Actions and Damages (based on pointers)

Source of obligation
Liability of employee
Availability of defense

In what capacity liable

Culpa Contractual
Contract
None; no privity of
contract
Due diligence in selection
and supervision is not a
defense
As contracting arty

Culpa Aquilana
Quasi-delict
Solidarily liable w/
employer
Due diligence not a
defense
Liable as an employer

Additional notes

Cause of action against a common carrier can either be culpa contractual or

culpa aquilana.
CoA for driver of CC? Culpa aquilana because no privity of contract.
Third person driver may be liable based on quasi-delict
o But driver of CC also liable for quasi-delict (employer is subsidiarily
liable)
If both drivers are negligent, they are jointly and severally liable for damages
(solidary);
o Doesnt matter if cause is from contract or delict.
o If the 3rd party driver is not impleaded, carrier may file a 3 rd party
complaint to implead him.

Solidary Liability negligence of carriers driver and 3rd person leads to solidary
liability.
Alternative causes of action can join as many parties as possible, so long as
plaintiff does not recover twice for the same injury. Thus, it is possible to file
actions for breach of contract and quasi-delict.
Death Indemnity

Entitled to amount spent for wake and funeral;

Atleast 3,000 pesos (50,000 na set as fixed damages by the SC)
Also liable for loss of earning capacity (formula discussed later)
Liable for support (if not an heir) but not exceeding 5 years.
Moral damages (not meant to enrich, but to compensate)

Loss of earning capacity

Net earning capacity=Life expectancy x (gross annual incomenecessary living expenses)

Life expectancy = 2/3 x 80 age at death

Necessary living expenses - 50% of gross income absence of any proof to the
contrary.
Only applies when breach results to permanent incapacity.
Does not apply when victim had no earning power. (Bong however, in the
case of Perena v Zarate, the court awards loss of earning capacity even to the
life of a highschool student pero minimum wage ra iya g hatag. Usually they
base it on the educational attainment and grades if student pa)

Concept and Application of MENTAL (kinds of damages)

General concepts
Damages pecuniary consequences which the law imposes for breach of some duty
or violation of rights.
General rule CC is liable only for damages that are the natural and probable
consequences of the breach of the obligation, and that which the parties could
have foreseen or reasonably foreseen.
Exception when there is bad faith or gross negligence, then liable for all
damages.
M Moral Damages

Include physical suffering, mental anguish, fright, serious anxiety,

besmirched reputation, wounded feelings, moral shock, social humiliation,
and similar injury.
Can be recovered if they are the proximate result of the defendants wrongful
act.
Not meant to enrich but to compensate the victim.

May be recovered where:

1. Mishap results in death of passenger;
2. Carrier is guilty of fraud or bad faith;
3. Negligence of carrier is so gross and reckless as to amount to bad faith.
Gross negligence It is the want or absence of or failure to exercise even slight care
or diligence or the entire absence of care. It is thoughtless regard of the
consequences without exerting effort to avoid them.

Failure of the passengers to be accompanied in the class contracted for

amounts to bad faith or fraud thus entitled to moral damages. (bumped off)

Requisites for moral damages

1. There must be an injury;
2. Culpable act or omission factually established;

3. Such act or omission is the proximate cause of the injury;

Factors to consider:
1.
2.
3.
4.

Extent of humiliation
Extent of pain and suffering
Social standing of the offended party
Age of claimant

E Exemplary Damages
Requisites:
1. Imposed by way of example ONLY AFTER claimants right to them has
been established;
2. Cannot be recovered as a matter of right (discretion of the court)
3. Act must be accompanied by bad faith or done in wanton, fraudulent,
oppressive or malevolent manner.
Examples:
o
o
o

Deter discourtesy to passengers

Dreadful regularity of maritime disasters
Recklessness of the bus driver

N Nominal Damages

It is the vindication or recognition of the plaintiffs right when it is most

important to him.
Left ot the discretion of the court;
Proof of actual damages is not material;

Examples:

Failed to make necessary arrangement to transport passengers on the first

available connecting flight
Rudely demoting a passenger from first class to tourist class.

T Temperate damages

More than nominal but less than compensatory damages;

May be recovered when court finds that there is pecuniary loss but its
amount cannot be determined with certainty;
Must be reasonable under the circumstances;

Examples:

Injury to ones credit or goodwill of a business firm.

A Actual Damages
2 kinds:
1. Loss of what a person already possessed; (dano emergente)
2. Failure to receive as a benefit that which would have pertained to him;
(lucro cesante)

Art. 2205 states that damages may be recovered:

1. For loss or impairment of earning capacity in cases of temporary and
permanent personal injury
2. Injury to the credit of plaintiffs business.

Damages are not presumed.

Valuation of goods time of their destruction
o In profit-earning chattels value to its owner as a going concern at time
and place of loss.
In personal injury, entitled to all medical expenses as well as other reasonable
expenses even to restore the part of the body that was affected (plastic
surgery);

L Liquidated damages

Those agreed upon by parties to a contract to be paid upon breach thereof;

GR cannot change agreement.
o Exception
equitably reduced if iniquitous or unsconscionable;
When the breach is not what is contemplated (law shall
determine measure of damages instead)