DAMAGES

Actual Damages

Actual damages, to be recoverable, must not only be capable of proof, but

must actually be proved with a reasonable degree of certainty. Courts cannot
simply rely on speculation, conjecture or guesswork in determining the fact
and amount of damages. To justify an award of actual damages, there must
be competent proof of the actual amount of loss, credence can be given only
to claims which are duly supported by receipts. [Tan v. OMC Carriers, Inc.,
G.R. No. 190521, January 12, 2011]

Jurisprudence has consistently heldthat "[t]o justify an award of actual

damages x x x credence can be given only to claims which are duly
supported by receipts." [ Tan v. OMC Carriers, Inc.,G.R. No. 190521, 12
January 2011, 639 SCRA 471, 481, citing Viron Transportation Co., Inc. v.
Delos Santos,399 Phil. 243 (2000).]

TEMPERATE Damages

Nonetheless, the failure to present competent proof of actual damages should

not deprive the Spouses Cogtas of some degree of indemnity for the
substantial economic damage and prejudice they had suffered. According to
Article 2224 of the Civil Code, temperate damages, which are more than
nominal but less than compensatory damages, may be recovered when the
court finds that some pecuniary loss has been suffered but its amount cannot,
from the nature of the case, be proved with certainty.10 For this purpose, the
determination of the temperate damages rests in the sound discretion of the
courts. To illustrate, in People v. Murcia,11 the Court reduced the amount of
₱250,000.00 fixed by the RTC, although affirmed by the CA, to
₱200,000.00 by way of temperate damages upon noting that the former
amount had been based only on the complainant’s estimate of the value of
his house. Consequently, the Court holds that the amount of ₱500,000.00 in
the form of temperate damages is reasonable considering that the dwelling of
the Spouses Cogtas had been completely burned down. [Bacolod v. People,
G.R. No. 206236 July 15, 2013]

Nominal Damages

Nominal damages are ‘recoverable where a legal right is technically violated

and must be vindicated against an invasion that has produced no actual
present loss of any kind or where there has been a breach of contract and no
substantial injury or actual damages whatsoever have been or can be shown.’

Exemplary, when proper

to warrant the award of exemplary damages, "[t]he wrongful act must be

accompanied by bad faith, and an award of damages would be allowed only
if the guilty party acted in a wanton, fraudulent, reckless or malevolent
manner." [Francisco v. Ferrer, G.R. No. 142029 February 28, 2001.]

The requirements of an award of exemplary damages are: (1) they may be

imposed by way of example in addition to compensatory damages, and only
after the claimant's right to them has been established; (2) that they cannot
be recovered as a matter of right, their determination depending upon the
amount of compensatory damages that may be awarded to the claimant; (3)
the act must be accompanied by bad faith or done in a wanton, fraudulent,
oppressive or malevolent manner." [Francisco v. Ferrer, G.R. No. 142029
February 28, 2001.]

Under the Civil Code, exemplary damages are due in the following
circumstances:

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.

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

(1) they may be imposed by way of example in addition to

compensatory damages, and only after the claimant's right to them has
been established;

(2) that they cannot be recovered as a matter of right, their

determination depending upon the amount of compensatory damages
that may be awarded to the claimant; and

(3) the act must be accompanied by bad faith or done in a wanton,

fraudulent, oppressive or malevolent manner.

Exemplary Damages Are Awarded to those who use fraudulent means in

evading liabilities

Business owners must always be forthright in their dealings. They cannot be

allowed to renege on their obligations, considering that these obligations
were freely entered into by them. Exemplary damages may also be awarded
in this case to serve as a deterrent to those who use fraudulent means to
evade their liabilities. [ARCO PULP AND PAPER CO., INC. and Santos v.
Lim, G.R. No. 206806 June 25, 2014.]

Moral Damages

Under Article 2220 of the Civil Code, moral damages may be awarded in
case of breach of contract where the breach is due to fraud or bad faith:

Art. 2220. Willfull 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.

Moral damages are not awarded as a matter of right but only after the party
claiming it proved that the breach was due to fraud or bad faith. As this court
stated:

Moral damages are not recoverable simply because a contract has been
breached. They are recoverable only if the party from whom it is claimed
acted fraudulently or in bad faith or in wanton disregard of his contractual
obligations. The breach must be wanton, reckless, malicious or in bad faith,
and oppressive or abusive. [Philippine Savings Bank v. Spouses Castillo,
G.R. No. 193178, May 30, 2011]

Requisites for Award of Moral Damages

Further, the following requisites must be proven for the recovery of moral
damages: An award of moral damages would require certain conditions to be
met, to wit: (1) first, there must be an injury, whether physical, mental or
psychological, clearly sustained by the claimant; (2) second, there must be
culpable act or omission factually established; (3) third, the wrongful act or
omission of the defendant is the proximate cause of the injury sustained by
the claimant; and (4) fourth, the award of damages is predicated on any of
the cases stated in Article 2219 of the Civil Code. [Arco Pulp and Paper Co
v. Lim, G.R. No. 206806 June 25, 2014.]

Breaches of contract done in bad faith, however, are not specified

within this enumeration. When a party breaches a contract, he or she
goes against Article 19 of the Civil Code, which states: Article 19. Every
person must, in the exercise of his rights and in the performance of his
duties, act with justice, give everyone his due, and observe honesty and good
faith. [Arco Pul and Paper Co v. Lim, G.R. No. 206806 June 25, 2014.]

To recover moral damages in an action for breach of contract, the

breach must be palpably wanton, reckless and malicious, in bad faith,
oppressive, or abusive. Hence, the person claiming bad faith must prove its
existence by clear and convincing evidence for the law always presumes
good faith. [Adriano v. Lasala, G.R. No. 197842, October 9, 2013.]
Bad faith in moral damages

Bad faith does not simply connote bad judgment or negligence. It imports a
dishonest purpose or some moral obliquity and conscious doing of a wrong,
a breach of known duty through some motive or interest or ill will that
partakes of the nature of fraud. It is, therefore, a question of intention, which
can be inferred from one’s conduct and/or contemporaneous statements.
[Arco Pul and Paper Co v. Lim, G.R. No. 206806 June 25, 2014.]

MORAL DAMAGES PROVISION

Art. 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 sister may bring
action mentioned in No. 9 of this article, in the order named.

Analogous Act to Article 2219

Moral damages may be awarded whenever the defendant’s wrongful act or

omission is the proximate cause of the plaintiffs physical suffering, mental
anguish, fright, serious anxiety, besmirched reputation, wounded feelings,
moral shock, social humiliation and similar injury in the cases specified or
analogous to those provided in Article 2219 of the Civil Code. [California
Clothing v. Quiñones, G.R. No. 175822, October 23, 2013.]

Moral damages are not a bonanza. They are given to ease the defendant s
grief and suffering. They should, thus, reasonably approximate the extent of
hurt caused and the gravity of the wrong done. They are awarded not to
enrich the complainant but to enable the latter to obtain means, diversions,
or amusements that will serve to alleviate the moral suffering he has
undergone.43 We find that the amount of ₱50,000.00 as moral damages
awarded by the CA is reasonable under the circumstances. Considering that
respondent was compelled to litigate to protect her interest, attorney s fees in
the amount of of₱20,000.00 is likewise just and proper. [California Clothing
v. Quiñones, G.R. No. 175822, October 23, 2013.]

Art. 19 as Basis for Moral Damages

The exercise of a right must be in accordance with the purpose for which it
was established and must not be excessive or unduly harsh.

Complementing the principle of abuse of rights are the provisions of Articles

20 and 21 of the Civil Code which read:40

Article 20. Every person who, contrary to law, willfully or negligently

causes damage to another, shall indemnify the latter for the same.

Article 21. Any person who willfully causes loss or injury to another in a
manner that is contrary to morals or good customs, or public policy shall
compensate the latter for the damage.

respondent is entitled to an award of moral damages and attorney s fees.

Moral damages may be awarded whenever the defendant s wrongful act or
omission is the proximate cause of the plaintiffs physical suffering, mental
anguish, fright, serious anxiety, besmirched reputation, wounded feelings,
moral shock, social humiliation and similar injury in the cases specified or
analogous to those provided in Article 2219 of the Civil Code. [California
Clothing v. Quiñones, G.R. No. 175822, October 23, 2013.]