DAMAGES CONTRACTS & QUASI CONTRACTS

Kinds of Damages: (MENTAL) Art. 2201. In contracts and quasi-contracts, the damages
for which the obligor who acted in good faith is liable shall
MORAL. EXEMPLARY. NOMINAL. TEMPERATE. be those that are the natural and probable consequences of
ACTUAL. LIQUIDATED. the breach of the obligation, and which the parties have
foreseen or could have reasonably foreseen at the time the
obligation was constituted.
1. ACTUAL/COMPENSATORY In case of fraud, bad faith, malice or wanton attitude, the
Art. 2199. Except as provided by law or by stipulation, one obligor shall be responsible for all damages which may be
is entitled to an adequate compensation only for such reasonably attributed to the non-performance of the
pecuniary loss suffered by him as he has duly proved. Such obligation. (1107a)
compensation is referred to as actual or compensatory 1. Damages in case of Good faith -
damages.
a. Natural and probable consequence of breach of obligation,
- adequate compensation for and
a) the value of loss suffered b. Parties have foreseen or could have reasonably foreseen at
b) profits which obligee failed to obtain time obligation was constituted.

Exception: 2. Damages in case of bad faith-

a. provided by law a. it is sufficient that damages may be reasonably attributed to

the non-performance of the obligation.
b. by stipulation

Purpose
Actual or compensatory damages simply make good or replace
the loss caused by the wrong.
Manner of Determination:
Claimant must produce competent proof or the best evidence
obtainable such as receipts to justify an award therefore.
Actual or compensatory damages cannot be presumed but
must be proved with reasonable certainty. (People v. Ereno,
Feb. 22, 2000).
CRIMES & QUASI-CRIMES
Art. 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 complained
of. It is not necessary that such damages have been
foreseen or could have reasonably been foreseen by the
defendant.
· defendant is liable for all damages that are natural and
probable consequence of the act/omission complained of.

Ordinary Damage
NOTE: Ordinary Damages are those generally inherent in a
breach of a typical contract.
WHAT MUST BE DONE TO COLLECT ACTUAL
DAMAGES:
1.) Plead or allege the loss.
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.
SPECIAL DAMAGES - damages which are the natural, but
not the necessary and inevitable result of the wrongful act;
need to be pleaded.
2.) Pray for the relief that claim for loss be granted.
3.) Prove the loss.
WHEN LOSS NEED NOT BE PROVED:
· not necessary that damages have been foreseen or could have
been reasonably foreseen.
a) VALUE OF LOSS SUFFERED - Destruction of things,
fines or penalties, medical & hospital bills, attorney's fees,
interests, cost of litigation.
Damages recoverable:
1. Medical & Hospital Bills;
2. Loss or impairment of earning capacity (in case of physical
disability);
3. Damages for death;
a) Minimum amount: P50,000;
b) Loss of earning capacity unless deceased had permanent
physical disability not caused by 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); and

1.) Liquidated damages previously agreed upon; liquidated d) Moral damages;

damages take the place of actual damages except when
additional damages incurred. 4. Attorney's fees (Art. 2208, Civil Code) - as a general rule,
attorney's fees (other than judicial costs) are not recoverable,
2.) If damages other than actual are sought. except:

3.) Loss is presumed (ex: loss if a child or spouse). a) stipulation between parties;

4.) Forfeiture of bonds in favor of the government for the b) when exemplary damages are awarded;
purpose of promoting public interest or policy (ex: bond for
temporary stay of alien). c) when defendant's act/omission compelled plaintiff to litigate
with 3rd persons or incur expenses to protect his interest;
d) malicious prosecution;
e) clearly unfounded civil action or proceeding against
plaintiff;
f) defendant acted in gross & evident bad faith in refusing to
satisfy plaintiff's just & demandable claim;
g) legal support actions;
h) recovery of wages of household helpers, laborers & skilled
workers;
i) actions for indemnity under workmen's compensation and
employer liability laws;
j) separate civil action to recover civil liability arising from
crime;
k) when double judicial costs are awarded
5. Judicial costs
6. interest
- discretionary on part of the court
b) UNREALIZED PROFITS - future earnings
WHEN IS DAMAGES MITIGATED (Art. 2214-2215,
Civil Code):
1. Contributory negligence
2. In contracts. Quasi-contracts and quasi-delict -
a. plaintiff has contravened the terms of contract;
b. plaintiff derived some benefit as result of contract;
c. in case where exemplary damages are to be awarded, that
the defendant acted upon the advise of counsel;
d. that the loss would have resulted in any event;
e. that since the filing of the action, the defendant has done his
best to lessen the plaintiff's loss or injury.
2. MORAL DAMAGES - (PBMF-MWSS)
Art. 2217. Moral damages include physical suffering,
mental anguish, fright, serious anxiety, besmirched
reputation, wounded feelings, moral shock, social
humiliation, and similar injury. Though incapable of
pecuniary computation, moral damages may be recovered
if they are the proximate result of the defendant's wrongful
act for omission.
Notes:
· 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.
· 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.
Purpose
Awarded only to enable the injured party to obtain means,
diversion or amusement that will alleviate the moral suffering
he has undergone, by reason of defendants culpable action.
(Robleza v. CA, 174 SCRA 354)
Manner of Determination
No proof of pecuniary loss is necessary. The assessment is left
to the discretion of the court according to the circumstances of
each case. However, there must be proof that the defendant
caused physical suffering etc. (Compania Maritima v. Allied
Free Worker’s Union, G.R. No. L-31379, Aug. 29, 1988).
GR: Factual basis must be alleged. Aside from the need for
the claimant to satisfactorily prove the existence of the factual
basis of the damages, it is also necessary to prove its causal
relation to the defendant’s act (Raagas v. Trava, G.R. No. L-
20081, Feb. 27,1968; People v. Manero, G.R. Nos. 86883-85,
Jan. 29, 1993).
Exception: Criminal cases. Moral damages may be awarded to
the victim in criminal proceedings in such amount as the court
deems just without need for pleading or proof of the basis
thereof (People v. Paredes, July 30, 1998).
Moral Damages is a special kind of Damages.
NOTE: Special Damages are those which exist because of
special circumstances and for which a debtor in good faith can
be held liable if he had been previously informed of such.
circumstances.
IN WHAT CASES MAY MORAL DAMAGES BE
RECOVERED (enumeration not exclusive) Art. 2219,Civil
Code:
a. Criminal offense resulting in physical injuries;
b. Quasi-delicts causing physical injuries;
c. Seduction, abduction, rape or other acts of lasciviousness;
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;
j. Acts and actions referred to in arts 21, 26, 27, 28, 29, 30, 32,
34 and 35;
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; and
m. Art 2220 - in cases of willful injury to property or breaches
of contract where defendant acted fraudulently or in bad faith.
3. NOMINAL DAMAGES
Art. 2221. Nominal damages are 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.
ELEMENTS:
a. Plaintiff has a right;
b. Right of plaintiff is violated; and
c. Purpose is not to identify but vindicate or recognize right
violated.
Art. 2222. The court may award nominal damages in every
obligation arising from any source enumerated in Article 1157
(Law, Contracts, Quasi Contracts, Delicts, & Quasi Delicts) or
in every case where any property right has been invaded.
Purpose
Vindicating or recognizing the injured party’s right to a
property that has been violated or invaded. (Tan v. Bantegui,
473 SCRA 663)
Manner of Determination
No proof of pecuniary loss is necessary. Proof that a legal right
has been violated is what is only required. Usually awarded in
the absence of proof of actual damages.
Nominal Damages is a special kind of damages.
NOTE: Special Damages are those which exist because of
special circumstances and for which a debtor in good faith can
be held liable if he had been previously informed of such.
circumstances.
4. TEMPERATE OR MODERATE DAMAGES
Art. 2224. Temperate or moderate damages, which are
more than nominal but less than compensatory damages,
may be recovered when the court finds that some
pecuniary loss has been suffered but its amount can not,
from the nature of the case, be provided with certainty.
REQUISITES:
a. Some pecuniary loss;
b. Loss is incapable of pecuniary estimation; and
c. Must be reasonable.
Purpose
When the court is convinced that there has been such a loss,
the judge is empowered to calculate moderate damages rather
than let the complainant suffer without redress. (GSIS v.
Labung-Deang, 365 SCRA 341)
Manner of Determination
May be recovered when the court finds that some pecuniary
loss has been suffered but its amount cannot, from the nature
of the case, be proved with certainty. No proof of pecuniary
loss is necessary.
Temperate damages are a special kind of damages.
NOTE: Special Damages are those which exist because of
special circumstances and for which a debtor in good faith can
be held liable if he had been previously informed of such.
circumstances.
5. LIQUIDATED DAMAGES
Art. 2226. Liquidated damages are those agreed upon by the
parties to a contract, to be paid in case of breach thereof.
WHEN LIQUIDATED DAMAGES MAY BE EQUITABLY
REDUCED (Art. 2227):
a. iniquitous or unconscionable
b. partial or irregular performance
Purpose
Liquidated damages are frequently agreed upon by the parties,
either by way of penalty or in order to avoid controversy on
the amount of damages.
Manner of Determination
If intended as a penalty in obligations with a penal cause,
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.
Liquidates damages is a special kind of damages.
NOTE: Special Damages are those which exist because of
special circumstances and for which a debtor in good faith can
be held liable if he had been previously informed of such.
circumstances.
6. EXEMPLARY OR CORRECTIVE DAMAGE
Art. 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 compensatory damages.
Art. 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.
Art. 2231. In quasi-delicts, exemplary damages may be
granted if the defendant acted with gross negligence.
Art. 2232. In contracts and quasi-contracts, the court may
award exemplary damages if the defendant acted in a wanton,
fraudulent, reckless, oppressive, or malevolent manner.
Art. 2233. Exemplary damages cannot be recovered as a
matter of right; the court will decide whether or not they
should be adjudicated.
Art. 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 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.
Art. 2235. A stipulation whereby exemplary damages are
renounced in advance shall be null and void.
Purpose
Exemplary or corrective damages are intended to serve as a
deterrent to serious wrongdoings. (People v. Orilla, 422 SCRA
620)
Manner of Determination
1. That the claimant is entitled to moral, temperate or
compensatory damages; and

2. That the crime was committed with 1 or more aggravating

circumstances, or the quasi- ‐delict was committed with gross
negligence, or in contracts and quasi-contracts the act must be
accompanied by bad faith or done in wanton, fraudulent,
oppressive or malevolent manner. No proof of pecuniary loss
is necessary.

Exemplary damages are a special kind of damages.

NOTE: Special Damages are those which exist because of

special circumstances and for which a debtor in good faith can
be held liable if he had been previously informed of such.
circumstances.
ACTUAL/COMPENSATORY
Actual or compensatory damages
simply make good or replace the loss
caused by the wrong.
Claimant must produce competent
proof or the best evidence
obtainable such as receipts to justify
an award therefore. Actual or
compensatory damages cannot be
presumed but must be proved with
reasonable certainty.
GR: Actual damages must be
substantiated by documentary
evidence, such as receipts, in order
to prove expenses incurred as a
result of the death of the victim or
the physical injuries sustained by the
victim (Phil. Hawk Corp. vs. Vivian
Tan Lee, G.R. No. 166869, February
16, 2010).
XPN: Damages for loss of earning
capacity may be awarded despite the
absence of documentary evidence
when:
1.) the deceased is self-employed
and earning less than the minimum
wage under current labor laws, in
which case, judicial notice may be
taken of the fact that in the
deceased’s line of work no
documentary evidence is available;
or 2.) the deceased is employed as a
daily wage worker earning less than
the minimum wage under current
labor laws.
Ordinary
NOTE: Ordinary Damages are those
generally inherent in a breach of a
typical contract.
MORAL NOMINAL
According to purpose
Awarded only to enable the injured Vindicating or recognizing the injured
party to obtain means, diversion or party’s right to a property that has been
amusement that will alleviate the moral violated or invaded. (Tan vs. Bantegui,
suffering he has undergone by reason of G.R. No. 154027, October 24, 2005)
defendant’s culpable action. (Robleza vs
C.A. G.R. No. L-80364, June 28, 1989)
According to manner of determination
No proof of pecuniary loss is necessary. No proof of pecuniary loss is necessary.
The assessment is left to the discretion Proof that a legal right has been violated
of the court according to the is what is only required. Usually
circumstances of each case. However, awarded in the absence of proof of
there must be proof that the defendant actual damages.
caused physical suffering, mental
anguish, moral shock, etc. (Campania
Maritima vs. C.A. G.R. No. L-31379,
August 29, 1988).
GR: Factual basis must be alleged. Aside
from the need for the claimant to
satisfactorily prove the existence of the
factual basis of the damages, it is also
necessary to prove it’s causal relation to
the defendant’s act (People vs Manero,
G.R. Nos. 86883-85, January 29,1993).
XPN: Criminal cases. Moral damages
may be awarded to the victim in
criminal proceedings in such amount as
the court deems just without need for
pleading or proof of the basis thereof
(People vs. Paredes, G.R. No. 136105,
October 23, 2001). The amount of
P50,000 is usually awarded by the Court
in case of the occurrence of death.
Special/Ordinary
Special Special
NOTE: Special Damages are those which
exist because of special circumstances
and for which a debtor in good faith can
be held liable if he had been previously
informed of such circumstances.
 TEMPERATE
When the court is convinced that
there has been such a loss, the judge
is empowered to calculate moderate
damages rather than let the
complainant suffer without redress
(GSIS vs. Labung-Deang, G.R. No.
135644, September 17, 2001)
May be recovered when the court
finds that some pecuniary loss has
been suffered but its amount cannot,
from the nature of the case, be
proved with certainty.
No proof of pecuniary loss is
necessary.
Special
LIQUIDATED
According to purpose
Liquidated damages are frequently
agreed upon by the parties, either by
way of penalty or in order to avoid
controversy on the amount of damages.
According to manner of determination
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).
No proof of pecuniary loss is necessary.
Special/Ordinary
Special
EXEMPLARY/CORRECTIVE
Exemplary or corrective damages are
intended to serve as a deterrent to
serious wrongdoings (People vs. Orilla,
G.R. Nos. 148939-40, February 13,
2004).
1. That the claimant is entitled to moral,
temperate or compensatory damages;
and
2. That the crime was committed with
one or more aggravating circumstances
or the quasi-delict was committed with
gross negligence, or in contracts an
quasi-contracts the act must be
accompanied by bad faith or done in
wanton, fraudulent, oppressive or
malevolent manner.
No proof of pecuniary loss is necessary.
Special