CHAPTER 8: DAMAGES DAMAGES MAY BE: 1. Actual or compensatory; 2. Moral; 3. Nominal; 4. Temperate or moderate; 5. Liquidated; or 6. Exemplary or corrective.

DAMAGE the detriment, injury or loss which is occasioned by reason of fault of another in the property or person DAMAGES the pecuniary compensation recompense or satisfaction for an injury sustained, or as otherwise expressed, the pecuniary consequences which the law imposes for the breach of some duty or the violation of some rights DAMNUM ABSQUE INJURIA or Damage without Injury a person may have suffered physical hurt or injury, but for as long as no legal injury or wrong has been done, there is no liability INJURY Legal invasion of a legal right DAMAGE Loss, hurt or harm which results from the injury DAMAGES The recompense or compensation awarded for the damage suffered

i.

Need to be pleaded

ii. Pray for the relief that claim for loss be granted iii. Prove the loss WHEN LOSS NEED NOT BE PROVED: a. Liquidated damages previously agreed upon; liquidated damages take the place of actual damages except when additional damages incurred b. If damages other than actual are sought c. Loss is presumed (ex: loss if a child or spouse) d. Forfeiture of bonds in favor of the government for the purpose of promoting public interest or policy (ex: bond for temporary stay of alien) CONTRACTS AND QUASI-CONTRACTS a. Damages in case of Good Faith i. Natural and probable consequences of breach of obligations

ii. Parties have foreseen or could have reasonably foreseen at the time the obligation was created b. Damages in case of Bad Faith i. It is sufficient that damages may be reasonably attributed to the nonperformance of the obligation.

CRIMES AND QUASI-CRIMES a. Defendant is liable for all damages that are natural and probable consequences of the act complained of; b. Not necessary that damages have been foreseen or could have been reasonably foreseen. VALUE OF LOSS SUFFERED Destruction of things, fines or penalties, medical & hospital bills, attorney's fees, interests, cost of litigation Variables to consider are:

NOTE: A complaint for damages is a personal action Proof of pecuniary loss is necessary to successfully recover actual damages from the defendant. No proof of pecuniary loss is necessary in case of moral, nominal, temperate, liquidated or exemplary damages. The assessment of damages, except liquidated ones, is left to the discretion of the court according to the circumstances of each case. Adequate compensation for the value of loss suffered or profits which obligee failed to obtain Exceptions:

LOSS OF EARNING CAPACITY: a. life expectancy b. net income/earnings total of the earnings less expenses necessary for the creation of such earnings and less living or other incidental expenses Formula: [2/3 x 80 (age at the time of death)] x monthly earnings x 12 = GROSS EARNINGS GE - Approximate Expenses (50% of GE) = Net Earnings

1. ACTUAL/COMPENSATORY

a. Law b. Stipulation KINDS OF ACTUAL OR COMPENSATORY DAMAGES a. General Damage - natural, necessary and logical consequences of a particular wrongful act which result in injury; need not be specifically pleaded because the law itself implies or presumes that they resulted from the wrongful act b. Special Damages - damages which are the natural, but not the necessary and inevitable result of the wrongful act. (i.e., attorneys fees) REQUIREMENTS:

LOSS OF PROFITS (Lucrum Cessans) May be determined by considering the average profit for the preceding years multiplied by the number of years during which the business was affected by the wrongful act or breach

ATTORNEYS FEES They are actual damages. It is due to the plaintiff and not to counsel Plaintiff must allege the basis of his claim for attorneys fees in the complaint; the basis should by one of the cases under Art. 2208 In the absence of stipulation, attorney's fees and expenses of litigation, other than judicial costs, cannot be recovered, except:

defendant so that deceased had no earning capacity at time of death c. Support, if deceased was obliged to give support (for period not more than 5 years) d. Moral damages 2. MORAL DAMAGES MORAL DAMAGES INCLUDE: (PBMF-MWSS) a. Physical suffering b. Besmirched reputation c. Mental anguish d. Fright e. Moral shock f. Wounded feelings g. Social humiliation h. Serious anxiety i. j.

WHEN ARE ATTORNEYS FEES RECOVERABLE:

a. When exemplary damages are awarded; b. When the defendant's act or omission has compelled the plaintiff to litigate with third persons or to incur expenses to protect his interest; c. In criminal cases of malicious prosecution against the plaintiff; d. In case of a clearly unfounded civil action or proceeding against the plaintiff; e. Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff's plainly valid, just and demandable claim; f. In actions for legal support; g. In actions for the recovery of wages of household helpers, laborers and skilled workers; h. In actions for indemnity under workmen's compensation and employer's liability laws; i. j. In a separate civil action to recover civil liability arising from a crime; When at least double judicial costs are awarded;

Sentimental value of real or personal property may be considered in adjudicating moral damages The social and economic/financial standing of the offender and the offended party should be taken into consideration in the computation of moral damages

k. Moral damages is awarded only to enable the injured party to obtain means, diversions or amusements that will serve to alleviate the moral suffering he has undergone, by reason of defendant's culpable action and not intended to enrich a complainant at the expense of defendant IN WHAT CASES MAY MORAL DAMAGES RECOVERED (Enumeration Not Exclusive): a. Criminal offense resulting in physical injuries b. Quasi-delicts causing physical injuries c. Seduction, abduction, lasciviousness rape or other acts of BE

WHEN IS ACTUAL DAMAGES MITIGATED: a. Contributory negligence b. In contracts. Quasi-contracts and quasi-delict i. Plaintiff has contravened the terms of contract ii. Plaintiff derived some benefit as result of contract iii. In case where exemplary damages are to be awarded, that the defendant acted upon the advise of counsel iv. That the loss would have resulted in any event v. That since the filing of the action, the defendant has done his best to lessen the plaintiff's loss or injury

d. Adultery and concubinage e. Illegal or arbitrary detention or arrest f. Illegal search g. Libel, slander or other form of defamation h. Malicious prosecution i. Acts mentioned in art 309 of the RPC relating to disrespect of the dead and interference with funeral Acts and actions referred to in arts 21, 26, 27, 28, 29, 30, 32, 34 and 35

j. DAMAGES RECOVERABLE IN CASE OF DEATH: 1. Medical & Hospital Bills 2. Damages for death a. Minimum amount: P50,000 b. Loss of earning capacity unless deceased had permanent physical disability not caused by

k. The parents of the female seduced, abducted, raped, or abused l. Spouse, descendants, ascendants and brother and sisters for acts mentioned in art 309

m. Art 2220 - in cases of willful injury to property or breaches of contract where defendant acted fraudulently or in bad faith

GENERAL RULE: The plaintiff must allege and prove the factual basis for moral damages and its causal relation to the defendants act EXCEPTION: Moral damages may be awarded to the victim in criminal proceedings without the need for pleading proof of the basis hereof. 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

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

WHEN IMPOSABLE: a. 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. b. Quasi-delicts exemplary damages may be granted if the defendant acted with gross negligence. c. Contracts and quasi-contracts the court may award exemplary damages if the defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner. WHAT MUST BE PROVED: While the amount of 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.

3. NOMINAL DAMAGES

ELEMENTS: a. Plaintiff has a right b. Right of plaintiff is violated c. Purpose is not to identify but vindicate or recognize right violated NOTE: The Law presumes damage although actual or compensatory damages are not proven They are damages in the name only and are allowed simply in recognition of a technical injury based on a violation of a legal right Nominal damages cannot coexist with actual or compensatory damages More than nominal but less than compensatory where some pecuniary loss has been suffered but its amount can't be proved with certainty due to the nature of the case 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.

4. TEMPERATE OR MODERATE DAMAGES

REQUISITES: a. Some pecuniary loss b. Loss is incapable of pecuniary estimation c. Must be reasonable 5. LIQUIDATED DAMAGES Those agreed upon by the parties to a contract, to be paid in case of breach thereof

WHEN LIQUIDATED DAMAGES MAY BE EQUITABLY REDUCED: a. Iniquitous or unconscionable b. Partial or irregular performance 6. EXEMPLARY OR CORRECTIVE DAMAGE Imposed by way example or correction for the public good, in addition to the moral, temperate, liquidated to compensatory damages