ACTIONS AND DAMAGES

IN CASE OF BREACH
Reporters:
Ryan Anthony G. Perea
Marivic Z. Lozano

Remedies for Breach of Contract

Specific Performance
Recission
Cancellation

Damages in the form of Compensation

WHAT ARE DAMAGES?

- The

pecuniary compensation, recompense or satisfaction

for an injury sustained or as otherwise expressed the
pecuniary consequences which the law imposes for the
breach of some duty or violation of some right.

DISTINCTIONS

CONCURRENT CAUSES OF ACTION

Concurrent Cause- A legal priinciple which hold that where the concurrent or successive
negligent acts or ommission of two or more persons, although acting independently of
each other, are in combination, the direct and proximate cause of a single injury to a
third person and it is impossible to determine in what proportion each contributed to the
injury, either as reponsible for the whole injury, even his act alone might have not caused
the entire injury.
If ones injury is caused by the combined negligence of multiple tortfeasors, liability will be
determined according to one of several tests.

1.
Substantial Factor Test In cases where the negligent actions of each tortfeasor alone
would have caused the entire injury by itself and the harm is indivisible such that damages
cannot be apportioned among the tortfeasors, each is liable for causing the entire harm.
To be liable, a defendants negligence must have played a substantial part in causing the
harm.

2.
Multiple Negligence In cases where the negligent actions of each defendant would
not have caused the injury alone, each is liable for the damage each defendant actually
caused.

3.

Alternative Causes- If it cannot be determined which of the two negligent actors caused the
injury, both are liable unless one can prove his innocence.

4.
Enterprise Liability Theory Each member of an enterprise is liable for damages
caused by the enterprise as a whole when there has been close cooperation among the
different members and damages cannot be apportioned.

LIABILITY BASED ON CONTRACT:

Art. 2176. Whoever by act or omission causes damage to another, there being
fault or negligence, is obliged to pay for the damage done. Such fault or
negligence, if there is no pre-existing contractual relation between the parties, is
called a quasi-delict.
CRIMINAL LIABLITY

Article 100. Civil liability of a person guilty of felony. - Every person criminally liable
for a felony is also civilly liable.
QUASI DILECT- applies to the captain, officers and crew and other personnel
(VESSEL/AIR CARRIER)
SHIP OWNER OR THE OPERATOR- As employer may be liable under Article 2180 of
the New Civil Code and Subsidiary liable under the Revised Penal Code.

CONCURRENCE WITH THIRD PERSONS- If the negligence of third persons concurs with
the breach ( as in the case where was passenger was injured becuase the carrier
collided with another vehicle) the liabilitty of the third person who was driving another
vehicle and/or his employer may be based on quasi delict. The driver may be held
criminally liable and civil liability may be imposed on him based on delict and the
employer is subsidiary liable.
In case of injury to a passenger due to the negligence of the driver on which he was
riding and the driver of another vehicle:
THE DRIVERS AND OWNERS OF THE TWO VEHICLES ARE JOINTLY AND SEVERALLY LIABLE
FOR DAMAGES.
ALTERNATIVE CAUSES OF ACTION- Fabre vs Court of Appeals
ALTERNATIVE COMPENSATION SCHEME- Special Laws provide the commuting public
with an easier was of recovering damages by requiring common carriers to have
mandatory inusrance coverage for passengers and cargos.

NOTICE OF CLAIM AND PRESCRIPTIVE PERIOD

ART 1170
Those who in the performance of their obligations are guilty of fraud, negligence, or
delay, and those who in any manner contravene the tenor thereof, are liable for
damages

ART 1145
The following actions must be commenced within six years:
(1) Upon an oral contract;

(2) Upon a quasi-contract.

ART 1146
The following actions must be instituted within four years:

(1) Upon an injury to the rights of the plaintiff;

(2) Upon a quasi-delict;
However, when the action arises from or out of any act, activity, or conduct of
any public officer involving the exercise of powers or authority arising from Martial Law
including the arrest, detention and/or trial of the plaintiff, the same must be brought
within one (1) year.

NOTICE OF CLAIM AND PRESCRIPTIVE PERIOD

KINDS OF DAMAGES

MORAL DAMAGES
(PBMF-MWSS)
Physical Suffering
Besmirched reputation
Mental Anguish
Fright

Moral Shock
Wounded Feelings
Social Humiliation
Serious Anxiety

MORAL DAMAGES
Purpose
Moral damages is awarded only to enable the injured party to obtain means, diversions or
amusements that will serve to alleviate the moral suffering he has undergone, by reason of
defendant's culpable action and not intended to enrich a complainant at the expense of
defendant
Manner of Determination
No proof of pecuniary loss is necessary. The assessment is left to the discretion of the court according
to the circumstances of each case. However, there must be proof that the defendant caused
physical suffering etc.
GR: Factual basis must be alleged. Aside from the need for the claimant to satisfactorily prove
the existence of the factual basis of the damages, it is also necessary to prove its causal relation to
the defendants act

Exceptions: Criminal cases. Moral damages may be awarded to the victim in criminal
proceedings in such amount as the court deems just without need for pleading or proof of the basis
thereof.

MORAL DAMAGES
In Breach of Contract of Air Carriage, moral damages may be recovered where:
The mishap results in the death of a passenger; or
Where the carrier is guilty of fraud or bad faith; or
Where the negligence of the carrier is so *gross and reckless as to virtually amount to bad
faith

*GROSS NEGLIGENCE implies a want or absence of or failure to exercise even slight care
of diligence, or the entire absence of care.
Notes:
The social and economic/financial standing of the offender and the offended party should
be taken into consideration in the computation of moral damages

MORAL DAMAGES
IN WHAT CASES MAY MORAL DAMAGES BE RECOVERED (enumeration not exclusive):
a. Criminal offense resulting in physical injuries

b. Quasi-delicts causing physical injuries

c. Seduction, abduction, rape or other acts of lasciviousness
d. Adultery and concubinage
e. Illegal or arbitrary detention or arrest
f. Illegal search
g. Libel, slander or other form of defamation
h. Malicious prosecution
i. Acts mentioned in art 309 of the RPC relating to disrespect of the dead and
interference with funeral
j. Acts and actions referred to in arts 21, 26, 27, 28, 29, 30, 32, 34 and 35
k. The parents of the female seduced, abducted, raped, or abused
l . Spouse, descendants, ascendants and brother and sisters for acts mentioned in art
309
m. Art 2220 - in cases of willful injury to property or breaches of contract where
defendant acted fraudulently or in bad faith

EXEMPLARY or CORRECTIVE DAMAGES

Purpose
Exemplary or corrective damages are intended to serve as a deterrent to serious wrongdoings
Manner of Determination
1. That the claimant is entitled to moral, temperate or compensatory damages;

and

2. That the crime was committed with 1 or more aggravating circumstances, or

the quasi-delict was committed with gross negligence, or in contracts and
quasi-contracts the act must
be accompanied by bad faith or done in wanton, fraudulent, oppressive or malevolent manner. No
proof of pecuniary loss is
necessary.
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 damages

NOMINAL DAMAGES
Purpose
Vindicating or recognizing the injured partys right to a property that has been
violated or invaded.

Manner of Determination
No proof of pecuniary loss is necessary. Proof that a legal right has been violated is
what is only required. Usually awarded in the absence of proof of actual damages.
Art 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.

Art 2222
The court may award nominal damages in every obligation arising from any source enumerated in Article 1157, or in
every case where any property right has been invaded.

Art 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.

TEMPERATE OR MODERATE DAMAGES

Purpose
When the court is convinced that there has been such a loss, the judge is
empowered to calculate moderate damages rather than let the complainant suffer
without redress.
Manner of Determination

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. No proof of pecuniary loss is necessary.
Art 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 provided with certainty.

ACTUAL OR COMPENSATORY DAMAGES

Purpose
Actual or compensatory damages simply make good or replace the loss caused by the
wrong.
Manner of Determination
Claimant must produce competent proof or the best evidence obtainable such as
receipts to justify an award therefore. Actual or compensatory damages cannot be
presumed but must be proved with reasonable certainty.
Damages in Personal Injury Cases
All medical expenses as well as other reasonable expenses that he incurred to treat his
or his relatives injuries. Medical expenses may even include the amount spent for the
plastic surgery of the plaintiff or any procedure to restore the part of the body that was
affected.

ACTUAL OR COMPENSATORY DAMAGES

Damages in Case Death Results
All that the plaintiff spent during the wake and funeral of the deceased. Expenses after the burial are not
compensable. The heirs are not entitled to an award of damages for the expenses incurred relating to the
9th day, 40th day and 1st year death anniversaries.

Art 2206.
The amount of damages for death caused by a crime or quasi-delict shall be at least three thousand pesos,
even though there may have been mitigating circumstances. In addition:
1.

The defendant shall be liable for the loss of the earning capacity of the deceased, and the indemnity shall be
paid to the heirs of the latter; such indemnity shall in every case be assessed and awarded by the court, unless
the deceased on account of permanent physical disability not caused by the defendant, had no earning
capacity at the time of his death;

2.

If the deceased was obliged to give support according to the provisions of Article 291, the recipient who is not
an heir called to the decedent's inheritance by the law of testate or intestate succession, may demand
support from the person causing the death, for a period not exceeding five years, the exact duration to be
fixed by the court;

3.

The spouse, legitimate and illegitimate descendants and ascendants of the deceased may demand moral
damages for mental anguish by reason of the death of the deceased.

ACTUAL OR COMPENSATORY DAMAGES

Fixed Damage
The amount of fixed damages as contemplated in Art 2206 had been repeatedly increased by the Court
and is now Php 50,000.00

Loss of Earning Capacity

Art 2206 (1)
(1) The defendant shall be liable for the loss of the earning capacity of the deceased, and the indemnity shall be paid to the heirs of
the latter; such indemnity shall in every case be assessed and awarded by the court, unless the deceased on account of
permanent physical disability not caused by the defendant, had no earning capacity at the time of his death;

Net Earning Capacity = Life Expectance x (Gross Annual Income less Necessary Living Expenses)

LIQUIDATED DAMAGES
Purpose

Liquidated damages are frequently agreed upon by the parties, either by way of penalty or in order
to avoid controversy on the amount of damages.

Manner of Determination
If intended as a penalty in obligations with a penal cause, proof of actual damages suffered by the
creditor is not necessary in order that the penalty may be demanded (Art. 1228, NCC). No proof of
pecuniary loss is necessary.
Special/Ordinary
Special
NOTE: Special Damages are those which exist because of special circumstances and for which a
debtor in good faith can be held liable if he had been previously informed of such. circumstances.
WHEN LIQUIDATED DAMAGES MAY BE EQUITABLY REDUCED:
iniquitous or unconscionable
partial or irregular performance

Cases:
Facts:
Issue:

Held:

- END OF REPORT
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