DAMAGES

CIVIL LAW: DAMAGES (Philippines)

Damages refer to the monetary compensation awarded to a person who suffers loss, injury, or harm due to the wrongful act or omission of another. The provisions governing damages in the Philippines are primarily found under the Civil Code of the Philippines (Republic Act No. 386), particularly Articles 2195 to 2235. Below is a comprehensive breakdown of the law on damages:


I. General Principles

  1. Definition of Damages
    Damages are compensation in money for an injury or loss caused by a breach of legal duty or violation of rights.

  2. Purpose

    • To indemnify the injured party for actual loss suffered.
    • To punish the wrongdoer in certain cases (e.g., moral or exemplary damages).
  3. Source of Liability for Damages
    Liability arises from:

    • Contracts (Articles 1170-1174, Civil Code)
    • Quasi-contracts
    • Crimes (Civil liability ex delicto)
    • Quasi-delicts (Articles 2176-2194)
    • Violations of constitutional or statutory rights.

II. Kinds of Damages

  1. Actual or Compensatory Damages (Art. 2199-2206)

    • Purpose: To compensate for actual and real pecuniary loss.
    • Includes:
      • Loss of income or earnings.
      • Medical expenses.
      • Property damage.
    • Proof Requirement: Receipts, documents, and other evidence are necessary to establish the amount with reasonable certainty.
  2. Moral Damages (Art. 2217-2220)

    • Purpose: To compensate for physical suffering, mental anguish, serious anxiety, besmirched reputation, wounded feelings, and similar harm.
    • Grounds:
      • Physical injuries.
      • Breach of promise to marry.
      • Illegal detention, libel, slander, or other wrongful acts causing moral harm.
    • Discretionary: Awarded only if explicitly provided by law or proven moral suffering is substantial.
  3. Nominal Damages (Art. 2221-2222)

    • Purpose: To vindicate or recognize a violated right without substantial injury.
    • Awarded when there is a violation of a right but no actual damage is proven.
  4. Temperate or Moderate Damages (Art. 2224)

    • Purpose: To provide equitable compensation when damages are not capable of exact calculation.
    • Used in cases where some loss is certain but not quantifiable (e.g., loss of earnings without specific proof).
  5. Liquidated Damages (Art. 2226-2228)

    • Purpose: Pre-determined damages stipulated in a contract.
    • Binding as long as not unconscionable or contrary to law.
  6. Exemplary or Corrective Damages (Art. 2229-2235)

    • Purpose: To serve as a deterrent against grossly wrongful or malicious conduct.
    • Requisites:
      • Proof of entitlement to actual, moral, or temperate damages.
      • Presence of bad faith, gross negligence, or wanton disregard of another's rights.

III. Requisites for Award of Damages

  1. Proof of Damage/Injury

    • Clear and convincing evidence of harm caused by the wrongful act.
  2. Causal Connection

    • The act or omission must directly cause the harm suffered (proximate cause).
  3. Mitigation of Damages (Art. 2204)

    • The injured party must act to minimize losses or mitigate harm.

IV. Rules on Particular Damages

  1. In Contracts

    • Damages are recoverable when there is fraud, bad faith, or gross negligence in performing contractual obligations (Art. 1170).
    • Only foreseeable damages at the time of contract execution can be recovered (Art. 2201).
  2. In Crimes

    • Civil liability arises from a crime (Art. 100, Revised Penal Code).
    • Covers restitution, reparation, and indemnification for consequential damages.
  3. In Quasi-Delicts

    • Negligence must be proven as a proximate cause of harm.
    • Applies even if the wrongdoer is not criminally liable.
  4. Breach of Statutory or Constitutional Rights

    • Violation of rights such as due process or equal protection entitles the victim to damages.

V. Evidence Requirements

  1. Actual Damages

    • Documentary and testimonial evidence.
    • Medical bills, invoices, receipts for property damage.
  2. Moral Damages

    • Testimony detailing emotional or psychological suffering.
  3. Exemplary Damages

    • Evidence of wanton, reckless, or oppressive conduct.
  4. Liquidated Damages

    • Contractual stipulation must be clear.

VI. Other Important Provisions

  1. Solidary Liability for Damages

    • When multiple persons cause harm, they are jointly and severally liable (Art. 2194).
  2. Prescription

    • Actions to recover damages are subject to the following periods:
      • 10 years for contracts.
      • 4 years for quasi-delicts.
      • 1 year for libel or slander.
  3. Waiver of Damages

    • Waivers are valid unless they are contrary to law, public order, or morals.
  4. Interest on Damages

    • Legal interest may be imposed on monetary awards from the time the judgment becomes final and executory.

This comprehensive overview of damages under Philippine Civil Law should guide legal practitioners and claimants in understanding their rights and remedies.