More Notes on Damages

Now that you've read about what damages are and granting of damages, here's some more things you ought to know about them.

Damages refer to the harm done and the amount that can consequently be recovered. It is the sum of money the law awards or imposes a pecuniary compensation, recompense or satisfaction for an injury done or a wrong sustained as a consequence of a breach of duty or violation of a right. "Injury" refers to the wrongful or unlawful act in question.

Actual/Compensatory Damages

Includes the value of the loss that was suffered and the profits that were not obtained (unrealized profits.) They must be pleaded and prayed for or they can't be recovered. Actual damages must be proved as a general rule; but proof of actual damages isn't necessary if liquidated damages were agreed on or if the parties have an penal clause in the agreement. The party that suffered the loss/injury must exercise ordinary diligence in order to minimize the damage caused by the act or omission (so negligent people, beware!)

In case of a tort, bad faith or quasi-delict, the plaintiff has to prove a causal connection between the tort and injury as well as the amount or extent of the injury.

In case of a person's death, the actual/compensatory damages that can be recovered are the following:

1.) Php70,000.00

2.) Loss of earning capacity

3.) Support (if the deceased was required to give support)

4.) Moral damages

Extent of Debtor's Liability for Actual Damages

1.) Contracts and quasi-contracts

A.) If in good faith: the natural and probable consequences of the breach of obligation as well as those which the parties foresaw or could have reasonably foreseen when the obligation was constituted.

B.) If in bad faith: all damages that are the natural and probable consequences of the act  or omission complained of, whether foreseen or unforeseen (cause and effect relationship is enough.)

2.) Crimes and quasi-delicts -the same as in contracts and quasi-contracts in bad faith (but cause and effect relationship isn't mentioned.)

Attorney's Fees

Generally, they're not part of damages. They may, however, be recovered from the other party as reimbursement for the services of the winner's lawyer. The instances are the following:

A.) When there's a stipulation

B.) In the following instances:

1.) When exemplary damages are awarded

2.) When the defendant's act/omission caused the plaintiff to litigate with 3rd persons or incur expenses to protect his interests

3.) Criminal cases for malicious prosecution against the plaintiff

4.) Cases of clearly unfounded civil action against the plaintiff

5.) If the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff's just and valid claim

6.) Actions for illegal support

7.) Actions for the recovery of wages for household helpers, laborers and skilled workers

8.) Actions for indemnity under labor laws

9.) Separate civil actions to recover civil liability arising from a crime

10.) When at least double judicial costs are awarded

11.) In any other case where the court considers it just and equitable to allow the recovery of attorney's fees and litigation expenses

Monetary Obligations

Obligations for the payment of money in the following manner:

1.) Pay the agreed indemnity

2.) If no indemnity is agreed on, pay the agreed interest

3.) If there is no agreed interest, the legal interest applies (12% per year)

Moral Damages

These are damages that can be recovered for physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation and similar injuries. They can be recovered based on contract in the following instances: a.) if the defendant acted fraudulently or in bad faith, or b.) if a passenger dies due to the common carrier's negligence.

Requirements for Recovery of Moral Damages:

1.) There must be physical suffering, etc.

2.) The physical suffering, etc. must be the proximate result of the wrongful act/omission

3.) There must be clear testimony on the physical suffering, etc.

Moral Damages can be recovered in the following instances:

1.) Criminal offenses resulting in physical injuries

2.) Quasi-delicts causing physical injuries

3.) Seduction, abduction, rape or other acts of lasciviousness

4.) Adultery/concubinage

5.) Illegal/arbitrary detention/arrest

6.) Illegal search

7.) Libel, slander or any other form of defamation

8.) Malicious prosecution

9.) Acts mentioned in Art. 309 of the Civil Code (disrespect for the dead and wrongfully interfering with a funeral service)

10.) Acts mentioned in Arts. 21, 26-30, 32 and 34-35 of the Civil Code

11.) Willful injury to property

Nominal Damages

Nominal damages are the amount given to vindicate a right that was violated. If nominal damages are awarded actual, moral, temperate/moderate damages can't be recovered.

Temperate/Moderate Damages

Compensation higher than nominal damages but lower than actual/compensatory. They are awarded when the court finds that the offended party suffered a pecuniary loss that can't be estimated/ascertained.

Liquidated Damages

Damages agreed on by the parties to a contract and to be paid in case of a breach. They may be reduced by the courts in either of the following:

1.) There is partial/irregular performance (Art. 1229, Civil Code)

2.) The agreed penalty is iniquitous or unconscionable [read: excessive (Arts. 1229 and 2227, Civil Code)]

Exemplary/Corrective Damages

Imposed by way of example/correction for the public good in addition to moral, temperate, liquidated or actual damages. Exemplary damages can't be granted if there are no moral, temperate, actual or liquidated damages. If exemplary damages are awarded, nominal damages can't be recovered.

Exemplary damages can't be recovered as a matter or right; the court has the power to decide whether or not they can be awarded.

The amount of exemplary damages doesn't need proof, but the plaintiff must prove that he is entitled to moral, actual or temperate damages if he wants to claim exemplary damages. Furthermore, a person can't waive a claim to exemplary damages; stipulations to renunciation of exemplary damages are null and void.

When Exemplary Damages may be Awarded:

1.) Criminal offenses: if the crime was committed with 1 or more aggravating circumstances

2.) Quasi-delicts: if the defendant acted withe gross negligence

3.) Contracts and quasi-contracts: if the defendant acted in a wanton, fraudulent, oppressive, reckless or malevolent manner

Important Rules:

1.) The following damages can't be awarded together:

a.) Nominal and other damages

b.) Actual and liquidated damages

2.) The following damages must co-exist: 

a.) Exemplary with moral, liquidated or temperate damages

b.) Actual with moral or exemplary damages

3.) Nominal damages must stand alone

The following damages can be recovered in case of death:

1.) Indemnity for the victim's death (Php70,000.00)

2.) Loss of earning capacity

3.) Moral damages for mental anguish

4.) Exemplary damages (if the crime has 1 or more aggravating circumstances)

5.) Attorney's fees and costs of the suit

6.) Interest, where proper