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PART VI: DAMAGES

I.

(7)

GENERAL PRINCIPLES

Article 2195.
The provisions of this Title shall be
respectively applicable to all obligations mentioned in
article 1157.
Article 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.
Article 2197. Damages may be: (M.E.N.T.A.L.)
(1)
Actual or compensatory;
(2)
Moral;
(3)
Nominal;
(4)
Temperate or moderate;
(5)
Liquidated; or
(6)
Exemplary or corrective.

ACTUAL OR COMPENSATORY

Article 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.

Compensatory damages refers to damages awarded


compensation for tortious conduct or breach of contract.

They are not necessarily restricted to the actual loss in time


and money . they also include such as may be awarded for
bodily pain and suffering, permanent disfigurement, disabilities
or loss of health, injury to character and reputation, and, in
most states, wounded feelings and mental anguish. With the
exception of pain and suffering, compensatory damages must
have a money value and be capable of estimation with a
pecuniary standard.
A.

In all cases, the attorney's fees and expenses of litigation


must be reasonable.
G. A.Machineries vs. Yaptinchay 126 SCRA 78
Article 2200 of the Civil Code entitles the respondent to
recover as compensatory damages not only the value of the loss
suffered but also prospective profits while Article 2201 entitles the
respondent to recover all damages which may be attributed to the
non-performance of the obligation. However, in order to recover
this kind of damages, the plaintiff must prove his case.
Note: There is a necessity to prove the average actual
profits to prove unearned profits.

Article 2198. The principles of the general law on damages


are hereby adopted insofar as they are not inconsistent
with this Code.
II.

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.

as

COMPONENT ELEMENTS

Must be proven with a reasonable degree of certainty.


Article 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.
Article 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.
Article 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;

Songco vs. Sellner 37 Phil 844


The court will commit no error in refusing to award
damages upon this ground, as such damages were remote and
speculative.
it.

Note: There is a need to plead or allege the loss and prove


B.

SUBROGATION

Article 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.
Pan Malayan Insurance Corp. vs. CA 184 SCRA 54
If the insured property is destroyed or damaged through
the fault or negligence of a party other than the assured, then the
insurer, upon payment to the assured, will be subrogated to the
rights of the assured to recover from the wrongdoer to the extent
that the insurer has been obligated to pay. Payment by the insurer
to the assured operates as an equitable assignment to the former
of all remedies which the latter may have against the third 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. It accrues
simply upon payment of the insurance claim by the insurer.
C.

ATTORNEYS
LITIGATION

FEES

AND

EXPENSES

OF

Article 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.
Polytrade Corp. v. Blanco 30 SCRA 187
Attorneys fees under the Civil Code are awarded to the litigant, not
to the counsel.
RCPI vs. Rodriguez 182 SCRA 899
For recovery of damages, Article 2217 of the New Civil
Code applies. It is provided therein that: "Moral damages include
physical suffering, mental anguish, fright, serious anxiety,
besmirched reputation, wounded feeling, 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 or omission."
We are convinced that respondent Rodriguez suffered a
certain degree of mental anguish, fear and anxiety considering his
experience at the airport of a foreign country. His suffering was
caused by the non-appearance of Taha who did not receive the
telegram sent by the respondent due to the gross negligence of
RCPI. There is moreover, the dismay arising from the fact, that after
so much preparation and travel on the part of Rodriguez, his pains
were all for nothing. Hence, RCPI is liable for moral damages.
D.

INTEREST

Article 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.
Article 2210. Interest may, in the discretion of the court, be
allowed upon damages awarded for breach of contract.
Article 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.
Article 2212. Interest due shall earn legal interest from the
time it is judicially demanded, although the obligation may
be silent upon this point. (1109a)
Article
2213.
Interest
cannot
be
recovered
upon
unliquidated claims or damages, except when the demand
can be established with reasonably certainty.
Eastern Shipping vs. CA 234 SCRA 78
With regard particularly to an award of interest in the
concept of actual and compensatory damages, the rate of interest,
as well as the accrual thereof, is imposed, as follows: 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.
Furthermore, the interest due shall itself earn legal interest from
the time it is judicially demanded. 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 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 at the rate of 6% per annum.
No interest, however, shall be adjudged on unliquidated claims or
damages except when or until the demand can be established with
reasonable certainty. 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 of 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.
E.

EXTENT OR SCOPE OF ACTUAL DAMAGES


1. CONTACTS AND QUASI CONTRACTS

Article 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.
Article 2215. In contracts, quasi-contracts, and quasidelicts, 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.
Mendoza vs. Philippine Air Lines 90 Phil 836
The defendant company can not be held liable for
damages where it could not have foreseen the damages that would
be suffered by the plaintiff upon failure to deliver the can of film for
reason that the plans of the plaintiff to exhibit that film during the
town fiesta and his preparation, specially the announcement of said
exhibition by poster and advertisement in the newspapers were not
called to the defendant's attention.
Villa Rey Transit vs. CA 31 SCRA 511
The determination of the amount of damages resulting
from a death of a passenger due to breach of contract of carriage
recoverable by private respondents, heirs of the deceased,
depends, mainly upon two (2) factors, namely: (1) the number of
years on the basis of which the damages shall be computed and (2)
the rate at which the losses sustained by said respondents should
be fixed.
Life expectancy is, not only relevant, but, also, an
important element in fixing the amount recoverable by private
respondents herein. Although it is not the sole element
determinative of said amount, no cogent reason has been given to
warrant its disregard and the adoption, in the case at bar, of a
purely arbitrary standard. such as a four-year rule.
Note: The damages awarded in this case is not the full amount of
the earnings, but rather, the amount of SUPPORT they would have
received if the victim didnt die.
Note2: The formula used was:
(annual salary-deductible expenses) X life expectancy = damages
due to loss of earning capacity

2.

CRIMES AND QUASI-DELICTS

Article 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.
Article 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.
Article 2204. In crimes, the damages to be adjudicated may
be respectively increased or lessened according to the
aggravating or mitigating circumstances.
Article 2214.In quasi-delicts, the contributory negligence of
the plaintiff shall reduce the damages that he may recover.
Article 2215. In contracts, quasi-contracts, and quasidelicts, 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.
3. CRIMES AND QUASI-DELICTS RESULTING IN
DEATH
Article 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)

(3)

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;
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.

Note: In
1.
2.
3.
4.
5.
6.
7.
8.

case of death, the following may be recovered:


indemnity (P50,000)
earning capacity
support
funeral/ medical expenses
moral damages
exemplary damages
attorneys fees
interest

Heirs of Raymundo Castro vs. Bustos 27SCRA 327


His claim for damages that are recoverable in cases of
death caused by a crime is brought either in the criminal
proceeding itself or in a separate civil action. In the instant case,
recovery of such damages is being sought in the criminal
proceedings, but even if it were claimed otherwise, the indemnity
and damages would be the same, for generally, the items of
damages are identical in both procedures, except with respect to

attorney's fees and expenses of litigation which can be awarded


only when a separate civil action is instituted (Art. 2208, Civil
Code).
III. MORAL DAMAGES
Article 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.
Article 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.
Article 2218. In the adjudication of moral damages, the
sentimental value of property, real or personal, may be
considered.
Article 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.
Article 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.

The purpose of moral damages is essentially indemnity or


reparation, not punishment or correction.

They are not intended to enrich a complainant at the expense


of a defendant they are 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 the defendants culpable action.

Note: If physical injuries occurred without death, moral damages


are recoverable if it was caused by:
1. crime or delict
2. quasi-delict
3. breach of contract, as long as made in bad faith, or in
a wanton/ deliberate injurious conduct
A.

WHEN RECOVERABLE
1.

CONTRACTUAL RELATION

Lopez Vs. Pan-Am 16 SCRA 431


As a proximate result of defendant's breach in bad faith of
its contracts with plaintiffs, the latter suffered social humiliation,
wounded feelings, serious anxiety and mental anguish. For plaintiffs

were travelling with first class tickets issued by defendant and yet
they were given only the tourist class. At stop-overs, they were
expected to be among the first-class passengers by those awaiting
to welcome them, only to be found among the tourist passengers. It
may not be humiliating to travel as tourist passengers; it is
humiliating to be compelled to travel as such, contrary to what is
rightfully to be expected from the contractual undertaking.
Simex International v. CA 183 SCRA 360
The initial carelessness of a bank, aggravated by the lack
of promptitude in repairing the error constituted gross negligence, if
not wanton bad faith. Moral damages is adjudicated for the loss
suffered, and NOT for the vindication of a right.
2.

EXTRA-CONTRACTUAL RELATION

Magbanua Vs. IAC 137 SCRA 328


Under the facts of the case, the plaintiffs (now petitioners)
are entitled to a measure of moral damages. Article 2219 of the
Civil Code permits the award of moral damages for acts mentioned
in Article 21 of the same code and the latter stipulates that: "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 for the damage."
It appears that the petitioners were denied irrigation
water for their farm lots in order to make them vacate their
landholdings. The defendants violated the plaintiffs' rights and
caused prejudice to the latter by the unjustified diversion of the
water
B.

WHEN NOT RECOVERABLE

Mercado vs. Lira 3 SCRA 124


A passenger who suffered physical injuries because of the
carrier's negligence (culpa contractual) cannot be considered in the
descriptive expression "analogous cases used in Act 2119" for
which the new Civil Code authorizes indemnification for moral
damages in favor of the injured party. Moral damages are not
recoverable in damage actions predicated on a breach of the
contract of transportation except when there is evidence of fraud,
malice or bad faith on the part of the carrier.
Bagumbayan v. IAC 132 SCRA 441
If the act was intentional, moral damages may be
recovered, BUT, if the act was due to negligence, then there is a
need to prove physical injuries to recover damages.
IV. NOMINAL DAMAGES
Note: This cannot be awarded with Moral damages because the
latter is based on LOSS.
Article 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.
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 recoverable whenever there has been a

breach of a legal duty, or the invasion of a legal right and no


actual damages resulted or was proved. To warrant the
recovery of nominal damages, there must be an unlawful
invasion of a right. Damages cannot flow from a lawful
business or commercial transaction in which a person has a
right to engage, or from the refusal to do an act where such
refusal is, as a matter of law, wholly within his power and
voluntary choice.
Vda. De Medina vs. Cresencia 99Phil 507
Where the court has already awarded compensatory and
exemplary damages that are in themselves a judicial recognition
that plaintiffs' right was violated, the award of nominal damages is
unnecessary and improper. Nominal damages can not co-exist with
compensatory damages.
V.

TEMPERATE OR MODERATE DAMAGES

Note: In these cases, there is a proven loss, BUT, its amount is


uncertain
Article 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.
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 can not, from the
nature of the case, be provided with certainty.
Article 2225. Temperate damages must be reasonable under
the circumstances.

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 a loss.
Araneta vs. Bank of America 40 SCRA 144
The Code Commission, in explaining the concept of
temperate damages under Article 2224, makes the following
comment:
"In some States of the American Union, temperate
damages are allowed. 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 one's commercial credit or to the goodwill
of a business firm is often hard to show with certainty in terms
of money. Should damages be denied for that reason? The
judge should be empowered to calculate moderate damages in
such cases, rather than that the plaintiff should suffer, without
redress from the defendant's wrongful act."
VI. LIQUIDATED DAMAGES
Note: This is awarded in the nature of a penalty
Article 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.
Article 2226. Liquidated damages are those agreed upon by
the parties to a contract, to be paid in case of breach
thereof.
Note: An essential pre-requisite is that the contract must be VALID
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 agreeing
upon the liquidated damages, the law shall determine the measure
of damages, and not the stipulation.
National Power Corp. vs. National Merchandising Corp. 117
SCRA 793
No proof of pecuniary lost is required for the recovery of
liquidated damages. The stipulation for liquidated damages is
intended to obviate controversy on the amount of damages. There
can be no question that the NPC suffered damages because its
production of fertilizer was disrupted or diminished by reason of the
non-delivery of the sulfur. The parties foresaw that it might be
difficult to ascertain the exact amount of damages for non-delivery
of the sulfur. So, they fixed the liquidated damages to be paid as
indemnity to the NPC.
An agent who exceeded his or her authority is liable for
the liquidated damages due to the injured party.
VII. EXEMPLARY OR CORRECTIVE DAMAGES
Note: There must be proof of entitlement to other damages first.
Article 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.

exemplary damages need not be proved, it need not also be


alleged because it is merely incidental or dependent upon what the
court may award as compensatory damages. Unless and until this
premise is determined and established, what may be claimed as
exemplary damages would amount to a mere surmise or
speculation. It follows as a necessary consequence that the amount
of exemplary damages need not be pleaded in the complaint
because the same can not be pre-determined. One can merely ask
that it be determined by the court if in the use of its discretion the
same is warranted by the evidence, and this is just what appellee
has done.
Octo v. Ybanez 111 SCRA 79
Conditions for the award of exemplary damages:
1. Imposed by way of example/ correction, in addition to
compensatory damages; not recoverable as a matter of
right.
2. Must first establish right to moral, temperate, liquidated,
and compensatory damages, and not to nominal
damages.
3. The act must be wrongful and in bad faith, that is, it must
be wanton, fraudulent, reckless, oppressive or malevolent.
This includes gross negligence (cf. RCPI v. CA 195 SCRA
147).
VIII. FILING FEES FOR ACTIONS WITH DAMAGES

Article 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.

Note: If this is not fulfilled, then no other damages can be


recovered other than actual damages.

Article 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.

SECTION 1. Institution of criminal and civil actions.


(a) When a criminal action is instituted, the civil action for
the recovery of civil liability arising from the offense
charged shall be deemed instituted with the criminal action
unless the offended party waives the civil action, reserves
the right to institute it separately or institutes the civil
action prior to the criminal action.

Article 2231.In quasi-delicts, exemplary damages may be


granted if the defendant acted with gross negligence.
Article 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.
Article 2233. Exemplary damages cannot be recovered as a
matter of right; the court will decide whether or not they
should be adjudicated.
Article 2234. While the amount of the exemplary damages
need not be proven, 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.
Article 2235. A stipulation whereby exemplary damages are
renounced in advance shall be null and void.
Singson vs.Aragon 92 Phil. 514
Under articles 2229, 2233 and 2234 of the new Civil Code,
exemplary damages may be imposed by way of example or
correction only in addition, among others, to compensatory
damages, but they can not be recovered as a matter of right, their
determination depending upon the discretion of the court. The
amount of exemplary damages need not be proved, because its
determination depends upon the amount of compensatory
damages that may be awarded to the claimant. If the amount of

Rule 111, Revised Rules On Criminal Procedure

The reservation of the right to institute separately the civil


action shall be made before the prosecution starts
presenting its evidence and under circumstances affording
the offended party a reasonable opportunity to make such
reservation.
When the offended party seeks to enforce civil liability
against the accused by way of moral, nominal, temperate,
or exemplary damages without specifying the amount
thereof in the complaint or information, the filing fees
therefore shall constitute a first lien on the judgment
awarding such damages.
Where the amount of damages, other than actual, is
specified in the complaint or information, the corresponding
filing fees shall be paid by the offended party upon the
filing thereof in court.
Except as otherwise provided in these Rules, no filing fees
shall be required for actual damages.
No counterclaim, cross-claim or third-party complaint may
be filed by the accused in the criminal case, but any cause
of action which could have been the subject thereof may be
litigated in a separate civil action. (1a)
(b) The criminal action for violation of Batas Pambansa Blg.
22 shall be deemed to include the corresponding civil
action. No reservation to file such civil action separately
shall be allowed.
Upon filing of the aforesaid joint criminal and civil actions,
the offended party shall pay in full the filing fees based on
the amount of the check involved, which shall be considered
as the actual damages claimed. Where the complaint or
information also seeks to recover liquidated, moral,

nominal, temperate or exemplary damages, the offended


party shall pay additional filing fees based on the amounts
alleged therein. If the amounts are not so alleged but any of
these damages are subsequently awarded by the court, the
filing fees based on the amount awarded shall constitute a
first lien on the judgment.
Where the civil action has been filed separately and trial
thereof has not yet commenced, it may be consolidated
with the criminal action upon application with the court
trying the latter case. If the application is granted, the trial
of both actions shall proceed in accordance with section 2
of this Rule governing consolidation of the civil and criminal
actions. (cir. 57-97)
People vs. Escano 193 SCRA 662
Where the civil action is instituted together with the
criminal action, the actual damages claimed by the aggrieved
parties, as in this case, are not included in the computation of the
filing fees. Filing fees are to be paid only if other items of damages
such as moral, nominal, temperate or exemplary damages are
alleged in the complaint or information, or if they are not so
alleged, shall constitute a first lien on the judgment.
General v. Claravall 195 SCRA 623
The civil action is impliedly instituted:
1. When the amount of damages other than actual is
alleged in the complaint or information, then the
corresponding filing fees shall be paid by the offended
party upon the filing thereof in court for trial,
2. In any other case, where the amount of damages is not so
alleged in the complaint or information, the corresponding
filing fees need not be paid and shall simply constitute a
first lien on the judgment, except in an award for actual
damages.
Actual (Death)
1. Expenses due to injury
2. Loss in income
3. P 50, 000 (crimes/ quasi-delict)
4. Loss of earning capacity

5.
6.

*Metro Manila Transit v. CA, 11-16-98, 298 SCRA 495


*Cariaga v. Laguna Tayabas Bus, 12-29-60, 110 Phil 346
*Magbanua v. Tabanuares, 6-4-04, 431 SCRA 99
Attys fees
*J Marketing Corps v. Sia, 1-29-98, 285 SCRA 550
Interest

* In some cases, temperate replace actual damages


Victory Liner v. Gamad 444 SCRA 355, November 25, 2004
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. (Art.
2223)
transportation (Art. 1764) *moral damages in death cases
automatic
Exemplary damages there must be GROSS NEGLIGENCE or FRAUD
*Art. 2209
12% (per annum) - loans and forebearance of money and goods
6% - others (damage to properties and personal injuries)
***interest to be paid arising from contract must be in writing; legal
interest due to delay need not be stipulated.
Crismina v. CA, 3-9-99, 304 SCRA 356
People v. Billaber, 1-25, 2004, 421 SCRA 27
Art. 2213. Interest cannot be recovered...
Art. 1169. There is delay when there is judicial or extrajudicial
demand.
In cases of damage to properties and personal injuries (unliquidated
amounts) from the decision of the CA.
When there is delay in payment from the decision of CA, 12% is
used because it is considered a loan.
Art. 2199 vs. Art. 2224.