In determining actual damages, the court cannot rely on speculation, conjecture, and

guess works as to the amount. There must be actual proof of pecuniary loss suffered by
the injured party.

Two kinds of actual or compensatory damages: 1. Loss of what a person already

possesses, 2. The failure to receive as a benefit that which would have pertained to
him.

I
Questions on Interest on Damages

Eastern Shipping Lines Inc., v. Court of Appeals

1. When an obligation is breached and it consists in the payment of a sum of
money, the interest due should be that which may have been stipulated in
writing. Furthermore the interest itself shall earn legal interest from the time it is
judicially demanded. In the absence of stipulation the rate of interest shall be 6%
per annum (lowered from 12% by Circular No. 799, Series of 2013, of the BSP).
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. Where the demand is established
with reasonable certainty, the interest shall begin to run from the time the claim is
made judicially or extrajudicially, but when such certainty cannot be reasonably
established at the time demand is made, the interest shall begin to run only from
the date the judgement of the court is made.
3. When the judgement of the court awarding a sum of money becomes final and
executory, the rate of legal interest shall be 6% per annum (lowered from 12% by
Circular No. 799, Series of 2013, of the BSP).

Liability of the defendant for Attorney’s fees

Art. 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.

General rule attorney’s fees cannot be recovered as part of the damages because of
the policy that no premium should be placed on the right to litigate. Where recoverable
they are in the nature of actual damages. They are also subject to certain standards.

1. They must be reasonable

2. Extent of services rendered
3. Professional standing of the lawyer

The settled rule is that the matter of attorney’s fees cannot be mentioned only in the
dispositive portion of the decision. They must be clearly explained and justified.

Recovery of Moral Damages/ When is a party entitled to moral damages/ When

will the court award moral damages/ What are the requirements for the court to
award moral damages
In case of moral damages, recovery is more an exception rather than the rule. Moral
damages are not punitive in nature but are designed to compensate and alleviate the
physical suffering, emotional suffering, mental anguish and similar harm unjustly caused
to a person. In order that an award of moral damages be justified, the claimant must be
able to prove that he has suffered such damages and that the injury causing it has
sprung from any of the cases listed in Articles 2219 and 2220 of the Civil Code. Then
too must the damages be shown to be the proximate result of a wrongful act or
omission. The claimant must establish the factual basis of the damages and its causal
tie with the acts of the defendant.

1. Evidence of besmirched reputation or physical, mental, or psychological suffering

sustained by the claimant.
2. A culpable act or omission factually established
3. Proof that the wrongful act or omission of the defendant is the proximate cause of
the damages sustained by the claimant
4. The case is predicated on any of the instances expressed by Art. 2219 and Art.
2220 of the Civil Code (PT&T v. Court of Appeals)

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 EXCEPTION is in the case of rape “ Moral damages may be awarded to the rape
victim in such amount the Court deems just without the need for pleading or proof of the
basis thereof, other than the fact of rape. Also the unlawful killing of a person, either
murder or homicide, entitles the heirs of the deceased to moral damages without need
of independent proof other than the fact of death of the victim.

Art. 2219 specifically allows moral damages to be recovered for quasi-delicts

PROVIDED that the act or omission caused physical injuries.

Concept of Nominal damages

Under Art. 2221 of the 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”.

The court may award nominal damages in every obligation arising from any source
enumerated in Art. 1157, or in every case where any property right has been violated
(Art. 2222 Civil Code).

It is an established rule that nominal damages cannot co-exist with compensatory

damages because the two stand on totally different jural foundations. Nominal damages
are awarded not to indemnify but to recognize a right that has been violated while
compensatory damages are awarded for the purpose of reparation and indemnification.

What really is nominal damages

Nominal damages are damages in name only and not in fact. Where these are allowed,
they are not treated as an equivalent of a wrong inflicted but simply in recognition of the
existence of a technical injury (PNOC Shipping and Transport Corp v. Court of
Appeals).
Art. 2221 and 2222 of the Civil Code make it clear that nominal damages are not
intended for indemnification of loss suffered but for the vindication or recognition of a
right violated or invaded. They are recoverable where some injury has been done but
the amount of which the evidence fails to show, the assessment of damages being left
to the discretion of the court according to the circumstances of the case (Saludo, Jr. v.
Court of Appeals).

Proof required for Pecuniary loss

Preponderance of evidence, evidence adduced by one side must be superior to the
other.

Motor vehicle cases

Liability of debtors in contracts and quasi-contracts in connection with damages

In contracts and quasi-contracts, the damages which may be awarded are dependent
on whether the obligor acted with good faith or otherwise. In case of good faith, the
damages recoverable are those which 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 of the constitution of the obligation. If there is fraud, bad
faith, malice, or wanton attitude, he shall be responsible for all damages which may be
reasonably attributed to the non-performance of the obligation. (Article 2201, Civil Code)

Review questions on airline cases

When you purchase a ticket and you miss the flight, what are the damages that
you may recover

Damages in crime and quasi-delict

In crimes and quasi-delicts, the defendants shall be liable for all damages which are the
natural and probable consequences of the act or omission complained of, whether or
not such damages have been foreseen or could have reasonably been foreseen by the
defendant
Damages for loss of earning capacity

The rule is that “the amount recoverable by the heirs of a victim of a tort is not the loss
of the entire earnings, but rather the loss of that portion of the earnings which the
beneficiary would have received. In other words, only net earnings, not gross earnings
are to be considered, that is, the total of the earnings less expenses necessary in the
creation of such earnings or income and minus living and incidental expenses” (Dangwa
Trans vs. Court of Appeals).

Temperate damages may be awarded in lieu of actual damages for loss of earning
capacity where the income of the victim was not sufficiently proven.