General Considerations | DAMAGES

CIVIL LAW > XII. DAMAGES > A. General Considerations

I. Definition and Concept of Damages

Damages in civil law refer to the monetary compensation awarded to a person who has suffered loss or injury as a result of the wrongful act, omission, or breach of duty by another. The purpose of awarding damages is to restore the injured party, as much as possible, to the position they would have been in had the wrongful act not occurred.

II. Legal Basis in the Philippines

The concept of damages is rooted in both substantive and procedural law:

  1. Substantive Law:
    • Articles 2195 to 2235 of the Civil Code of the Philippines provide the specific rules on damages.
    • These provisions enumerate the types of damages and the circumstances under which they may be awarded.
  2. Procedural Law:
    • The Rules of Court outline the procedural requirements for claiming and proving damages in legal proceedings.

III. Types of Damages

The Civil Code recognizes several classifications of damages, each serving distinct purposes:

  1. Actual or Compensatory Damages:

    • Definition: Actual damages are those that compensate for pecuniary loss directly caused by the defendant’s wrongful act.
    • Requirements: Must be proven with certainty through receipts, invoices, or other evidence.
    • Scope:
      • Includes loss of income, medical expenses, and property damage.
      • Covers both present and future losses as long as they are certain.

  2. Moral Damages:

    • Definition: Moral damages are awarded for mental anguish, serious anxiety, wounded feelings, moral shock, social humiliation, or similar injuries.
    • Requirements: The claimant must prove a causal connection between the wrongful act and the emotional distress.
    • Applicability:
      • Available in cases involving fraud, physical suffering, seduction, slander, illegal dismissal, etc.

  3. Nominal Damages:

    • Definition: Nominal damages are awarded to vindicate a violated right even when no actual damage has been proven.
    • Purpose: To acknowledge that a right has been infringed and to deter future violations.

  4. Temperate or Moderate Damages:

    • Definition: These damages are awarded when the court finds that there is some pecuniary loss, but its amount cannot be proven with certainty.
    • Example: Awarded in cases of destroyed goods when no receipts are available.

  5. Liquidated Damages:

    • Definition: Pre-determined damages agreed upon by the parties in a contract.
    • Limitation: Courts may reduce liquidated damages if they are excessively unconscionable.

  6. Exemplary or Corrective Damages:

    • Definition: Exemplary damages are awarded as a form of punishment and deterrence against grossly oppressive, wanton, or malicious acts.
    • Requirements: Exemplary damages can only be awarded if another kind of damage (e.g., moral or actual) has been proven.

IV. Principles Governing the Award of Damages

  1. Causal Connection:
    • There must be a direct causal link between the wrongful act and the damage sustained.
  2. Reasonable Certainty:
    • The amount of damages must not be speculative or uncertain.
  3. Mitigation of Damages:
    • The injured party has the duty to mitigate losses; failure to do so may result in reduced compensation.
  4. Good Faith and Bad Faith:
    • Acts done in bad faith may lead to an award of moral or exemplary damages.
    • In contrast, acts in good faith generally preclude the award of moral or exemplary damages.

V. Persons Liable for Damages

  1. Tortfeasors:
    • Individuals who commit acts of negligence, fraud, or intentional wrongs.
  2. Employers:
    • Liable for the negligent acts of their employees under the principle of respondeat superior.
  3. Contracting Parties:
    • Liable for breach of contractual obligations resulting in damages.
  4. Public Officials:
    • Liable when their wrongful acts cause damage, subject to the principle of official immunity in certain cases.

VI. Rules on Evidence in Proving Damages

  1. Actual Damages:
    • Must be supported by receipts, invoices, contracts, or other documentation.
  2. Moral Damages:
    • Requires testimony detailing the emotional distress suffered.
  3. Exemplary Damages:
    • Proof of wanton or malicious conduct is necessary.
  4. Burden of Proof:
    • Lies with the claimant to prove the existence and extent of damages.
  5. Testimony of Experts:
    • Often required in cases involving specialized knowledge, such as medical or economic analysis.

VII. Exceptions to Recovery of Damages

  1. Damnum Absque Injuria:
    • Damage without legal injury does not warrant recovery. For example, lawful competition resulting in business loss does not entitle the aggrieved party to damages.
  2. Acts of God:
    • Damages caused by fortuitous events are generally not compensable unless negligence contributed to the loss.
  3. Self-Inflicted Harm:
    • Claimants cannot recover for injuries caused by their own negligence or wrongdoing.

VIII. Special Rules on Damages

  1. Death:
    • In cases of wrongful death, damages may include:
      • Funeral expenses (actual damages),
      • Loss of earning capacity (actual damages),
      • Indemnity for death (fixed amount set by jurisprudence), and
      • Moral damages for the surviving family members.
  2. Breach of Promise to Marry:
    • Moral damages may be awarded for seduction or humiliation, but no actual damages are awarded for the broken promise itself.
  3. Defamation:
    • Damages may include compensation for the tarnished reputation and moral suffering caused by libel or slander.

IX. Judicial Discretion in the Award of Damages

Courts in the Philippines have broad discretion in determining the appropriate amount of damages, considering factors such as:

  • Nature and extent of the injury,
  • Socio-economic status of the parties,
  • Gravity of the wrongful act.

X. Notable Jurisprudence

  1. Nakpil v. CA (G.R. No. L-47851): Clarified the need for causal connection in awarding damages.
  2. People v. Sison (G.R. No. 86455): Established guidelines for indemnity in wrongful death cases.
  3. Albenson Enterprises v. CA (G.R. No. 88694): Emphasized that exemplary damages require proof of malice or bad faith.

Conclusion

The principles of damages under Philippine civil law aim to balance restitution, deterrence, and justice. While grounded in codified provisions, the actual award of damages depends heavily on judicial discretion and the specific circumstances of each case. To succeed in a claim for damages, a meticulous presentation of evidence and a clear demonstration of causation are indispensable.

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