Finals - Reviewer - Torts and Damages
Finals - Reviewer - Torts and Damages
Finals - Reviewer - Torts and Damages
Actual or Compensatory Damages, Moral Damages, Nominal Damages, Temperate and Moderate Damages,
Liquidated Damages, Exemplary or Corrective Damages, Special Torts
In case of fraud, bad faith, malice or wanton attitude, the obligor shall be
Provisions on Damages responsible for all damages which may be reasonably attributed to the non-
performance of the obligation.
GENERAL PROVISIONS Article 2202. 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
Article 2195. The provisions of this Title shall be respectively applicable to all complained of. It is not necessary that such damages have been foreseen or could
obligations mentioned in article 1157. have reasonably been foreseen by the defendant.
Article 2196. The rules under this Title are without prejudice to special provisions Article 2203. The party suffering loss or injury must exercise the diligence of a
on damages formulated elsewhere in this Code. Compensation for workmen and good father of a family to minimize the damages resulting from the act or omission
other employees in case of death, injury or illness is regulated by special laws. in question.
Rules governing damages laid down in other laws shall be observed insofar as they Article 2204. In crimes, the damages to be adjudicated may be respectively
are not in conflict with this Code. increased or lessened according to the aggravating or mitigating circumstances.
Article 2197. Damages may be: Article 2205. Damages may be recovered:
(1) Actual or compensatory; (1) For loss or impairment of earning capacity in cases of temporary or permanent
(2) Moral; personal injury;
(3) Nominal; (2) For injury to the plaintiff's business standing or commercial credit.
(4) Temperate or moderate; Article 2206. The amount of damages for death caused by a crime or quasi-delict
(5) Liquidated; or shall be at least three thousand pesos, even though there may have been mitigating
(6) Exemplary or corrective. circumstances. In addition:
Article 2198. The principles of the general law on damages are hereby adopted (1) The defendant shall be liable for the loss of the earning capacity of the
insofar as they are not inconsistent with this Code. 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
ACTUAL OR COMPENSATORY DAMAGES account of permanent physical disability not caused by the defendant, had no
earning capacity at the time of his death;
Article 2199. Except as provided by law or by stipulation, one is entitled to an (2) If the deceased was obliged to give support according to the provisions of
adequate compensation only for such pecuniary loss suffered by him as he has duly article 291, the recipient who is not an heir called to the decedent's inheritance by
proved. Such compensation is referred to as actual or compensatory damages. the law of testate or intestate succession, may demand support from the person
Article 2200. Indemnification for damages shall comprehend not only the value of causing the death, for a period not exceeding five years, the exact duration to be
the loss suffered, but also that of the profits which the obligee failed to obtain. fixed by the court;
Article 2201. In contracts and quasi-contracts, the damages for which the obligor (3) The spouse, legitimate and illegitimate descendants and ascendants of the
who acted in good faith is liable shall be those that are the natural and probable deceased may demand moral damages for mental anguish by reason of the death of
consequences of the breach of the obligation, and which the parties have foreseen the deceased.
or could have reasonably foreseen at the time the obligation was constituted. Article 2207. 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
FINALS REVIEWER: Provisions, Concepts, QUAMTO Page |1 Barataman-Abdulcadir
TORTS AND DAMAGES
Actual or Compensatory Damages, Moral Damages, Nominal Damages, Temperate and Moderate Damages,
Liquidated Damages, Exemplary or Corrective Damages, Special Torts
wrong or breach of contract complained of, the insurance company shall be Article 2212. Interest due shall earn legal interest from the time it is judicially
subrogated to the rights of the insured against the wrongdoer or the person who has demanded, although the obligation may be silent upon this point.
violated the contract. If the Article 2213. Interest cannot be recovered upon unliquidated claims or damages,
except when the demand can be established with reasonable certainty.
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 Article 2214. In quasi-delicts, the contributory negligence of the plaintiff shall
the loss or injury. reduce the damages that he may recover.
Article 2208. In the absence of stipulation, attorney's fees and expenses of Article 2215. In contracts, quasi-contracts, and quasi-delicts, the court may
litigation, other than judicial costs, cannot be recovered, except: equitably mitigate the damages under circumstances other than the case referred to
(1) When exemplary damages are awarded; in the preceding article, as in the following instances:
(2) When the defendant's act or omission has compelled the plaintiff to litigate (1) That the plaintiff himself has contravened the terms of the contract;
with third persons or to incur expenses to protect his interest; (2) That the plaintiff has derived some benefit as a result of the contract;
(3) In criminal cases of malicious prosecution against the plaintiff; (3) In cases where exemplary damages are to be awarded, that the defendant acted
(4) In case of a clearly unfounded civil action or proceeding against the plaintiff; upon the advice of counsel;
(5) Where the defendant acted in gross and evident bad faith in refusing to satisfy (4) That the loss would have resulted in any event;
the plaintiff's plainly valid, just and demandable claim; (5) That since the filing of the action, the defendant has done his best to lessen the
(6) In actions for legal support; plaintiff's loss or injury.
(7) In actions for the recovery of wages of household helpers, laborers and skilled
workers; MORAL DAMAGES
(8) In actions for indemnity under workmen's compensation and employer's
liability laws; Article 2217. Moral damages include physical suffering, mental anguish, fright,
(9) In a separate civil action to recover civil liability arising from a crime; serious anxiety, besmirched reputation, wounded feelings, moral shock, social
(10) When at least double judicial costs are awarded; humiliation, and similar injury. Though incapable of pecuniary computation, moral
(11) In any other case where the court deems it just and equitable that attorney's damages may be recovered if they are the proximate result of the defendant's
fees and expenses of litigation should be recovered. wrongful act for omission.
In all cases, the attorney's fees and expenses of litigation must be reasonable. Article 2218. In the adjudication of moral damages, the sentimental value of
Article 2209. If the obligation consists in the payment of a sum of money, and the property, real or personal, may be considered.
debtor incurs in delay, the indemnity for damages, there being no stipulation to the Article 2219. Moral damages may be recovered in the following and analogous
contrary, shall be the payment of the interest agreed upon, and in the absence of cases:
stipulation, the legal interest, which is six per cent per annum. (1) A criminal offense resulting in physical injuries;
Article 2210. Interest may, in the discretion of the court, be allowed upon damages (2) Quasi-delicts causing physical injuries;
awarded for breach of contract. (3) Seduction, abduction, rape, or other lascivious acts;
Article 2211. In crimes and quasi-delicts, interest as a part of the damages may, in (4) Adultery or concubinage;
a proper case, be adjudicated in the discretion of the court. (5) Illegal or arbitrary detention or arrest;
(6) Illegal search;
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TORTS AND DAMAGES
Actual or Compensatory Damages, Moral Damages, Nominal Damages, Temperate and Moderate Damages,
Liquidated Damages, Exemplary or Corrective Damages, Special Torts
(7) Libel, slander or any other form of defamation; LIQUIDATED DAMAGES
(8) Malicious prosecution;
(9) Acts mentioned in article 309; Article 2226. Liquidated damages are those agreed upon by the parties to a
(10) Acts and actions referred to in articles 21, 26, 27, 28, 29, 30, 32, 34, and 35. contract, to be paid in case of breach thereof.
The parents of the female seduced, abducted, raped, or abused, referred to in No. 3 Article 2227. Liquidated damages, whether intended as an indemnity or a penalty,
of this article, may also recover moral damages. shall be equitably reduced if they are iniquitous or unconscionable.
The spouse, descendants, ascendants, and brothers and sisters may bring the action
mentioned in No. 9 of this article, in the order named. Article 2228. When the breach of the contract committed by the defendant is not
Article 2220. Willful injury to property may be a legal ground for awarding moral the one contemplated by the parties in agreeing upon the liquidated damages, the
damages if the court should find that, under the circumstances, such damages are law shall determine the measure of damages, and not the stipulation.
justly due. The same rule applies to breaches of contract where the defendant acted
fraudulently or in bad faith. EXEMPLARY OR CORRECTIVE DAMAGES
NOMINAL DAMAGES Article 2229. Exemplary or corrective damages are imposed, by way of example
or correction for the public good, in addition to the moral, temperate, liquidated or
Article 2221. Nominal damages are adjudicated in order that a right of the compensatory damages.
plaintiff, which has been violated or invaded by the defendant, may be vindicated Article 2230. In criminal offenses, exemplary damages as a part of the civil
or recognized, and not for the purpose of indemnifying the plaintiff for any loss liability may be imposed when the crime was committed with one or more
suffered by him. aggravating circumstances. Such damages are separate and distinct from fines and
Article 2222. The court may award nominal damages in every obligation arising shall be paid to the offended party.
from any source enumerated in article 1157, or in every case where any property Article 2231. In quasi-delicts, exemplary damages may be granted if the defendant
right has been invaded. acted with gross negligence.
Article 2223. The adjudication of nominal damages shall preclude further contest Article 2232. In contracts and quasi-contracts, the court may award exemplary
upon the right involved and all accessory questions, as between the parties to the damages if the defendant acted in a wanton, fraudulent, reckless, oppressive, or
suit, or their respective heirs and assigns. malevolent manner.
Article 2233. Exemplary damages cannot be recovered as a matter of right; the
TEMPERATE AND MODERATE DAMAGES court will decide whether or not they should be adjudicated.
Article 2234. While the amount of the exemplary damages need not be proved, the
Article 2224. Temperate or moderate damages, which are more than nominal but plaintiff must show that he is entitled to moral, temperate or compensatory
less than compensatory damages, may be recovered when the court finds that some damages before the court may consider the question of whether or not exemplary
pecuniary loss has been suffered but its amount can not, from the nature of the damages should be awarded. In case liquidated damages have been agreed upon,
case, be provided with certainty. although no proof of loss is necessary in order that such liquidated damages may
Article 2225. Temperate damages must be reasonable under the circumstances. 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
Term "Except as Provided by Law or By Stipulation” its Significance. Coverage of Actual Damages.
The general rule that damages must be proved is subject to the following All the natural and probable consequences of the act or omission
exceptions: complained of.
1. When a penalty clause is agreed upon in the contract between the
parties; Lost Income Due to Death.
2. When liquidated damages have been agreed upon: In determining the amount of lost income, the following must be taken into
3. When loss is presumed as when a child or spouse dies as a result of the account: (1) the number of years for which the victim would otherwise
act or omission of a person: have lived: and (2) the rate of the loss sustained by the heirs of the
4. Forfeiture of bonds in favor of the Government for the purpose of deceased.
promoting public policy or interest; and
5. Death caused within the contemplation of Article 2206. Basis Of Loss of Earning Capacity (Not Lost Earnings or Income).
It is well-settled that to be compensated for loss of earning capacity, it is
Breach of Contract. not necessary that the victim, at the time of injury or death, be gainfully
A person injured by breach of contract cannot recover damages for any employed-compensation of this nature is awarded not for loss of earnings
loss which he might have avoided with ordinary care at reasonable but for loss of capacity to earn money.
expense. The computation of loss of earning capacity should be based not on the net
monthly income of the deceased but on his gross annual income minus the
Article 2200. Indemnification for damages shall comprehend not only the value of necessary and incidental living expenses which the victim would have
the loss suffered, but also that of the profits which the obligee failed to obtain. incurred if he were alive, estimated at 50% of the gross annual income.
Duty Imposed Upon the Victim. Article 2205. Damages may be recovered:
It is the duty of the party injured by the unlawful act of another to take (1) For loss or impairment of earning capacity in cases of temporary or permanent
such measures as prudent men usually take under such circumstances as personal injury;
would reduce the damage as much as possible. The defendant, who caused (2) For injury to the plaintiff's business standing or commercial credit.
the injury. has the burden of showing that the plaintiff might have reduced
the damages. Coverage of Actual Damages.
1. Loss or impairment of earning capacity in cases of temporary or
permanent personal injury.
2. Injury to plaintiffs business standing or commercial credit.
Burden of Proof. Article 2206. The amount of damages for death caused by a crime or quasi-delict
The defendant has the burden of proof to establish that the victim by the shall be at least three thousand pesos, even though there may have been mitigating
exercise of the diligence of a good father of a family could have mitigated circumstances. In addition:
the damages. He has also the burden of proving the amount of damages (1) The defendant shall be liable for the loss of the earning capacity of the
which could have been avoided. In the absence of such proof, the amount deceased, and the indemnity shall be paid to the heirs of the latter; such indemnity
of damages cannot be reduced. 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
Article 2204. In crimes, the damages to be adjudicated may be respectively earning capacity at the time of his death;
increased or lessened according to the aggravating or mitigating circumstances. (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
Aggravating Circumstances, Concept. the law of testate or intestate succession, may demand support from the person
If present in the commission of the crime, it will serve to increase the causing the death, for a period not exceeding five years, the exact duration to be
penalty because of the unusual perversity manifested by the offender. fixed by the court;
(3) The spouse, legitimate and illegitimate descendants and ascendants of the
Mitigating Circumstances, Concept. deceased may demand moral damages for mental anguish by reason of the death of
If present in the commission of the crime, serve to decrease the penalty the deceased.
imposable by law.
FINALS REVIEWER: Provisions, Concepts, QUAMTO Page |6 Barataman-Abdulcadir
TORTS AND DAMAGES
Actual or Compensatory Damages, Moral Damages, Nominal Damages, Temperate and Moderate Damages,
Liquidated Damages, Exemplary or Corrective Damages, Special Torts
Applicability. Principle of Subrogation
Applicable only in case of death of a person by reason of a crime or quasi- If the insured property is destroyed or damaged through the fault or
delict. If the victim is merely injured, this article is not applicable. negligence of a party other than the assured, the insurer will be subrogated
However, he is entitled to moral damages: to the rights of the assured to recover from the wrongdoer to the extent that
1. If the physical injuries are caused by a crime; the insurer has been obligated to pay.
2. If the injuries are caused by a quasi-delict; or
3. If caused by breach of contract (such as common carriage) if the Instances When Principle of Subrogation Does Not Apply.
defendant acted fraudulently or in bad faith. 1. When the assured by his own act releases the wrongdoer or third
person liable for the loss or damage, from liability;
Formula. 2. When the insurer pays the assured the value of the loss goods without
a. The formula for computing the loss of earning capacity is as follows: notifying the carrier who has in good faith settled the assured's claim
2/3 x (80 - age of the victim at the time of death) x (reasonable portion for loss; and
of the annual net income which would have been received as support 3. When the insurer pays the assured for a loss which is not a risk
by the heirs). covered by the policy, the former has no right of subrogation against
b. The formula for the computation of unearned in-come is net earning the third party liable for the loss.
capacity (=life expectancy x gross annual income less living expenses
(50% of gross annual income). Life expectancy is determined in
accordance with the formula - 2/3 x (80-age of deceased).
Article 2210. Interest may, in the discretion of the court, be allowed upon damages When recoverable.
awarded for breach of contract. Moral damages cannot be awarded if the cases filed do not fall within
Article 2219and Article 2220 as a rule. Further, it must be established that
Obligations with a Penal Clause. the act or omission of the defendant is the proximate wrongful act or
In obligations with penal clause, the penalty shall substitute the indemnity omission or fraud or bad faith.
for damages and the payment of interests in case of noncompliance, if
there is no stipulation to the contrary. Nevertheless, damages shall be paid Illustrative Cases When Moral Damages Were Not Granted.
if the obligor refuses to pay the penalty or is guilty of fraud in the 1. Mere vexation or mental anguish is not sufficient to warrant moral
fulfillment of the obligation. damages.
2. The feelings which are products of sensitivity do not justify grant of
moral damages.
3. When the waiter accidentally lost his grip on a tray containing soft
drinks which overturned, falling on the customer is not a ground for
grant of moral damages.
4. The worries and anxieties of a defendant in a litigation that was not
maliciously instituted.
5. Moral damages cannot be recovered from a person who has filed a
complaint against another in good faith, or without malice or bad faith.
6. When the filing of the case by the plaintiff was due to an honest
mistake in the appreciation of the applicable law and jurisprudence,
MORAL DAMAGES moral damages are not re-coverable.
2. As not all sufferings justify moral damages, the case must be one of
those enumerated or included in Articles 2219 and 2220. NOMINAL DAMAGES
3. There must be bad faith or wrongful act or omission.
Article 2221. Nominal damages are adjudicated in order that a right of the
Requisites for award of moral damages. plaintiff, which has been violated or invaded by the defendant, may be vindicated
1. There must be an injury, whether physical mental or psychological or recognized, and not for the purpose of indemnifying the plaintiff for any loss
clearly sustained by the claimant; suffered by him.
2. There must be a culpable act or omission factually established;
Nature and Concept of Nominal Damages. Rationale Behind Temperate or Moderate Damages.
Nominal damages are not for indemnification of loss but for The rationale behind temperate damages is precisely that from the nature
vindication of a right violated. of the case, definite proof of pecuniary loss cannot be offered. When the
Nominal damages are adjudicated, not for the purpose of court is convinced that there has been such loss, the judge is empowered to
indemnifying respondents for any loss suffered but for vindicating calculate moderate damages, rather than let the complainant suffer without
or recognizing their right to a property that has been violated or redress from the defendant's wrongful act.
invaded.
Requisites to Justify Award of Temperate or Moderate Damages.
Instances Of Nominal Damages in Labor Cases. It is essential that "some pecuniary loss" had been suffered but its exact
1. The employer should indemnify the employee in the form of nominal amount cannot, from the nature of the case, be proved with certainty. The
damages for the violation of his right to statutory due process. court is allowed to calculate the amount.
2. Where the dismissal of an employee from the service is due to
dishonesty or a just cause but due process was not observed. Reasonableness of Temperate Damages.
3. A violation of an employee's statutory right to two notices prior to the Generally, what is reasonable is one which is not excessive nor very low in
termination of his employment for a just cause. the estimation of men of ordinary intelligence and discretion. Temperate
damages should be one half of the indemnity for death.
Nominal Damages, Only in Name.
Nominal damages are damages in name only and not in fact.
Cases where exemplary damages may be imposed as accessory Exemplary Damages in Quasi-Delicts.
damages. In quasi-delicts, gross negligence must be shown on the part of the
Exemplary damages cannot be recovered as a matter of right. They can be defendant to justify grant of exemplary damages to plaintiff. In crimes and
imposed in the following cases: quasi-delicts. The defendant shall be li-able for all damages, which are the
1. Criminal offense-when the crime was commit-ted with one or more natural and probable consequences of the act or omission complained of.
aggravating circumstances.
2. Quasi-delicts-when the defendant acted with gross negligence. Article 2232. In contracts and quasi-contracts, the court may award exemplary
3. Contracts and Quasi-contracts-when defendant acted in wanton, damages if the defendant acted in a wanton, fraudulent, reckless, oppressive, or
fraudulent, reckless, oppres-sive, or malevolent manner. malevolent manner.
Article 2230. In criminal offenses, exemplary damages as a part of the civil Exemplary Damages in Contracts and Quasi-Contracts.
liability may be imposed when the crime was committed with one or more To justify the award of exemplary damages in contracts and quasi-
aggravating circumstances. Such damages are separate and distinct from fines and contracts, it is essential that the defendant must have acted in a wanton,
shall be paid to the offended party. fraudulent, reckless, oppressive, or malevolent manner.
Exemplary Damages, When Imposable In Criminal Cases; Article 2233. Exemplary damages cannot be recovered as a matter of right; the
Aggravating Circumstances Must Be Present. court will decide whether or not they should be adjudicated.
In criminal cases. exemplary damages cannot be awarded if there is no
aggravating circumstance. The aggravating circumstance, whether Grant of Exemplary Damages is Discretionary.
ordinary or qualifying, should entitle the offended party to an award of Settled is the rule that exemplary damages cannot be claimed as a matter
exemplary damages. It must be alleged. of right. They are merely additional to the other forms of damages (except
nominal damages) which the court may or may not grant. If there is a need
Exemplary Damages distinct from Fines. to set an example for the public good, the court may grant exemplary
In criminal cases, fines may be imposed by the court. These fines are damages.
separate and distinct from the exemplary damages. The fines are payable
to the State but exemplary damages to the injured party. Article 2234. While the amount of the exemplary damages need not be proved, the
plaintiff must show that he is entitled to moral, temperate or compensatory
Article 2231. In quasi-delicts, exemplary damages may be granted if the defendant damages before the court may consider the question of whether or not exemplary
acted with gross negligence. 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
SPECIAL TORTS
Principle of Abuse of Rights.
Even if an act is not illegal if there is an abuse of right such as when the
QUAMTO
act was done without prudence or good faith, the actor is liable for the
damages occasioned thereby. The medical abstracts to the injuries sustained by my client as well as copies of
receipts of expenses incurred in connection with the treatment of his injuries. I will
Elements of Abuse of Rights. also present the testimony of my client and perhaps a bystander who witnessed the
1. There is a legal right or duty; incident as to the circumstances surrounding the accident.
2. which is exercised in bad faith; and xxx
3. for the sole intent of prejudicing or injuring another. Even assuming that there was contributory negligence on the part of my client, I
will argue that it will not preclude the recovery of damages but may only mitigate
Rationale behind the principle. the damages to which he is entitled.
The exercise of a right ends when the right disappears, and it disappears
when it is abused, especially to the prejudice of others. It cannot be said Under the law, no person shall be liable for those events which could not be
that a person exercises a right when he unnecessarily prejudices another or foreseen or even if foreseen were inevitable. (Art. 1174, NCC) The event which
offends morals or good customs. caused damage
to the bar candidate was entirely independent of human will and neither was their
Requisites for recovery damages. participation of the university in the aggravation of the injury. To be liable for the
damages caused, there must be fault or negligence concurring with the fortuitous
event which is absent in this case.
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TORTS AND DAMAGES
Actual or Compensatory Damages, Moral Damages, Nominal Damages, Temperate and Moderate Damages,
Liquidated Damages, Exemplary or Corrective Damages, Special Torts
be accomplished by bad faith, and an award of damages would be allowed only if
The owner is presumed liable unless he proves the defense of diligence. the guilty party acted in a wanton, fraudulent, reckless, or malevolent manner.
Art. 2201 entitles the person to recover damages which may be attributed to The spouses cannot recover actual damages in the form of indemnity for the loss of
nonperformance of an obligation. life of the unborn child. This is because the unborn child is not yet considered a
xxx person and the law allows indemnity only for loss of life of person. The mother,
In case of overbooking, airline is in bad faith. however may recover damages for the bodily injury she suffered from the loss of
the fetus which is considered part of her internal organ. The parents may also
There is no showing that the pain in DT's arm and wrist resulted directly from the recover damages for injuries that are inflicted directly upon them, e.g., moral
carrier's acts complained of. Hence, they are not entitled to actual damages. damages for mental anguish that attended the loss of the unborn child. Since there
Xxx is gross negligence, exemplary damages can also be recovered.
There is also no basis to award moral damages for such breach of contract because
the facts of the problem do not show bad faith or fraud on the part of the airline. There is no legal basis to Ortillo’s claim for moral damages. It does not fall under
the coverage of Art. 2219, NCC.
As the principal in the contract of carriage, the petitioner was held liable even xxx
when the breach of contract had occurred, not on its own flight, but on that of Ortillo is entitled to attorney’s fees because Fabricato’s complaint is a case of
another airline. malicious prosecution or a clearly unfounded civil action.