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Vicarious Liability

a.

By State
Bar Exam Questions:

1.

In the last quarter of 2012, about 5,000 container vans of


imported goods intended for the Christmas Season were
seized by agents of the Bureau of Customs. The imported
goods were released only on January 10,2013. A group of
importers got together and filed an action for damages
before the Regional Trial Court of Manila against the
Department of Finance and the Bureau of Customs.
The Bureau of Customs raised the defense of immunity
from suit and, alternatively, that liability should lie with
XYZ Corp. which the Bureau had contracted for the lease
of ten (10) high powered van cranes but delivered only five
(5) of these cranes, thus causing the delay in its cargohandling operations. It appears that the Bureau, despite
demand, did not pay XYZ Corp. the Php 1.0 Million deposit
and advance rental required under their contract.
(A) Will the action by the group of importers
prosper? (5%)
(B) Can XYZ Corp. sue the Bureau of Customs to
collect rentals for the delivered cranes? (5'%)

2.

The Ambassador of the Republic of Kafiristan referred to


you for handling, the case of the Embassy's Maintenance
Agreement with CBM, a private domestic company
engaged in maintenance work. The Agreement binds CBM,
for a defined fee, to maintain the Embassy's elevators, airconditioning units and electrical facilities. Section 10 of the
Agreement provides that the Agreement shall be governed
by Philippine laws and that any legal action shall be
brought before the proper court of Makati. Kafiristan
terminated the Agreement because CBM allegedly did not
comply with their agreed maintenance standards.
CBM contested the tennination and filed a complaint
againstKafiristan before the Regional Trial Court of Makati.
The Ambassador wants you to file a motion to dismiss on
the ground of state immunity from suit and to oppose the
position that under Section 10 of the Agreement,
Kafiristan expressly waives its immunity from suit.

Under these facts, can the Embassy successfully invoke


immunity from suit? (6%)
Discussion:
Even though the rule as to immunity of a state from suit is relaxed,
the power of the courts ends when the judgment is rendered.
Although the liability of the state has been judicially ascertained, the
state is at liberty to determine for itself whether to pay the
judgment or not, and execution can not issue on a judgment against
the state. Such statutes do not authorize a seizure of state property
to satisfy judgments recovered, and only convey implication that the
legislature will recognize such judgment as final and make provision
for the satisfaction thereof. (49 Am. Jur., Sec. 104, pp. 312-320.)

Judgments against a state, in cases where it has consented to be


sued, generally operate merely to liquidate and establish plaintiff's
claim in the absence of express provision; otherwise they can not be
enforced by processes of law; and it is for the legislature to provide
for their payment in such manner as it sees fit. (59 C.J. sec. 501, p.
331; 81 C.J.S., sec. 232, p. 1343.)
It is a well-entrenched rule in this jurisdiction, embodied in Article
2180 of the Civil Code of the Philippines, that the State is liable only
for torts caused by its special agents, specially commissioned to
carry out the acts complained of outside of such agent's regular
duties (Merritt vs. Insular Government, supra; Rosete vs. Auditor
General, 81 Phil. 453). There being no proof that the making of the
tortious inducement was authorized, neither the State nor its funds
can be made liable therefor.
b.

By teachers

WHO CAN BE HELD LIABLE?


1. The school
2. The schools administrators;
3. and Teachers
WHY ARE THEY LIABLE?
According to Tolentino, a teacher must not only be
charged with teaching but also vigilance over their students or
pupils. Without the parents to look after their children when in
school, it is the teacher who takes over in the supervision.
It is thus fitting that the basis of a teachers liability is the
principle of in loco parentis.
Principle of in loco parentis
- means in the place of a parent,
- exists when a person undertakes care and control
another in absence of such supervision by natural parents and
absence of formal legal approval, and is
temporary
character and is not to be likened to an adoption which
permanent.

of
in
in
is

LEGAL BASIS FOR THEIR LIABILITY

New Civil Code


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

The father and, in case of his death or incapacity,


the mother, are responsible for the damages
caused by the minor children who live in their
company.

Guardians are liable for damages caused by the


minors or incapacitated persons who are under
their authority and live in their company.

The owners and managers of an establishment


or enterprise are likewise responsible for
damages caused by their employees in the
service of the branches in which the latter are
employed or on the occasion of their functions.

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 or industry.

The State is responsible in like manner when it


acts through a special agent; but not when the
damage has been caused by the official to whom

the task done properly pertains, in which case


what is provided in Article 2176 shall be
applicable.

Lastly, teachers or heads of establishments of


arts and trades shall be liable for damages
caused by their pupils and students or
apprentices, so long as they remain in their
custody.
The responsibility treated of in this article shall cease when the
persons herein mentioned prove that they observed all the diligence
of a good father of a family to prevent damage. (1903a)

Family Code
Art. 218. The school, its administrators and teachers, or the
individual, entity or institution engaged in child are shall have special
parental authority and responsibility over the minor child while
under their supervision, instruction or custody.
Authority and responsibility shall apply to all authorized activities
whether inside or outside the premises of the school, entity or
institution. (349a)
WHEN ARE THEY LIABLE?

Teachers are liable for the acts or omission of their


pupils and students in their custody

Heads of establishments of arts and trades are liable for


the act or omission of apprentices in their custody
Reason for difference:
The reason for the disparity can be traced to the fact that historically
the head of the school of arts and trades exercised a closer tutelage
over his pupils than the head of the academic school.
By contrast, the head of the academic school was not as involved
with his students and exercised only administrative duties over the
teachers who were the persons directly dealing with the students.
The head of the academic school had then (as now) only a vicarious
relationship with the students. Consequently, while he could not be
directly faulted for the acts of the students, the head of the school
of arts and trades, because of his closer ties with them, could be so
blamed. ( Amadora vs CA G.R. No. L-47745 April 15, 1988)

What does the phrase so long as they remain in their


custody means?
The student is considered in the custody of the school
authorities for as long as he is under the control and influence of the
school and within its premises, regardless of whether the semester
has started or has ended.
As long as it can be shown that the student is in the school
premises in pursuance of a legitimate student objective, in the
exercise of a legitimate student right, and even in the enjoyment of
a legitimate student right, and even in the enjoyment of a legitimate
student privilege, the responsibility of the school authorities over
the student continues. Indeed, even if the student should be doing
nothing more than relaxing in the campus in the company of his
classmates and friends and enjoying the ambience and atmosphere
of the school, he is still within the custody and subject to the
discipline of the school authorities under the provisions of Article
2180. ( Amadora vs CA G.R. No. L-47745 April 15, 1988)

Liability of teachers for non- minors


Does a student need to be a minor for a teacher to be liable?
NO. This is one of the differences between a parents
responsibility
and that of a teachers. Under Article 221 of the
Family Code of the Philippines, parents are responsible for their
unemancipated minor children, while Article 2180 of the Civil Code
does not provide any qualifications nor age limit. Thus, the liability
of a teacher applies to all students, even those of age. Although
according to Tolentino, who quotes Plainol&Ripert, the degree of

vigilance of non-minors is not the same as over minors. This view is


supported by Articles 218 and 219 of the Family Code.

Liability Outside School


May a teacher escape liability for outings and activities held
outside the school but authorized by the school?
NO. Art 218 of the Family Code states that authority and
responsibility shall apply to all authorized activities
whether inside or outside the premises of the school,
entity
or institution. Special parental authority and
responsibility
applies to all authorized activities, whether
inside or outside the school premises.

Waivers
Can a teacher or school escape responsibility by asking parents to
file a waiver during field trips and outings?
This issue is closely related to liabilities outside school
and Art 218 is clear that authority and responsibility
shall apply to all authorized activities whether inside or
outside the premises of the school, entity or
institution.
The fact that the parents allowed their child to join the activity, or
even signed a waiver for this purpose, does not mean that the
teacher(s)-in-charge were already relieved of their duty to observe
the required diligence of a good father of a family in ensuring the
safety of the children.
The waiver not to hold the school or its teachers
responsible for negligence is not valid because the waiver is contrary
to public policy. Thus, a teacher can still be made to answer for
damages by the parent of the pupil or student in case she failed to
exercise the proper diligence to prevent harm or injury to the pupil
or student.
At best, what the waiver can bring about is a reminder to
the teacher of his duty of diligence.

Who is At fault?

Who to sue?

Student

Teacher, Head
School
Administrator

Basis of liability

Diligence of a good father of


a family

Teacher

2180
paragraph
(Loco Parentis)
Art 218 1nd 219 of
Family Code

School

Diligence in the selection and


supervision of employee
2180
paragraph
(Respondeat Superior)

Stranger

Defenses that can be raised

School

Faithful compliance of the


terms of the contract
Contract

STRICT LIABILITY TORTS

proximate

When you speak of torts, the basis of liability is you being at fault
but then there can be a kind of tort that even if there is no fault
imputed there can still be liability and these are very limited kinds
you would call strict liability torts.

HELD: YES. Art. 2176 provide the requisites of negligence: 1. damage


suffered by the plaintiff, 2. fault or negligence of the defendant, 3.
connection of cause and effect between the fault or negligence of
the defendant and the damage incurred by the plaintiff. It is
generally recognized that the drugstore business is imbued with
public interest. Obviously, petitioners employee was grossly
negligent in selling the wrong prescription. Considering that a fatal
mistake could be a matter of life and death for a buying patient, the
said employee should have been very cautious in dispensing
medicines. She should have verified whether the medicine she gave
respondent was indeed the one prescribed by the physician.
Petitioner contends that the proximate cause of the accident was
respondents negligence in driving his car. Proximate cause is that
cause, which in natural and continuous sequence unbroken by any
efficient intervening cause, produces the injury, and without which
the result would not have occurred Proximate cause is determined
from the facts of each case, upon a combined consideration of logic,
common sense, policy, and precedent. Here, the vehicular accident
could not have occurred had petitioners employee been careful in
reading the prescription. Without the potent effect of Dormicum, a
sleeping tablet, it was unlikely that respondent would fall asleep
while driving his car, resulting in collision. Petition DENIED.

Why would you allow imputing liability on somebody when there is


no fault?
SC said that there are very limited kinds of activities where the
person engaged in such activities derives some sense of pleasure,
utility, or service and then the source of that pleasure, utility, service
may have imputed damage on another.
In the allocation of loss and risk, it is just fair that one who derives
pleasure, utility, or service from that activity should be the one held
liable for the damage.
What are these instances?
a.

Possessors of animals

The possessor of an animal (NOT necessarily the owner) or


whoever may make use of the same is responsible for the damage
which it may cause, although it may escape or be lost. 'This
responsibility shall cease only in case the damages should come
from force majeure from the fault of the person who has suffered
damage.
Bar Question:
Primo owns a pet iguana which he keeps in a man-made
pond enclosed by a fence situated in his residential lot. A typhoon
knocked down the fence of the pond and the iguana crawled out of
the gate of Primos residence. N, a neighbor who was passing by,
started throwing stones at the iguana, drawing the iguana to move
toward him. N panicked and ran but tripped on something and
suffered a broken leg.

cause

of

the

accident?

SPECIAL TORTS
This one is the cases covered by the chapter on Human Relations
a.

Abuse of Right Principle


even if you have the right, you dont have the right to
exercise it excessively
If you file a case for damages anchored on abuse of rights,
then when you file your complaint to the court it should
contain the allegation of bad faith or malice.

NIKKO HOTEL MANILA GARDEN v REYES


Is anyone liable for Ns injuries? Explain. (4%)
b.

Exemption from Caveat emptor rule

MERCURY
DRUG
GR. No. 156037, May 28, 2007

CORP.

v.

BAKING

Sebastian M. Baking went to the clinic of Dr. Cesar Sy for a medical


check-up. After undergoing an ECG, and several examininations, Dr.
Sy found the respondents blood sugar and triglyceride were above
normal. The doctor then prescribed two medical prescriptionsDiamicron for the blood sugar and Benalize for his triglyceride.
Respondent then proceeded to Mercury Drug Alabang to buy the
prescribed medicines. The sales lady misread the prescription for
Diamicron as a prescription for Dormicum. Thus what was sold was
Dormicum, a potent sleeping tablet. Unaware of the wrong
medicine, he took one pill on three consecutive days. On the third
day he took the medicine, he met an accident while driving his car.
He fell asleep while driving. He could not remember anything about
the collision nor felt its impact. Suspecting the tablet he took,
respondent went back to Dr. Sy who was shocked after finding that
what was sold was Dormicum instead of Diamicron. He filed the
present complaint for damages against petitioner. The trial court
favored the defendant which was affirmed by the CA hence this
petition.
ISSUE: Is petitioner negligent, and if so, is the negligence was the

Elsewhere, we explained that when "a right is exercised in


a manner which does not conform with the norms enshrined in
Article 19 and results in damage to another, a legal wrong is thereby
committed for which the wrongdoer must be responsible." The
object of this article, therefore, is to set certain standards which
must be observed not only in the exercise of ones rights but also in
the performance of ones duties. These standards are the following:
act with justice, give everyone his due and observe honesty and
good faith. Its antithesis, necessarily, is any act evincing bad faith or
intent to injure. Its elements are the following: (1) There is a legal
right or duty; (2) which is exercised in bad faith; (3) for the sole
intent of prejudicing or injuring another. When Article 19 is violated,
an action for damages is proper under Articles 20 or 21 of the Civil
Code. Article 20 pertains to damages arising from a violation of
law which does not obtain herein as Ms. Lim was perfectly within
her right to ask Mr. Reyes to leave. Article 21, on the other hand,
states:
Art. 21. Any person who willfully causes loss or injury to
another in a manner that is contrary to morals, good
customs or public policy shall compensate the latter for
the damage.
Article 21 refers to acts contra bonus mores and has the
following elements: (1) There is an act which is legal; (2)
but which is contrary to morals, good custom, public

order, or public policy; and (3) it is done with intent to


injure.

A common theme runs through Articles 19 and 21, and


that is, the act complained of must be intentional.
b.

Emotional Distress Court Action

Article 26 of NCC
Every person shall respect the dignity, personality, privacy
and peace of mind of his neighbors and other persons. The
following and similar acts, though they may not constitute a
criminal offense, shall produce a cause of action for damages,
prevention and other relief:

is personal in nature, i.e., it is a civil action filed by


an individualto assuage the injuries to his emotional
tranquility due to personal attacks on his character.

(1) Prying into the privacy of another's residence:


(2) Meddling with or disturbing the private life or family
relations of another;

reactive harm principle - which includes injuries to


individual emotional tranquility in the form of an infliction
of emotional distress.

"Emotional distress" means any highly unpleasant mental


reaction such as extreme grief, shame, humiliation,
embarrassment, anger, disappointment, worry, nausea,
mental suffering and anguish, shock, fright, horror, and
chagrin.

The plaintiff is required to show, among other things, that


he or she has suffered emotional distress so severe that no
reasonable person could be expected to endure it; severity
of the distress is an element of the cause of action, not
simply a matter of damages

Any party seeking recovery for mental anguish must prove


more than mere worry, anxiety, vexation, embarrassment,
or anger. Liability does not arise from mere insults,
indignities, threats, annoyances, petty expressions, or other
trivialities.

In determining whether the tort of outrage had been


committed, a plaintiff is necessarily expected and required
to be hardened to a certain amount of criticism, rough
language, and to occasional acts and words that are
definitely inconsiderate and unkind; the mere fact that the
actor knows that the other will regard the conduct as
insulting, or will have his feelings hurt, is not enough.

Elements of Emotional Distress Court Action


1. The conduct of the defendant was intentional or in
reckless disregard of the plaintiff
2. The conduct was extreme and outrageous
o means conduct that is so outrageous in
character, and so extreme in degree, as to go
beyond all possible bounds of decency, and to be
regarded as atrocious, and utterly intolerable in
civilized society. The defendant's actions must
have been so terrifying as naturally to humiliate,
embarrass or frighten the plaintiff. Generally,
conduct will be found to be actionable where
the recitation of the facts to an average member
of the community would arouse his resentment
against the actor, and lead him or her to exclaim,
"Outrageous!" as his or her reaction.
3. There was a causal connection between the
defendant's conduct and the plaintiff's mental
distress; and
4. The plaintiff's mental distress was extreme and
severe
c.

Alienation of Affection

(3) Intriguing to cause another to be alienated from his


friends;
(4) Vexing or humiliating another on account of his
religious beliefs, lowly station in life, place of birth,
physical defect, or other personal condition.

Exception:
RA 9262 SECTION 34
Persons Intervening Exempt from Liability. In every case of
violence against women and their children as herein defined, any
person, private individual or police authority or barangay official
who, acting in accordance with law, responds or intervenes without
using violence or restraint greater than necessary to ensure the
safety of the victim, shall not be liable for any criminal, civil or
administrative liability resulting therefrom.
d.

Interference with Contractual Relations


Elements:
1. existence of a valid contract;
2. knowledge on the part of the third person of the
existence of contract; and
3. interference of the third person is without legal
justification or excuse
o there was no malice in the interference of a
contract, and the impulse behind one's conduct
lies in a proper business interest rather than in
wrongful motives, a party cannot be a malicious
interferer. Where the alleged interferer is
financially interested, and such interest
motivates his conduct, it cannot be said that he
is an officious or malicious intermeddler.

MEDICAL MALPRACTICE
It is a particular form of negligence which consists in the
failure of the physician or surgeon to apply his practice of medicine
that degree of care and skill which is ordinarily employed by the
profession generally, under similar conditions, and in like
surrounding circumstances.
Elements Involved in Medical Negligence Cases:

Duty, Breach, Injury, Proximate Causation

STANDARD OF DILIGENCE REQUIRED


GR: The standard contemplated for doctors is simply the reasonable
average merit among ordinarily good physicians.

EXC: But a physician holding out himself as having special knowledge


and skill in the treatment of a particular organ, disease or type of
injury is bound to bring to the discharge of his duty to a patient
employing him as such specialist.
Factors in determining the degree of learning and skill required of a
physician or surgeon in his treatment of a particular case:

State of Medical or Surgical science at the time


The locality in which the physician practices
The general rules and principles of the particular school of
medicine which he follows
The nature of the case
The condition of the patient

EVIDENTIARY RULE
GR: There is a necessity of expert testimony in proving medical
negligence.
EXC: Obvious errors, which the doctrine of Res IpsaLoquitor
applies.
In such case, the need for an expert medical testimony is dispensed
with because the injury itself provides the proof of negligence.
Meaning: When common language and experience teach that a
resulting injury would not have occurred to the patient if due care
had been exercised, an inference of negligence may be drawn giving
rise to an application of the doctrine without medical evidence,
which is ordinarily required to show not only what occurred but how
and why it occurred.
WHEN IS A HOSPITAL LIABLE?

no employment relationship + hospital holds out to the


patient that the doctor is its agent
o hospital may still be vicariously liable under
Article 2176 in relation to Article 1431 and
Article 1869 of the Civil Code or the principle of
apparent authority/ agency by estoppels
o Solidarily liable with its agent(doctor)

but also of the passengers of the vessel. The head surgeon is made
responsible for everything that goes wrong within the four corners
of the operating room. It enunciates the liability of the surgeon not
only for the wrongful acts of those who are under his physical
control but also those wherein he has extension of control.
DOCTRINE OF INFORMED CONSENT
A duty imposed on a doctor to explain the risks of
recommended procedures to a patient before a patient determines
whether or not he or she should go forward with the procedure.
The gravamen in an informed consent case requires the
plaintiff to point to significant undisclosed information relating to
the treatment which would have altered her decision to undergo it.
The element of ethical duty to disclose material risks in the
proposed medical treatment cannot thus be reduced to one
simplistic formula applicable in all instances. Further, in a medical
malpractice action based on lack of informed consent, the plaintiff
must prove both the duty and the breach of that duty through
expert testimony. Such expert testimony must show the customary
standard of care of physicians in the same practice as that of the
defendant doctor.
The court thus concluded that the patients right of self-decision can
only be effectively exercised if the patient possesses adequate
information to enable him in making an intelligent choice. The
scope of the physicians communications to the patient, then must
be measured by the patients need, and that need is whatever
information is material to the decision. The test therefore for
determining whether a potential peril must be divulged is its
materiality to the patients decision.

Damage- the lost, hurt or harm, which results from injury =>illegal
invasion of a legal right
Damages- is the sum of money which the law awards or imposes as
pecuniary compensation, recompense or satisfaction for an injury
done.
When there is damage, do you expect damages? All the time?

regardless of its relationship with the doctor


o hospital may be held directly liable to the patient
for its own negligence or failure to follow
established standard of conduct to which it
should conform as a corporation (corporate
negligence doctrine)
o Hospital is liable for its own negligence

Note: NO EE-ER relationship between doctor and hospital. SC


overturned itself in the 2002 decision of Ramos vs CA saying that
there was no element of control.
CAPTAIN OF THE SHIP DOCTRINE
Under this doctrine, the surgeon is likened to a ship
captain who must not only be responsible for the safety of the crew

No,
there
can
be
damage
without
injury
(damnumabsqueinjuria) and if there is no injury then no basis for
damages. It is not enough to show suffering or prejudice. What is
needed is a showing of invasion of right or legal duty.
Example
1. Right to litigate- as long as it is only an exercise of a right
and no attendance of abuse is present
2. 2013 Bar Question:
A collision occurred at an intersection involving a
bicycle and a taxicab. Both the bicycle rider (a
businessman then doing his morning exercise) and the taxi
driver claimed that the other was at fault. Based on the
police report, the bicycle crossed the intersection first but
the taxicab, crossing at a fast clip from the bicycle's left,

could not brake in time and hit the bicycle's rear wheel,
toppling it and throwing the bicycle rider into the sidewalk
5 meters away.
The bicycle rider suffered a fractured right knee,
sustained when he fell on his right side on the concrete
side walk. He was hospitalized and was subsequently
operated on, rendering him immobile for 3 weeks and
requiring physical rehabilitation for another 3 months. In
his complaint for damages, the rider prayed for the award
ofP1,000,000
actual
damages,P200,000
moral
damages, P200,000 exemplary damages, P1 00,000
nominal damages and P50,000 attorney's fees.
Assuming the police report to be correct and as the
lawyer for the bicycle rider, what evidence (documentary
and testimonial) and legal arguments will you present in
court to justify the damages that your client claims?
What is needed to prove/claim for damages?
1. There is a loss or injury- injury can either be special or
general; difference is important because a special injury
needs to be plead specifically in the pleading to be
granted.
2. Legal duty or right violated
3. Know the specific requirements for the damages youre
asking
4. Know what are the damages that can or cannot co-exist

3 Scenarios contemplated in Eastern Shipping Case:


1. Loan
Example: A borrowed money from B in the amount of
100,000 with 10% interest to be paid in October 2015.
On October 2015, what will be owed is 110,000
the 10,000 interest will earn interest from the time it is
judicially demanded
2. Owe money to another person but not because of a loan
Example: Liquidated Damages- interest due will earn
interest from the time it is judicially demanded
3. Owe an amount but at the time of filing it is not yet
determined or established with reasonable certainty
Example: Case for defamation- interest will be imposed at
the time the amount can be established with reasonable
certainty
case file on 2013, Judgment on 2020 => interest runs
starting this date
ATTORNEYS FEES
-

(2) When the defendant's act or omission


has compelled the plaintiff to litigate with
third persons or to incur expenses to
protect his interest;
(3) In criminal cases of malicious
prosecution against the plaintiff;

KINDS OF DAMAGES:
ACTUAL DAMAGES- are those recoverable because of pecuniary
loss- in business, trade, property, profession, job or occupation.
What is meant to compensate is money or
monetary loss; there must be an actual loss
and such loss must be duly proven
-

General Rule: cannot be recovered


Exception: Article 2208
(1) When exemplary damages are awarded;

(4) In case of a clearly unfounded civil


action or proceeding against the plaintiff;
(5) Where the defendant acted in gross and
evident bad faith in refusing to satisfy the
plaintiff's plainly valid, just and demandable
claim;

Full adequate compensation for that loss


show documentary evidence; the
courts as a matter of preference would
prefer documentary evidence over
testimonial because of the bias nature
of the latter.

(6) In actions for legal support;


(7) In actions for the recovery of wages of
household helpers, laborers and skilled
workers;

Breach of Contract- damages recoverable would depend on how the


contract was breached
If in bad faith- obligor shall be responsible for all damages
which may be reasonably attributed to the nonperformance of the obligation
If in good faith- obligor shall be responsible for damages
which are natural and probable consequence of the
breach; which the parties have foreseen or could have
reasonably foreseen at the time the obligation was
constituted
Crime or Quasi-Delict foreseeability does not matter
Responsible for all that results from the
crime or quasi-delict
Will pay not only indemnity for fact of
death nut also loss of earning capacity
Interest 6% legal rate (July 1, 2013)
There are two kinds:
1. Interest for use of money
2. Interest as an item for damages

(8) In actions for indemnity under


workmen's compensation and employer's
liability laws;
(9) In a separate civil action to recover civil
liability arising from a crime;
(10) When at least double judicial costs are
awarded;
(11) In any other case where the court
deems it just and equitable that attorney's
fees and expenses of litigation should be
recovered.
-

Two kinds of Attorneys fees:


1. Ordinary- payment for services by the
client to the attorney

2.

Extraordinary- amount to be given to


the winning party
Is an item of damages
Paid to the client not to the
attorney UNLESS the parties
stipulate that the attorneys
fees granted by the court
should be given to the
attorney
Reason: No premium on the right to litigate
Parties can stipulate attorneys fees and
only in the absence of stipulation will you
use article 2208
Requirements for court to validly award
attys fees:
a. Check the body of the ruling- must
contain justification for the award
It must contain the LEGAL
BASIS and THE FACTS IN
SUPPORT OF THE LEGAL
BASIS
b. And it must be found in the dispositive
portion

3.

4.

Proof that the wrongful act or omission of the defendant is


the proximate cause of the damages sustained by the
claimant
The case is predicated on any of the instances expressed
or envisioned by Article 2219 and Article 2220 of the Civil
Code

ARTICLE 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.

ARTICLE 2220

MORAL DAMAGES
What kind of injury does it seek to address?

Physical suffering, mental anguish, fright, serious anxiety,


besmirched reputation, wounded feelings, moral shock,
social humiliation and similar injury

It does not cover pecuniary loss unlike actual damages but there is
still a need to prove loss for both actual and moral damages. The
difference is that for actual damages, it must be proven with
certainty through receipts, etc while for moral damages there is a
need to prove loss but not in the same degree of exactness as that
needed for actual damages.
You need to understand the kind of loss it is meant address and
since it deals with besmirched reputation, wounded feelings, etc.,
you cannot determine those with exactitude so there is still proof of
loss required but unlike actual damages, the proof of loss need not
be established with such degree of exactitude.
The purpose for actual damages is for full compensation while the
purpose for moral damages is to compensate one for manifold
injuries or for the injury suffered. It is still for compensation but not
for monetary loss. The purpose is to give the injured some means in
order to obtain diversion or recreation. Court said to restore him to
his spiritual status quo
REQUIREMENTS FOR AN AWARD OF MORAL DAMAGES:
1.
2.

Evidence of besmirched reputation or physical, mental or


psychological suffering suffered by the claimant
A culpable act or omission factually established

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.
Moral damages seeks to address all sorts of ill feelings but not just
that. Its not enough to show the court that youve suffered mental
anguish or sleepless nights. You have to pinpoint that these are
circumstances covered under the law. And the law applicable is the
one you find in Articles 2219 and 2220.
Article 2219 is not exclusive because it mentions of analogous
causes but it is not all encompassing because analogous causes limit
you to the instances that are analogous to those enumerated.
Ex: Kidnapping is akin to serious illegal detention and so moral
damages may be awarded;
Loss of boyfriend not enumerated in the law and no causal
connection between the loss of boyfriend and the accident suffered
by the girl (for all you know the boyfriend will still leave you even
without the injuries suffered) therefore no award of moral damages
LIBEL
ARTICLE 353, RPC
Definition of libel. A libel is public and malicious imputation of a
crime, or of a vice or defect, real or imaginary, or any act, omission,
condition, status, or circumstance tending to cause the dishonor,
discredit, or contempt of a natural or juridical person, or to blacken
the memory of one who is dead.

May be committed against natural (living and the dead) or


juridical persons (corporations)
What the law on libel seeks to address is relational
interest. So there has to be a third person who must know
of the defamatory imputation because what it wants to
protect is your reputation. And your reputation is not your
high regard of yourself but the high regard that others
have of you. You always need a third person for it to be
libel.

Ex: A defaming B. For it to be libel, C must have seen the defamatory


article or comment.

malice and the way to prove it is to say that there is no


justifiable motive.
If that same letter is sent to the Lex Circle which has no
power to remove or dismiss dean, it is libel.

Public and malicious imputation of crime, vice or defect


o MALICE
GR: Malice is presumed in every defamatory
imputation MALICE IN LAW

from the mere fact that you made a


defamatory imputation, the other
party just has to prove that you made
that defamatory implication. Such as
when
one
says
kawatangyudkaayonisiyangtawhana,
the other party just has to prove that
the statement was made and malice
already attaches to it.

EXC: MALICE IN FACT

There are instances where even if the


statement is defamatory, malice is not
presumed
There is a need to prove that malice
actually existed. This is in the case of
ART 354, RPC

Art. 354. Requirement for publicity.


Every defamatory imputation is presumed to be
malicious, even if it be true, if no good intention
and justifiable motive for making it is shown,
except in the following cases:
1. A private communication made by any person
to another in the performance of any legal,
moral or social duty; and
2. A fair and true report, made in good faith,
without any comments or remarks, of any
judicial, legislative or other official proceedings
which are not of confidential nature, or of any
statement, report or speech delivered in said
proceedings, or of any other act performed by
public officers in the exercise of their functions.

Ex:

Early jurisprudence shows that moral damages cannot be


awarded to juridical persons because they are incapable of
feelings or have no nervous system (DL: use more finesse when
explaining this) However, in a case involving medical students
who went to a radio station complaining that their school failed
them, SC said that libel may be committed against corporations
and libel is one of the situations enumerated in ART 2219. The
Court awarded moral damages to the school that was
lambasted in the radio by the commentators. It is therefore one
of the instances when moral damages may be awarded.
Libel is one of the instances when you grant moral damages
and libel can be committed against a corporation.

1.

Writing a letter to USC President, Fr. Miranda that Dean


Largo is just about the worst dean you could think of. That
is at the very least an imputation of a defect. Fr. Miranda
has the power to remove the dean or refuse to reappoint
her. So it is done by him in the performance of any legal,
moral or social duty. There is a need to prove that there is

without any comments or remarks takes away from


the coverage comments and opinions of commentators
and columnists. But SC in the case of BORJA v CA said that
the enumeration of privileged communications found in
ART 354 is in not exclusive.
There is another brand of privileged communication not
based on 354 but based on freedom of expression. If you
make a fair comment on matters of public concern and
even if it is later found erroneous, malice is not presumed.
In order to convict you of libel, there has to be proof of
malice. The only key is in proving that it is a fair comment
on matters of public concern, SC elucidated this in two
other cases (Christy Fermin and Tulfo case)
when is it fair comment?

Borja: It is a fair comment when it is based on


established facts. It may even be later found
erroneous.

It must be based on established fact on a matter of


public concern
o When is it a matter of public concern?

it delves with public funds,

Public conduct,

Public official or Private Person but in


the category of a private figure
You make a comment against a public official but later on
found out that it was wrong. If based on some established
fact, that wrong comment is privileged and such cannot
give rise to a presumption of malice.
If covered by the doctrine of fair comment, malice is not
presumed. How do you prove malice?
o Show that it was done in complete and reckless
disregard of the truth
o For mere error, malice will not automatically
attach
Court has liberalized the prosecution of the crime of
malice. Libel can be committed against juridical persons.

Can moral damages be awarded to a corporation?

Only if it is premised on the commission of


defamatory acts against the corporation because libel
is one of the acknowledged instance where you grant
moral damages.

If the grant of MD is not premised on libel or a


defamatory action against the corporation, it is

without basis. General rule is that corporations do


not have feelings.

MALICIOUS PROSECUTION

An action for damages brought by one against whom a


criminal prosecution, civil suit or other legal proceeding
has been instituted maliciously and without probable
cause, after the termination of such prosecution, suit or
other proceeding in favor of the defendant therein.
Not limited to criminal and civil cases. Moral damages may
even be awarded to Disbarment cases ( Sui generis; it is
neither a criminal nor civil case)
Ponce vs Legaspi: The foundation of an action for
malicious prosecution is an original proceeding, judicial in
character. A disbarment proceeding being judicial in
character may therefore be the basis for a subsequent
action for malicious prosecution.
Who can be held liable?
o The one who instigated the commencement
or the prosecutor
For as long as the case is baseless, there may be a case for
malicious prosecution.

WRIT OF KALIKASAN
o
o
o

SLAPP Strategic Lawsuit Against Public


Prosecution.
AM 09-6-8 Section 4
Exclusive only to enforcement of environmental
laws

Ex: A case was filed by A against Mayor Rama in order to enforce


the Solid Waste Management Law. Mayor Rama then filed a case
against A for damages alleging that the case filed against him was
just meant to vex and harass him. In the answer in the case for
damages, it may be alleged that the case filed by Mayor Rama is in
the nature of a SLAPP. Allege that it is a strategic lawsuit filed to
stifle public participation in the enforcement of a particular
environmental law. Once the judge sees this in the answer, he is
mandated by the rules promulgated by the SC to hold a summary
hearing to determine if indeed that case filed was really in the
nature of a SLAPP. If found to be SLAPP, the judge will dismiss the
case and award you damages. It is deemed malicious prosecution
meant to prevent public participation.
In Article 2220 of the Civil Code, it says that moral damages may be
recoverable for breach of contract if the defendant acted in bad
faith or fraudulently.

Breach of promise to marry is generally not an actionable


wrong
BAKSH v CA - where a mans promise to marry in fact the
proximate cause of the acceptance of his love by a woman
and his representation to fulfill that promise thereafter
becomes the proximate cause of the giving of herself unto
him in sexual congress, proof that he had, in reality, no
intention of marrying her and that the promise was only
subtle scheme or deceptive device to entice or inveigle her
to accept him and obtain her consent to sexual act could
justify the award of damagespursuant to Article 21 not
because of such breach of promise of marriage but
because of the fraud and deceit behind it, and the willful
injury to her honor and reputation which followed
thereafter. It is essential however, that such injury should
have been committed in a manner contrary to morals,
good customs, or public policy.

Buenaventura Case someone filed a case for nullity of marriage


based on Article 36 (psychological incapacity). The plaintiff asked for
moral damages against the defendant. Court said that psychological
incapacity is not founded on intent and defendant shouldnt be
asked to pay moral damages because this isnt of the defendants
own doing. No moral damages if the ground for nullity is
psychological incapacity.
10/09
ACTUAL DAMAGES
- prove monetary loss

- purpose is for compensation

TEMPERATE DAMAGES
ART 2224, NCC
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.

It is not enough to show breach. In addition, it must be shown that


the breach was done fraudulently or in bad faith.
Ex: Contract of carriage

breach of contract resulting to death will allow the grant of


moral damages (ART 1764, NCC)
Somebody must die in order to justify an award for moral
damages. If nobody died, allege bad faith, fraud or gross
negligence in order to be awarded with moral damges.
Gross negligence may be taken to amount to bad faith.

Breach of promise to marry

When is it a ground to grant moral damages?

MORAL DAMAGES
- prove that a loss was suffered
and that it falls under what is
enumerated by law
-purpose is to provide diversion
or recreation

Similar to ACTUAL DAMAGES since there is


monetary loss involved and the purpose is the same.
less than compensatory damages there is
monetary loss but definite proof of such cannot be
adduced. The monetary loss is such, that by its
nature, it cannot be established with certainty.
The law says that from the nature of the case, it
cannot be proved with certainty. So dispel the idea
that you have monetary loss and for some reason
you failed to present receipts when there are
receipts available. The court will not say because
you were not able to establish how much it is that
you really lost, we will just award you with
temperate damages. The monetary loss that is
being contemplated in temperate damage is that it
is loss in the form of money but the nature of the
monetary loss is such that you cannot put an exact
figure to it. The one thing that immediately comes
into mind is injury to commercial standing. You

know that it involves monetary loss but the exact


price for that injury cannot be proved with
exactitude. This is an example when the court may
grant temperate damages.
You cannot award actual damages because those
are reserved for monetary loss that can be proven
with certainty. Precisely, the purpose for AD is to
provide adequate and full compensation. But in TD,
there is compensation for the monetary loss but it
cannot be full and adequate because you cannot
determine really exactly how much is it that you
lost. So it is compensation but not the adequate
compensation.
When you think of funeral expenses, it is a monetary
loss that you can exactly show how much you spent
by way of receipts. But when you fail to present
receipts, such cannot be cured by asking for
temperate damages instead. However, there are
several cases where the court awarded temperate
damages for failure to present receipts. Those are of
course stray decisions because if you look at the
bare letters of the law, it will tell you that temperate
damages are to be granted only when the nature of
the monetary loss prevents you from determining
exactly how much was lost. Temperate damages is
not meant to be a substitute for actual damages.
Is it then possible to temperate damages and actual
damages to stand together?
GR: They cannot co-exist
EXC:RAMOS v CA SC allowed both actual and
temperate damages to exist because the injury
was chronic and continuing. The court
acknowledged that even after the case will be
resolved, the injured party will continue to incur
expenses and they cannot have him come to court
every time to ask for reimbursement. So actual
damages for past expenses and temperate
damages for future expenses.
more than nominal because the purpose is still
for compensation and not just to recognize or
vindicate a right

NOMINAL DAMAGES
ART 2221, NCC
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.

The purpose is not for compensation but rather the


purpose is for VINDICATION or RECOGNITION of a right.
Nominal damages in labor cases may be claimed from a
private person/employer because violation of statutory
due process. This is to recognize ones right to procedural
due process.
o Dismissal based on just cause Php 30, 0000
o Dismissal based on authorized cause Php 50,
000
Can nominal damages co-exist with other damages? Yes.
But it is an established rule that nominal damages
CANNOT co-exist with actual damages. Nominal damages
are awarded not to indemnify one for loss but to recognize

a right while actual damages are awarded precisely to


indemnify. They rest on different foundations.
ART 2223, NCC
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.
LIQUIDATED DAMAGES
-

The only kind of damage that dispenses with proof of loss


It is advised to stipulate in the contract provisions
providing for liquidated damages. However, the court may
equitably reduce the amount if it is found to be
inequitable or unconscionable.

EXEMPLARY DAMAGES
-

Exemplary damages vs Moral damages point of


distinction is the purpose. Purpose for moral damages is to
provide recreation or diversion while for exemplary
damages it is to punish the defendant (punitive kind of ED)
or to set an example for the public good or to vindicate the
rights of the plaintiff (vindictive damages).
One form of damages that CANNOT stand alone because
the law says that to be entitled to exemplary damages you
must prove entitlement to compensatory, moral or
temperate damages.
It is not a matter of right. It is always subject to the
discretion of the court.
If it is prayed for, make sure that the factual and legal basis
for asking ED is stated.

ART 2230, NCC


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, NCC
In quasi-delicts, exemplarydamages may be granted if the
defendant acted with gross negligence.
ART 2232, NCC
In contracts and quasi-contracts, the court may award exemplary
damages if the defendant acted in a wanton, fraudulent, reckless,
oppressive, or malevolent manner.
-

When you file a claim for beach of contract and you pray
for ED, you must allege in the complaint that the breach
was done in a wanton, fraudulent, reckless, oppressive or
malevolent manner. You cannot just say that it is claimed
to set an example for public good.
When a claim for quasi-delict is filed, you must allege gross
negligence in order to be entitled to ED.
In crimes, it may be awarded when there is one or more
aggravating circumstances.
So it is not enough to say that it is asked for to set an
example for public good. The legal basis must be stated.
Asked in a bar exam, the contract stipulates that parties
renounce in advance an award for ED. You cannot

renounce in advance an award for ED but if you already


have a judgment in your favor awarding you of ED and
then you later on settle with the other party, you may
renounce it.
ASSESSMENT OF DAMAGES
Doctrine of Contributory Negligence (DCN) when CN is pleaded,
liability is admitted except that you are asking the court to mitigate
the liability. This may be used to lessen the award of damages.
Doctrine of Avoidable Consequences (DAC)
ART 2203, NCC
The party suffering loss or injury must exercise the diligence of a
good father of a family to minimize the damages resulting from the
act or omission in question.
-

DCN and DAC are both ways of minimizing damages that


may be awarded by the court. The distinction is that in
DCN, the negligence concurs or happens at the time of
the incident but in DAC, the negligence happens after the
loss or the damage.
In DAC, when once you suffer a loss/damage you must
exercise diligence to lessen that loss/damage.

MAMARIL v BOY SCOUT OF THE PHILIPPINES


-

About Sps. Mamaril parking their car in the space owned


by BSP for twenty years at ten pesos a day. The vehicle
was stolen while still in the parking area. Mamaril asks
BSP for damages and BSP points out a stipulation in the
parking ticket stating that management shall not be
responsible for loss of vehicle. Mamaril argues that the
stipulation in the parking ticket is in the nature of a
contract of adhesion and therefore void. It is well settled
that contracts of adhesion are not void. Further, court
said that you cannot expect BSP to pay for the full value
of the car especially considering the fact that they only
pay ten pesos per day. This case highlights the nature of
contracts of adhesion.

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