Vicarious Liability

a. By State
Bar Exam Questions:
1.

In the last quarter of 2012, about 5,000

container vans of imported goods intended for
the Christmas Season were seized by agents of
the Bureau of Customs. The imported goods
were released only on January 10,2013. A
group of importers got together and filed an
action for damages before the Regional Trial
Court of Manila against the Department of
Finance and the Bureau of Customs.
The Bureau of Customs raised the defense of
immunity from suit and, alternatively, that
liability should lie with XYZ Corp. which the
Bureau had contracted for the lease of ten (10)
high powered van cranes but delivered only
five (5) of these cranes, thus causing the delay
in its cargo-handling operations. It appears that
the Bureau, despite demand, did not pay XYZ
Corp. the Php 1.0 Million deposit and advance
rental required under their contract.
(A) Will the action by the group of
importers prosper? (5%)
(B) Can XYZ Corp. sue the Bureau of
Customs to collect rentals for the
delivered cranes? (5'%)

2.

The Ambassador of the Republic of Kafiristan

referred to you for handling, the case of the
Embassy's Maintenance Agreement with CBM,
a private domestic company engaged in
maintenance work. The Agreement binds CBM,
for a defined fee, to maintain the Embassy's
elevators, air-conditioning units and electrical
facilities. Section 10 of the Agreement provides
that the Agreement shall be governed by
Philippine laws and that any legal action shall
be brought before the proper court of Makati.
Kafiristan terminated the Agreement because
CBM allegedly did not comply with their agreed
maintenance standards.
CBM contested the tennination and filed a
complaint againstKafiristan before the Regional
Trial Court of Makati. The Ambassador wants
you to file a motion to dismiss on the ground of
state immunity from suit and to oppose the
position that under Section 10 of the
Agreement, Kafiristan expressly waives its
immunity from suit.

Under
these
facts,
can
the
Embassy
successfully invoke immunity from suit? (6%)

Discussion:
Even though the rule as to immunity of a state from
suit is relaxed, the power of the courts ends when the
judgment is rendered. Although the liability of the state
has been judicially ascertained, the state is at liberty to
determine for itself whether to pay the judgment or
not, and execution can not issue on a judgment against
the state. Such statutes do not authorize a seizure of
state property to satisfy judgments recovered, and only
convey implication that the legislature will recognize
such judgment as final and make provision for the
satisfaction thereof. (49 Am. Jur., Sec. 104, pp. 312320.)
Judgments against a state, in cases where it has
consented to be sued, generally operate merely to
liquidate and establish plaintiff's claim in the absence
of express provision; otherwise they can not be
enforced by processes of law; and it is for the
legislature to provide for their payment in such manner
as it sees fit. (59 C.J. sec. 501, p. 331; 81 C.J.S., sec.
232, p. 1343.)
It is a well-entrenched rule in this jurisdiction,
embodied in Article 2180 of the Civil Code of the
Philippines, that the State is liable only for torts caused
by its special agents, specially commissioned to carry
out the acts complained of outside of such agent's
regular duties (Merritt vs. Insular Government, supra;
Rosete vs. Auditor General, 81 Phil. 453). There being
no proof that the making of the tortious inducement
was authorized, neither the State nor its funds can be
made liable therefor.
b. By teachers
WHO CAN BE HELD LIABLE?
1. The school
2. The schools administrators;
3. and Teachers
WHY ARE THEY LIABLE?
According to Tolentino, a teacher must not
only be charged with teaching but also vigilance over
their students or pupils. Without the parents to look
after their children when in school, it is the teacher
who takes over in the supervision.
It is thus fitting that the basis of a teachers
liability is the principle of in loco parentis.
Principle of in loco parentis
- means in the place of a parent,
- exists when a person undertakes care and
control of another in absence of such supervision by
natural parents and in absence of formal legal
approval, and is
temporary in character and is
not to be likened to an adoption which is permanent.
LEGAL BASIS FOR THEIR LIABILITY

New Civil Code

Art. 2180. The obligation imposed by Article 2176 is

demandable not only for one's own acts or omissions,
but also for those of persons for whom one is
responsible.

The father and, in case of his death or

incapacity, the mother, are responsible
for the damages caused by the minor
children who live in their company.

Guardians are liable for damages

caused by the minors or incapacitated
persons who are under their authority
and live in their company.

The owners and managers of an

establishment
or
enterprise
are
likewise responsible for damages
caused by their employees in the
service of the branches in which the
latter are employed or on the occasion
of their functions.

Employers shall be liable for the

damages caused by their employees
and household helpers acting within
the scope of their assigned tasks, even
though the former are not engaged in
any business or industry.

The State is responsible in like manner

when it acts through a special agent;
but not when the damage has been
caused by the official to whom the task
done properly pertains, in which case
what is provided in Article 2176 shall
be applicable.

Lastly, teachers or heads of

establishments of arts and trades
shall be liable for damages caused
by their pupils and students or
apprentices, so long as they
remain in their custody.
The responsibility treated of in this article shall cease
when the persons herein mentioned prove that they
observed all the diligence of a good father of a family
to prevent damage. (1903a)

Family Code
Art. 218. The school, its administrators and teachers,
or the individual, entity or institution engaged in child
are shall have special parental authority and
responsibility over the minor child while under their
supervision, instruction or custody.
Authority and responsibility shall apply to all authorized
activities whether inside or outside the premises of the
school, entity or institution. (349a)
WHEN ARE THEY LIABLE?

Teachers are liable for the acts or omission of

their pupils and students in their custody

Heads of establishments of arts and trades

are liable for the act or omission of apprentices
in their custody
Reason for difference:
The reason for the disparity can be traced to the fact
that historically the head of the school of arts and
trades exercised a closer tutelage over his pupils than
the head of the academic school.
By contrast, the head of the academic school was not
as involved with his students and exercised only
administrative duties over the teachers who were the
persons directly dealing with the students.

The head of the academic school had then (as now)

only a vicarious relationship with the students.
Consequently, while he could not be directly faulted for
the acts of the students, the head of the school of arts
and trades, because of his closer ties with them, could
be so blamed. ( Amadora vs CA G.R. No. L-47745 April
15, 1988)
What does the phrase so long as they
remain in their custody means?
The student is considered in the custody of the
school authorities for as long as he is under the control
and influence of the school and within its premises,
regardless of whether the semester has started or has
ended.
As long as it can be shown that the student is
in the school premises in pursuance of a legitimate
student objective, in the exercise of a legitimate
student right, and even in the enjoyment of a
legitimate student right, and even in the enjoyment of
a legitimate student privilege, the responsibility of the
school authorities over the student continues. Indeed,
even if the student should be doing nothing more than
relaxing in the campus in the company of his
classmates and friends and enjoying the ambience and
atmosphere of the school, he is still within the custody
and subject to the discipline of the school authorities
under the provisions of Article 2180. ( Amadora vs CA
G.R. No. L-47745 April 15, 1988)

Liability of teachers for non- minors

Does a student need to be a minor for a teacher to be
liable?
NO. This is one of the differences between a
parents responsibility and that of a teachers. Under
Article 221 of the Family Code of the Philippines,
parents are responsible for their unemancipated minor
children, while Article 2180 of the Civil Code does not
provide any qualifications nor age limit. Thus, the
liability of a teacher applies to all students, even those
of age. Although according to Tolentino, who quotes
Plainol & Ripert, the degree of vigilance of non-minors
is not the same as over minors. This view is supported
by Articles 218 and 219 of the Family Code.

Liability Outside School

May a teacher escape liability for outings and
activities held outside the school but authorized
by the school?
NO. Art 218 of the Family Code states that
authority and responsibility
shall
apply
to
all
authorized activities
whether inside or outside the
premises of the school, entity or institution. Special
parental authority and responsibility
applies to all
authorized activities, whether inside or outside the
school premises.

Waivers
Can a teacher or school escape responsibility by
asking parents to file a waiver during field trips
and outings?
This issue is closely related to liabilities outside
school and Art 218 is clear that authority and
responsibility shall apply to all authorized activities

Who is At fault?

Who to sue?

Student

Teacher, Head
School
Administrator

Basis of liability

Teacher

2180
paragraph
(Loco
Parentis)
Art 218 1nd
219 of Family
Code

School
2180
paragraph
(Respondeat
Superior)

Stranger

Defenses that can be

raised

School

Diligence of a good
father of a family

Diligence
in
selection
supervision
employee

the
and
of

Faithful
compliance
of the terms of the
contract
Contract

whether inside or
outside the premises of the
school, entity or
institution.
The fact that the parents allowed their child to join the
activity, or even signed a waiver for this purpose, does
not mean that the teacher(s)-in-charge were already
relieved of their duty to observe the required diligence
of a good father of a family in ensuring the safety of
the children.
The waiver not to hold the school or its
teachers responsible for negligence is not valid
because the waiver is contrary to public policy. Thus, a
teacher can still be made to answer for damages by
the parent of the pupil or student in case she failed to
exercise the proper diligence to prevent harm or injury
to the pupil or student.
At best, what the waiver can bring about is a
reminder to the teacher of his duty of diligence.

STRICT LIABILITY TORTS

When you speak of torts, the basis of liability is you
being at fault but then there can be a kind of tort that
even if there is no fault imputed there can still be
liability and these are very limited kinds you would call
strict liability torts.
Why would you allow imputing liability on somebody
when there is no fault?

SC said that there are very limited kinds of activities

where the person engaged in such activities derives
some sense of pleasure, utility, or service and then the
source of that pleasure, utility, service may have
imputed damage on another.
In the allocation of loss and risk, it is just fair that one
who derives pleasure, utility, or service from that
activity should be the one held liable for the damage.
What are these instances?
a. Possessors of animals
The possessor of an animal (NOT necessarily the
owner) or whoever may make use of the same is
responsible for the damage which it may cause,
although it may escape or be lost. 'This responsibility
shall cease only in case the damages should come
from force majeure from the fault of the person who
has suffered damage.
Bar Question:
Primo owns a pet iguana which he keeps in a
man-made pond enclosed by a fence situated in his
residential lot. A typhoon knocked down the fence of
the pond and the iguana crawled out of the gate of
Primos residence. N, a neighbor who was passing by,
started throwing stones at the iguana, drawing the
iguana to move toward him. N panicked and ran but
tripped on something and suffered a broken leg.

and effect between the fault or negligence of the

defendant and the damage incurred by the plaintiff. It
is generally recognized that the drugstore business is
imbued with public interest. Obviously, petitioners
employee was grossly negligent in selling the wrong
prescription. Considering that a fatal mistake could be
a matter of life and death for a buying patient, the said
employee should have been very cautious in
dispensing medicines. She should have verified
whether the medicine she gave respondent was indeed
the one prescribed by the physician. Petitioner
contends that the proximate cause of the accident was
respondents negligence in driving his car. Proximate
cause is that cause, which in natural and continuous
sequence unbroken by any efficient intervening cause,
produces the injury, and without which the result would
not have occurred Proximate cause is determined from
the facts of each case, upon a combined consideration
of logic, common sense, policy, and precedent. Here,
the vehicular accident could not have occurred had
petitioners employee been careful in reading the
prescription. Without the potent effect of Dormicum, a
sleeping tablet, it was unlikely that respondent would
fall asleep while driving his car, resulting in collision.
Petition DENIED.
SPECIAL TORTS
This one is the cases covered by the chapter on
Human Relations
a.

Is anyone liable for Ns injuries? Explain. (4%)

b. Exemption from Caveat emptor rule
MERCURY
DRUG
CORP.
GR. No. 156037, May 28, 2007

v.

BAKING

Sebastian M. Baking went to the clinic of Dr. Cesar Sy

for a medical check-up. After undergoing an ECG, and
several examininations, Dr. Sy found the respondents
blood sugar and triglyceride were above normal. The
doctor then prescribed two medical prescriptionsDiamicron for the blood sugar and Benalize for his
triglyceride. Respondent then proceeded to Mercury
Drug Alabang to buy the prescribed medicines. The
sales lady misread the prescription for Diamicron as a
prescription for Dormicum. Thus what was sold was
Dormicum, a potent sleeping tablet. Unaware of the
wrong medicine, he took one pill on three consecutive
days. On the third day he took the medicine, he met an
accident while driving his car. He fell asleep while
driving. He could not remember anything about the
collision nor felt its impact. Suspecting the tablet he
took, respondent went back to Dr. Sy who was shocked
after finding that what was sold was Dormicum instead
of Diamicron. He filed the present complaint for
damages against petitioner. The trial court favored the
defendant which was affirmed by the CA hence this
petition.
ISSUE: Is petitioner negligent, and if so, is the
negligence was the proximate cause of the accident?
HELD: YES. Art. 2176 provide the requisites of
negligence: 1. damage suffered by the plaintiff, 2. fault
or negligence of the defendant, 3. connection of cause

Abuse of Right Principle

even if you have the right, you dont have
the right to exercise it excessively
If you file a case for damages anchored on
abuse of rights, then when you file your
complaint to the court it should contain
the allegation of bad faith or malice.

NIKKO HOTEL MANILA GARDEN v REYES

Elsewhere, we explained that when "a right is
exercised in a manner which does not conform with the
norms enshrined in Article 19 and results in damage to
another, a legal wrong is thereby committed for which
the wrongdoer must be responsible." The object of this
article, therefore, is to set certain standards which
must be observed not only in the exercise of ones
rights but also in the performance of ones
duties. These standards are the following: act with
justice, give everyone his due and observe honesty
and good faith. Its antithesis, necessarily, is any act
evincing bad faith or intent to injure. Its elements are
the following: (1) There is a legal right or duty; (2)
which is exercised in bad faith; (3) for the sole intent of
prejudicing or injuring another. When Article 19 is
violated, an action for damages is proper under Articles
20 or 21 of the Civil Code. Article 20 pertains to
damages arising from a violation of law which does not
obtain herein as Ms. Lim was perfectly within her right
to ask Mr. Reyes to leave. Article 21, on the other hand,
states:
Art. 21. Any person who willfully causes loss or
injury to another in a manner that is contrary
to morals, good customs or public policy shall
compensate the latter for the damage.

Article
21 refers
to
acts contra
bonus
mores and has the following elements: (1)
There is an act which is legal; (2) but which is
contrary to morals, good custom, public order,
or public policy; and (3) it is done with intent to
injure.
A common theme runs through Articles 19 and
21, and that is, the act complained of must be
intentional.

3.

b. Emotional Distress Court Action

is personal in nature, i.e., it is a civil action filed

by an individual to assuage the injuries to his
emotional tranquility due to personal attacks on
his character.

reactive harm principle which includes

injuries to individual emotional tranquility in the
form of an infliction of emotional distress.

"Emotional distress" means any highly

unpleasant mental reaction such as extreme
grief, shame, humiliation, embarrassment,
anger, disappointment, worry, nausea, mental
suffering and anguish, shock, fright, horror, and
chagrin.

4.
c.

In determining whether the tort of outrage had

been committed, a plaintiff is necessarily
expected and required to be hardened to a
certain amount of criticism, rough language,
and to occasional acts and words that are
definitely inconsiderate and unkind; the mere
fact that the actor knows that the other will
regard the conduct as insulting, or will have his
feelings hurt, is not enough.
Elements of Emotional Distress Court
Action
1. The conduct of the defendant was
intentional or in reckless disregard of the
plaintiff
2. The conduct was extreme and outrageous
o means conduct that is so outrageous in
character, and so extreme in degree,
as to go beyond all possible bounds of
decency, and to be regarded as
atrocious, and utterly intolerable in
civilized
society. The
defendant's
actions must have been so terrifying as
naturally to humiliate, embarrass or

Alienation of Affection

Article 26 of NCC
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
residence:

into

the

privacy

of

another's

(2) Meddling with or disturbing the private life

or family relations of another;

The plaintiff is required to show, among other

things, that he or she has suffered emotional
distress so severe that no reasonable person
could be expected to endure it; severity of the
distress is an element of the cause of action,
not simply a matter of damages
Any party seeking recovery for mental anguish
must prove more than mere worry, anxiety,
vexation, embarrassment, or anger. Liability
does not arise from mere insults, indignities,
threats, annoyances, petty expressions, or other
trivialities.

frighten
the
plaintiff.
Generally,
conduct will be found to be actionable
where the recitation of the facts to an
average member of the community
would arouse his resentment against
the actor, and lead him or her to
exclaim, "Outrageous!" as his or her
reaction.
There was a causal connection between
the defendant's conduct and the plaintiff's
mental distress; and
The plaintiff's mental distress was extreme
and severe

(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.

Exception:
RA 9262 SECTION 34
Persons Intervening Exempt from Liability. In
every case of violence against women and their
children as herein defined, any person, private
individual or police authority or barangay official who,
acting in accordance with law, responds or intervenes
without using violence or restraint greater than
necessary to ensure the safety of the victim, shall not
be liable for any criminal, civil or administrative liability
resulting therefrom.
d. Interference with Contractual Relations

Elements:
1. existence of a valid contract;
2. knowledge on the part of the third person
of the existence of contract; and
3. interference of the third person is without
legal justification or excuse
o
there was no malice in the
interference of a contract, and the
impulse behind one's conduct lies in a
proper business interest rather than in
wrongful motives, a party cannot be a
malicious interferer. Where the alleged
interferer is financially interested, and
such interest motivates his conduct, it
cannot be said that he is an officious or
malicious intermeddler.

o
MEDICAL MALPRACTICE
It is a particular form of negligence which
consists in the failure of the physician or surgeon to
apply his practice of medicine that degree of care and
skill which is ordinarily employed by the profession
generally, under similar conditions, and in like
surrounding circumstances.
Elements Involved in Medical Negligence Cases:

Duty, Breach, Injury, Proximate Causation

STANDARD OF DILIGENCE REQUIRED

GR: The standard contemplated for doctors is simply
the reasonable average merit among ordinarily good
physicians.
EXC: But a physician holding out himself as having
special knowledge and skill in the treatment of a
particular organ, disease or type of injury is bound to
bring to the discharge of his duty to a patient
employing him as such specialist.
Factors in determining the degree of learning
and skill required of a physician or surgeon in his
treatment of a particular case:

State of Medical or Surgical science at the time

The locality in which the physician practices
The general rules and principles of the particular
school of medicine which he follows
The nature of the case
The condition of the patient

EVIDENTIARY RULE
GR:
There is a necessity of expert testimony in
proving medical negligence.
EXC: Obvious errors, which the doctrine of Res Ipsa
Loquitor applies.
In such case, the need for an expert medical testimony
is dispensed with because the injury itself provides the
proof of negligence.
Meaning: When common language and experience
teach that a resulting injury would not have occurred to
the patient if due care had been exercised, an
inference of negligence may be drawn giving rise to an
application of the doctrine without medical evidence,
which is ordinarily required to show not only what
occurred but how and why it occurred.
WHEN IS A HOSPITAL LIABLE?

no employment relationship + hospital holds out

to the patient that the doctor is its agent

hospital may still be vicariously liable

under Article 2176 in relation to Article
1431 and Article 1869 of the Civil Code
or the principle of apparent authority/
agency by estoppels
Solidarily liable with its agent(doctor)

regardless of its relationship with the doctor

o hospital may be held directly liable to
the patient for its own negligence or
failure to follow established standard of
conduct to which it should conform as
a corporation (corporate negligence
doctrine)
o Hospital is liable for its own negligence

Note: NO EE-ER relationship between doctor and

hospital. SC overturned itself in the 2002 decision of
Ramos vs CA saying that there was no element of
control.
CAPTAIN OF THE SHIP DOCTRINE
Under this doctrine, the surgeon is likened to a
ship captain who must not only be responsible for the
safety of the crew but also of the passengers of the
vessel. The head surgeon is made responsible for
everything that goes wrong within the four corners of
the operating room. It enunciates the liability of the
surgeon not only for the wrongful acts of those who are
under his physical control but also those wherein he
has extension of control.
DOCTRINE OF INFORMED CONSENT
A duty imposed on a doctor to explain the risks
of recommended procedures to a patient before a
patient determines whether or not he or she should go
forward with the procedure.
The gravamen in an informed consent case
requires the plaintiff to point to significant undisclosed
information relating to the treatment which would have
altered her decision to undergo it.
The element of ethical duty to disclose material
risks in the proposed medical treatment cannot thus be
reduced to one simplistic formula applicable in all
instances. Further, in a medical malpractice action
based on lack of informed consent, the plaintiff must
prove both the duty and the breach of that duty
through expert testimony. Such expert testimony must
show the customary standard of care of physicians in
the same practice as that of the defendant doctor.
The court thus concluded that the patients right of
self-decision can only be effectively exercised if the
patient possesses adequate information to enable him
in making an intelligent choice. The scope of the
physicians communications to the patient, then must
be measured by the patients need, and that need is

whatever information is material to the decision. The

test therefore for determining whether a potential peril
must be divulged is its materiality to the patients
decision.
Damage- the lost, hurt or harm, which results from
injury => illegal invasion of a legal right
Damages- is the sum of money which the law awards
or imposes as pecuniary compensation, recompense or
satisfaction for an injury done.
When there is damage, do you expect damages?
All the time?
No, there can be damage without injury
(damnum absque injuria) and if there is no injury then
no basis for damages. It is not enough to show
suffering or prejudice. What is needed is a showing of
invasion of right or legal duty.
Example
1. Right to litigate- as long as it is only an
exercise of a right and no attendance of abuse
is present
2. 2013 Bar Question:
A collision occurred at an intersection
involving a bicycle and a taxicab. Both the
bicycle rider (a businessman then doing his
morning exercise) and the taxi driver claimed
that the other was at fault. Based on the police
report, the bicycle crossed the intersection first
but the taxicab, crossing at a fast clip from the
bicycle's left, could not brake in time and hit
the bicycle's rear wheel, toppling it and
throwing the bicycle rider into the sidewalk 5
meters away.
The bicycle rider suffered a fractured right
knee, sustained when he fell on his right side
on the concrete side walk. He was hospitalized
and was subsequently operated on, rendering
him immobile for 3 weeks and requiring
physical rehabilitation for another 3 months. In
his complaint for damages, the rider prayed for
the
award
ofP1,000,000
actual
damages,P200,000 moral damages, P200,000
exemplary
damages, P1
00,000
nominal
damages and P50,000 attorney's fees.
Assuming the police report to be correct
and as the lawyer for the bicycle rider, what
evidence (documentary and testimonial) and
legal arguments will you present in court to
justify the damages that your client claims?
What is needed to prove/claim for damages?
1. There is a loss or injury- injury can either be
special or general; difference is important
because a special injury needs to be plead
specifically in the pleading to be granted.
2. Legal duty or right violated

3.
4.

Know the specific requirements for the

damages youre asking
Know what are the damages that can or cannot
co-exist

KINDS OF DAMAGES:
ACTUAL DAMAGES- are those recoverable because of
pecuniary loss- in business, trade, property, profession,
job or occupation.
What is meant to compensate is
money or monetary loss; there
must be an actual loss and such
loss must be duly proven
-

Full adequate compensation for

that loss
show documentary
evidence; the courts as a
matter of preference would
prefer documentary evidence
over testimonial because of the
bias nature of the latter.

Breach of Contract- damages recoverable would

depend on how the contract was breached
If in bad faith- obligor shall be responsible for
all damages which may be reasonably
attributed to the non-performance of the
obligation
If in good faith- obligor shall be responsible for
damages which are natural and probable
consequence of the breach; which the parties
have foreseen or
could have reasonably
foreseen at the time the obligation was
constituted
Crime or Quasi-Delict foreseeability does not matter
Responsible for all that results from
the crime or quasi-delict
Will pay not only indemnity for fact
of death nut also loss of earning
capacity
Interest 6% legal rate (July 1, 2013)
There are two kinds:
1. Interest for use of money
2. Interest as an item for damages
3 Scenarios contemplated in Eastern Shipping Case:
1. Loan
Example: A borrowed money from B in the
amount of 100,000 with 10% interest to be
paid
in
October
2015.
On October 2015, what will be owed
is 110,000
the 10,000 interest will earn
interest from the time it is judicially demanded
2. Owe money to another person but not because
of a loan
Example: Liquidated Damages- interest due
will earn interest from the time it is judicially
demanded
3. Owe an amount but at the time of filing it is not
yet determined or established with reasonable
certainty
Example: Case for defamation- interest will be
imposed at the time the amount can be
established with reasonable certainty

 case file on 2013, Judgment on

2020 => interest runs starting this date

ATTORNEYS FEES
General Rule: cannot be recovered
Exception: Article 2208
(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;

Requirements for court to validly

award attys fees:
a. Check the body of the rulingmust contain justification for
the award
It must contain the
LEGAL BASIS and THE
FACTS IN SUPPORT OF
THE LEGAL BASIS
b. And it must be found in the
dispositive portion

(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
costs are awarded;
(11) In any other case where the
court deems it just and equitable
that attorney's fees and expenses
of litigation should be recovered.
-

Two kinds of Attorneys fees:

1. Ordinary- payment for services
by the client to the attorney
2. Extraordinary- amount to be
given to the winning party
Is an item of damages
Paid to the client not to
the attorney UNLESS
the parties stipulate
that the attorneys fees
granted by the court
should be given to the
attorney
Reason: No premium on the right to
litigate
Parties can stipulate attorneys fees
and only in the absence of
stipulation will you use article 2208

MORAL DAMAGES
What kind of injury does it seek to address?

Physical suffering, mental anguish, fright,

serious
anxiety,
besmirched
reputation,
wounded
feelings,
moral
shock,
social
humiliation and similar injury

It does not cover pecuniary loss unlike actual damages

but there is still a need to prove loss for both actual
and moral damages. The difference is that for actual
damages, it must be proven with certainty through
receipts, etc while for moral damages there is a need
to prove loss but not in the same degree of exactness
as that needed for actual damages.
You need to understand the kind of loss it is meant
address and since it deals with besmirched reputation,
wounded feelings, etc., you cannot determine those
with exactitude so there is still proof of loss required
but unlike actual damages, the proof of loss need not
be established with such degree of exactitude.
The purpose for actual damages is for full
compensation while the purpose for moral damages
is to compensate one for manifold injuries or for the
injury suffered. It is still for compensation but not for
monetary loss. The purpose is to give the injured some
means in order to obtain diversion or recreation. Court
said to restore him to his spiritual status quo
REQUIREMENTS FOR AN AWARD OF MORAL DAMAGES:
1.
2.
3.
4.

Evidence of besmirched reputation or physical,

mental or psychological suffering suffered by
the claimant
A culpable act or omission factually established
Proof that the wrongful act or omission of the
defendant is the proximate cause of the
damages sustained by the claimant
The case is predicated on any of the instances
expressed or envisioned by Article 2219 and
Article 2220 of the Civil Code

ARTICLE 2219

Moral damages may be recovered in the following and

analogous cases:
(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 Articles 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.

What the law on libel seeks to address is

relational interest. So there has to be a third
person who must know of the defamatory
imputation because what it wants to protect is
your reputation. And your reputation is not
your high regard of yourself but the high regard
that others have of you. You always need a
third person for it to be libel.

Ex: A defaming B. For it to be libel, C must have seen

the defamatory article or comment.

Public and malicious imputation of crime, vice

or defect
o MALICE
GR: Malice is presumed in every
defamatory imputation MALICE IN LAW

ARTICLE 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.

EXC: MALICE IN FACT

Moral damages seeks to address all sorts of ill feelings

but not just that. Its not enough to show the court that
youve suffered mental anguish or sleepless nights. You
have to pinpoint that these are circumstances covered
under the law. And the law applicable is the one you
find in Articles 2219 and 2220.

Article 2219 is not exclusive because it mentions of

analogous causes but it is not all encompassing
because analogous causes limit you to the instances
that are analogous to those enumerated.

Art.
publicity.

Ex: Kidnapping is akin to serious illegal detention and

so moral damages may be awarded;

354.

Requirement

for

1. A private communication made by

any person to another in the
performance of any legal, moral or
social duty; and
2. A fair and true report, made in good
faith, without any comments or
remarks, of any judicial, legislative or
other official proceedings which are
not of confidential nature, or of any
statement, report or speech delivered
in said proceedings, or of any other act
performed by public officers in the
exercise of their functions.

LIBEL
ARTICLE 353, RPC
Definition of libel. A libel is public and
malicious imputation of a crime, or of a vice or
defect, real or imaginary, or any act, omission,
condition, status, or circumstance tending to
cause the dishonor, discredit, or contempt of a
natural or juridical person, or to blacken the
memory of one who is dead.
May be committed against natural (living and
the dead) or juridical persons (corporations)

There are instances where

even if the statement is
defamatory, malice is not
presumed
There is a need to prove that
malice actually existed. This is
in the case of ART 354, RPC

Every defamatory imputation is

presumed to be malicious, even if it
be true, if no good intention and
justifiable motive for making it is
shown, except in the following
cases:

Loss of boyfriend not enumerated in the law and no

causal connection between the loss of boyfriend and
the accident suffered by the girl (for all you know the
boyfriend will still leave you even without the injuries
suffered) therefore no award of moral damages

from the mere fact that you

made a defamatory imputation,
the other party just has to
prove that you made that
defamatory implication. Such
as when one says kawatan
gyud
kaayo
ni
siyang
tawhana, the other party just
has
to
prove
that
the
statement was made and
malice already attaches to it.

Ex:

1.

Writing a letter to USC President, Fr. Miranda

that Dean Largo is just about the worst dean
you could think of. That is at the very least an
imputation of a defect. Fr. Miranda has the
power to remove the dean or refuse to
reappoint her. So it is done by him in the
performance of any legal, moral or social duty.
There is a need to prove that there is malice
and the way to prove it is to say that there is
no justifiable motive.

the situations enumerated in ART 2219. The Court

awarded moral damages to the school that was
lambasted in the radio by the commentators. It is
therefore one of the instances when moral
damages may be awarded.
Libel is one of the instances when you grant moral
damages and libel can be committed against a
corporation.

If that same letter is sent to the Lex Circle

which has no power to remove or dismiss dean,
it is libel.

without any comments or remarks takes

away from the coverage comments and
opinions of commentators and columnists. But
SC in the case of BORJA v CA said that the
enumeration of privileged communications
found in ART 354 is in not exclusive.
There
is
another
brand
of
privileged
communication not based on 354 but based on
freedom of expression. If you make a fair
comment on matters of public concern and
even if it is later found erroneous, malice is not
presumed. In order to convict you of libel, there
has to be proof of malice. The only key is in
proving that it is a fair comment on matters of
public concern, SC elucidated this in two other
cases (Christy Fermin and Tulfo case)
when is it fair comment?

Borja: It is a fair comment when it is based

on established facts. It may even be later
found erroneous.

It must be based on established fact on a

matter of public concern
o When is it a matter of public concern?

it delves with public funds,

Public conduct,

Public official or Private Person

but in the category of a private
figure
You make a comment against a public official
but later on found out that it was wrong. If
based on some established fact, that wrong
comment is privileged and such cannot give
rise to a presumption of malice.
If covered by the doctrine of fair comment,
malice is not presumed. How do you prove
malice?
o Show that it was done in complete and
reckless disregard of the truth
o For mere error, malice will not
automatically attach
Court has liberalized the prosecution of the
crime of malice. Libel can be committed
against juridical persons.

Early jurisprudence shows that moral damages

cannot be awarded to juridical persons because
they are incapable of feelings or have no nervous
system (DL: use more finesse when explaining this)
However, in a case involving medical students who
went to a radio station complaining that their
school failed them, SC said that libel may be
committed against corporations and libel is one of

Can moral damages be awarded to a

corporation?

Only if it is premised on the commission of

defamatory acts against the corporation
because libel is one of the acknowledged
instance where you grant moral damages.

If the grant of MD is not premised on libel

or a defamatory action against the
corporation, it is without basis. General rule
is that corporations do not have feelings.

MALICIOUS PROSECUTION

An action for damages brought by one against

whom a criminal prosecution, civil suit or other
legal
proceeding
has
been
instituted
maliciously and without probable cause, after
the termination of such prosecution, suit or
other proceeding in favor of the defendant
therein.
Not limited to criminal and civil cases. Moral
damages may even be awarded to Disbarment
cases ( Sui generis; it is neither a criminal nor
civil case)
Ponce vs Legaspi: The foundation of an action
for malicious prosecution is an original
proceeding, judicial in character. A disbarment
proceeding being judicial in character may
therefore be the basis for a subsequent action
for malicious prosecution.
Who can be held liable?
o The one who instigated the
commencement or the prosecutor
For as long as the case is baseless, there may
be a case for malicious prosecution.

WRIT OF KALIKASAN
o
o
o

SLAPP Strategic Lawsuit Against

Public Prosecution.
AM 09-6-8 Section 4
Exclusive only to enforcement of
environmental laws

Ex: A case was filed by A against Mayor Rama in order

to enforce the Solid Waste Management Law. Mayor
Rama then filed a case against A for damages alleging
that the case filed against him was just meant to vex
and harass him. In the answer in the case for damages,
it may be alleged that the case filed by Mayor Rama is
in the nature of a SLAPP. Allege that it is a strategic
lawsuit filed to stifle public participation in the
enforcement of a particular environmental law. Once
the judge sees this in the answer, he is mandated by
the rules promulgated by the SC to hold a summary
hearing to determine if indeed that case filed was
really in the nature of a SLAPP. If found to be SLAPP,
the judge will dismiss the case and award you

damages. It is deemed malicious prosecution meant to

prevent public participation.

In Article 2220 of the Civil Code, it says that moral

damages may be recoverable for breach of contract if
the defendant acted in bad faith or fraudulently.

ART 2224, NCC

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.

It is not enough to show breach. In addition, it must be

shown that the breach was done fraudulently or in bad
faith.

Ex: Contract of carriage

breach of contract resulting to death will allow

the grant of moral damages (ART 1764, NCC)
Somebody must die in order to justify an award
for moral damages. If nobody died, allege bad
faith, fraud or gross negligence in order to be
awarded with moral damges. Gross negligence
may be taken to amount to bad faith.

Breach of promise to marry

When is it a ground to grant moral damages?

Breach of promise to marry is generally not an
actionable wrong
BAKSH v CA - where a mans promise to marry
in fact the proximate cause of the acceptance
of his love by a woman and his representation
to fulfill that promise thereafter becomes the
proximate cause of the giving of herself unto
him in sexual congress, proof that he had, in
reality, no intention of marrying her and that
the promise was only subtle scheme or
deceptive device to entice or inveigle her to
accept him and obtain her consent to sexual
act could justify the award of damages
pursuant to Article 21 not because of such
breach of promise of marriage but because of
the fraud and deceit behind it, and the willful
injury to her honor and reputation which
followed thereafter. It is essential however,
that such injury should have been committed
in a manner contrary to morals, good customs,
or public policy.

Buenaventura Case someone filed a case for nullity of

marriage
based
on
Article
36
(psychological
incapacity). The plaintiff asked for moral damages
against the defendant. Court said that psychological
incapacity is not founded on intent and defendant
shouldnt be asked to pay moral damages because this
isnt of the defendants own doing. No moral damages
if the ground for nullity is psychological incapacity.

10/09
ACTUAL DAMAGES
- prove monetary loss

- purpose is for compensation

TEMPERATE DAMAGES

MORAL DAMAGES
- prove that a loss was suffered
and that it falls under what is
enumerated by law
-purpose is to provide diversion
or recreation

Similar to ACTUAL DAMAGES since there is

monetary loss involved and the purpose is
the same.
less than compensatory damages
there is monetary loss but definite proof of
such cannot be adduced. The monetary
loss is such, that by its nature, it cannot
be established with certainty.
The law says that from the nature of the
case, it cannot be proved with certainty.
So dispel the idea that you have monetary
loss and for some reason you failed to
present receipts when there are receipts
available. The court will not say because
you were not able to establish how much
it is that you really lost, we will just award
you with temperate damages. The
monetary loss that is being contemplated
in temperate damage is that it is loss in
the form of money but the nature of the
monetary loss is such that you cannot put
an exact figure to it. The one thing that
immediately comes into mind is injury to
commercial standing. You know that it
involves monetary loss but the exact price
for that injury cannot be proved with
exactitude. This is an example when the
court may grant temperate damages.
You cannot award actual damages
because those are reserved for monetary
loss that can be proven with certainty.
Precisely, the purpose for AD is to provide
adequate and full compensation. But in
TD, there is compensation for the
monetary loss but it cannot be full and
adequate because you cannot determine
really exactly how much is it that you lost.
So it is compensation but not the
adequate compensation.
When you think of funeral expenses, it is a
monetary loss that you can exactly show
how much you spent by way of receipts.
But when you fail to present receipts, such
cannot be cured by asking for temperate
damages instead. However, there are
several cases where the court awarded
temperate damages for failure to present
receipts. Those are of course stray
decisions because if you look at the bare
letters of the law, it will tell you that
temperate damages are to be granted
only when the nature of the monetary loss
prevents you from determining exactly
how much was lost. Temperate damages
is not meant to be a substitute for actual
damages.
Is it then possible to temperate damages
and actual damages to stand together?

GR: They cannot co-exist

EXC: RAMOS v CA SC allowed both

actual and temperate damages to exist
because the injury was chronic and
continuing. The court acknowledged
that even after the case will be resolved,
the injured party will continue to incur
expenses and they cannot have him
come to court every time to ask for
reimbursement. So actual damages for
past expenses and temperate damages
for future expenses.
more than nominal because the
purpose is still for compensation and not
just to recognize or vindicate a right

damages is to provide recreation or diversion

while for exemplary damages it is to punish the
defendant (punitive kind of ED) or to set an
example for the public good or to vindicate the
rights of the plaintiff (vindictive damages).
One form of damages that CANNOT stand
alone because the law says that to be entitled
to exemplary damages you must prove
entitlement to compensatory, moral or
temperate damages.
It is not a matter of right. It is always subject to
the discretion of the court.
If it is prayed for, make sure that the factual
and legal basis for asking ED is stated.

NOMINAL DAMAGES

ART 2230, NCC

ART 2221, NCC

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.

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.

The purpose is not for compensation but rather

the
purpose
is
for
VINDICATION
or
RECOGNITION of a right.
Nominal damages in labor cases may be
claimed from a private person/employer
because violation of statutory due process. This
is to recognize ones right to procedural due
process.
o Dismissal based on just cause Php 30,
0000
o Dismissal based on authorized cause
Php 50, 000
Can nominal damages co-exist with other
damages? Yes. But it is an established rule that
nominal damages CANNOT co-exist with actual
damages. Nominal damages are awarded not
to indemnify one for loss but to recognize a
right while actual damages are awarded
precisely to indemnify. They rest on different
foundations.

ART 2223, NCC

The adjudication of nominal damages shall
preclude further contest upon the right involved
and all accessory questions, as between the
parties to the suit, or their respective heirs and
assigns.
LIQUIDATED DAMAGES
-

The only kind of damage that dispenses with

proof of loss
It is advised to stipulate in the contract
provisions providing for liquidated damages.
However, the court may equitably reduce the
amount if it is found to be inequitable or
unconscionable.

EXEMPLARY DAMAGES
-

Exemplary damages vs Moral damages point

of distinction is the purpose. Purpose for moral

ART 2231, NCC

In quasi-delicts, exemplary damages may be
granted if the defendant acted with gross
negligence.
ART 2232, NCC
In contracts and quasi-contracts, the court may
award exemplary damages if the defendant
acted in a wanton, fraudulent, reckless,
oppressive, or malevolent manner.
-

When you file a claim for beach of contract and

you pray for ED, you must allege in the
complaint that the breach was done in a
wanton, fraudulent, reckless, oppressive or
malevolent manner. You cannot just say that it
is claimed to set an example for public good.
When a claim for quasi-delict is filed, you must
allege gross negligence in order to be entitled
to ED.
In crimes, it may be awarded when there is one
or more aggravating circumstances.
So it is not enough to say that it is asked for to
set an example for public good. The legal basis
must be stated.
Asked in a bar exam, the contract stipulates
that parties renounce in advance an award for
ED. You cannot renounce in advance an award
for ED but if you already have a judgment in
your favor awarding you of ED and then you
later on settle with the other party, you may
renounce it.

ASSESSMENT OF DAMAGES
Doctrine of Contributory Negligence (DCN) when
CN is pleaded, liability is admitted except that you are
asking the court to mitigate the liability. This may be
used to lessen the award of damages.
Doctrine of Avoidable Consequences (DAC)
ART 2203, NCC

The party suffering loss or injury must exercise

the diligence of a good father of a family to
minimize the damages resulting from the act or
omission in question.
-

DCN and DAC are both ways of minimizing

damages that may be awarded by the
court. The distinction is that in DCN, the
negligence concurs or happens at the
time of the incident but in DAC, the
negligence happens after the loss or the
damage.
In DAC, when once you suffer a
loss/damage you must exercise diligence
to lessen that loss/damage.

MAMARIL v BOY SCOUT OF THE PHILIPPINES

-

About Sps. Mamaril parking their car in

the space owned by BSP for twenty years
at ten pesos a day. The vehicle was stolen
while still in the parking area. Mamaril
asks BSP for damages and BSP points out
a stipulation in the parking ticket stating
that management shall not be responsible
for loss of vehicle. Mamaril argues that
the stipulation in the parking ticket is in
the nature of a contract of adhesion and
therefore void. It is well settled that
contracts of adhesion are not void.

Further, court said that you cannot expect

BSP to pay for the full value of the car
especially considering the fact that they
only pay ten pesos per day. This case
highlights the nature of contracts of
adhesion.