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1. Tan v. OMC Carriers, Inc. G.R. No.

190521; January 12, 2011

FACTS: Respondent OMC Carriers owned a truck, driven by respondent Arambala, which crashed into the home of petitioners Tan when its
braking mechanism failed. This caused the death of the head of the family, Celedonio Tan. The Tans went to court to demand damages due
to the negligence of OMC. OMC counters that the truck went out of control because of motor oil spilled on the road. The RTC found OMC to
be liable, that the brake of the truck malfunctioned, and that there was no motor oil which caused the accident. The driver, Aramballa,
abandoned the truck when the brakes did not work which caused the truck to slam into the home of the Tans. The RTC awarded actual
damages, both on the loss of property and earning capacity of Celedonio. Exemplary damages were also awarded. Upon appeal to the Court
of Appeals, the actual damages for loss of property was reduced as they were insufficiently substantiated. The damages for loss of earning
capacity was deleted for being totally unsubstantiated. The Tans were unable to present documents to ascertain the amount of earning capacity
lost. Exemplary damages were also reduced.

ISSUES: Whether or not:


a) the reduction of actual damages for loss of property was proper;
b) the removal of actual damages for loss of earning capacity was proper; and
c) whether or not the reduction of exemplary damages was proper.

HELD: The petition is partly meritorious.


Civil Law: Temperate damages are awarded when the exact amount of damages is unknown. The petitioners clearly suffered damages. Their
home and property were damaged. The provider of the family passed away. It is clear and undisputed that they did suffer losses. However,
since the value of the properties damaged could not be determined with certainty because of the nature of the property, temperate damages
are in order. Also, even if there are no documents supporting the earning capacity of the deceased, the damage caused is still undisputed.
Temperate damages must be awarded. The reduction of exemplary damages are proper as exemplary damages are not meant to enrich or
reduce another party to poverty.

Consistent with pertinent jurisprudence, the interest on these awards must be computed from the date when the RTC rendered its decision in
the civil case, or on June 17, 2008, as it was at this time that a quantification of the damages may be deemed to have been reasonably
ascertained.

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