CHAPTER SIXTEEN
DAMAGES
1. DEFINITION AND CONCEPT.
In the case of People vs. Ballesteros, the Supreme Court defined the word “damage” as
the pecuniary compensation, recompense, or satisfaction for an injury sustained, or as
otherwise expressed, the pecuniary consequences which the law imposes for the breach of
some duty or violation of some rights.
In the case of Garrido vs. De la Paz, the Supreme Court explained that in order to
recover damages, the claimant must prove the following: 1) injury or wrong sustained; 2) as
consequence of a breach of contract or tort; and 3) caused by the party chargeable with a
wrong. Damages may be claimed not only if the source of obligation is contract or quasi-delict
but also if the source of obligation is law, delict, and quasi-contract.
Complaint is a personal action. Cited in the case of Baritua vs. CA, it may be commenced
and tried where the defendant or any of the defendant resides or may be found, where the
plaintiff or any of the plaintiffs resides at the election of the plaintiffs.
Discussed in the case of Heirs of Simeon Borlado vs. CA, award must be monetary, courts
should award an amount to the winning party and not its equivalent in property.
2. DAMNUM ABSQUE INJURIA.
As cited in the case of Custudio vs. CA, there is no liability even if there is damage
because there is not injury. Mere damage without injury does not result in liability.
It was also invoked in the case of Equitable Banking Corporation vs. Calderon, it is a case
involving cancellation of credit card pursuant to the provisions of the credit card agreement
allowing automatic suspension of the credit card if the holder exceeded the limit provided for
the card. There is no injury even if the cardholder suffered because of the dishonor of the card
by a merchant.
a. Erroneous Interpretation of Law
In the case of Farolan v. Salmac Marketing Corporation, the Commissioner of Customs withheld
the release of certain importation because of an erroneous interpretation of law. The Supreme
Court believed that it is its duty to see to it that public officers are not hampered in the
performance of their duties or in making decisions for fear of personal liability due to honest
mistakes.
b. Inconvenience of Litigation
The maxim qui jure suo utitur nullum damnum facit – one who exercises a right does no injure,
applies to cases where the Court rejects claims for damages of winning defendants as the Corut
often reiterates the rule that the adverse result of an action does not per se make the action
wrongful and subject the actor to pay damages.
3. Kinds of Damages
Damages involves any and all manifestations of life. Under Article 2197 of the Civil Code,
damages may be the following:
a. Actual or compensatory;
b. Moral;
c. Nominal;
d. Temperate or moderate;
e. Liquited; or
f. Exemplary or corrective.
a. Proof of Pecuniary Loss When Not Necessary
Proof of pecuniary loss is necessary to successfully recover actual damages. However proof is
not necessary in order that moral, nominal, temperate, liquidated or exemplary may be
adjudicated.
4. Actual or Compensatory Damages
Article 2199 of the Civil code provides that one is entitled to an adequate compensation
only for such pecuniary loss suffered by him as he has duly proved except as provided by law or
by stipulation.
The statutory rule allowing recovery of damages proceeds from a sense of natural justice and is
designed to repair the wrong that has been done or for the injury inflicted and not to impose a
penalty.
