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Doctrine: Actual or Compensatory
Damages include not only loss
already suffered but loss of profits
which may not have been realized.
March 24, 1914 G.R. no.8385
Facts: Plaintiff Algarra was involved
in a car collision due to the
defendants negligence causing him
to be hospitalized for 10days.
Plaintiff said that he had done no
work since the accident. Algarra
sells products of distillery on a 10%
commission and made an average of
P50 per month. He had 20 regular
customers which took him 4yrs. to
build up but after the accident only
4 remained. The lower court refused
to allow him to claim for injury to his
business due to his enforced
absence therefrom on the ground
that the doctrine of Marcelo v.
Velasco
is
opposed
to
such
allowance.
Issue: whether or not damage to his
business can be awarded by the
court?
Held: Yes.
Actual damages is given to repair
the wrong that has been done, to
compensate for the injury inflicted
and not to impose a penalty. They
are
compensatory
only.
Compensatory damages simply make
good or replace the loss caused by
the wrong.
Compensatory damages are awarded
to compensate the injured party for
injury caused by the wrong and must
be only such as make just and fair
compensation and are due when the
wrong is established, whether it was
committed maliciously or not.
Actual damages include not only loss
already suffered but loss of profits
which may not have been realized.
The case at bar involves actual
incapacity of the plaintiff for two