MORAL DAMAGES ACTUAL OR COMPENSATORY NOMINAL TEMPERATE/moderate LIQUIDATED EXEMPLARY OR CORRECTIVE

Physical suffering, mental (KINDS) May be recovered Vindication of right that has Pecuniary loss has been Those agreed by the parties Imposed by way of example
anguish, fright, serious because of been violated not the suffered but its amount to be paid in case of breach of correction for the public
anxiety, besmirched a. losses suffered indemnification of the loss cannot from the nature of the of contract. good
reputation, wounded b. profits which were not suffered. case proved, with certainty
feelings, moral shock, social realized - Indemnity or penalty -serve as a reminder and
humiliation, and similar - Right of the plaintiff +nominal but compensatory - May be reduced if stern warning
feelings. - in satisfaction of or may be vindicated or iniquitous or
recompense for loss or injury recognized unconscionable - to deter from committing
Purpose- awarded only to suffered. the same act
enable to injured party to - natural justice and are
obtain means, diversion or designed to repair the wrong -in addition to MORAL,
amusements that will serve that has been done TEMPERATE, LIQUIDATED,
to alleviate the moral COMPENSATORY
suffering he has undergone, X- NOMINAL and X- ACTUAL, MORAL,
by reason of defendant’s EXEMPLARY TEMPERATE
culpable action.

MORAL, NOMINAL,
TEMPERATE, EXEMPLARY-
left to the discretion of court

MORAL, NOMINAL,
TEMPERATE, LIQUIDATED,
EXEMPLARY- No proof of
pecuniary loss

Though incapable of Not subject to speculations Must be reasonable Court will decide.
pecuniary computation, may
be recovered if they the -only for pecuniary loss -need not be proved. But he
proximate result of the suffered which must be duly must show that he is entitled
defendant’s wrongful act or prove to moral, temperate or
omission. compensatory damages
-there should be actual proof
that damages had been
suffered

Note- absolute certainty is

 not necessary in unrealized
profit.

Breach of contract- Contacts/quasi-C Contacts/quasi-C

defendant acted fraudulently - acted in good faith- - acted in wanton,

or in bad faith those that are natural fraudulent, reckless,
and probable oppressive, or
consequences of breach manevolent manner
of obligation, and which
the parties have foreseen Quasi-delict
or could have foreseen at
the time the obligation - defendant acted with
was constituted gross negligence

- fraud, bad faith, malice Crime

or wanton attitude-
responsible for all the - committed with 1 or
damages which may more aggravating
reasonably attributed to circumstances.
the non-performance of
obligation

Quasi-delict

-all the damages which are

natural and probable
consequences of act or
omission.
- necessary that damages
have been foreseen or could
have not reasonably foreseen
by the defendant.
DAMAGES TO BE RECOVERED
REQUISITES IN CASE OF DEATH

A. Claimant must A. Moral

satisfactorily prove B. Exemplary
the existence of C. Attorney’s fee and
damages and its litigation expenses
 causal connection D. Indemnity for death
with defendant’s act. E. Indemnity for loss of
B. Damages is the earnings
proximate result of F. Interest in proper
the act or omission cases

Article 2216 of the Civil Code specifically provides that "no proof of pecuniary loss is necessary in order that moral, nominal, temperate, liquidated or exemplary damages may be
adjudicated." That is why the determination of the amount to be awarded (except liquidated damages) is left to the sound discretion of the court, according to "the circumstances of each
case."

Article 2180. The obligation imposed by Article 2176 is demandable not only for ones own acts or omissions, but also for those of persons for whom one is
responsible.

xxx

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 of industry.

The State is responsible in like manner when it acts though a special agent, but not when the damage has been caused by the official to whom the task was done
properly pertains, in which case what is provided in Article 2176 shall be applicable.

Article 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay and those who in any manner contravene the tenor
thereof are liable for damages.

Article 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
xxx.

According to Article 2205, (1), of the Civil Code, damages may be recovered for loss or impairment of earning capacity in cases of temporary or permanent personal injury.
Articles 1229 and 2227 of the Civil Code empower the courts to reduce the penalty if it is iniquitous or unconscionable. The determination of whether the penalty is iniquitous or unconscionable is addressed to the
sound discretion of the court and depends on several factors such as the type, extent, and purpose of the penalty, the nature of the obligation, the mode of breach and its consequences.

MORAL
Moral damages are not awarded to penalize the defendant but to compensate the plaintiff for the injuries he may have suffered. 
"The purpose of moral damages is essentially indemnity or reparation, not punishment or correction. Moral damages are emphatically not intended to enrich a complainant at the expense
of a defendant, they are awarded only to enable the injured party to obtain means, diversions or amusements that will serve to alleviate the moral suffering he has undergone by reason
of the defendant's culpable action. While it is true that no proof of pecuniary loss is necessary in order that moral damages may be adjudicated, the assessment of which is left to the
discretion of the court according to the circumstances of each case (Art. 2216, New Civil Code)

In any case the Court held that 'moral damages are emphatically not intended to enrich a complainant at the expense of a 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.' The award of moral damages must be proportionate to the suffering inflicted.

"Moral damages include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feeling, moral shock, social humiliation, and similar injury.  Though
incapable of pecuniary computation moral damages may be recovered if they are the proximate result of the defendant's wrongful act or omission." Article 2217 of the New Civil Code

In a breach of contract, moral damages are not awarded if the defendant is not shown to have acted fraudulently or with malice or bad faith. 30 The fact that the
complainant suffered economic hardship 31 or worries and mental anxiety 32 is not enough.

Though incapable of pecuniary computation, moral damages may be recovered if they are the proximate result of the defendant's wrongful act or omission. Under Article 2219 of the Civil Code,
moral damages are recoverable 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; and (1) acts and actions referred to in Articles 21, 26, 27, 28, 29, 30, 32, 34, and 35.

Following requisites for the award of moral damages:

(1) there must be an injury clearly sustained by the claimant, whether physical, mental or psychological;
(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 for damages is predicated on any of the cases stated in Article 2219 of the Civil Code.
Since breach of contract is not one of the items enumerated under Article 2219, moral damages, as a general rule, are not recoverable in actions for damages predicated on breach of contract.

As an exception, such damages are recoverable [in an action for breach of contract:]

(1) in cases in which the mishap results in the death of a passenger, as provided in Article 1764, in relation to Article 2206(3) of the Civil Code; and (2) in x x x cases in which
the carrier is guilty of fraud or bad faith, as provided in Article 2220.
Moral damages are meant to compensate the claimant for any physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social
humiliation and similar injuries unjustly caused. Moreover, although incapable of pecuniary estimation, the amount must somehow be proportional to and in approximation of the suffering
inflicted. Moral damages are not punitive in nature and were never intended to enrich the claimant at the expense of the defendant.

NOMINAL
Under Article 2221 of the Civil Code, "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."

ACTUAL/COMPENSATORY
Article 2205 of the Civil Code provides that actual or compensatory damages may be receive"(2) for injury to the plaintiff s business standing or commercial credit." There is
no question that the petitioner did sustain actual injury as a result of the dishonored checks and that the existence of the loss having been established "absolute certainty
as to its amount is not required."   Such injury should bolster all the more the demand of the petitioner for moral damages and justifies the examination by this Court of the
validity and reasonableness of the said claim.

Actual damages to be compensable must be proven by clear evidence. A court can not rely on speculation, conjecture or guess work as to the fact and amount of
damages, but must depend on actual proof. 

EXEMPLARY
Exemplary damages are designed by our civil law to permit the courts to reshape behaviour that is socially deleterious in its consequence by creating negative incentives or
deterrents against such behaviour.

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

Art. 2232. In contracts and quasi-contracts, the court may award exemplary damages if the defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent
manner.

Exemplary damages "by way of example or correction for the public good," in the words of the law. It is expected that this ruling will serve as a warning and deterrent against the
repetition of the ineptness and indefference that has been displayed here, lest the confidence of the public in the banking system be further impaired.

The award of exemplary damages is not proper considering that there is no showing that RCPI acted in "a wanton, fraudulent, reckless, oppressive, or malevolent manner." (Article
2232, New Civil Code).
The reduction of exemplary damages are proper as exemplary damages are not meant to enrich or reduce another party to poverty. Consistent with pertinent jurisprudence, the interest on these
awards must be computed from the date when the RTC rendered its decision in the civil case, or on June 17, 2008, as it was at this time that a quantification of the damages may be deemed to have
been reasonably ascertained.

Under Article 2230 of the Civil Code, the attendance of any aggravating circumstance (generic, qualifying, or attendant) entitles the offended party to recover exemplary damages.

TEMPERATE
Temperate damages are awarded when the exact amount of damages is unknown.
Also, even if there are no documents supporting the earning capacity of the deceased, the damage caused is still undisputed. Temperate damages must be awarded.

Article 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 cannot, from the nature of the case, be proved with certainty.

Article 2224 of the Civil Code expressly authorizes the courts to award temperate damages despite the lack of certain proof of actual damages, to wit: When the court is convinced that
there has been such loss, the judge is empowered to calculate moderate damages, rather than let the complainant suffer without redress from the defendants
wrongful act. 

LIQUIDATED

ATTORNEY’S FEES

Attorneys fees which are granted as an item of damages are generally not recoverable.  36 The award of attorneys fees is the exception rather than the rule and
counsels fees are not to be awarded every time a party wins a suit. The award of attorneys fees demands factual, legal and equitable justification; its basis cannot
be left to speculation or conjecture.

The liquidated damages and the attorney’s fees serve the same purpose, that is, as penalty for breach of the contract. wvirtualibräry

Title XVIII. - DAMAGES

CHAPTER 3 > OTHER KINDS OF DAMAGES

Art. 2216. No proof of pecuniary loss is necessary in order that moral, nominal, temperate, liquidated or exemplary damages, may be adjudicated. The assessment of such damages, except
liquidated ones, is left to the discretion of the court, according to the circumstances of each case.
SECTION 1. - Moral Damages

Art. 2217. Moral damages include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury. Though
incapable of pecuniary computation, moral damages may be recovered if they are the proximate result of the defendant's wrongful act for omission.

Art. 2218. In the adjudication of moral damages, the sentimental value of property, real or personal, may be considered.

Art. 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.

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.

SECTION 2. - 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.

Art. 2222. The court may award nominal damages in every obligation arising from any source enumerated in Article 1157, or in every case where any property right has been invaded.

Art. 2223. 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.

SECTION 3. - 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.

SECTION 4. - Liquidated Damages

Art. 2226. Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof.

Art. 2227. Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable.

Art. 2228. When the breach of the contract committed by the defendant is not the one contemplated by the parties in agreeing upon the liquidated damages, the law shall determine the measure of
damages, and not the stipulation.

SECTION 5. - Exemplary or Corrective Damages

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

Art. 2230. 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.

Art. 2231. In quasi-delicts, exemplary damages may be granted if the defendant acted with gross negligence.

Art. 2232. In contracts and quasi-contracts, the court may award exemplary damages if the defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner.

Art. 2233. Exemplary damages cannot be recovered as a matter of right; the court will decide whether or not they should be adjudicated.

Art. 2234. While the amount of the exemplary damages need not be proved, the plaintiff must show that he is entitled to moral, temperate or compensatory damages before the court may consider
the question of whether or not exemplary damages should be awarded. In case liquidated damages have been agreed upon, although no proof of loss is necessary in order that such liquidated
damages may be recovered, nevertheless, before the court may consider the question of granting exemplary in addition to the liquidated damages, the plaintiff must show that he would be entitled
to moral, temperate or compensatory damages were it not for the stipulation for liquidated damages.

Art. 2235. A stipulation whereby exemplary damages are renounced in advance shall be null and void.
ACTUAL/ COMPENSATORY DAMAGES
Purpose

Actual or compensatory damages simply make good or replace the loss caused by the wrong.

Manner of Determination

Claimant must produce competent proof or the best evidence obtainable such as receipts to justify an award therefore. Actual or compensatory damages cannot be presumed but
must be proved with reasonable certainty. (People v. Ereno, Feb. 22, 2000)

Special/Ordinary

Ordinary

NOTE: Ordinary Damages are those generally inherent in a breach of a typical contract

MORAL DAMAGES
Purpose

Awarded only to enable the injured party to obtain means, diversion or amusement that will alleviate the moral suffering he has undergone, by reason of defendants culpable
action. (Robleza v. CA, 174 SCRA 354)

Manner of Determination

No proof of pecuniary loss is necessary. The assessment is left to the discretion of the court according to the circumstances of each case. However, there must be proof that the
defendant caused physical suffering etc. (Compania Maritima v. Allied Free Worker’s Union, G.R. No. L-31379, Aug. 29, 1988). GR: Factual basis must be alleged. Aside from
the need for the claimant to satisfactorily prove the existence of the factual basis of the damages, it is also necessary to prove its causal relation to the defendant’s act (Raagas v.
Trava, G.R. No. L-20081, Feb. 27,1968; People v. Manero, G.R. Nos. 86883-85, Jan. 29, 1993).

Exception: Criminal cases. Moral damages may be awarded to the victim in criminal proceedings in such amount as the court deems just without need for pleading or proof of the
basis thereof (People v. Paredes, July 30, 1998).

Special/Ordinary

Special

NOTE: Special Damages are those which exist because of special circumstances and for which a debtor in good faith can be held liable if he had been previously informed of
such. circumstances.

NOMINAL DAMAGES
Purpose

Vindicating or recognizing the injured party’s right to a property that has been violated or invaded. (Tan v. Bantegui, 473 SCRA 663)

Manner of Determination

No proof of pecuniary loss is necessary. Proof that a legal right has been violated is what is only required. Usually awarded in the absence of proof of actual damages.

Special/Ordinary

Special

NOTE: Special Damages are those which exist because of special circumstances and for which a debtor in good faith can be held liable if he had been previously informed of
such. circumstances.
 

TEMPERATE DAMAGES
Purpose

When the court is convinced that there has been such a loss, the judge is empowered to calculate moderate damages rather than let the complainant suffer without redress. (GSIS v.
Labung-Deang, 365 SCRA 341)

Manner of Determination

May be recovered 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. No proof of
pecuniary loss is necessary.

Special/Ordinary

Special

NOTE: Special Damages are those which exist because of special circumstances and for which a debtor in good faith can be held liable if he had been previously informed of
such. circumstances.

LIQUIDATED DAMAGES
Purpose

Liquidated damages are frequently agreed upon by the parties, either by way of penalty or in order to avoid controversy on the amount of damages.

Manner of Determination

If intended as a penalty in obligations with a penal cause, proof of actual damages suffered by the creditor is not necessary in order that the penalty may be demanded (Art. 1228,
NCC). No proof of pecuniary loss is necessary.
 

Special/Ordinary

Special

NOTE: Special Damages are those which exist because of special circumstances and for which a debtor in good faith can be held liable if he had been previously informed of
such. circumstances.

EXEMPLARY/CORRECTIVE DAMAGES
Purpose

Exemplary or corrective damages are intended to serve as a deterrent to serious wrongdoings. (People v. Orilla, 422 SCRA 620)

Manner of Determination

1. That the claimant is entitled to moral, temperate or compensatory damages; and

2. That the crime was committed with 1 or more aggravating circumstances, or the quasi-‐delict was committed with gross negligence, or in contracts and quasi-contracts the act
must be accompanied by bad faith or done in wanton, fraudulent, oppressive or malevolent manner. No proof of pecuniary loss is necessary.

Special/Ordinary

Special

NOTE: Special Damages are those which exist because of special circumstances and for which a debtor in good faith can be held liable if he had been previously informed of
such. circumstances.

Net Earning Capacity = Life Expectancy × [Gross Annual Income – Reasonable and Necessary Living Expenses (50% of Gross Annual Income)]
 A majority of cases involving loss of earning capacity adopted the life expectancy formula set in Villa Rey and the formula for net annual income set in Aringue.

The Regional Trial Court used a simplified formula to compute for loss of earning capacity citing People v. Reanzares. 41

Loss of Earning Capacity

= [2/3 x (80 – age of the deceased)] x 1/2 annual gross income

The simplification of the formula is correct. However, the trial court’s computation was erroneous.

This is a step-by-step guide to compute an award for loss of earning capacity.

(1) Subtract the age of the deceased from 80.

(2) Multiply the answer in (1) by 2, and divide it by 3 (these operations are interchangeable).

(3) Multiply 50% to the annual gross income of the deceased.

(4) Multiply the answer in (2) by the answer in (3). This is the loss of earning capacity to be awarded.

When the evidence on record only shows monthly gross income, annual gross income is derived from multiplying the monthly gross income by 12. When the daily wage is the only
information provided during trial, such amount may be multiplied by 260, or the number of usual workdays in a year,  to arrive at annual gross income.
42

For this case, the victim was 54 years old at his time of death. The prosecution was able to prove that his monthly income was ₱95,000.00. With the amount multiplied by 12, the victim’s
annual gross income is ₱1,140,000.00.

To compute for life expectancy, or steps 1 and 2, we would get:

Life Expectancy = 2/3 x (80 – 54)

Life Expectancy = 2/3 x (26)

Life Expectancy = 17 1/3 years

Applying the victim's life expectancy and annual gross income to the general formula, or step 3:

Loss of Earning Capacity = Life Expectancy x 1/2 annual gross income

Loss of Earning Capacity = 17 1/3 x 1/2 (₱1,140,000.00)

Loss of Earning Capacity = 17 1/3 x ₱570,000.00

Loss of Earning Capacity = ₱9,880,000.00.