Temperate or Moderate Damages | Kinds | DAMAGES

CIVIL LAW > XII. DAMAGES > B. Kinds > 4. Temperate or Moderate Damages

Temperate or moderate damages are a recognized category of damages under Philippine civil law. These damages are awarded when the court finds that there has been some form of pecuniary loss suffered by a party, but the exact monetary value cannot be established with certainty due to lack of definite proof.

This type of damages is codified under Article 2224 of the Civil Code of the Philippines, which states:

"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."

ELEMENTS AND CONSIDERATIONS

1. Existence of Pecuniary Loss:

   • The claimant must show evidence that a pecuniary or material loss has occurred.
   • However, the inability to quantify the exact amount of the loss does not bar recovery of damages.

2. Lack of Precise Proof:

   • While the existence of the loss is established, the exact monetary value of the loss cannot be accurately determined.
   • For instance, when receipts, contracts, or other documentary proof are unavailable or insufficient.

3. Judicial Discretion:

   • The court exercises discretion in determining the amount of temperate damages. This discretion, however, must be reasonable and based on the circumstances of the case.
   • The damages awarded must be more than nominal damages (a token acknowledgment of a legal wrong) but less than compensatory damages (full reparation of the loss).

EXAMPLES OF CASES INVOLVING TEMPERATE DAMAGES

1. Breach of Contract:

   • In cases where a breach of contract results in pecuniary loss but the claimant cannot produce all necessary receipts or documents to prove the exact amount of the loss.

2. Damage to Property:

   • When property is damaged, and the cost of repairs or diminution in value cannot be precisely determined, temperate damages may be awarded.

3. Death or Personal Injury:

   • In wrongful death or injury cases where actual expenses such as hospital bills or burial costs are incurred, but the exact amounts cannot be fully established.

4. Commercial or Business Losses:

   • In cases involving loss of profits or business opportunities where the claimant can show that a loss was suffered but cannot substantiate it with precise financial data.

COMPARISON WITH OTHER KINDS OF DAMAGES

• Nominal Damages:

  • These are awarded to affirm a right that has been violated, without consideration of actual loss.
  • Temperate damages, on the other hand, require proof of some pecuniary loss.

• Compensatory Damages:

  • Compensatory damages seek to reimburse the full value of proven pecuniary loss.
  • Temperate damages are less than compensatory damages because the exact value of the loss is indeterminate.

• Exemplary or Moral Damages:

  • These are intended to penalize or serve as deterrents and are not linked to pecuniary loss.
  • Temperate damages are strictly awarded to address monetary losses.

LEGAL PRINCIPLES AND JURISPRUDENCE

1. Basis in Equity:

   • Temperate damages are grounded in the principle of equity, allowing recovery even when absolute precision is unattainable.
   • Courts recognize that denying recovery altogether would be unjust in light of the loss sustained.

2. Judicial Precedents:

   • The Supreme Court has repeatedly upheld temperate damages in cases where the existence of a loss was evident, but the claimant was unable to produce complete documentation. For example:
     • Filipinas Broadcasting Network v. Ago Medical Center: Temperate damages were awarded for loss of advertising revenues even though the exact income figures could not be determined with certainty.
     • Gatchalian v. Delim: The Court awarded temperate damages to a party whose crops were destroyed, recognizing the difficulty in quantifying the exact loss.

3. Avoiding Unjust Enrichment:

   • Awarding temperate damages prevents the party at fault from benefiting from the claimant’s inability to provide precise proof of loss, which may often be beyond the claimant’s control.

QUANTUM OF TEMPERATE DAMAGES

• The amount must be reasonable and equitable, taking into consideration:
  • The nature of the loss.
  • Circumstantial evidence supporting the claim.
  • The court's discretion to assess fairness and equity.

PROCEDURE FOR CLAIMING TEMPERATE DAMAGES

1. Pleadings:

   • The claimant should include a prayer for temperate damages in the complaint or raise it during the trial.

2. Proof:

   • Evidence of the existence of the loss must be presented, even if precise proof of the amount is not available.

3. Court Ruling:

   • The court must expressly find that:
     • A pecuniary loss was sustained.
     • The amount of the loss cannot be determined with exactitude.
     • The award is just and reasonable under the circumstances.

CONCLUSION

Temperate or moderate damages provide a critical remedy for aggrieved parties who suffer monetary losses that cannot be precisely quantified. They reflect the legal system's aim to balance equity and fairness, ensuring that legitimate claims are compensated while preventing parties from exploiting the inherent uncertainties in some claims. Courts must exercise sound discretion, guided by reason and equity, to ensure that the award of temperate damages is both just and proportionate to the harm suffered.