DAMAGES
The Code Commission explains that:
The present code (Spanish civil code then
in force) has but a few general principles on the
measure of damages. Moreover, practically the only
damages in the present Code are compensatory
ones and those agreed upon in a penal clause.
Moral damages are not expressly recognized in the
present Civil Code, although in one instance injury
to reputation - such damages have been allowed by
the Supreme Court of Spain, and some Spanish
jurist believe that moral damages are allowable. The
Supreme Court of the Philippines had awarded
moral damages in few cases.
The measure of damages is of far reaching
importance in every legal system. Upon it depends
the just compensation for every wrong or breach of
contract.
The Commission therefore, deemed it
advisable to include a Title on Damages, which
embodies some principles of the American law on
the subject. The American courts have developed
abundant rules and principles upon the adjudication
of damages.
The provisions on Damages are NEW
except articles 2200, 2201, 2209, and 2212.
Introduction
The fundamental principle of the law on
damages is that one injured by a breach of a
contract and by a wrongful or negligent act or
omission shall have a fair and just compensation,
commensurate with the loss sustained as a
consequences of the defendants act.
General rule:
Actual pecuniary compensation, whether the
action is based on a contract or in tort
- Generally, the damages awarded should
be equal to, and precisely commensurate with the
injury sustained.
- Recovery of damages are framed with
reference to just rights of BOTH PARTIES, not
merely what may be right for an injured person to
receive, but also what is just to compel the other
party to pay, to accord just compensation for the
injury.
Concept
As used in the Civil Code. Damages may
mean either:
1. The injury or loss caused to another by the
violation of his legal rights; or
2. The sum of money which the law awards or
imposes as pecuniary compensation,
recompense, or satisfaction for a injury done
or wrong sustained as a consequence either
of a breach of contractual obligation or a
tortious act.
2
Thereafter, Solmac filed the action for
mandamus and injunction with the trial court, which
ordered Farolan and Parayno to release the
importation.
The CA ordered Farolan and Parayno
solidarily liable in their personal capacity to pay
Solmac temperate damages, exemplary.
Issue:
WON they are liable for damages
Held:
The SC set aside and annulled the decision
of the CA. It further ruled that when a public officer
takes his oath of office, he binds himself to perform
the duties of his office faithfully and to use
reasonable skill and diligence and to act primarily for
the benefit of the public. The petitioners acted in
good faith in not immediately releasing the imported
goods.
These cellophane products were competing
with locally manufactured products. Hence, the
importation of which is restricted. Petitioners could
not be said to have acted in bad faith in not
immediately releasing the imported goods without
obtaining the clarificatory guidelines. As public
officers, they had the duty to see to it that the law
there tasked to implement was faithfully complied
with.
Whatever damages they may have caused
is in the nature of damnum absque injuria. The law
affords no remedy for damages resulting from an act
that does not amount to a legal wrong.
General principles of recovery
To warrant recovery; requisites
-there must be both a right of action
-a wrong inflicted by the defendant
-a damage resulting to the plaintiff
1. An action for recovery of damages for
the commission of an injury to a person
is a personal action.
Personal Action- one brought for the recovery of
personal property, for the enforcement of some
contract of recovery of damages for its breach or for
the recovery of damages for the commission of an
injury to the persons or property.
Case: Pascual vs. Beltran October 27, 2006
Facts:
3
Proximate damages said to be such as are
the ordinary and natural result of the omission or
commission of acts of negligence, and such are
usual and might have been reasonably expected or
contemplated.
Remote Damages the unusual unexpected
result not reasonably to be anticipated from an
accidental or unusual combination of circumstancesa result beyond and over which the negligent party
has no control.
In order to maintain an action for damages
for injuries claimed to have been caused by a
negligent or other tortuous or wrongful act or
omission, it should be made to appear that such act
or omission was the proximate cause of the injuries
complained of.
The damages the plaintiff is entitled to
recover in a civil action for damages are, in the
absence of any statutory modification of the rule,
such only as are the natural and probable
consequences of the wrongful act or breach of
contract. Those which naturally and proximately flow
from the original wrongful act.
TEST: whether the facts shown constitute a
continuous succession of events so linked together
as to make a natural whole or whether there was a
new and independent cause intervening between the
wrong and the injury.
4. Speculative damages NOT recoverable
Alleged injuries or losses that are uncertain or
contingent
cannot be used as a basis of recovery for
contract actions.
TORT
or
Actual or compensatory
Moral
Nominal
Temperate or moderate
Liquated or
Exemplary or corrective.
4
recognized, and not for the purpose of indemnifying
the plaintiff for any loss suffered by him. (Article
2221)
Temperate or moderate damages damages
which 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. They are more than nominal
but less than compensatory damages. (Article 2224)
Liquidated Damages damages agreed upon by
the parties to a contract, to be paid in case of breach
thereof. (Article 2226) Liquidated damages, whether
intended as an indemnity or penalty, shall be
equitably reduced if they are iniquitous or
unconscionable. (Article 2227)
Exemplary Damages damages imposed by way
of example or correction for the public good, in
addition to the moral, temperate, liquidate or
compensatory damages (Article 2229).
Requirements:
1. Imposed by way of example in addition to
other damages.
SPECIAL
debtor in
only if he
of such
Illustration:
Illustration:
In contracts for 'sale and purchase', the
general rule as regards measures of damages is that
the damages would be assessed on the difference
between the contract price and the market price on
the date of breach.
Actual Damages
Concept
Article 2199. Except as provided by law or by
stipulation, one is entitled to an adequate
compensation only for such pecuniary loss suffered
by him as he has duly proved. Such compensation
is referred to as actual or compensatory damages.
6
Components
Article 2200. Indemnification for damages shall
comprehend not only the value of the loss suffered,
but also that of the profits which the obligee failed to
obtain.
Note:
Where goods are destroyed by the wrongful act of
the defendant, the plaintiff is entitled to their value at
the time of destruction, that is, normally, the sum of
money which he would have to pay in the market for
identical or essentially similar goods, plus in a proper
case damages for the loss of use during the period
before replacement. (PNOC Shipping and Transport
Corporation vs. Court of Appeals and Maria Efigenia
Fishing Corporation)
Destruction of things
Fines or penalties that had to be paid
Rents and agricultural products not received
Cost of medical procedures to restore the injured
person to his or her former condition (this award
necessitates expert testimony on the cost of possible
restorative medical procedure.)
A scar resulting from the infliction of injury on the
face of a woman gave rise to a legitimate claim for
restoration to her conditio ante, granted P15,000 as
actual damages for plastic surgery. It bears
emphasis that the said amount was based on expert
testimony. (Gatchalian v. Delim)
Note:
7
There are two kinds of actual or compensatory
damages one is the loss of what a person already
possesses, and the other is the failure to receive as
a benefit that which would have pertained to him. In
the latter instance, the familiar rule is that damages
consisting of unrealized profits, frequently referred
as "ganacias frustradas" or "lucrum cessans," are
not to be granted on the basis of mere speculation,
conjecture, or surmise, but rather by reference to
some reasonably definite standard such as market
value, established experience, or direct inference
from known circumstances. However, when the
existence of a loss is established, absolute
certainty as to its amount is not required. The
benefit to be derived from a contract which one of
the parties has absolutely failed to perform is of
necessity to some extent, a matter of speculation,
but the injured party is not to be denied for that
reason alone. He must produce the best evidence
of which his case is susceptible and if that
evidence warrants the inference that he has been
damaged by the loss of profits which he might
with reasonable certainty have anticipated but for
the defendant's wrongful act, he is entitled to
recover. (Producers Bank of the Philippines vs. CA
and Spouses Chua)
1.
2.
2 Concepts:
1.
Ordinary
concept
reasonable
compensation paid to a lawyer by his client for the
legal services rendered.
2.
8
3. In criminal cases of malicious prosecution against
the plaintiff;
1.
2.
3.
Note:
4.
5.
6.
7.
The professional
standing of the attorney;
8.
character
and
social
9
Kinds:
1. Agreed interest provided for by the terms of a
contract to be paid before its breach. Also called
contractual interest or monetary interest (interest for
the use of money)
2. Interest by way of damages interest allowed in
actions for breach of contract or tort for the unlawful
detention of money already due. It is allowed as a
result of the justice of the individual case and as
compensation to the injured party. Often called
moratory interest (interest for the delay)
General Rule:
Reason:
The person liable did not know what amount he
owed and therefore should not be charged interest
for not paying an unknown sum
Exception: HOWEVER, if a claim otherwise
unliquidated is ascertainable by mathematical
computation, interest is allowed as though the claim
were liquidated (Sunga-Chan vs CA GR 164401
June 25, 2008)
Rate of Interest
(EASTERN SHIPPING LINES vs CA, G.R. No.
97412 July 12, 1994)
With regard particularly to an award of interest in the
concept of actual and compensatory damages, the
rate of interest, as well as the accrual thereof, is
imposed, as follows:
1. When the obligation is breached, and it consists in
the payment of a sum of money, i.e., a loan or
forbearance of money, the interest due should be
that which may have been stipulated in writing.
Furthermore, the interest due shall itself earn legal
interest from the time it is judicially demanded. In the
absence of stipulation, the rate of interest shall be
12% per annum to be computed from default, i.e.,
from judicial or extrajudicial demand under and
subject to the provisions of Article 1169 of the Civil
Code.
2. When an obligation, not constituting a loan or
forbearance of money, is breached, an interest on
the amount of damages awarded may be imposed at
the discretion of the court at the rate of 6% per
annum. No interest, however, shall be adjudged on
unliquidated claims or damages except when or until
the demand can be established with reasonable
certainty. Accordingly, where the demand is
established with reasonable certainty, the interest
Moral Damages
A. Concept
Article 2217 of the New Civil Code:
Moral damages includes physical suffering,
mental anguish, freight, serious anxiety, besmirched
reputation, wounded feelings, moral shock, social
humiliation, and similar injury. Though incapable of
pecuniary computation, moral damages may be
recovered if they are the proximate result of the
defendants wrongful act or omission.
B. Purpose of Awarding Moral Damages:
To compensate the claimant for the injury suffered
and not to impose penalty on the wrongdoer.
It is not meant to enrich a person at the
expense of the other, but are awarded to enable the
injure party to obtain means, diversions, or
amusement that will serve to alleviate the moral
suffering the person has undergone.
It is aimed at restoration, as much as
possible, of the spiritual status quo ante.
C. Requisites:
1. Evidence that plaintiff suffered:
physical suffering,
mental anguish,
freight
serious anxiety
besmirched reputation,
wounded feelings,
moral shock,
10
social humiliation,
similar injury
11
homicide for his attack on Roque Ferrer. Among
others, he was ordered to pay moral damages of
P10,000.00 to Roque and P8,000.00 to Ricardo.
Issue:
Whether the awards are proper.
Ruling:
4. Adultery or concubinage
5. Illegal or arbitrary detention or arrest
6. Illegal search
7. Libel, slander, or any other forms of defamation
8. Malicious prosecution
9. Article 309:
a. Article 21:
Willful cause of loss or
injury in a manner contrary to public policy,
good customs, or public
policy
b. Article 26:
Interference
Illustrative Case
Radio Communications of the Philippines vs
Verchez, January 31, 2006
Facts:
Grace sent a telegram to her sister Zenaida
through petitioner company. She was asking for
financial assistance for their mother. RCPI failed to
deliver the telegram.
Issue:
Whether there is basis for moral damages.
Ruling:
Yes. The source is not Article 26: Meddling
with or disturbing the private life or family relations
of another.
The negligence of RCPI disturbed the peace
of mind not only of Grace but of the whole family. It
disrupted the filial tranquility among them as they
blamed each other for failing to respond swiftly to
an emergency. The tortuous omissions complained
were therefore e analogous to the acts mentioned in
Article 26.
c. Article 27
malfeasance, misfeasance,
nonfeasance of official duty
d. Article 28:
unfair competition
e. Article 29:
filing of a dependent civil
action because of an acquittal in the
criminal case based on reasonable
doubt
f. Article 30:
filing of a dependent civil
action arising from criminal offense, and
12
no criminal proceedings are
instituted during the pendency of the
civil case
g. Article 32:
violations of constitutional
rights
h. Article 34:
refusal or failure of a police
officer to render aid and protection in
case of danger to life or property
i. Article 35:
of a criminal offense
in case of non-prosecution
moral
damages
should
be
Ruling:
No. Moral damages are not generally
recoverable in culpa contractual except when bad
faith supervenes and is proven. It may be that gross
negligence may sometimes amount to bad faith.
In the present case, the cause of action of
the respondents arose merely from simple
negligence. The trial court categorically found that
moral
damages
should
be
Ruling:
Yes. While the miscomputation was not
unfamiliar, the negligence imposed upon them a
needless burden who had gone on their trio
precisely to enjoy themselves. Worse, the manner of
treatment was far from acceptable. The employees
should have been polite if not sympathetic to the two
young girls in the foreign land. Instead, they were
hostile, overbearing. The girls testified that they were
treated coldly and arrogantly. They were not
accorded courtesy but were humiliated.
These acts taken in totality constitutes more
than mere negligence and assumed the dimension
of bad faith. There is clear malice, manifested in the
contemptuous disregard of the passengers protest
and the abrupt rejection of their request.
13
E. Considerations in Awarding Damages
General Rule: Each case must be governed by its
peculiar circumstances. there is no hard and fast
rules in determining the proper amount.
14
The RTC awarded, among others, moral
damages of P1,000,000.00. The CA reduced the
same to P800, 000.00.
Ruling:
Article 2218:
Issue:
NOMINAL DAMAGES
Concept:
Article 2221. 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.
They are those recoverable where a legal
right is technically violated and must be
vindicated against an invasion that has
produced no actual present loss of any kind,
or where, from the nature of the case, there
has been some injury arising from a breach
of contract or legal duty but the amount
thereof has not been or cannot be shown.
The law infers some damage from the
breach of an agreement or invasion of a
right, and if no evidence is given of any
particular amount of loss, it declares the
right by awarding what it terms nominal
damages. Its allowance is generally based
on the ground that every injury from its very
nature legally imports damage.
Any award which is not of any significant
amount but is given primarily as a courts
recognition of the justness or rightness of a
claim is a nominal award.
The assessment of nominal damages is left
to the discretion of the court according to the
circumstances of the case.
Generally, nominal damages by their nature
are small sums fixed by the court without
regard to the extent of the harm done to the
injured party.
15
Nominal damages is a substantial claim, if
based upon the violation of a legal right; in
such case, the law presumes damage
although actual or compensatory damages
are not proven.
Nominal damages are damages in name
only and not in fact, and are allowed, not as
an equivalent of wrong inflicted, but simply
in recognition of the existence of a technical
injury.
Nominal damages are really a symbolic
award given to the plaintiff when liability of
the defendant is established but the amount
of the harm done is not measurable or even
demonstrable. The award indicates that the
defendant committed a wrong and it serves
to clarify or vindicate the rights of the
plaintiff.
When Awarded:
Article 2222. The court may award nominal
damages in every obligation arising from
any source enumerated in Art. 1157 (law,
contracts, quasi-contracts, acts or omissions
punished by law, and quasi-delicts), or in
every case where any property right has
been invaded.
Obligations for violation of which NOMINAL
DAMAGES may be awarded:
1) Invasion of a legal right.
2) Torts.
3) Breach of contract.
4) Personal injury action.
5) Invasion of property.
6) Breach of duty by a public officer.
A. Adjudication of NOMINAL DAMAGES:
Article 2223. 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.
Effect
of
adjudication
of
NOMINAL
DAMAGES:
1) Nominal damages cannot co-exist with actual or
compensatory damages. They are awarded only
if there is no proof of actual damages.
2) Where the court has already award
compensatory damages, the award of nominal
damages is unnecessary and improper.
3) Where the interests of the stockholders were
already represented by the corporation itself,
16
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.
Issue:
Concept:
Article 2224. 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 prove with
certainty.
Reason for allowing
Moderate Damages.
Temperate
or
Reasonable
under
the
circumstances.
2)
3)
ILLUSTRATIVE CASES:
PHILIPPINE NATIONAL RAILWAYS, Petitioner, vs.
ETHEL BRUNTY and JUAN MANUEL M. GARCIA,
Respondents.
Facts:
Rhonda Brunty together with her Filipino
host Garcia, traveled to Baguio City on board a
Mercedes Benz sedan, driven by Mercelita. On the
17
drinks, flowers, chairs and tables during the funeral
and burial of Norman, as well as the traditional 40
days prayer thereafter, were not supported by any
receipts. These expenses are merely written, listed,
and signed by her in one sheet of yellow paper, and
submitted as evidence in the trial court. Thus, as
general rule, she is entitled only to an amount of
P18,420.82 since actual damages may be awarded
only if there are receipts to support the same.
However, in the case of People v. Dela
Cruz, this Court declared that when actual damages
proven by receipts during the trial amount to less
than P25,000.00, such as in the present case, the
award of temperate damages for P25,000.00, is
justified in lieu of actual damages for a lesser
amount. This Court ratiocinated therein that it was
anomalous and unfair that the heirs of the victim who
tried but succeeded in proving actual damages to
less P25,000.00 only would be in a worse situation
than those who might have presented no receipts at
all but would be entitled to P25,000.00 temperate
damages. Thus, instead of P18,420.82, an amount
of P25,000.00 as temperate damages should be
awarded to the heirs of Norman.
LIQUIDATED DAMAGES
Concept:
Article 2227. Liquidated damages, whether
intended as an indemnity or a penalty, shall
be equitably reduced if they are iniquitous or
unconscionable.
18
damages for its breach which are difficult to
estimate shall be covered by a provision for
liquidated damages and that other elements
shall be ascertained in the usual manner.
ILLUSTRATIVE CASE:
H.L. CARLOS CONSTRUCTION, INC.,
petitioner, vs. MARINA PROPERTIES
CORPORATION, JESUS K. TYPOCO SR.
and TAN YU, respondents.
Facts:
Marina
Properties
Corporation
(MPC) entered into a contract with H.L.
Carlos Construction, Inc. (HLC) to construct
Phase III of a condominium complex for a
total consideration of P38,580,609.00,
within a period of 365 days from receipt of
Notice to Proceed. The original completion
date of the project was May 16, 1989, but it
was extended to October 31, 1989 with a
grace period until November 30, 1989.
On December 15, 1989, HLC
instituted a case for sum of money against
MPC seeking the payment of various sums
with an aggregate amount of P14 million
pesos for unpaid labor escalation costs,
change
orders
and
material
price
escalations. This was granted by the RTC.
On appeal, the CA held that respondents
were not liable for escalations in the cost of
labor and construction materials, because
the contract between the parties was for a
lump sum consideration, which did not allow
for cost escalation, and petitioner failed to
show
any
basis
for
the
award
sought. Furthermore, the CA ruled that
petitioner was liable for actual and liquidated
damages. The latter had abandoned the
project prior to its completion; hence, MPC
contracted out the work to another entity and
incurred actual damages in excess of the
remaining balance of the contract price. In
addition, the Construction Contract had
stipulated payment of liquidated damages in
an amount equivalent to 1/1000 of the
contract price for each calendar day of
delay. Hence, this Petition.
Issue:
Whether or not the petitioner is
liable for liquidated damages
Ruling:
Yes. Liquidated damages are those
that the parties agree to be paid in case of a
breach. As worded, the amount agreed upon
answers for damages suffered by the owner
Exemplary/Corrective Damages
Art. 2229. Exemplary or corrective damages are
imposed, by way of example or correction for the
public good, in addition to the moral, temperate,
liquidated or compensatory damage
Exemplary or corrective damages are
generally defined or described as damages which
are given in enhancement merely of the ordinary
damages on account of the wanton, reckless,
malicious or oppressive character of the acts
complained of. Such damages go beyond the actual
damages suffered in the case; they are allowed as a
punishment of the defendant and as a deterrent to
others.
Nature of Exemplary Damages
1. Accessory Damage
-
3. Form of deterrent
-
Purpose
To deter the commission of similar acts in
future and to allow the courts to correct behavior that
can have grave and deleterious consequences to
society and not to enrich one party or impoverish
another.
19
When Recoverable
Art. 2230. 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.
Cases:
Issue:
Is the award of the trial court of exemplary
damages proper?
Held:
NOTE:
Issue:
Held:
Yes. Article 2230 of the Civil Code
specifically states that exemplary damages may be
imposed when the crime was committed with one or
more aggravating circumstances, as in this case.
Moreover, as an example and deterrent to future
similar transgressions, the court finds that an award
of P25,000.00 for exemplary damages is proper.
Palaganas vs. People of the Philippines
20
Exception: when he participated in the
doing of such wrongful act, has previously
authorized or subsequently ratified it with full
knowledge of the fact and if it was found out that he
was negligent in the selection and supervision of its
employees.
In
Construction
Development
vs.
Estrella, the petitioners driver was found driving
recklessly at the time its truck rammed the BLTB
bus. Petitioner, who has direct and primary liability
for the negligent conduct of its subordinates, was
also found negligent in the selection and supervision
of its employees. Thus the award of exemplary
damages was held proper.
Case:
German Marine Agencies Inc. Vs NLRC, 350
SCRA 641
Facts:
The ship radio officer was taken ill while the
ship was in New Zealand. Despite notice thereof by
the ships captain, the ship proceeded with the
voyage and reached the Philippines in 10 days and
yet the sick radio officer was not immediately taken
to hospital for medical treatment.
Held:
Ship owner is liable for moral damages for
the physical suffering and mental anguish caused to
Radio Officer. P50,000 in moral damages is proper.
As the fact of negligence of the ships
captain was not only shown to have existed but it
was deliberately perpetrated by the arbitrary refusal
to commit the ailing radio officer to a hospital in New
Zealand or at the nearest port resulting to his
permanent partial disability, the award of exemplary
damages for P50,000 is adequate and reasonable.
In this case the awarding of the exemplary
damages is to serve a correction as well as an
example for ship owners to look after the welfare of
their employees first to that of their customers-cargoowner.
C. Art. 2232 -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
it
is
arbitrary
21
The award of exemplary damages is
improper. Exemplary damages are awarded only
when a wrongful act is accompanied by bad faith or
when the guilty party acted in a wanton, fraudulent,
reckless or malevolent manner. Moreover, where a
party is not entitled to actual or moral damages, an
award of exemplary damages is likewise baseless.
As this Court has found, petitioners refusal to turn
over the subject property to Salvador is justified and
cannot be the basis for the award of exemplary
damages.
Requisites
Art. 2233. Exemplary damages cannot be recovered
as a matter of right; the court will decide whether or
not they should be adjudicated.
Art. 2234. While the amount of the exemplary
damages need not be proved, the plaintiff must
show that he is entitled to moral, temperate or
compensatory damages before the court may
consider the question of whether or not exemplary
damages should be awarded.
In case liquidated damages have been
agreed upon, although no proof of loss is necessary
in order that such liquidated damages may be
recovered, nevertheless, before the court may
consider the question of granting exemplary in
addition to the liquidated damages, the plaintiff must
show that he would been titled to moral, temperate
or compensatory damages were it not for the
stipulation for liquidated damages.
First
They may be imposed by way of example or
correction only in addition, to compensatory
damages, and cannot be recovered as a matter
of right, their determination depending upon the
amount of compensatory damages that may be
awarded to the claimant.
Exemplary damages cannot be claimed as a
matter of right. It is a mere additional to other forms
of damages which the court may or may not grant.
The amount of exemplary damages need
not be proven because its determination depends
upon the amount of compensatory damages that
may be awarded to the claimant. If the amount of
exemplary damages need not be proved, it need not
also be alleged, and the reason is obvious because
it is merely incidental or dependent upon what the
court may award as compensatory damages. It
follows as a necessary consequence that the
amount of exemplary damages need not be pleaded
in the complaint because the same cannot be
predetermined.
*Second
The claimant must first establish his right to
moral, temperate, liquidated or compensatory
damages.
While the court has discretion to grant it is
however, required of the aggrieved party to establish
evidence that he is entitled to compensatory, moral
or temperate damages.
Third
The wrongful act must be accompanied by
bad faith, and the award should be allowed only if
the guilty party acted in a wanton, fraudulent,
reckless, oppressive or malevolent manner.
Case:
PACQUING, CENTENO, GUERRA, DUPILAD, JR.,
CENTENO, REBLORA and
RAYMUNDO ANDRADE v. COCA-COLA
PHILIPPINES, INC.
Facts:
On October 22, 1996, petitioners filed a
Complaint against respondent for unfair labor
practice and illegal dismissal with claims for
regularization, recovery of benefits under the
Collective Bargaining Agreement (CBA), moral and
exemplary damages, and attorney's fees.
Issues: Is the award of damages proper?
Held:
On the claim for moral and exemplary
damages, there is no basis to award the same.
Moral and exemplary damages are recoverable only
where the dismissal of an employee was attended
by bad faith or fraud, or constituted an act
oppressive to labor, or were done in a manner
contrary to morals, good customs or public
policy. The person claiming moral damages must
prove the existence of bad faith by clear and
convincing evidence, for the law always presumes
good faith. Petitioners failed to prove bad faith, fraud
or ill motive on the part of respondent. Moral
damages cannot be awarded. Without the award of
moral damages, there can be no award of exemplary
damages, or attorney's fees.
22
Art. 2235. A stipulation whereby exemplary
damages are renounced in advance shall be null
and void.
Impliedly, exemplary damages already
determined and granted by the court in a final