded by the courts:

(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 (Anyone who shows disrespect to the dead, or
wrongfully interfering with a funeral shall be liable to the family of the deceased for
damages, material and moral);

(10) Acts and actions referred to in Articles 21, 26, 27, 28, 29, 30, 32, 34, and 35;

(11) 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;

(12) Breaches of contract where the defendant acted fraudulently or in bad faith.
 a) Fixed moral damages are provided for by the Supreme Court in criminal cases. The rules and the
specific amounts depending on the crime and other circumstances are summarized in the en
banc case of People v. Jugueta. For acts of lasciviousness under the Revised Penal Code (RPC)
and Section 5(b) of R.A. No. 7610, lascivious conduct under Section 5(b) of R.A. No. 7610, sexual
assault the RPC and Section 5(b) of R.A. No. 7610, fixed moral damages are also provided in
People v. Tulagan.

(b) Breach of Contract. Moral damages, as a general rule, are not recoverable in actions for damages
predicated on breach of contract. As an exception, such damages are recoverable in an action for
breach of contract:

(1) in cases in which the mishap results in the death of a passenger, as provided in Article 1764,
in relation to Article 2206(3) of the Civil Code; and

(2) in cases in which carrier is guilty of fraud or bad faith, as provided in Article 2220 or gross
negligence.

8.02 WHO MAY RECOVER MORAL DAMAGES.

(1) The victim;

(2) The parents of the female seduced, abducted, raped, or abused, referred to in No. 3 above;

(3) The spouse, descendants, ascendants, and brothers and sisters may bring the action
mentioned in No. 9 above, in the order named.

a) The relatives mentioned in Article 2209(3) are limited to the relatives named therein. Inclusion
unius est exclusio alterious. Hence, brothers and sisters cannot recover moral damages for the
death of their sibling.

b) Corporations. Corporations and other artificial being are not entitled to recover moral damages.
Exception: Libel. A corporation can be an offended party in a defamation case and it can recover
moral damages under Article 2219[7] of the Civil Code.

8.03 FACTORS IN DETERMINING THE AMOUNT. The determination of what would be a fair amount of
moral damages must be governed by the peculiar circumstances of each case. Factors specified by
law end established by jurisprudence that could affect the amount to be recovered include:

(1) The sentimental value of property, real or personal damages;

(2) Extent of Humiliation;

(3) Extent of Pain and Suffering;

(4) Official, political, social and financing standing of the offended party and the business and
financial position of the offender affect the amount of damages;

(5) Age of the victim;

(6) Applicability of Article 24 of the Civil Code;

(7) Bad faith on the part of the defendant.

9. NOMINAL DAMAGES. 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.

a) Nature. Nominal damages by their nature small sums fixed by the Court without regard to
the extent of the harm done to the injured party. In truth, nominal damages are damages
in name only and not in fact, and are allowed, not as an equivalent of wrong inflicted, but
simply in recognition of the existence of a technical injury.

b) When Proper. The award of nominal damages is proper in an action arising from any of the
sources of obligation under Article 1157 when:

(1) The plaintiff suffers injury;

(2) The injury arise because the legal right of the plaintiff was established or none appears
on inquiry.

c) Cannot Co-exist with Actual Damages. Nominal damages cannot co-exist with actual or
compensatory damages. Ther purpose of nominal damages is to vindicate or recognize a
right that has been violated, in order to preclude further contest thereof and not for the
purpose of indemnifying the plaintiff for any loss suffered by him.

(1) An award of actual damages is a vindication of a right. An award of actual damages in

itself recognition that plaintiff’s right was violated, hence, the award of nominal
damages is unnecessary and improper.

10. TEMPERATE OR MODERATE DAMAGES. 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 provided
with certainty. The amount of temperate damages must be reasonable under the circumstances.

a) Award of temperate damages is not limited to those cases in which the amount of pecuniary
loss cannot by the nature of the case itself be provided with certainty. Temperate damages
may be awarded even in instances where pecuniary loss could theoretically have been
proven with certainty but the proof that was presented is inadequate.

10.01. EXAMPLES OF CASES WHEN AWARD IS PROPER: These are cases when the right of plaintiff is
violated but only temperate damages are awarded instead of actual damages:

(1) When there is injury to one’s commercial credit or to the goodwill of a business firm or even if there
is pecuniary injury to the business but the extent cannot be shown with certainty in terms of money.

(2) Temperate damages may be awarded for future medical expenses where the injury is chronic and
continuing and there is proof of the need for such expenses.

(3) Temperate damages may be awarded in lieu of actual damages for loss of earning capacity where
earning capacity is plainly established but no evidence was presented to support the allegation of the
injured party.
(4) In murder cases, the Supreme Court pegged the amount of the award of temperate damages at
P25,000 if actual damages – including funeral expenses – are not established.

11. LIQUIDATED DAMAGES. Liquidated damages agreed upon by the parties to a contract, to be paid in
case of breach thereof. The obligor is bound to pay the stipulated amount without need for proof on the
existence and on the measure of damages caused by the breach.

a) Reduction of Liquidated Damages. Ordinarily, the court cannot change the amount of liquidated
damages agreed upon by the parties. One exception is Article 2227 where the New Civil Code provides
that liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if
they are iniquitous or unconscionable.

b) Not Available If Breach Not Contemplated. The New Civil Code provides that 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.

12. EXEMPLARY OR CORRECTIVE DAMAGES. Exemplary damages are imposed as a deterrent against or as
a negative incentive to curb socially deleterious actions. 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.

a) A stipulation whereby exemplary damages are renounced in advance shall be null and void.

12.01 REQUISITES. The requisites for the award of exemplary damages are as follows:

(1) Exemplary damages may be imposed by way of example in addition to compensatory damages, and
only after the claimant’s right to them has been established;

(2) They cannot be recovered as a matter of right and their determination would depend upon the
amount of compensatory damages that may be awarded to the claimant;

(3) The act must be accompanied by bad faith or done in wanton, fraudulent, oppressive or malevolent
manner;

(4) 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.

(a) Before the court may consider the question of granting exemplary damages 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.

12.02. CASES WHEN AVAILABLE.

a) 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 shall be paid to the offended party. Fixed exemplary damages are provided for by the
Supreme Court in criminal cases. The rules and the specific amounts depending on the crime and other
circumstances are summarized in the en banc case of People v. Jugueta and also in the case of People v.
Tulagan for the specific criminal cases covered therein.

b) In Quasi-Delicts – exemplary damages may be granted if the defendant acted wiyth gross negligence.
C) In Contracts and Quasi-Contracts – the court may award exemplary damages if the defendant acted in
a wanton, fraudulent, reckless, oppressive, or malevolent manner.