Kinds | DAMAGES

CIVIL LAW > XII. DAMAGES > B. Kinds

Damages are monetary compensation awarded by the courts to a party who has suffered loss or injury due to the act or omission of another. Under Philippine law, the kinds of damages that may be awarded are specifically enumerated in the Civil Code of the Philippines, particularly in Articles 2195 to 2235. Below is a detailed exposition of each type.


1. ACTUAL OR COMPENSATORY DAMAGES (Articles 2199-2205)

  • Definition: These are awarded to compensate the plaintiff for pecuniary loss that is duly proven and the natural and probable consequences of the defendant's act or omission.
  • Requirements:
    • Loss must be proven with reasonable certainty.
    • The damages must be a direct result of the wrongful act or omission.
  • Includes:
    • Loss of Income: Must be substantiated with receipts, contracts, or other evidence.
    • Medical Expenses: Require proof such as receipts or medical records.
    • Property Damage: The cost of repair or replacement.
  • Limitations:
    • Speculative damages are not allowed.
    • The amount must be supported by evidence presented in court.

2. MORAL DAMAGES (Articles 2217-2220)

  • Definition: Monetary compensation awarded to alleviate mental anguish, physical suffering, anxiety, or similar emotional distress caused by a wrongful act.
  • Instances When Awarded:
    • Physical injuries.
    • Defamation.
    • Breach of promise to marry.
    • Death of a loved one caused by a crime or quasi-delict.
    • Betrayal by a spouse or seduction.
  • Quantum of Damages: Determined by the court’s discretion, taking into account the circumstances of the case.
  • Purpose: Not to enrich the plaintiff but to provide relief for the moral suffering experienced.

3. NOMINAL DAMAGES (Articles 2221-2223)

  • Definition: Small amounts awarded when a legal right is violated, even if no actual loss is proven.
  • Purpose: To vindicate or recognize a right rather than to compensate for any loss.
  • Example: Breach of contract where no pecuniary damage was suffered.

4. TEMPERATE OR MODERATE DAMAGES (Article 2224)

  • Definition: Awarded when the court finds that actual damages have been suffered, but the amount cannot be fully established with certainty.
  • Examples:
    • Loss of earning capacity without adequate proof.
    • Undocumented expenses arising from an injury.
  • Purpose: To balance between actual and speculative damages, ensuring fairness to both parties.

5. LIQUIDATED DAMAGES (Articles 2226-2228)

  • Definition: Predetermined amounts agreed upon by the parties in a contract to be paid in case of breach.
  • Requirements:
    • There must be a valid stipulation in the contract.
    • The amount must not be unconscionable or contrary to public policy.
  • Legal Principle: Courts may reduce the amount if it is excessive or disproportionate to the actual damage incurred.

6. EXEMPLARY OR CORRECTIVE DAMAGES (Articles 2229-2233)

  • Definition: Awarded in addition to other damages by way of example or correction to deter serious wrongdoings.
  • Requirements:
    • The act must be grossly wrongful or malicious.
    • Exemplary damages can only be awarded if another kind of damage is proven.
  • Instances:
    • Crimes where aggravating circumstances are present.
    • Fraud, gross negligence, or malice in civil cases.
  • Purpose: To serve as a deterrent to similar conduct.

7. ATTORNEY'S FEES (Article 2208)

  • Definition: Compensation for the services of a lawyer awarded in cases where it is warranted.
  • Instances When Recoverable:
    • Claims for support.
    • Recovery of unpaid wages.
    • Actions for indemnity under workmen’s compensation laws.
    • Cases where the defendant’s act or omission compelled the plaintiff to litigate.
  • Limitations:
    • Courts have discretion to award attorney's fees and to determine the amount.

8. INTEREST (Article 2209)

  • Definition: A monetary award computed based on a stipulated or legal rate when payment is delayed or wrongful deprivation of funds occurs.
  • Legal Rate: As prescribed by law or stipulated in the contract.
  • When Awarded:
    • Obligations consisting of a sum of money in default.
    • Judgments involving forbearance of money, goods, or credit.

9. DAMAGES IN CASES OF DEATH (Article 2206)

  • Compensation Awarded:
    • Indemnity for Death: A fixed amount of PHP 50,000 (as of jurisprudential updates) or higher depending on the Supreme Court’s latest rulings.
    • Loss of Earning Capacity: Based on proven or computed earning capacity.
    • Moral Damages: For the pain and suffering of the heirs.
    • Actual Damages: For funeral and burial expenses with sufficient proof.

General Principles in the Award of Damages

  1. Causal Connection: There must be a clear causal relationship between the defendant's wrongful act or omission and the damages suffered by the plaintiff.
  2. Mitigation of Damages: The injured party is duty-bound to mitigate damages. Failure to do so may result in a reduction of the award.
  3. Proof Requirement: Each type of damage must be proven with the necessary evidence unless exempted (e.g., indemnity for death).

The award of damages in Philippine law aims to uphold the principles of equity and justice, ensuring that victims of wrongdoing are compensated fairly while also discouraging wrongful acts. Each case is evaluated on its own merits, and the quantum of damages is determined based on the totality of circumstances presented before the court.