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IX.

DAMAGES (a) Distinction between Injury and damages

Injury Damages
A. Definition and Concept -illegal invasion of a legal -the hurt or harm which
right results from the injury

-the recompense or
DAMAGE
compensation awarded for
-the detriment, injury, or loss which are occasioned by the damage suffered
reason of fault of another in the property or person.
(Escriche)
(b) Damages without Injury

-there can be damages without injury in cases when the


PEOPLE VS BALLESTEROS (Gunshot wounds; Definitions)
loss or harm was not the result of a violation of a legal duty,
(a) Damages may be defined as the pecuniary compensation, I.e. damnum abse injuria
recompense, or satisfaction for an 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.
ISSUE: Should there be an award for damages for violation of
his right of passage and easement and for his unrealized
rentals due to such closure of passageway.?
(b) Actual or compensatory damages are those awarded in
satisfaction of, or in recompense for, loss or injury sustained,

HELD. NO. There is no substantial legal basis for the award of


damages.
(c) whereas moral damages may be invoked when the
complainant has experienced mental anguish, serious anxiety, The mere fact that the plaintiff suffered losses does not
physical suffering, moral shock and so forth, and had give rise to a right to recover damages, there must be both
furthermore shown that these were the proximate result of
the offender's wrongful act or omission. (a) a right of action for a legal wrong inflicted by the
defendant, and

(b) damage resulting to the plaintiff therefrom.

Wrong without damages, or damage without wrong, does


ISSUE 1: Is the grant of ACTUAL OR COMPENSATORY DAMAGES not constitute a cause of action, since damages are merely
PROPER? part of the remedy allowed for the injury caused by a breach
or wrong.

In the case at bar, although there was damage, there was


HELD. YES.
no legal injury. Petitioners could not be said to have violated
In granting actual or compensatory damages, the party the principle of abuse of right. The act of petitioners
making a claim for such must present the best evidence constructing a fence within their lot is a valid exercise of their
available, viz., receipts, vouchers, and the like, as right as owners, hence not contrary to morals, good customs
corroborated by his testimony. or public policy. At the time of the construction of the fence,
Here, the claim for actual damages by the heirs of the the lot was not subject to any servitudes.
victims is not controverted, the same having been fully
substantiated by receipts accumulated by them and presented
to the court. Therefore, the award of actual damages is ARTICLE 2195, CC.
proper. The provisions of this Title shall be respectively applicable to
all obligations mentioned in Article 1157.
ISSUE 2: Is the grant of MORAL DAMAGES PROPER?
ARTICLE 1157, CC. Obligations arise from:
(1) Law;
(2) Contracts;
HELD. YES. (3) Quasi-contracts;
(4) Acts or omissions punished by law; and
As regards moral damages, the amount of psychological (5) Quasi-delicts. (1089a)
pain, damage and injury caused to the heirs of the victims,
although inestimable, may be determined by the trial court in ARTICLE 2197, CC.
its discretion. Damages may be:
(1) Actual or compensatory;
CUSTODIO VS CA (Easement) (2) Moral;
(3) Nominal;
(4) Temperate or moderate;
(5) Liquidated; or is the premise that an individual was injured in contemplation
(6) Exemplary or corrective. of law. Thus, there must first be a breach of some duty and
the imposition of liability for that breach before damages may
be awarded; and the breach of such duty should be the
HEIRS OF BORLADO VS CA( Forcible entry; 100 cavans of proximate cause of the injury.
palay)

ISSUE: Was the order against the petitioners to pay 100 cavans
of palay anually from 1972 ( the date of judgment by RTC) Example
until they vacate the premises or a total of 1,100 cavans of
palay? (1) Credit card company in a case of cancellation of
credit card, pursuant to the provisions of the credit card
agreement allowing automatic suspension of the credit card if
the holder exceeded the limit provided for the card. THERE
HELD. NO. IS NO INJURY EVEN IF THE CARDHOLDER SUFFERED BECAUSE
OF THE DISHONOR OF THE CARD BY A MERCHANT. (Equitable
The one hundred cavans of palay was awarded as a form of Banking Corp vs Calderon)
damages. We cannot sustain the award. "Palay" is not legal
tender currency in the Philippines. (2) Commissioner of Customs withheld the release of
certain importation because of an erroneous interpretation of
LAZATIN VS TWANO (Wrongful attachment) law. IT IS ITS DUTY TO SEE TO IT THAT PUBLIC OFFICERS ARE
NOT HAMPERED IN THE PERFORMANCE OF THEIR DUTIES OR IN
MAKING DECISIONS FOR FEAR OF PERSONAL LIABILITY FOR
ISSUE: Are the defendants who are victims of the wrongful DAMAGES DUE TO HONEST MISTAKE. (Farolan v. Salmac Mktg
attachment entitled to MORAL DAMAGES? Corp.)

HELD:NO. Qui Jure Suo Utitur Nullum Damnum Facit

In order that moral damages may be recovered in - one who exercises a right does no injury.
connection with the writ of attachment under consideration,
malice is an essential ingredient thereof. -applied to cases where the Court rejects claims for
damages of the winning defendant in a case.
Where there is no issue of malice, damages must be
compensatory merely, and confined to the actual loss from
deprivation of the property attached or injury to it, or in case BOARD OF LIQUIDATORS VS KALAW (4 Typhoons)
of closing business, to the probable profits of the business,
during the time of its stoppage (Holiday Bros. vs. Cohen 34
Ark. 707).
ISSUE: Are the directors liable for approving the contracts in
All of which go to show that the attachment defendant is bad faith and breach of trust, after not being able to fulfill the
not entitled to moral damages, unless it is alleged and contracts when 4 typhoons visited the Philippines?
established that the writ was maliciously sued out.

HELD. No.
DAMNUM ABSQUE INJURIA
The facts yield the answer. Four typhoons wreaked havoc
-the conjunction of damages and wrong is absent. There then on our copra-producing regions. Result: Copra
can be no actionable wrong if either one or the other is production was impaired, prices spiralled, warehouses
wanting. Thus if the damage resulted because a person destroyed. Quick turnovers could not be expected. NACOCO
exercised his legal rights, it is damnun absque injuria. was not alone in this misfortune. The record discloses that
private traders, old, experienced, with bigger
There can be damage without injury in those instances facilities, were not spared; also suffered tremendous
in which the loss or harm was not the result of a violation of losses. Roughly estimated, eleven principal trading concerns
a legal duty. did run losses to about P10,300,000.00.
In such cases the consequences must be borne by the Indeed, were it not for the typhoons,[42] NACOCO could have,
injured person alone, the law affords no remedy for damages with ease, met its contractual obligations. Stock accessibility
resulting from an act which does not amount to a legal injury was no problem. NACOCO had 90 buying agencies spread
or wrong. These situations are often called damnum absque throughout the islands. It could purchase 2,000 tons of copra
injuria. a day. The various contracts involved delivery of but 16,500
In other words, in order that a plaintiff may maintain an tons over a five-month period. Despite the typhoons,
action for the injuries of which he complains, he must NACOCO was still able to deliver a little short of 50% of the
establish that such injuries resulted from a breach of duty tonnage required under the contracts.
which the defendant owed to the plaintiff- a concurrence of As the trial court correctly observed, this is a case of
injury to the plaintiff and legal responsibility by the person damnum absque injuria. Conjunction of damage and wrong is
causing it. The underlying basis for the award of tort damages
here absent. There cannot be an actionable wrong if either ALGARRA VS SANDEJAS (Hospitalization, no work)
one or the other is wanting

"For the calculation of the damages claimed, it is


B. KINDS OF DAMAGES necessary, pursuant to the provisions of article 924 of the Law
of Civil Procedure, to give due regard to the nature of the
-The word damages involves any and all manifestations obligation that was unfulfilled and to the reasonable
of life: physical or material, moral or psychological, mental or
consequences of its non-fulfillment, because the conviction
spiritual, financial, economic, social, political and religious.
Thus, ARTICLE 2197, CC. Damages may be: (1) Actual or sought can be imposed only when there exists a natural and
compensatory; (2) Moral; (3) Nominal; (4) Temperate or true relation between such nonfulfillment and the damages,
moderate; (5) Liquidated; or (6) Exemplary or corrective. whatever reason there may be to demand them on another
account."

Plaintiff having had four years' experience in selling goods


PROOF OF PECUNIARY LOSS on commission, it must be presumed that he will be able to
rebuild his business to its former proportions; so that at some
GR. Proof of Pecuniary Loss is necessary to successfully
recover actual damages from the defendant. time in the future his commissions will equal those he was
receiving when the accident occurred. Aided by his
Ex. Art 2216. experience, he should be able to rebuild this business to its
former proportions in much less time than it took to establish
(a) Moral; it as it stood just prior to the accident. One year should be
(b) Nominal; sufficient time in which to do this. The profits which plaintiff
will receive from the business in the course of its
(c) Temperate; reconstruction will gradually increase. The injury to plaitiff's
business begins where these profits leave off, and, as a
(d) Liquidated; or
corollary, there is where defendant's liability begins. Upon
(e) Exemplary. this basis, we fix the damages to plaintiff's business at P250.

1. ACTUAL OR COMPENSATORY

Art. 2216, CC. A. KINDS OF ACTUAL DAMAGES


No proof of pecuniary loss is necessary in order that moral,
nominal, temperate, liquidated or exemplary damages, may Indemnification for damages shall comprehend not only
be adjudicated. The assessment of such damages, except the value of the loss suffered, but also that of the profits that
liquidated ones, is left to the discretion of the court, the obligee failed to obtain. (At 2200 NCC)
according to the circumstances of each case. Indemnification is meant to compensate for the injury
inflicted and not to impose a penalty. (PNOC Shipping and
Art. 2199, CC. Transport Corp.
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. 2 Classifications of Actual Damages

Art. 2200, CC. (i) Dao Emergente


Indemnification for damages shall comprehend not only the
-the loss of what a person already possesses;
value of the loss suffered, but also that of the profits which
the obligee failed to obtain. (1106) (ii) Lucro Cesante

Art. 205, CC. - the failure to receive as benefit that would have
Indemnities that must be paid by either spouse on account of a pertained to him.
crime or of a quasi-delict shall be paid from the common
assets, without any obligation to make reimbursement. -Art 2205. or loss or impairment of earning capacity in
cases of temporary or permanent personal injury.

-shall be construed to include all damages that the


plaintiff may show he has suffered in respect to his property,
-Both can be awarded concurrently
business, trade, profession or occupation and no other
damages whatever. PNOC VS CA (Amount based on credible witnesses)

PURPOSE: to repair the wrong that has been done, to ISSUE: Is the award of P6,438,048.00 as actual damages based
compensate for the injury inflicted, and not to impose a on affidavits of credible witnesses proper?
penalty.
HELD. No. Art. 2202, CC. In crimes and quasi-delicts, the defendant
shall be liable for all damages which are the natural and
The original complaint claims the amount of P692, 680 probable consequences of the act or omission complained of.
representing the fishing nets, boat equipment and cargoes It is not necessary that such damages have been foreseen or
that sunk with the M/V Maria Efigeia XV. In its amended could have reasonably been foreseen by the defendant.
complaint, the respondents alleged that the vessel had an
actual value of P800,000, but it had paid insurance in the
amount of P200,000 and therefore it claimed only the amount RULES IN CRIMES AND QUASI-DELICTS
of P600,000. The court believes that such allegations in the
original and amended complaints can be the basis for
determination of a fair amount of nominal damages,
(i) Resitutio in Integrum
---------------------------------------------------------------------- -The damage is measured on plaintiffs loss and not on
defendants gain.

Basic is the rule that to recover actual damages, the -The amount to be awarded to the plaintiff should be
amount of loss must not only be capable of proof but must that sum of money which will put the party who has been
actually be proven with a reasonable degree of certainty, injured or who has suffered in the same position as he would
premised upon competent proof or best evidence obtainable have been in if he had not sustained the wrong for which he is
of the actual amount thereof. now getting his compensation or reparation.

A court cannot merely rely on speculations, conjectures, or


guesswork as to the fact and amount of damages as well as EXCEPTIONS: benefits derived by the defendant pertain to or
hearsay or uncorroborated testimony whose truth is suspect. could have been received by the plaintiff because only the
plaintiff is supposed to profit from the activity involved.
INTEGRATED PACKING VS CA (Paper delivery; Estimation of
unrealized profits) I.e. IP code allows recovery of the amount that was
earned by the defendant who infringed the right of the
To recapitulate, private respondent did not violate the owner of the mark.
order agreement it had with petitioner. Likewise, private
respondent could not be held liable for petitioner's breach of
contract with Philacor. It follows that there is no basis to hold
private respondent liable for damages. Accordingly, the Art. 2201,CC. In contracts and quasi-contracts, the damages
for which the obligor who acted in good faith is liable shall be
appellate court did not err in deleting the damages awarded
those that are the natural and probable consequences of the
by the trial court to petitioner.
breach of the obligation, and which the parties have foreseen
-------------------------------------------------------------- or could have reasonably foreseen at the time the obligation
The rule on compensatory damages is well established. was constituted.
True, indemnification for damages comprehends not only the In case of fraud, bad faith, malice or wanton attitude, the
loss suffered, that is to say actual damages (damnum obligor shall be responsible for all damages which may be
emergens), but also profits which the obligee failed to obtain, reasonably attributed to the non-performance of the
referred to as compensatory damages (lucrum cessans). obligation. (1107a)

However, to justify a grant of actual or compensatory


damages, it is necessary to prove with a reasonable degree of BREACH OF CONTRACT
certainty, premised upon competent proof and on the best
-in Culpa Contractual, the mere proof of the existence of the
evidence obtainable by the injured party, the actual amount
contract and failure of its compliance justify a corresponding
of loss. right of relief.
In the case at bar, the trial court erroneously concluded - The remedy serves to preserve the interests of the promissee
that petitioner could have sold books to Philacor at the quoted that may include his:
selling price of P1,850,750.55 and by deducting the production
cost of P1,060,426.20, petitioner could have earned profit of (a) EXPECTATION INTEREST
P790,324.30. Admittedly, the evidence relied upon by the
-his interest in having the benefit of his bargain by being
trial court in arriving at the amount are mere estimates
put in as good as a position as he would have been in had the
prepared by petitioner.Said evidence is highly speculative and contract been performed; or
manifestly hypothetical. It could not provide sufficient legal
and factual basis for the award of P790,324.30 as (b) RELIANCE INTEREST
compensatory damages representing petitioner's self-serving
claim of unrealized profit. -his interest in being reimbursed for loss caused by
reliance on the contract by being put in as good a position as
he would have been in had the contract not been made; or

(c) RESTITUTION INTEREST

B. EXTENT -his interest in having restored to him any benefit that he


has conferred on the other party.
- Doctrine of Proximate Cause is NOT APPLICABLE in actions equipment was not proved by clear evidence. Other than the
involving breach of contracts, but only in actions for testimony of CUBA and her caretaker, there was no proof as to
quasi-delicts. the existence of those items before DBP took over the
fishpond in question. As pointed out by DBP, there was no
"inventory of the alleged lost items before the loss which is
normal in a project which sometimes, if not most often, is left
C. CERTAINTY
to the care of other persons." Neither was a single receipt or
- To recover damages, the amount of loss must not only record of acquisition presented.
be capable of proof but must actually be proven with a
reasonable degree of certainty, premised upon competent
proof or best evidence obtainable of the actual amount FUENTES VS CA (Stabbed with a hunting knife)
thereof.

ISSUE: Is the award for actual damages to the victim of


(i) Burden of Proof stabbing on the basis of testimony on the incurred expenses
and without any document to support he claim proper?
- the burden of proof is on the party who would be
defeated if no evidence would be presented on either side.

-Damages cannot be presumed. HELD: NO.


- Claimant must prove the actual amount of loss with Petitioner maintains that assuming that he committed the
reasonable certainty premised upon competent proof and on crime it is error to hold him answerable for P8,300.00 as
the best evidence obtainable. Specific facts that could afford actual damages on the basis of the mere testimony of the
a basis for measuring whatever compensatory or actual victim's sister without any tangible document to support such
damages are borne must be pointed out. claim.
No proof of the actual damages was ever presented in
court. Of the expenses alleged to have been incurred, the
(ii) Absolute certainty is not required. Court can only give credence to those supported by receipts
and which appear to have been genuinely expended in
connection with the death of the victim. Since the actual
amount was not substantiated, the same cannot be granted
(iii) Effect of Stipulation

-As regards the express terms of the agreement holding D. DAMAGE TO PROPERTY
the seller liable for the damages it may cause the buyer, the
same are merely declaratory of the obligation assumed, not an (i) Damage to or Loss of Personal Property
obligation which the obligee may demand in compliance with
upon breach of the terms of the contract and even before - plaintiff is entitled to their value at the time of
actual payment of damages by the one who breached the destruction.
agreement, because the obligee has not yet actually suffered
the damage or paid the same to the person to whom damage
was caused. It is only when the obligee actually suffers the (ii) Damage to or Loss of Real Property
damage, that compliance, with the obligation may be
demanded. -the measure of damage for a permanent injury is
ordinarily the difference between reasonable market value of
(iv) Civil Indemnity the property immediately before and after the injury.
-Proof of actual loss is not necessary in cases where the In case of total loss, the value of the real property at the
law or jurisprudence allows the award of civil indemnity, I.e. time and place of the loss must also be assessed and such
(a) Civil indemnity is mandatory upon finding of the fact assessed value is the measure of the damage due to the
of rape; plaintiff.

(b) In tort cases or criminal cases where the victim died.


(iii) Loss of Possession

-entitled to the value of the use of the premises.


DBP VS CA (Bangus)

FAIR RENTAL VALUE - is the amount at which a willing lessee


ISSUE: Is the award for actual damages for the loss of bangus
would pay and a willing lessor would receive for the use of a
based on the testimony of respondent CUBA and her caretaker
proper? certain property, ascertained by proof of how much the rent
would be for the property or by evidence of other facts from
which the fair rental value may be determined.

HELD. NO.

We find that the alleged loss of personal belongings and (iv) Damage to Property Under Special Laws
RA NO. 10642, PHILIPPINE LEMON LAW complications directly arising from the injury, while certain to
occur, are difficult to predict.
-compensation for the non-usage of a vehicle under
repair.
(iii) Plastic Surgery
PNOC VS CA (Supre--- Bangus;Kinds of Actual Damages)
GATCHALIAN VS DELIM ( SNAPPING SOUND; FACE)
Where goods are destroyed by the wrongful act of the
defendant the plaintiff is entitled to their value at the time of
destruction, that is, normally, the sum of money which he
would have to pay in the market for identical or essentially ISSUE: Is Reynalda Gatchalian entitled to actual damages for
similar goods, plus in a proper case damages for the loss of use the approximated amount of surgery required to remove the
during the period before replacement. In other words, in the scar on her face because of the accident caused by
case of profit-earning chattels, what has to be assessed is the respondent?
value of the chattel to its owner as a going concern at the
time and place of the loss, and this means, at least in the case
of ships, that regard must be had to existing and pending HELD. YES.
engagements,
If the market value of the ship reflects the fact that it is Compensatory damages may be awarded.
in any case virtually certain of profitable employment, then A person is entitled to the physical integrity of his or her
nothing can be added to that value in respect of charters body; if that integrity is violated or diminished, actual injury
actually lost, for to do so would be pro tanto to compensate is suffered for which actual or compensatory damages are due
the plaintiff twice over. On the other hand, if the ship is and assessable.
valued without reference to its actual future engagements Petitioner Gatchalian is entitled to be placed as nearly as
and only in the light of its profit-earning potentiality, then it possible in the condition that she was before the mishap. A
may be necessary to add to the value thus assessed the scar, especially one on the face of the woman, resulting from
anticipated profit on a charter or other engagement which it the infliction of injury upon her, is a violation of bodily
was unable to fulfill integrity, giving raise to a legitimate claim for restoration to
What the court has to ascertain in each case is the her conditio ante. Hence, compensatory damages is awarded,
"capitalised value of the vessel as a profit-earning machine not especially to cover the petitioners expenses for the plastic
in the abstract but in view of the actual circumstances," surgery.
without, of course, taking into account considerations which
were too remote at the time of the loss.

E. PERSONAL INJURY AND DEATH (iv) Loss of Earning Capacity

(i) Actual Medical and Other Expenses

- Person asking for damages for his own injury is entitled (v) IN CASE OF DEATH
to the amount of medical expenses as well as other reasonable
expenses that he incurred to treat his or his relatives injuries. Art. 2206, CC. 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:
(ii) Future Medical Expenses and Life Care Cost (1) The defendant shall be liable for the loss of the earning
capacity of the deceased, and the indemnity shall be paid to
RAMOS VS CA (ANESTHESIA-COMATOSE) 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
ISSUE: Is the award of monthly compensation to answer for the defendant, had no earning capacity at the time of his death;
medical expenses that will be incurred by the comatose victim (2) If the deceased was obliged to give support according to
of the negligent act of defendants proper? 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
HELD. YES. exact duration to be fixed by the court;
(3) The spouse, legitimate and illegitimate descendants and
Actual damages which may be claimed by the plaintiff
ascendants of the deceased may demand moral damages for
are those suffered by him as he has duly proved. (A1299
mental anguish by reason of the death of the deceased.
CC1)
Our rules on actual or compensatory damages generally (a) The damages that can be awarded are:
assume that at the time of litigation, the injury suffered as a i. Civil indemnity ex delicto for death of victim;
consequence of an act of negligence has been completed and
that the cost can be liquidated. But these provisions neglect ii. Actual or compensatory damages;
to take into account those situations, as in this case, where
the resulting injury might be continuing and possible future iii. Moral damages;

iv. Exemplary damages;


1 Art. 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 v. Attorneys fees and expenses of litigation;and
compensatory damages.
vi. Interest, in proper cases. (9) In a separate civil action to recover civil liability arising
from a crime;
vii. Temperate damages may also be awarded in (10) When at least double judicial costs are awarded;
lieu of actual damages in proper cases. (11) In any other case where the court deems it just and
equitable that attorney's fees and expenses of litigation
should be recovered.
(b) Actual Expenses In all cases, the attorney's fees and expenses of litigation must
be reasonable.
i. Reimbursement for medical expenses;

ii. Expenses during the wake and funeral of the QUIRANTE VS IAC (Death of Client; Attys fees)
deceased.

(c) Fixed Damages or Civil Indemnity ISSUE: Is Atty. Quirante entitled to claim for his attorneys
fees while the case is pending and after the death of his
- law requires at least P3,000. client;arguing that there was an oral agreement between him
and late Dr. Casasola and confirmed in writing by the widow
- The current amount of fixed damages as increase by the
and two daughters of the deceased?
Court is P50,000, and increased to P75,000 in cases of murder,
or if circumstances would justify the imposition of the death
HELD: NO
penalty.
Since the main case from which the petitioner's claims for
(d) Loss of Earning Capacity their fees may arise has not yet become final, the
determination of the propriety of said fees and the amount
thereof should be held in abeyance. This procedure gains
added validity in the light of the rule that the remedy for
FORMULAS: recovering attorney's fees as an incident of the main action
may be availed of only when something is due to the client.
80 Age
2 Well settled is the rule that counsel's claim for attorney's
(1) Life Expenctany =
fees may be asserted either in the very action in which the
3 services in question have been rendered, or in a separate
(2) Net Earning Capacity= Life Expectancy x [Gross action. What is being claimed here as attorney's fees by
Annual Income - Necessary Living Expenses] petitioners is, however, different from attorney's fees as an
item of damages provided for under Article 2208 of the CC,
wherein the award is made in favor of the litigant, not of his
counsel, and the litigant, not his counsel, is the judgment
Variables required: creditor who may enforce the judgment for attorney's fees by
execution. Here, the petitioner's claims are based on an
(1) the number of years for which the victim would
alleged contract for professional services, with them as the
otherwise have lived ( Life Expectancy);
creditors and the private respondents as the debtors.
(2) The rate of loss sustained by the heirs of the The confirmation of attorney's fees is premature.
deceased (Net income)
G. INTEREST

F. ATTORNEYS FEES Art. 2209, CC. If the obligation consists in the payment of a
sum of money, and the debtor incurs in delay, the indemnity
- Award is due to the plaintiff and not to his counsel 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. (1108)
Art. 2208, CC. In the absence of stipulation, attorney's fees
Art. 2210, CC. Interest may, in the discretion of the court, be
and expenses of litigation, other than judicial costs, cannot be
allowed upon damages awarded for breach of contract.
recovered, except:
Art. 2211, CC. In crimes and quasi-delicts, interest as a part
(1) When exemplary damages are awarded;
of the damages may, in a proper case, be adjudicated in the
(2) When the defendant's act or omission has compelled the
discretion of the court.
plaintiff to litigate with third persons or to incur expenses to
Art. 2212, CC. Interest due shall earn legal interest from the
protect his interest;
time it is judicially demanded, although the obligation may be
(3) In criminal cases of malicious prosecution against the
silent upon this point. (1109a)
plaintiff;
Art. 2213,CC. Interest cannot be recovered upon unliquidated
(4) In case of a clearly unfounded civil action or proceeding
claims or damages, except when the demand can be
against the plaintiff;
established with reasonably certainty.
(5) Where the defendant acted in gross and evident bad faith
in refusing to satisfy the plaintiff's plainly valid, just and
demandable claim; (i) Kinds of Interest
(6) In actions for legal support;
(7) In actions for the recovery of wages of household helpers, (1) Monetary interest;
laborers and skilled workers;
(8) In actions for indemnity under workmen's compensation -the price for damages and the payment of interests in case of
and employer's liability laws; noncompliance, if there is no stipulation to the contrary
(2) Penalty interest. and executory, the rate of legal interest, whether the
case falls under paragraph 1 or paragraph 2, above,
-in the nature of accessory obligation which makes one party shall be 12% per annum from such finality until its
liable or makes him perform another prestation if the satisfaction, this interim period being deemed to be by
principal obligation is not fulfilled. then an equivalent to a forbearance of credit.

Because the amount due in this case arose from a


CRISMINA GARMENTS VS CA contract for a piece of work,not from a loan or forbearance of
money, the legal interest of six percent (6%)
per annum should be applied. Furthermore, since the
amount of the demand could be established with certainty
ISSUE: Is it proper to impose interest at the rate of 12% per when the Complaint was filed, the six percent (6%) interest
annum for an obligation that does not involve a loan or should be computed from the filing of the said Complaint.
forbearance of money in the absence of stipulation of the But after the judgment becomes final and executory until
parties? the obligation is satisfied, the interest should be reckoned at
twelve percent (12%) per year. CA decision modified .
6 % interest (pa ) from filing of complaint and 12 %
HELD. NO. legal interest (pa ) after the judgment has become
INTEREST RATE for obligation not involving a loan or final and executory until satisified .
forbearance of money is 6%.
Guidelines for the application of the proper interest
rates:
I. When an obligation, regardless of its source, i.e.,
law, contracts, quasi-contracts, H. MITIGATION OF LIABILITY
delicts or quasi-delicts is breached, the
contravenor can be held liable for Art. 2203.CC.
damages. The provisions under Title XVIII on The party suffering loss or injury must exercise the diligence
Damages of the Civil Code of a good father of a family to minimize the damages resulting
govern in determining the measure of recoverable from the act or omission in question.
damages.
Art. 2204,CC.
II. With regard particularly to an award of interest In crimes, the damages to be adjudicated may be respectively
in the concept of actual and compensatory damages, increased or lessened according to the aggravating or
the rate of interest, as well as the accrual mitigating circumstances.
thereof, is imposed, as follows:
1. When the obligation is breached, and it consists in Art. 2214,CC.
the payment of a sum of In quasi-delicts, the contributory negligence of the plaintiff
money, i.e., a loan or forbearance of money, the shall reduce the damages that he may recover.
interest due should be that
which may have been stipulated in writing. Art. 2215,CC.
Furthermore, the interest due shall itself earn legal In contracts, quasi-contracts, and quasi-delicts, the court may
interest from the time it is judicially demanded. In equitably mitigate the damages under circumstances other
the absence of than the case referred to in the preceding article, as in the
stipulation, the rate of interest shall be 12% per annum following instances:
(pa) to be computed from default, i.e., from judicial or (1) That the plaintiff himself has contravened the terms of the
extrajudicial demand under and subject to the provisions contract;
of Article 1169 of the Civil Code. (2) That the plaintiff has derived some benefit as a result of
2. When an obligation, not constituting a loan or the contract;
forbearance of money, is breached, an interest on the (3) In cases where exemplary damages are to be awarded, that
amount of damages awarded MAY be imposed at the the defendant acted upon the advice of counsel;
discretion of the court at the rate of 6% per annum. No (4) That the loss would have resulted in any event;
interest, however, shall be adjudged on (5) That since the filing of the action, the defendant has done
unliquidated claims or damages except when or his best to lessen the plaintiff's loss or injury.
until the demand can be established with
reasonable certainty. Accordingly, where the CERRANO V. TAN
demand is established with reasonable certainty, the
interest shall begin to run from the time the claim is
ISSUE: Is there mitigation of liability in the case?
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 HELD. NO. There is liability for damages, but there is no
shall begin to run only from the date the judgment of the mitigation of the liability.
court is made (at which time the quantification of Plaintiff is entitled to recover, as damages for the breach
damages may be deemed to have been reasonably of the contract by the defendant, the profit which he would
ascertained). The actual base for the computation of have been able to make had the contract been performed.
legal interest shall, in any case, be xxx the amount finally HOWEVER, It is a well-recognized principle of law that
adjudged. damages resulting from avoidable consequences of the breach
3. When the judgment of the court awarding a sum of of a contract or other legal duty are not recoverable. It is the
money becomes final
duty of one injured by the unlawful act of another to take such (b) There must be a culpable act or omission factually
measures as prudent men usually take under such established;
circumstances to reduce the damages as much as possible.
By selling the casco to Siy Cong Bieng & Co. Tan broke his (c) The wrongful act or omission of the defendant is the
contract with Cerrano and is responsible for the damages proximate cause of the injury sustained by the claimant; and
caused by his failure to give plaintiff possession of the casco
(d) The award of damages is predicated on any of the
for the term of one month.
cases stated in Article 2219.
Article 1106 of the Civil Code establishes the rule that
prospective profits may be recovered as damages, while
article 1107 of the same Code provides that the damages
recoverable for the breach of obligations not originating in KIERULF VS CA (Vehicular Accident)
fraud (dolo) are those which were or might have been
foreseen at the time the contract was entered into.
The injured party must produce the best evidence of
which his case is susceptible and if that evidence warrants the ISSUE 1: Is Victor entitled to his claim for additional moral damages
inference that he has been damaged by the loss of profits for an alleged deprivation of the right to marital consortium, which
which he might with reasonable certainty have anticipated he claims will be diminished after the disfigurement of his wife?
but for the defendant's wrongful act, he is entitled to recover.
In the absence of evidence it will not be presumed that HELD. No.
plaintiff could have secured another casco at the same price For lack of factual basis, such claim of deprivation of the right
to consortium cannot be ruled upon by this Court at this time.
had he looked for one.
Petitioners cited a California case, Rodriguez vs. Bethlehem
Steel Corporation, as authority for the claim of damages by reason of
loss of marital consortium, i.e. loss of conjugal fellowship and sexual
relations. In the Rodriguez case, it was ruled that when a person is
DOCTRINE OF AVOIDABLE CONSEQUENCES injured to the extent that he/she is no longer capable of giving love,
affection, comfort and sexual relations to his or her spouse, that
The principle is that a party cannot recover damages spouse has suffered a direct and real personal loss. The loss is
flowing from consequences which the party could reasonably immediate and consequential rather than remote and unforeseeable; it
have avoided. A person who reasonably attempts to minimize is personal to the spouse and separate and distinct from that of the
his damages can recover the expenses that he incurred. injured person.
Whether Rodriguez may be cited as authority to support the
award of moral damages to Victor &/or Lucila Kierulf for "loss of
consortium" cannot be properly considered in this case. Victor's
2. MORAL DAMAGES claim, although argued before CA, is not supported by the evidence
on record.

A. CONCEPT
ISSUE 2. Can the social and financial standing of Lucila be
Article 2217, CC. considered in awarding moral damages?
Moral damages include physical suffering, mental anguish,
fright, serious anxiety, besmirched reputation, wounded HELD.NO.
feelings, moral shock, social humiliation, and similar injury.
Though incapable of pecuniary computation, moral damages The social and financial standing of a claimant of moral
may be recovered if they are the proximate result of the damages may be considered in awarding moral damages only if he
defendant's wrongful act for omission. or she was subjected to contemptuous conduct despite the offender's
knowledge of his or her social and financial standing.
But, it is still proper to award moral damages to Lucila for her
PURPOSE: For the restoration within the limits of the possible physical sufferings, mental anguish, fright, serious anxiety and
the spiritual status quo ant; to enable the injured party to wounded feelings. She sustained multiple injuries on the scalp,
obtain means, diversions or amusement that will serve to limbs and ribs. She lost all her teeth. She had to undergo several
alleviate the moral suffering he has undergone by reason of corrective operations and treatments. She suffered sleepless nights
the defendants culpable actions. and shock as a consequence of the vehicular accident. And it has
taken 10yrs to prosecute the complaint and this appeal!

EFFECT OF DEATH: A claim for Moral damages does not survive


B. PROOF AND PROXIMATE CAUSE
the death of the plaintiff and it is not transmissible to heirs or
substitute. IT IS EXTREMELY PERSONAL TO THE INJURED No proof of pecuniary loss is necessary in order that
PARTY. moral damages may be adjudicated, only proof that the
defendnt caused physical suffering, mental anguish, fright,
serious anxiety, besmirched reputation, wounded feelings,
ELEMENTS: The elements that must be established for the moral shock, social humiliation and other similar injury to
award of moral damages are as follows: plaintiff.

(a) there must be an injury, whether physical, mental or


psychological, clearly sustained by the claimant;
Moral damages are recoverable if they are the proximate
cause of the defendants wrongful act or omission.
ISSUE: Is the award for moral damages in a judgment on the
pleadings proper?
GR.WITHOUT ALLEGATION AND PROOF OF SUCH SUFFERINGS,
no moral damages may be award. HELD.NO.
Exception.Criminal cases. We reaffirmed the rule that although an allegation is not
necessary in order that moral damages may be awarded, "it is,
-Moral damages are mandatory in cases of murder
without the need to allege and prove such damages. nevertheless, essential that the claimant satisfactorily prove
the existence of the factual basis of the damage and its causal
-Moral damages are granted to rape victims without relation to defendant's acts."
presentation of further proof other than the commission of the
crime. The preceding disquisition points up the inescapable need of a
full-blown trial on the merits at which the parties will be
MIRANDA - RIBAYA VS CARBONELL (Diamond rings) afforded every opportunity to present evidence in support of
their respective contentions and defenses.
ISSUE: Is the award of moral damages proper? The judgment the pleadings was set aside.
HELD. YES
In order that moral damages may be awarded, there ENERVIDA VS DELA TORRE (5 year Homestead Law)
must be pleading and proof of moral suffering, mental anguish
fright and the like. There must be clear testimony on the ISSUE
mental anguish, serious anxiety, wounded feelings and similar Is the award for moral damages by reason of the unfounded civil
injuries. Plaintiff must testify to his said injury and this should action was proper?
not merely be inferred from certain proven facts.
In her testimony, Miranda-Ribaya established that due to HELD
respondents' deceitful and malevolent acts of defraudation, NO
she had suffered "extreme - anguish (without using the word Art.2219 enumerates the cases when moral damages may be
anguish) and "could not sleep for three months," since she was recovered. A clearly unfounded suit is not included in the
forced to close her pawnshop, sell some of her personal enumeration and cannot be basis for an award of moral damages.
jewelry and borrow money in order to pay off the owners of
the jewelry wrongfully acquired by respondents from her. While no proof of pecuniary loss is necessary in order that
Even if Miranda-Ribaya failed to use the precise legal moral damages may be awarded, the amount of indemnity being left
terms, it is sufficient that these exact terms have been to the discretion of the court, it is, nevertheless, essential that the
pleaded in the complaint and evidence has been adduced, as claimant satisfactorily prove the existence of the factual basis of the
cited above, amply supporting the averments of the damage (Art.2217) and its causal relation to the defendants acts
complaint. because moral damages, though incapable of pecuniary estimation,
are in the category of an award designed to compensate the claimant
for actual injury suffered and not to impose a penalty on the
DEL ROSARIO VS CA (Banawe Shingles; Typhoon Ruping) wrongdoer.
The trial court and the CA both seem to be of the opinion that
the mere fact that respondents were sued without any legal
ISSUE. Are the Del Rosario spouses entitled to moral damages foundation entitled them to an award of moral damages, hence they
for advertising their Banawe Shingles as structurally safe and made no definite finding as to what the supposed moral damages
strong and not being able to withstand typhoon Ruping, thus suffered consist of. Such a conclusion would make of moral damages
causing damage to the interior of the house, wiring and a penalty, which they are not, rather than a compensation for actual
wallpapers? injury suffered, which they are intended to be. Moral damages, in
other words, are not corrective or exemplary damages.
HELD. YES PEOPLE VS BUGAYONG (Statutory Rape)
That MFC did in truth act with bad faith, in flagrant
breach of its express warranties made to the general public
and in wanton disregard of the rights of the Del Rosarios who ISSUE: Is the victim entitled to moral damages for the crime of rape
relied on those warranties, is adequately demonstrated by the committed against her?
recorded proofs. The law explicitly authorizes the award of HELD: YES
moral damages "in breaches of contract where the defendant Consistent with recent jurisprudence, appellant should also be
acted fraudulently or in bad faith." There being, moreover, ordered to pay the victim the additional amount of P50,000 as moral
satisfactory evidence of the psychological and mental trauma damages. In People v. Prades, the Court resolved that moral
actually suffered by the Del Rosarios, the grant to them of damages may additionally be awarded to the victim in the criminal
moral damages is warranted. Over a period of about a month. proceeding, in such amount as the Court deems just, without the need
they experienced "feelings of shock, helplessness, fear, for pleading or proof of the basis thereof as has heretofore been the
embarrassment and anger." practice.
As reflected in the records of the case, the Court of
Appeals was in agreement with the findings of the trial court
that petitioners suffered anguish, embarrassment and mental C. CASES WHERE ALLOWED
sufferings due to the failure of private respondent to perform
Article 2219, CC. Moral damages may be recovered in the following
its obligation to petitioners.
and analogous cases:
(1) A criminal offense resulting in physical injuries;
RAAGAS VS TRAYA (Judgment on the Pleadings; 3 yo boy) (2) Quasi-delicts causing physical injuries;
(3) Seduction, abduction, rape, or other lascivious acts;
(4) Adultery or concubinage; (ii) Labor Cases
(5) Illegal or arbitrary detention or arrest;
(6) Illegal search;
(7) Libel, slander or any other form of defamation; (iv) Taking of Life
(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, D. FACTORS IN DETERMINING AMOUNT
referred to in No. 3 of this article, may also recover moral damages.
The spouse, descendants, ascendants, and brothers and sisters may E. WHO MAY RECOVER
bring the action mentioned in No. 9 of this article, in the order
3. NOMINAL DAMAGES
named.
4. TEMPERATE
Article 2220, CC. Willful injury to property may be a legal ground
for awarding moral damages if the court should find that, under the 5. LIQUIDATED
circumstances, such damages are justly due. The same rule applies to
6. EXEMPLARY
breaches of contract where the defendant acted fraudulently or in bad
faith.

- FRAUD OR BAD FAITH IS REQUIRED: No moral damages may


be awarded in the absence of a wrongful act or omission or of
fraud or bad faith.

FRANCISCO VS GSIS (Fraud or Bad Faith is Reqd)

-The rule in breach of contracts is that, no moral damages may


be awarded where the breach of contract is not malicious or
done with fraud or bad faith.

EXPERT TRAVEL & TOURS INC. VS CA ( Summary of Rules on


Moral Damages; by Justice Vitug)

(a) In Culpa Contractual, or breach of contract, moral


damages may be recovered when the defendant acted in bad
faith or was guilty of gross negligence (amounting to bad faith)
or in wanton disregard of his contractual obligation and,
exceptionally, when the act of breach of contract itself is
constitutive of tort resulting in physical injuries.

By special rule in Art. 1764, in relation to Art. 2206 NCC,


Moral damages may also be awarded in case the death of a
passenger results from a breach of contract of carriage.

(2) In Culpa Aquiliana or quasi delict,

(a) when an act or omission causes physical injuries,


or

(b) where the defendant is guilty of intentional tort,

Moral damages may aptly be recovered.

This rule also applies to contracts when breached by


tort.

(3) In Culpa Criminal, moral damages could be lawfully


due when the accused is found guilty of physical injuries,
lascivious acts, adultery or concubinage, illegal or arbitrary
detention, illegal arrest, illegal search, or defamation.
Malicious prosecution can also give rise to a claim for moral
damages.

(i) Unfounded Suits