QUESTIONS FOR GROUP 4 - Exemplary

By group 6 (taken from Group 4’s compilation)

Q: Based on your report, would you consider exemplary damage as the most
diverse that may be awarded by the court?

A: If you ask me, the most diverse damages would be exemplary and liquidated damages.
Why? Because Art 2229 of the Civil Code provides you can only impose exemplary
damages when it is only in addition to the moral, temperate, liquidated or compensatory
damages. So you need to be entitled to other forms of damages first before you can be
awarded with exemplary damages.

Q: What do you do in order to claim for exemplary damages? How do you plead it?
How do you prove it?

A: At any rate:

Art. 2233. Exemplary damages cannot be recovered as a matter of right; the court will
decide whether or not they should be adjudicated .

So also, "...the amount of the exemplary damages need not be proved... In other words,
the amount payable by way of exemplary damages may be determined in the course of
the trial. The plaintiff (the petitioners in this case) could not have therefore predicted how
much exemplary losses they had incurred. We are not saying -so let us make one thing
clear-that the amount of exemplary damages need not be alleged in all cases.

Certainly, it would have been different had the case been one purely for moral, nominal,
temperate, or exemplary, damages, as in libel) other than actual. Though these damages
are, under the Civil Code, damages that cannot be shown with certainty, unlike actual
damages, the plaintiff must ascertain, in his estimation, the sums he wants, and the sums
required to determine the amount of docket and other fees. (SPOUSES BELEN
GREGORIO, vs. THE HONORABLE JUDGEZOSIMO Z. ANGELES, Presiding Judge
of the Regional Trial Court, Makati, Branch 58, SPOUSES SYLVIA AND RAMON
CARRION, and THE OFFICE OF THE SHERIFF OF MAKATI, G.R. No. 85847
December 21, 1989)

Follow up Question: So what the SC is saying is when you are the lawyer of the
plaintiff, you have to prove it during trial that you are entitled to exemplary
damages. How?

A: The amount of any claim for damages, therefore, arising on or before the filing of the
complaint or any pleading, should be specified. While it is true that the determination of
certain damages as exemplary or corrective damages is left to the sound discretion of the
court, it is the duty of the parties claiming such damages to specify the amount sought on
the basis of which the court may make a proper determination, and for the proper
assessment of the appropriate docket fees. The exception contemplated as to claims not
specified or to claims although specified are left for determination of the court is limited
only to any damages that may arise after the filing of the complaint or similar pleading for
then it will not be possible for the claimant to specify nor speculate as to the amount
thereof. (AYALA CORPORATION, LAS PIÑAS VENTURES, INC., and FILIPINAS LIFE
ASSURANCE COMPANY, INC., vs. THE HONORABLE JOB B. MADAYAG,
PRESIDING JUDGE, REGIONAL TRIAL COURT, NATIONAL CAPITAL JUDICIAL
REGION, BRANCH 145 and THE SPOUSES CAMILO AND MA. MARLENE SABIO,
G.R. No. 88421 January 30, 1990)

Q: Can exemplary damages be merged with moral damages?

A: According to the SC, it is not the usual way of awarding the said damages. However,
there had been no question and the entitlement of moral damages having been
established; the exemplary damages may be awarded even though not so expressly
stated.

Q: How would the court determine whether or not exemplary damages will be
awarded in criminal offenses?

A: It has to look at the presence of aggravating circumstances. So if the crime is

committed with the aggravating circumstances let’s say treachery or evident
premeditation then, the victim has entitlement to 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.

Article 2204. In crimes, the damages to be adjudicated may be respectively increased or

lessened according to the aggravating or mitigating circumstances.

Follow up Question: Suppose there are 2 aggravating circumstances and 5 mitigating

Circumstances, would there be an effect in awarding exemplary damages?
A: There is no effect on the award of exemplary damages because the law does not
provide for the reduction of exemplary damages upon the presence of mitigating
circumstances.

QUESTIONS FOR GROUP 5 - Liquidated

by group 6

Q: Is proof of pecuniary loss necessary in the award of liquidated damages? Why

or why not?
A: No. If intended as a penalty in obligations with a penal clause, proof of actual
damages suffered by the creditor is not necessary in order that the penalty may be
demanded (Art. 1228, NCC). No proof of pecuniary loss is necessary.

Q: Can liquidated damages be reduced?

A: YES. Article 2227 of the Civil Code provides that liquidated damages, whether
intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or
unconscionable. The Supreme Court observed that “the question of whether a penalty is
reasonable or iniquitous is addressed to the sound discretion of the courts. To be
considered in fixing the amount of penalty are factors such as – but not limited to – the
type, extent and purpose of the penalty; the nature of the obligation; the mode of the
breach and its consequences; the supervening realities; the standing and relationship of
parties; and the like” (Sps Poltan vs. BPI Savings Bank, Inc.)

Q: Is liquidated damages and a penal clause the same? Or is there a difference

between the two?

Both liquidated damages and a penal clause have the same treatment as both can be
equitably reduced if they are iniquitous or unconscionable.

For penal clause, the proper basis for reduction is partial performance if there is partial
performance. The judge shall equitably reduce the penalty when the principal obligation
has been partly or irregularly complied with by the debtor. However, even if there has
been no performance, the penalty may also be reduced by the courts if it is iniquitous or
unconscionable. In terms of effect, there are no practical Differences between the two
whether treated as a penalty or an indemnity, the treatment is the same.

In obligations with a penal clause, the General rule is that the penalty serves as a
substitute for the indemnity for damages and the payment of interests in case of
noncompliance; that is, if there is no stipulation to the contrary, in which case proof of
actual damages is not necessary for the penalty to be demanded.

Q: What are the grounds for the imposition of liquidated damages when it comes
to cases like a delay in project milestones in the government?

A: When the contractor refuses or fails to satisfactorily complete the works under the
contract within the specified contract duration, plus any time extension duly granted, and
is thus considered in default under the contract, it will be liable for liquidated damages for
the delay. The Procuring Entity need not prove that it has incurred actual damages to be
entitled to liquidated damages from the contractor, and the same shall not be by way of
penalty. Such amount shall be deducted from any money due or which may become due
the contractor under the contract and/or from the retention money or other securities
posted by the contractor, whichever is convenient to the Procuring Entity.
 TEMPERATE DAMAGES SET OF QUESTIONS

FOR GROUP 1
Q: What does the Court mean when it says that temperate damages must be
awarded in a reasonable amount.
A: What is reasonable is one which is not excessive nor very low in the estimation of
men of ordinary intelligence and discretion. In most cases, temperate damages should
be one-half of the indemnity for death.

Q: Why is the award for temperate damages be more than nominal?

A: It should be more than nominal because just like actual damages because the purpose
is still for compensation and not just to recognize or vindicate a right.

FOR GROUP 2
Q: According to your report, temperate damages and actual damages may be
compatible in certain cases, would temperate damages be compatible in any other
damages?
A: Moral, yes different bases and awards
Exemplary, yes, always with other forms except nominal

Nominal NO, incompatible with other damages according to jurisprudence

Exception: Yes, Francisco cake case

Actual NO, same basis, pecuniary loss

Exception: Yes, Ramos case. (present and future expenses)

Liquidated NO. (substitutes everything)

Exception: Yes, if the basis of the breach is different from that stipulated or violation has
a different source.

Q: What does the law mean when it said that temperate damages must less than
compensatory damages
A: There is monetary loss but definite proof of such cannot be adduced. The monetary
loss is such, that by its nature, it cannot be established with certainty.

FOR GROUP 3
(BASED ON THEIR COMPILATION)

Q: Can you give an example of a case where definite proof of pecuniary loss cannot
be offered, although the court is convinced that there has been such loss?
Answer: 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. In such case the judge should be
empowered to calculate moderate damages rather than that the plaintiff should suffer,
without redress from the defendant’s wrongful act

Q: When can temperate damages be recovered?

answer: Under Article 2224, temperate or moderate damages may be recovered when:
a. The court finds that some pecuniary loss has been suffered, but
b. Its amount (pecuniary loss) cannot be provided with certainty

Q: Are there instances when temperate damages can be recovered even if the
amount of pecuniary loss can be established?

answer: As a rule, in cases where the amount of pecuniary losses could be

established with certainty, it is error to award temperate damages.

An exception to the rule is in cases where the resulting injury might be

continuing and possible future complications directly arising from the injury, while
certain to occur are difficult to predict, temperate damages can and should be
awarded on top of actual or compensatory damages; in such cases there is no
incompatibility between actual and temperate damages.

FOR GROUP 4
Q: How may the amount of temperate damages be determined?
A: In computing the amount of temperate or moderate damages, it is usually left to the
discretion of the courts, but the amount must be reasonable, bearing in mind that
temperate damages should be more than nominal but less than compensatory (Nanito
Evangelista vs. Sps. Nero Andolong III, et al. G.R. No. 221770, November 16, 2016)
Source: https://batasnatin.com/law-library/civil-law/torts-and-damages/2388-what-are-
the-kinds-of-damages.html

Q: Can juridical entities be awarded and be liable for temperate damages?

A: Yes, the law does not make any distinction between natural and juridical persons in
temperate damages. even GOCCs can be held liable for such damages
FOR GROUP 5
Q: Nominal and temperate damages are awarded when actual damage suffered
cannot be established, what is their difference?

A: The award for nominal damages is based on the vindication of a right while temperate
damages is for compensation. Jurisprudence provides that temperate damages should
be more than nominal but less than compensatory.

Q: Is the 25,000 rule only applicable in cases like in the said case, funeral and burial
expenses?
A: No, it was already set in the Supreme Court as a doctrine and may be applicable in all
other cases where pecuniary loss cannot be ascertained.