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XIII. DAMAGES
A. GENERAL CONSIDERATIONS
1. Classification

DAMAGES 1

CHAPTER 1
General Provisions

Article 2195 of the New Civil Code: The provisions of this Title shall be respectively applicable to
all obligations mentioned in article 1157.

Article 2196 of the New Civil Code: 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 of the New Civil Code: Damages may be:

(1) Actual or compensatory;

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

2. Kinds of damages
a. Actual and Compensatory

Actual or Compensatory Damages

Article 2199 of the New Civil Code: 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.

Article 2200 of the New Civil Code: 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. (1106)

Article 2201 of the New Civil Code: 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. (1107a)

Article 2202 of the New Civil Code: 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.

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Article 2203 of the New Civil Code: 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 of the New Civil Code: In crimes, the damages to be adjudicated may be respectively
increased or lessened according to the aggravating or mitigating circumstances.

Article 2205 of the New Civil Code: 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 2206 of the New Civil Code: 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) 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;

(3) 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.

Article 2207 of the New Civil Code: 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.

Article 2208 of the New Civil Code: 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;

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(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.

Article 2209 of the New Civil Code: 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. (1108)

Article 2210 of the New Civil Code: Interest may, in the discretion of the court, be allowed upon
damages awarded for breach of contract.

Article 2211 of the New Civil Code: 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 of the New Civil Code: 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 of the New Civil Code: Interest cannot be recovered upon unliquidated claims or
damages, except when the demand can be established with reasonable certainty.

Article 2214 of the New Civil Code: In quasi-delicts, the contributory negligence of the plaintiff shall
reduce the damages that he may recover.

Article 2215 of the New Civil Code: In contracts, quasi-contracts, and quasi-delicts, 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;

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(5) That since the filing of the action, the defendant has done his best to lessen the plaintiff's
loss or injury.

b. Moral

Moral Damages

Article 2217 of the New Civil Code: 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 of the New Civil Code: In the adjudication of moral damages, the sentimental value of
property, real or personal, may be considered.

Article 2219 of the New Civil Code: 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 of the New Civil Code: 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.

c. Nominal

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Nominal Damages

Article 2221 of the New Civil Code: 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 of the New Civil Code: 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 of the New Civil Code: 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.

d. Temperate

Temperate or Moderate Damages

Article 2224 of the New Civil Code: 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 of the New Civil Code: Temperate damages must be reasonable under the
circumstances.

e. Liquidated

Liquidated Damages

Article 2226 of the New Civil Code: Liquidated damages are those agreed upon by the parties to a
contract, to be paid in case of breach thereof.

Article 2227 of the New Civil Code: Liquidated damages, whether intended as an indemnity or a
penalty, shall be equitably reduced if they are iniquitous or unconscionable.

Article 2228 of the New Civil Code: 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.

f. Exemplary

Exemplary or Corrective Damages

Article 2229 of the New Civil Code: 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.

Article 2230 of the New Civil Code: 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
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circumstances. Such damages are separate and distinct from fines and shall be paid to the offended
party.

Article 2231 of the New Civil Code: In quasi-delicts, exemplary damages may be granted if the
defendant acted with gross negligence.

Article 2232 of the New Civil Code: 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 of the New Civil Code: Exemplary damages cannot be recovered as a matter of right;
the court will decide whether or not they should be adjudicated.

Article 2234 of the New Civil Code: While the amount of the exemplary damages need not be
proved, 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 of the New Civil Code: A stipulation whereby exemplary damages are renounced in
advance shall be null and void.

3. When damages may be recovered

Other Kinds of Damages

Article 2216 of the New Civil Code: 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.

B. DAMAGES IN CASE OF DEATH

C. GRADUATION OF DAMAGES
1. Duty of injured party
2. Rules
a. In crimes
b. In quasi-delicts
c. In contracts and quasi-contracts
d. Liquidated damages
e. Compromise

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