DAMAGES

The law governing damages is found in Art 2195 to 2235, NCC, which reincorporated some of the Spanish Civil Code and adopted some principles of the American law (Civil code commission report)

Damages (Latin Damnum or Demo = to take away) refers to the harm done and what may be recovered.

Injury refers to the wrongful or unlawful or tortuous act. Damages is the measure of recovery while injury is the legal wrong to be redressed.

There may be damage without injury (damnum absque injuria) and an injury without damages. (15 Am Jur 388)

De la Rama Steamship vs Tan, 99 Phil 1034 Govt agency terminated contract of agency under its right stipulated in the contract, although the agent suffered damages.

Janda vs Lepanto, 99 Phil 197, 1956 in compliance with the law (RA 529) purchaser of shares of stock pain in pesos despite agreement to pay in dollar because at the time the law declared stipulation as void to pay in currency other than pesos.

Saba vs CA, 189 SCRA 50 restated the doctrine of Qui Jure Suo Utitur Nullum Damnum = one who exercise his right does no injury and if damage result, it is damnum absque injuria. The case made the distinction between damage and injury.

Injury of loss arises from the violation if legal right while damages refer to money or pecuniary compensation which the law impose or awarded for the injury done.

The Civil codes provisions on damages are applicable to all obligations arising from (1) Law, (2) Contracts, (3) Quasi Contracts, (4) Delicts crimes, and (5) Quasi-delicts = tort. (Art 2195 NCC)

Compensation for workmen and other employees are governed by special law and rules governing damages laid down in other laws shall be observed insofar as are not in conflict with the Civil Code. (Art 2196 NCC) This makes the Civil Codes provisions on damages as the general law.

Ysmael Maritime Corp vs Avelino, 151 SCRA 333

Held: The heirs of the deceased seaman have the choice of availing remedy to recover damages, workmens compensation law-labor code for work connected injury, or for tort under the Civil Code for negligence of the employer. However, once they pursue one, they are no longer free to avail the other. (Cited Florensca vs Phil Ex, 136 SCRA 141 case of miners who died in a cave-in.

B. Kinds of Damages

There are 6 kinds of damages, namely 1.Actual or compensatory 2.Moral 3.Nominal 4.Temperate or moderate 5.Liquidated 6.Exemplary or corrective

General Classification of damages 1.Damages capable of pecuniary computation estimable which must be duly established or proven as in actual or compensatory damages and loss of property lost of earning capacity. 2.Damages incapable of pecuniary estimation for which no proof is needed and the assessment is left to discretion of the court. (Art 2216)

Damages:

For the same faulty or negligent act or omission causing damages it may produce multiple liabilities, namely (1) criminal liability and (2) civil liability which in turn may be (a) a Civil Liability arising from a crime under the Revised Penal Code, or (b) Civil liability arising from culpa extra-contractual or quasi delict or culpa aquiliana under the Civil Code and (c) civil liability arising from culpa contractual or breach of contract.

The liability arising from culpa aquiliana is entirely separate and distinct the civil liability arising from a crime. However the plaintiff cannot recover damages twice for the same act or omission. (Art 2177 NCC)

The acquittal or conviction in the criminal case is entirely irrelevant in the civil case, unless the acquittal is declared that the fact from which the civil action arose did not exist which extinguished the criminal liability and the civil liability. (Andamo vs IAC, 191 SCRA 204) The aggrieved party has the option to choose which of the actions that may be filed because double recovery or damages is prohibited. (Virata vs Ochoa, 81 SCRA 472).

Exemplary or corrective damages

These are damages imposed by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages (Art 2229 NCC).

This damages cannot be recovered as a matter of right. This court will decide whether or not they should be adjudicated, (Art 2233) and any stipulation renouncing in advance such damages shall be null and void. (Art 2234 NCC).

Condition for the award (Art 2234 NCC)

Plaintiff must prove that he is entitled to the following:

A. Compensatory Damages

B. Moral Damages

C. Temperate Damages

D. Defendant acted with fraudulent, malevolent, oppressive, reckless or wanton manner in contracts or quasi contract case. (Art 2232 NCC)

E. Presence of aggravating circumstance in the commission of criminal offense as a part of civil liability. (Art. 2230 NCC).

F. Defendant acted with gross negligence in quasi-delicts.

German Marine Agencies Inc. Vs NLRC, 350 SCRA 641

Facts: The ship radio officer was taken ill while the ship was in New Zealand, Despite notice thereof by the ships captain, the ship proceeded with the voyage and reached the Phil in 10 days and yet the sick radio officer was not immediately taken to hospital for medical treatment.

Held: Ship owner is liable for moral damages for the physical suffering and mental anguish caused to Radio Officer. P50,000 in moral damages is proper.

As the fact of negligence of the ships captain was not only shown to have existed but it was deliberately perpetrated by the arbitrary refusal to commit the ailing radio officer to a hospital in New Zealand or at the nearest port resulting to his permanent partial disability, the award of exemplary damages for P50,000 is adequate and reasonable.

In this case the awarding of the exemplary damages is to serve a correction as well as an example for ship owners to look after the welfare of their employees first to that of their customers-cargo-owner.

The rationale behind the exemplary damages is to provide an example or correction for public good and not to enrich the victim. (People vs Agustin, 350 SCRA 216, 01)

Attys fees may be recovered when exemplary damages are awarded. (Coca cola bottlers Phil vs Roque, 305 SCRA 215)

PCIB vs CA, 350 SCRA 446, 01

Held: Banks are liable for tortuous act of its officers an employee within the course or scope of thei employment.

In this case, both the drawee and collection banks were negligent in failing to select and supervise their employees resulting to the encashment of the check to the syndicate instead of the rightful person.

Nominal Damages (Art 2221 NCC)

These 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 plaintiffs for any loss suffered by him.

Nominal Damages are merely for the vindication of a right that has been violated, not for indemnification of the losses suffered. (ventanilla vs Centeno, Jan 28, 61). Case of a lawyer who was negligent in filing appeal time tho he was not liable for actual damages.

Almeda vs Carino, Jan 13, 2003

Facts: C sold a lot on installments to A. A last sold the same to another, and despite of demands, A refused to pay the unpaid balance of the purchase price owing to C.

Held: The vendor C has the right to the unpaid balance to the lot sold to A who violated such right when he refused to pay. For this, C is entitled, aside from the payment of the unpaid balance, to a nominal damages.

Nominal Damages may be awarded to a plaintiff whose right has been violated or invaded by the defendant for the purpose of vindicating or recognizing that right and not for indemnifying the plaintiff for the loss suffered. Its award is thus not for the purpose of indemnification for a loss but for the recognition and vindication of a right. When granted by the courts, they are treated not as an equivalent of a wrong inflicted but simply a recognition of the existence of a technical injury. A violation of the plaintiffs right, even if only technical, is sufficient to support an award of nominal damages. So long as there s a showing of a violation of a right of the plaintiff, an award of nominal damages is proper.

Temperate or Moderate Damages (Art. 2224 NCC)

These are damages which are more than nominal but less compensatory damage which may be recovered when the court finds that some pecuniary loss has been suffered but the amount can not, from the nature of the case, be proved with certainty.

Phil Telegraph and Telephone Corp vs CA, Sept. 3 2002.

Facts: PT&T breached its contract in failing to remit money order sent by plaintiff on time. However the latter failed to prove actual damages and that PT&T was in bad faith.

Held: Either Temperate or nominal damages could be awarded.

Araneta vs Bank of America, 40 SCRA 144

Facts: A issued checks in payment of jewels purchased. The checks were dishonored despite of the sufficiency of fund to cover the checks. The bank apologized for the errors of its employee. Again, similar incidents subsequently occurred. Thus a sued the bank.

Held: While A may not be able to prove the profit he would have net had the jewelry transaction been pushed thru, his claim for temperate damages is justified.

B. Kinds of Damages: General classification

2. Damages incapable of pecuniary estimation. While proofs is not needed, however, it is essential that the complainant must satisfactorily show the existence of the factual basis of the damage (Art 2217) and its casual connection to the defendants wrongful acts. (Malonzo vs Galang, 100 Phil 16; Raagas vs Traja, 22 SCRA 836) These damages, nominal damages, temperate damages and exemplary or corrective damages.

The principles of the general law on damages are adopted insofar as they are not inconsistent with the Civil Code (Art 2198).

The fundamental principle of law of damages

is that one injured by a breach of contract or by the negligent act or omission shall have fair and just compensation commensurate with the loss sustained in the consequence of the defendants act which give to the action. Thus actual pecuniary compensation is the indemnity for his loss and to be placed as near as may be in condition which he would have occupied had he not suffered the injury complained of. On the other hand, the defendant shall not be liable for damages more than the actual loss which he has inflicted by his wrong.

Only proximate, not remote, damages are recoverable.

While the same faulty or negligent act or omission may give rise to multiplicity of suits, however under Art 2177, NCC, the plaintiff cannot recover damages twice for the same act or omission, If the plaintiff

recovers from the defendant under the civil code, he cannot recover damage from the same defendant under Revised Penal Code on the premise that person criminally liable is also civilly liable.

Batangas Laguna Tayabas Bus Co vs CA, 64 SCRA 427

Facts: Bus collided with a car driven by Reyes resulting to death of Reyes and injuries to his passengers Cardena. Cardena and heirs of Elizondo sued the Bus operator whose driver was found negligent.

The defendant bus operator contended that it was premature to proceed with the civil case pending final resolution of the criminal case against their driver.

Held: Employers liability is made clear under Art 2180 and under Art 2177 is entirely separate and distinct from the civil liability arising from negligence under Revised Penal Code. But the plaintiff cannot recover damages twice for the same act or omission.

Culpa aquiliana is an independent source of obligation between two persons not formerly bound by any juridical tie. (Manressa)

It is not required that the injured party should not seek out a third person crimirnally liable whose prosecution must be a condition precedent to the enforcement of the civil right. (Rakes vs AGP Co, 7 Phil 359) The civil liability under quasi delict is contracted without agreement or consent, thus culpa extra contractual, on the principle that where harm, loss or damage has been caused to a person thru fault or negligent act the aggrieve party is entitled to be indemnified. (Cangco vs MRR, 38 Phil 768)

MORAL DAMAGES

4. Cases where Moral Damages may be recovered or Awarded

a. Acts mentioned in Art 309 disrespect to the dead or wrongful interference with funeral

b. Arts and actions referred in Articles on human relation 21, 26, to 30, 32 to 35

c. Willful injury to property committed maliciously or fraudulently (Art 2220, Francisco vs GSIS, Mar 30, 63)

d. Breaches of contracts where the defendant acted with fraudulently or in bad faith. (Art 2220)

Breaches of contract of carriage resulting to death or injury of passengers (Art 1764 in relation to Art 2206 (3) Phil Rabbit bus lines inc vs Easguerra, 117 SCRA 741)

Calalas vs CA, 332 SCRA 356, 2000

Facts: Calalas jeep was improperly parked with its rear portion protruding from the board shoulder of the road (violation of LTTC). Passenger Sunga who was sited on wooden stool as extended seat alighted to give way to another passenger alighting from the inside and in the process he was bumped by an overtaking truck owned by Salinas. Sunga sued Calalas breach of carriage. Calalas sued Salvas Tort

Held: While moral damages are not recoverable in actions for breach of contract for it is not one of the items enumerated in Art 2219, NCC, however, the exception is in the cases of mishap resulting to the death or injury of passenger unddder Art 1764 in relation to Art 2206 (3) NCC and in cases in which the carrier is guilty of fraud or in bad faith.

In this case the ruling in Calamas vs Salvas is not binding in the case of Sunga vs Calalas. Res Judicata does not apply because Sunga is not a party to the tort case where Salva was found at fault and liable to Calalas. Thought both cases has the same issue of negligence, however, each is distinct and separate from the other. (Breach of contract and tort)

Defense of proximate cause is not available in breach of contract of carriage: only in tort cases. Neither is the defense of caso fortuitous where it is attended to by negligence which in Calalas case were overloading and parking improrely which are vioation of tle LTTC.

Moral damages cannot be award in the absence of any injury or factual basis. There must be pleading and proof of moral suffering, mental anguish, fright, wounded feelings ad similar injury. (Brent Hospital Inc vs NLRC, 292 SCRA 304, 98; People vs Aguilar, 349 SCRA 292, 98)

MORAL DAMAGES, Arts 2217 to 2220, NCC

1. Moral damages are not intended to enrich a complainant at the expense of the defendant. They are awarded only to enable the injured party to obtain means, diversion or amusements that will serve to alleviate the moral suffering he has undergone by reason of the defendants culpable action. (J. Paraz, Prudencio vs Alliance Transport, Mar 16 87)

2. Concept - Moral damages include physical suffering, mental anguish, freight, serious anxiety, dismirched reputation, wounded feelings, moral shock, social humiliation, and similar injury.

Thought incapable of pecuniary computation, it may recover if they are the proximate result of the defendants wrongful act or omission. (2217)

Moral damages are not punitive in nature, but are designed to compensate and alleviate in some way the physical suffering, mental anguish, fright, serious anxiety, etc. This is so because moral damages are in the category of an award designed to compensate the claimant for actual injury suffered, not to impose a penalty in the wrongdoer. (Equitable Leasing Corp vs Suyom et al, Sept 5, 02)

Corporation are not entitled to moral damages because an artificial person existing only in legal contemplation-legal fiction, have no feelings no emotions, no senses and therefore, it cannot experience physical suffering and mental anguish, sorrows and grief of life- all of which can not be suffered by artificial person. (National Power Corp vs Phil Brothers Oceanio, Inc, Nov 21, 2001)

3. Conditions to recover moral damages while no proof of pecuniary loss is necessary in order to recover and the assessment is left to the discretion of the court (Art 2216 NCC). However, the complainant must satisfactory show the ff: a.factual basis for the award which is the injury or wrong doing of the defendant

b.the injury, i.e. physical suffering etc are the proximate result of the defendants wrongful act or omission (2217) c.casual connection or relation between the actual injury and the wrongful act or omission of the defendant. (Equitable Leasing Corp vs Suyom)

4. Cases where moral damages may be recovered or awarded (2219) a.Criminal offenses resulting to physical injuries (Art 33 NCC and Madeja Caro, 126 SCRA 293) b.Quasi-delict causing physical injuries c.Adultery and concubinage d.Abduction, Rape, Seduction and other malicious act, victim and parent are entitled e.Illegal search f.Illegal arbitrary detention or arrest g.Libel, slander or other form of defamation (Art 33) h.Malicious prosecution

Obligations and liabilities arising from human relation

The civil codes provisions dealing on human relation (Chap 2 Preliminary Title) are now, not based in the Spanish Civil Code, formulated some basic principles that are to be observed for the rightful relationship between human beings and for the stability of social order. It was designed to indicate certain norms that spring from the fountain of good and conscience. (Report, Code Commission, p. 39)

These provisions provide for specie of Special Torts A.The catch all provisions

1. Abuse of rights every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith. (Art 19) The elements are the ff:

i. There must be a legal right or duty

ii. Exercise of such right or duty in bad faith

iii. Prejudices or causes damage to another

2. Sanction Penalty every person who, contrary to law, willfully or negligently causes damages to another, shall indemnify the latter for the same (Art 20)

This reiterated in Art 2176 and 2194 dealing on quasi delicts holding that person are liable for damages caused by their fault or negligence. (Prof. Jarencio opined that this provision refers to willful or negligent acts contrary to law not constituting quasi delict or delict)

3. Contra Bonus Mores- any person who willfully causes losses or injury to another in a manner that is contrary to morals, good customs or public policy shall compensate the latter for damage (Art 21)

Quisimbing vs Icao, 34 SCRA 132

Held: under Art 21, for a married man to force a woman not his wife to yield to his lust constitutes a clear violation of the rights of his victim that entitles her to claim for compensation for the damage caused. Mans act is contrary to moral, good customs or public policy.

Pe et al vs Pe, 5 SCRA 200

Defendant is married separated and correlative of the plaintiff unmarried woman, 24 years of age. Defendant frequently visited the girls house on the pretext of teaching her how to pray the rosary. They fell in love and had clandestine trust until they disappeared.

Held: No conclusion can be drawn from the fact that defendant, not only deliberately, but thru a clever strategy, succeeded in winning the affection and love to the woman to the extent of having illicit relations with her. The wrong caused to her and her family is contrary to morals etc as contemplated in Art 21.

Wassmer vs Velez, 12 SCRA 648

Facts: W & V applied for a license to contract of marriage. The wedding was set, invitations were printed and distributed to relatives, friends. Wedding dresses purchased (bridal, flower girls maid of honor, etc), reception and other amenities reserved. But before the wedding, the boy left for Mindanao and never returned.

Held: The mere breach of promise to marry is not an actionable wrong. But to formally set a wedding and go thru all those preparation and expenses and publicity only to walk out is contrary to good custom for which defendant is held answerable for damages under Art 21.

B. Unjust enrichment

1. Every Person thru an act or performance by another or any other means, acquires or comes into possession of something at the expense of the latter without just or legal ground shall return the same to him (Art 22).

A community was raised by lawless elements and took personal belongings of the helpless residents. When the Govt forces came driving the lawless elements and restoring peace and order, the owner of the house occupied by the lawless element found several personal belongings of other left by the fleeing outlaws. The person owning those personal belonging taken by the outlaws have the right to recover them from the finder under Art 22. 2. Even when an act or event causing damage to anothers property was not due to the fault or negligent of the defendant, the latter shall be liable for indemnity if thru the act or event he was benefited (Art 23)

Illustration given by the Code Commission

Without As knowledge, a flood drive his cattle to the cultivated highland of B. As cattle were saved but Bs crop were destroyed because they were eaten by the cattle. While A was not at fault however he was benefited when his cattle were saved from the flood aside from being well fed. It is butt right and equitable that A should indemnify B for the loss of his crop. Otherwise the injured party B would be unjustly enriched at the expense of the party who received the benefit.

See Arts 2142 and 2143

C. Violation of dignity, personality, privacy and peace of mind of neighbors and other persons (Art 26)

Every person shall respect the dignity, personality, privacy and peace of mind of his neighbors and other persons. The following and similar acts, though they may not constitute a criminal offense, shall produce a cause of action for damages, prevention and other relief:

(1) Prying into the privacy of anothers residence:

(2) Meddling with or disturbing the private life or family relations of another;

(3) Intriguing to cause another to be alienated from his friends;

(4) Vexing or humiliating another on account of his religious beliefs, lowly station in life, place of birth, physical defect, or other personal condition. D. Dereliction of official duty by public official (Art 27)

Any person suffering material or moral loss because a public servant or employee refuses or neglects, without just cause, to perform his official duty may file an action for damages and other relief against he latter, without prejudice to any disciplinary administrative action that may be taken.

This provision was designed to redress complaints of the people that in dealing with public officials and employees that they are not properly attended to while those who are rich influential and powerful are given prompt and even servile attention. Worst is some public officials/ employee took advantage of their position, expectly or demand bribe for the performance of their duty which lowered the morals of public service and seriously undermined public confidence of the govt.

Zulueta vs Nicolas, 102 Phil 844

Facts: Z filed a complaint against the Governor of Rizal for libel. After investigation the Fiscal absolved the Governor on the ground that there was no prima facie evidence for filing the libel complaint. Z then filed a civil action against under Art 27 NCC.

Held: The fiscal of absolving the Governor upon finding no sufficient evidence to establish a prima facie case is not refusal without just cause to perform his official duty to file the complaint for libel. The fiscal is vested with authority and discretion to determine whether or not there is sufficient evidence to justify the filing of an action, and having control of the prosecution of a criminal case, the fiscal cannot be subjected to direction from the offended party. Action dismissed.

E. Unfair competition in agricultural, commercial or industrial enterprises or in labor through the use of force, intimidation, deceit, machination or any other unjust, oppressive or highhanded method shall give rise to a right of action by the person who thereby suffers damage. (Art 28)

F. Acquittal in criminal case on the ground that guilt has not been proved beyond reasonable doubt. A civil action for damages for the same act or omission may be instituted and such action requires only preponderance of evidence. (Art 29)

The rationale for this is provided in Art 2177 NCC which states the responsibility for fault or negligence is entirely separate and distinct from the civil liability arising from negligence under the Revised Penal Code but the plaintiff cannot recover twice for the same act or omission.

However, if the acquittal is based on proof that the accused did not commit a crime, or that no crime was committed, or because he is justified or exempt from criminal liability, no civil action may be instituted because the acquittal on those ground constitutes res adjudicate.

PNB vs Capiton, 98 Phil 286

Held: Acquittal of an accused in Estafa case on the ground that his guilt has not been satisfactorily established is equivalent to one on reasonable doubt and does not preclude filing of civil action for the same act or omission under Art 29 NCC.

However to protect the person from harassment, the law authorizes defendant to file a motion in court requiring the plaintiff to file a bond to answer for damages in case complaint should be found malicious.