Actual, Moral, Nominal And Temperate Damages

KINDS OF DAMAGES

Art. 2197. Damages may be: 1) Actual or compensatory; 2) Moral; 3) Nominal;

4) Temperate or moderate; 5) Liquidated; or 6) Exemplary or corrective.

1) Actual or Compensatory Damages Article 2199 of the Civil Code provides that “except as provided by law or by stipulation, one is entitled to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved. Such compensation is referred to as actual or compensatory damages.”

Purpose of the law in awarding actual damages is to repair the wrong that has been done, to compensate for the injury inflicted, and not to impose a penalty.

Classification of Actual Damages 1) Dano Emergente or the loss of what a person already possesses. 2) Lucro Cesante or the failure to receive as a benefit tha t would have pertained to him. It shall also include loss or impairment of earning capacity in cases of temporary or permanent personal injury. Both items of damages may be awarded in the same case in favor of the same injured party.

Extend and Measure of Damages Art. 2202. In crimes and quasi- delicts, the defendant shall be liable for all damages which are the natural and probable consequences of. It is not necessary that such damages have been foreseen or could have reasonably been foreseen by the defendant.

General Rule: The damage is measured on plaintiff’s loss and not on defendant’s gain. Exception: Damages are measured by the benefit that has accrued to the defendant in certain cases. Example: In Intellectual Property Code allows recovery of the amount that was earned by the defendant who infringed the right of the owner of the mark.

Damages in Breach of Contract Art. 2201. In contracts and quasi-contracts, the damages for which the obligor who acted in good faith is liable shall be those that are the natural and probable consequences of the breach of the obligation, and which the parties have foreseen or could have reasonably foreseen at the time the obligation was constituted. In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages which may be reasonably attributed to the non-performance of the obligation.

Certainty of Damages  A party is entitled to adequate compensation

only for such pecuniary loss actually suffered and duly prove.  The claimant is duty-bound to point out specific facts that afford a basis for measuring whatever compensatory damages are borne.  Proof of actual loss is not necessary in cases where the law or jurisprudence allows the award of civil indemnity

Damage to Property  Damage to or Loss of Personal Property

Where goods were destroyed by the wrongful act of the defendant, the plaintiff is entitled to their value at the time of destruction.  Damage to or Loss of Real Property In case of total loss, the value of the real property at the time and place of the loss must be assessed and such assessed value is the measure of the damage due to the plaintiff.  Loss of Possession Where the plaintiff was merely deprived of his possession said plaintiff is entitled to the value of use of the premises.

Personal Injury If the plaintiff is asking for damages for his own injury, said plaintiff is entitled to the amount of medical expenses as well as other reasonable expenses that he incurred to treat his or his relative’s injuries.

Damages in Case of Death  When death occurs due to a negligent act or a

crime, the following damages may be recovered: 1) civil indemnity ex delicto for the death of the victim; 2) actual or compensatory damages; 3) moral damages; 4) exemplary damages; 5) attoney’s fees and expenses of litigation; and 6) interest, in proper cases.

Loss of Earning Capacity  Formula for the computation of the awarded

damages for loss of earning capacity Net Earning Capacity = Life Expectancy x [Gross Annual less Necessary Living Expenses]

Loss of Profits  This may take in the form of commissions

that were lost by reason of the acts or omissions of the defendant. This may also take the form of income that was stipulated in the contract that was terminated in a wanton and fraudulent manner.  Damages may include the cost of lost opportunity consisting of the profits that the plaintiff failed to obtain due to a contract’s early termination.

Attorney’s Fees  GR: In the absence of stipulation, attorney’s fees and

expenses of litigation, other than judicial costs, cannot be recovered.  Except: 1) When exemplary damages are awarded; 2) When the defendant’s act or omission has compelled the plaintiff to litigate with third persons or to incur expenses to protect his interest; 3) In criminal cases of malicious prosecution against the plaintiff; 4)In case of a clearly unfounded civil action or proceeding against the plaintiff;

5) Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff’s plainly valid, just and demandable claim; 6) In actions for legal support; 7) In actions for the recovery of wages of household, helpers, laborers and skilled workers; 8) In actions for indemnity under workmen’s compensation and employer’s liability laws; 9) In a separate civil action to recover civil liability arising from a crime;

10) When at least double judicial cost are awarded; 11) In any other cases where the court deems it just and equitable that attorney’s fees and expenses of litigation should be recovered. In all cases, the attorney’s fees and expenses of litigation must be reasonable.

Interest Interest may be paid only either as a compensation for the use of money (monetary interest) or as damages (compensatory interest). Monetary interest refers to the price paid for the use of money for a period of time and are expressed as a percentage of the total outstanding balance that is either fixed or variable.

2) Moral Damages Moral damages include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation and similar injury.

Effect of Death  A claim for moral damages does not survive

the death of the plaintiff. Reason: It is extremely personal to the injured party.

Elements 1) There must be an injury, whether physical,

mental or psychological, clearly sustained by the claimant; 2) There must be a culpable act or omission factually established; 3) The wrongful act or omission of the defendant is the proximate cause of the injury sustained by the claimant; and 4) The award of damages is predicted on any of the cases stated in Art. 2219.

Proof and Causation  The assessment of the damage is left to the

discretion of the court, according to the circumstances of each case.

Cases When Moral Damages May Be Awarded 1) A criminal offense resulting in physical injuries;

2) Quasi-delicts causing physical injuries; 3) Seduction, abduction, rape, or other lascivious acts; 4) Adultery or concubinage; 5) Illegal or arbitrary detention or arrest; 6) Illegal search; 7) Libel, slander or any other form of defamation;

8) Malicious prosecution; 9) Acts mentioned in Article 309; 10) Acts and actions referred to in Arts. 21, 26, 27, 28, 29, 30, 32, 34 and 35. The parents of the female seduced, abducted, raped or abused, referred to in No. 3 of this article, may also recover moral damages. The spouse, descendants, ascendants, and brothers and sisters may bring the action mentioned in No.9 of this article, in the order named.

 Art. 2220. Willful injury to property may be a

legal ground for awarding moral damages if the court should find that, under the circumstances, such damages are justly due. The same rule applies to breaches of contract where the defendant acted fraudulently or in bad faith.

Factors in Determining Amount  Factors specified by law and established by

jurisprudence that could affect the amount recovered. 1) Extent of Humiliation 2) Pain and suffering 3) Official, Political, Social and Financial Standing 4) Age

Fixed Amount  In murder cases, fixed amount of moral

damages is P500,000.  In case of moral damages for separate civil actions for quasi-delict where the victim died is P500,000.  In case of moral damages for each conviction of rape which is qualified by circumstances warranting the imposition of the death penalty (even if the same penalty is no longer imposable) is P100,000.

Persons who may Recover  Generally, the person who endured physical

suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation and similar injury is the person who can recover moral damages.  If the basis of the claim is suffering, only the one who suffered and not his or her spouse may recover.

a) Relatives Exceptions: The parents of the female seduced, abducted, raped or abused, referred to in No. 3 of this article, may also recover moral damages. The spouse, descendants, ascendants, and brothers and sisters may bring the action mentioned in No.9 of this article, in the order named. The acts mentioned in No. 9 those covered by Art. 309 of the NCC provides that “any person wh0 shows disrespect to the dead, or wrongfully interferes with a funeral shall be liable to the family of the deceased for damages, material and moral.”

In addition, Art. 2209 provides that the spouse, legitimate and illegitimate descendants and ascendants of the deceased may demand moral damages for mental anguish by reason of the death of the deceased.

b) Corporation

GR: Corporations and other artificial beings are not entitled to recover damages. Exception: The only exception to the rule is when the corporation has a reputation that is debased, resulting in its humiliation in the business realm.

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.

Nature of Nominal Damages It is generally held that a nominal damages is a substantial claim, if based upon the violation of a legal right; in such case, the law presumes damage although actual or compensatory damages are not proven.

Amount to be awarded Generally, nominal damages by their nature are small sums fixed by the court without regard to the extent of the harm done to the injured party.

Example when Nominal Damages was awarded In the case of A. T. Stearns Lumber Co. vs Howlett the court ruled that “only nominal damages can be recovered by a manufacturer that was injured by a conspiracy to prevent use of his product, where the actual damages cannot be determined and others also suffered whatever he suffered in the same line of business so that he suffered no special damages whatsoever.”

Cannot Co-Exist with Actual Damages 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. An award of compensatory damages is a vindication of right. It is in itself recognition that plaintiff’s right was violated, hence, the award of nominal damages is unnecessary and improper.

Labor Cases Nominal damages may be appropriately awarded if the right to procedural due process of the employee was violated. This award is proper where there is just or authorized cause but due process was not accorded to the employee.

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.  Art. 2225. Temperate damages must be reasonable under the circumstances.

Loss of Earning Capacity  Temperate damages may be awarded in lieu

of actual damages for loss of earning capacity where the earning capacity is plainly established but no evidence was presented to support the allegation of the injured party.

Lost Earnings  Temperate damages can be awarded 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.

Fixed Temperate Damages  In murder cases, the Supreme court pegged

the amount of temperate damages at P25,000 if actual damages were not established.  In cases where the amount of actual damages for funeral expenses cannot be determined because of the absence of receipts to prove them, temperate damages may be awarded in the amount of P25,000.

Injury to Business or Credit Standing  The Court in one case ruled that “in an action

by a depositor against a bank for damages resulting from the wrongful dishonor of the depositor’s check, temperate damages for injury to business standing or commercial credit may be recovered even in the absence of definite proof of direct pecuniary loss to the plaintiff, under Article 2205 of the New Civil Code.”