TORTS AND DAMAGES | P a g e |1

Q What is the TEST if there is cause of action in TORT?

1. Legal right of plaintiff;

2. Legal obligation of defendant;
3. Wrong (e.g. act or omission) done to plaintiff;
4. Damage or injury to plaintiff

Q Does moral right or obligation constitute as basis in tort?

NO, what is contemplated by law is between legal right and legal duty;

Q Does Assumption of Gratuitous Undertaking constitute as basis in tort?

NO, only when the other relies on it; the performance was begun but stopped and the other is placed in a
worse position than he was in, before the services were started.

Q Does lawful exercise of a right result in tortious liability?

NO, unless the manner of the exercise becomes unlawful.

Q Is refusal of a person to do an act which he is not legally bound to do tortious?

NO, the province is moral.

Q Does a duty to avoid harm to others be a basis for tort?

YES. If that duty is not done; or if done but negligently or wrongfully; and the act or omission result in
damage to the recipient of such act.

Q Does tortious liability arise from purely accidental injuries or involuntary conduct?
NO, in the face of towering emergency.

Q Is privity between the wrong and the injury essential in tort?

YES. Exception: where the wrong is the PROXIMATE CAUSE of the injury.
Q APPLICATION OF PROXIMATE CAUSE:

STRICTLY, in negligence cases.

LIBERALLY, if intentional.

Q APPLICATION OF WILLFUL (VOLUNTARY) ACTS WITHOUT INTENT TO INJURE:

If such act causes injury = TORTIOUS.

If there is intervening causes = DEFENSE

Q APPLICATION OF UNLAWFUL ACTS WITHOUT INTENT TO INJURE:

If such act causes injury = TORTIOUS .

If there is intervening causes = NO DEFENSE

Q What is the effect of absence of other elements in tort?

 Damnum absque injuria. (Damage without legal wrong)

 Common in Accidental wrong and in the course of doing lawful act.

Q What is the meaning of INJURY in tort?

Damage resulting from a wrongful or unlawful act.

Q When does a lawful act becomes tortious?

When unlawful means is employed by the doer in doing the lawful act.
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Q The measure of tort?

Conduct, not mental state (e.g. motive, purpose, intent).

Q TORTIOUS ACTS

1. Acts intended to inflict injury

2. Acts not intended to inflict injury
3. Malicious acts
4. Willful and Wanton Acts (intentional wrongdoing/Disregard of rights)
5. Willful and Wanton Negligence (intentional harm to result from the act or omission; Reckless
Disregard of security & right)
6. Acts arising from contractual relationship

Q TYPES OF TORTIOUS CONDUCT

1. Culpable and intentional acts producing harm

2. Acts involving culpable and unlawful conduct producing unintended harm
3. Non-culpable acts/conduct producing ACCIDENTAL HARM
4. Culpable acts of inadvertence producing unreasonable risks of harm

Q TYPES OF TORTIOUS INTERFERENCE

1. Interference with property rights

2. Interference with right to services
3. Interference with contractual rights
4. Interference with personal rights
5. Interference with right of inheritance or destruction of will
6. Interference with trade secrets, invention or patents.

Q DOCTRINE OF PRIMA FACIE TORT

Act done without justification which would have been lawful

 Necessity of malice
 Necessity of Special Damage

Q DOCTRINE of strict or absolute liability

This doctrine provides that the voluntary doer of an act is liable for his action if it causes harm to another.

Basis: On intentional doing of an act or the intentional behavior in exposing the other to abnormal risk.

Ex: Common in Product Liability Cases or Enterprise Liability

DEFENSES IN TORT

Q CITE CERTAIN DEFENSES IN TORT.

1. Acting in self-defense or defense of property.

2. Mistake (show that even a reasonable and prudent person would do the same under a particular
circumstance, that is objective reasonableness of his conduct)
3. Illegal transaction (doing an illegal act – causal relation between the act and the injury or damage)
4. Necessity or self-protection
5. Destruction of property to prevent spread of fire
6. Consent to the act. (Volenti non fit injuria, “No action can be made for a wrong to which one has
consented.”)
7. The act or wrong is not the proximate cause of the injury.
8. Contributory negligence of plaintiff.
9. Last Clear Chance (last clear opportunity until injury moment to avoid the injury)
10. Assumption of risk by plaintiff
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11. Immunities arising from certain relationships (Spouses; Parent-child)

OTHER ACTIONABLE WRONGS

Q Cause of Action based on FAULT or NEGLIGENCE?

Liability for damages based on fault or negligence may be CULPA CONTRACTUAL, CULPA AQUILIANA OR
CULPA CRIMINAL

1. CULPA CONTRACTUAL – There is pre-existing obligation. Negligence is incidental to the breach of contract.
But to recover moral damages, it must be shown that D acted fraudulently or in bad faith.
2. CULPA AQUILIANA - There is NO pre-existing obligation. Negligence is the source of the obligation
3. CULPA CRIMINAL – If the negligence amounts to a crime.

Note: A contractual relation does not preclude CULPA AQUILIANA or CULPA CRIMINAL Cause of Action (Far
East Bank and Trust Company vs. CA, 241 SCRA 671 1995)

Q Liability of OWNER or LAWFUL POSSESSOR of a thing?

1. Reasonable force to repel the invasion. (Principle of Self-Defense which extends to property rights)

Ex: Snatcher – You may run after and use reasonable force to recover the property.

2. Respect the rights of others. (Sic utere tuo ut alienum non laidas);

3. Justifiable interference by another (to avert imminent danger or threatened damage. Principle of
lesser evil)

Q Liability of OWNER of land using MATERIALS of ANOTHER.

IF GOOD FAITH:

 He becomes owner of the materials but pay their value;

 Owner of materials may remove them provided no injury

IF BAD FAITH:

 He becomes owner of the materials but pay their value;

 Owner of materials may remove them regardless of injury.
 He is liable for damages;

Q Liability of OWNER of MATERIALS IF BAD FAITH.

Liable for Consequential Damages without Right of Removal.

Q HOW TO TREAT THEM IF BOTH ARE IN BAD FAITH

As if both were in GOOD FAITH.

Q Liability of BUILDER, PLANTER OR SOWER IN BAD FAITH ON LAND OF ANOTHER

1. He loses what is built, planted or sown w/o indemnity except necessary expenses;
2. May be ordered to REMOVE or DEMOLISH and RESTORE to former condition at his own expense;
3. May be compelled to pay the price of the land and the sower to pay rent;
4. Damages for the bad faith.

Q Liability if BOTH are in BAD FAITH:

As if both were in GOOD FAITH.

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Q Liability if OWNER IN BF but BUILDER IN GF:

Apply Art 447 . . .

 He becomes owner of the building etc but pay their value;
 Builder etc may remove them regardless of injury.
 He is liable for damages;

Q Liability of OWNER (BF) of ACCESSORY incorporated into the PRINCIPAL?

 He loses the accessory;

 He is liable for damages;

Q Liability of PRINCIPAL IF BF:

 PAYMENT of value of the accessory; or to RETURN the accessory regardless of destruction of the
principal thing;
 Liable for damages;

Q Liability if BOTH are in BAD FAITH:

As if both were in GOOD FAITH.

Q Liability if OWNERS of THINGS MIXED IN BF:

Equally or proportionate as the case may be.

IF ONLY ONE ONLY IS BF:

He loses his thing.

Q Liability if USER of ANOTHER’s MATERIAL:

Material owner may appropriate the whole thing to himself w/o paying MAKER; or Demand value of the
material plus damages

EXCEPTION TO FIRST OPTION:

If value of the work, for ARTISTIC or SCIENTIFIC REASON is considerably more than the MATERIAL’s value.

Q Liability if OWNER OF BUILDING OR LARGE TREE IN DANGER OF FALLING:

 Owner to DEMOLISH or to REPAIR - to prevent it from falling;

 Public authorities may ORDER its DEMOLITION it being nuisance per se.

Q Liability & Rights of POSSESSOR IN BAD FAITH:

Fruits –
 Not entitled actual or pending fruits.
 Reimburse the value of fruits he received
 Reimburse the value of fruits the legal possessor could have received

Necessary Expenses –
 Entitled to Reimbursement w/o right of RETENTION

Useful Expenses –
 Not entitled to REFUND;
 Forfeits IMPROVEMENTS;
 NO Right of Removal;

Luxurious Expenses –
 Not entitled to REFUND;
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 Forfeits IMPROVEMENTS;
 With Limited Right of Removal, i.e. if no removal injury and LP does not exercise his option;

Charges –
 Share with the O or LP since the time of possession.

Deterioration or Loss –
 Constant liability, be it by negligence or fortuitous event.

Reasonable Rentals -
 Liable for Reasonable Rentals since possession;
 Liable for Damage caused since possession;

Q Liability of USUFRUCTUARY

 To exercise due diligence of Good Father of a Family

 Damages caused by his fault or negligence
 This liability extends even if he assigns his usufructuary rights to 3 rd P.
 To notify the owner of prejudicial acts of TP upon property in usufruct.

Q Liability of OWNER OF HIGHER OR LOWER ESTATES (IN EASEMENT)

 Lower Estates absorb natural flow

 Higher Estates not increase burden;
 Lower Estates entitled to compensation if FLOW OF WATERS is resulting from ARTIFICIAL DEVELOPMENT;

Q Liability of LANDOWNER OR BUILDING OWNER FOR NUISANCE

Respect easements of light and view, subjacent or lateral support.

Q Liability of PURCHASER IN BF OF THINGS ALIENATED IN FRAUD OF CREDITORS

 Liable to RETURN the THING alienated.

 If impossible, INDEMNIFY the value.
 If two or more acquirers, the first is liable first and successively.

Q LIABILITY OF PARTY in a VOIDABLE CONTRACT

 Liable for damages. The guilty party and his assigns or successors in interest cannot seek
annulment.

Q LIABILITY OF VENDOR IN CASE EVICTION OCCURS:

 Vendor liable for the value at time of EVICTION;

 INDEMNITY for Income or Fruits if ordered to deliver to JCreditor;
 Cost of suit;
 Actual Expenses re Contract;
 Damages, Interests & Ornamental Expenses if Sale was made in BF;

Q LIABILITY OF VENDOR IN BF CASE OF LOSS OF DEFECTIVE THING SOLD:

 Liable for the price paid less the value of the thing at the time of loss;
Note here that the VENDOR is liable for his warranty.

Q LIABILITY OF VETERINARIAN IN SALES OF ANIMAL WITH REDHIBITORY DEFECT:

Redhibitory defect means cannot be sufficiently determined even with expert knowledge;

If determinable but the VET did not discover it or failed to disclose due to ignorance or BF, the VET is
LIABLE.

Q LIABILITY OF BUYER WHO WRONGFULLY VIOLATES CONTRACT:

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If sale was agreed and goods were determined:

 Buyer liable for DAMAGES for non-acceptance.

If sale was agreed but goods’ ownership has not yet passed:
 Buyer liable for DAMAGES (for labor cost and initial expenses in freight for example)

If sale was agreed but goods not yet determined:

 Seller may file action for Specific Performance and damages

Q LIABILITY OF ASSIGNOR IN BF OF CREDIT

 Liable for the price paid plus damages

Q LIABILITY OF LESSEE FOR DETERIORATION OR LOSS OF THING LEASED

 Liable for Loss or Deterioration.

(Presumption: the leased premises or thing is in good condition. He is supposed to be in control of the leased
subject).

Q LIABILITY OF HEAD OF FAMILY TO HOUSEHELPER:

 Liable for unjust and inhuman treatment.

Q LIABILITY OF EMPLOYER FOR DEATH OR ILLNESS OF EES:

 Liable for COMPENSATION for the Death, Illness or physical injuries sustained in performance or
arising from work;

EXCEPTIONS:
 EE’s own notorious negligence;
 Suicide or self-infliction of injury;
 Drunkenness
Q LIABILITY OF ENGINEER/ARCHITECT FOR COLLAPSED BUILDING:

 Liable if collapse takes place within 15 years from completion;

 Collapse is due to defect in plans and specifications;
 10 years from collapse

LIABILITY OF CONTRACTOR

 Liable if collapse takes place within 15 years from completion;

 Liable if collapse is due to defect in construction or use of inferior quality materials or due to
violation of terms of contract;
 10 years from collapse

 Note: SOLIDARY LIAIBLITY with Contractor if ENGINEER or ARCHITECT directly supervises

construction.

Q LIABILITY OF COMMON CARRIERS:

 Extraordinary diligence in vigilance over goods and Safety of Passengers.

EXCEPTIONS to vigilance over goods:

 Flood, Storm, Earthquake & other natural calamities;

 Acts of Public Enemy in War;
 Acts or Omission of Shipper or Owner of goods;
 Character of goods or defects in packing or containers
 Order or Act of competent authority.


Q DEATH OR INJURY OF PASSENGERS:

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CC presumed at fault UNLESS it shows EXTRAORDINARY DILIGENCE.

Note: Liability subsists even if its employees are negligent or deviate from procedures or act beyond scope
of their authority.

IN QUASI-DELICT – The EE must be acting within the scope of his authority. If not, that will be an excuse to
the vicarious liability of owner or ER.

Q LIABILITY OF CC FOR BREACH OF CONTRACT:

Direct and Immediate. Due Diligence Selection and Supervision of EEs no defense.

Q LIABILITY OF PARTNERS FOR TORT

 Partner is guilty of wrong;

 Partner acting in the ordinary course of business or with the authority of his co-partners even if the
act is unconnected with the business.

Q LIABILITY OF PARTNERS FOR BREACH OF TRUST TO THIRD PERSONS:

Partners and Partnership are SOLIDARILY LIABLE.

Q LIABILITY OF AGENT FOR UNJUSTIFIED WITHDRAWAL FROM THE AGENCY:

The liability is based on the damage suffered by the principal due to the A’s Withdrawal.

If with just cause, no liability.

Q LIABILITY OF BAILOR/PLEDGOR FOR DEFECTS/FLAWS OF THING LOANED:

ELEMENTS:

 Flaw or Defect in the thing loaned;

 Flaw or Defect is hidden;
 Bailor knows the flaw or defect;
 Failure to advise Bailee; and
 Bailee suffers damages by reason of such flaw or defect.

(NOTE: Because of the BF of the Bailor, the bailee enjoys the right of RETENTION until he is paid the
damages).

Same rules with PLEDGOR.

Q LIABILITY OF KEEPERS OF HOTELS OR INNS:

ELEMENTS:

 Keepers are duly advised of the effects brought in by guests;

 Guests take precautions prescribed by KEEPERS re safekeeping.

Ex: Valuables, personal belongings and even cars in the garage of the hotels.

EXCEPTIONS:

 FORCE MAJEURE
 Acts of guests, his family, or servants;
 Loss arises from the character of the things brought in the hotel.

EXCEPTION OR DIMINUTION OF LIABLITY

Not allowed for being contrary to law, morals and public policy.
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LECTURE ON TORTS

TORT LIABILITY UNDER SPECIAL LAWS

Q What are the sources of tort liability for damages?

o Civil Code – Human Relations (19-36) and Quasi-Delicts (2176-2194)

o Special Laws – for Quasi-Delicts under Special Laws

o Penal Laws – for Civil Liablity from Delict

Q Can an OFFENDED PARTY in CRIME file an INDEPENDENT CIVIL ACTION of CULPA AQUILIANA?

Yes. It is the prerogative of the offended party.

Q REFERENCES IN PRODUCT COMPLAINTS CASE?

 Consumer Act of the Philippines (RA 7394 – April 13, 1992)

 Arts. 2187 & 2188 CC (manufacture/process of defective products)

 Art. 33 CC

 Arts 1547, 1561-1571 CC (Sales Warranties)

 Art 2176 CC

Note: The civil liability (for damages) of the MANUFACTURER or SELLER may be based on the RPC,
if punishable under the RPC, or on the SPECIAL LAW, if punishable under that SPECIAL LAW.

CONSUMER ACT OF THE PHILIPPINES

(RA 7394 – April 13, 1992)

Q What is this DOCTRINE OF STRICT LIABILITY under the Consumer Act in case of DEFECTIVE
PRODUCTS and SERVICES?

Proof of FAULT or NEGLIGENCE is unnecessary as basis of liability. The liability of the

MANUFACTURER/PROCESSOR is imposed by law as pure matter of public policy.

Q WHAT ARE THE USUAL DEFENSES OF the MANUFACTURER or PROCESSOR of PRODUCTS in

PRODUCT COMPLAINTS CASES?

1. Validity of Contract; (e.g. Our contract is invalid)

2. Lack of Privity; (e.g. There is no contract between us)
3. Lack of Reliance on a Warranty; (e.g. There is no such warranty)
4. Lack of Notice to D of Breach of Warranty; (e.g. You did not notify me of the Breach of Warranty)
5. Waiver of Implied Warranties

Q Can the MANUFACTURER or PROCESSOR of PRODUCTS interpose the above DEFENSES:

NO, under the DOCTRINE OF STRICT LIABILITY such privilege is absent as a matter of public policy;
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Q When does a SELLER become liable for the defective products

 Mfger Not Identified;

 Product is Supplied w/o clear ID of Mfger;
 Negligence of Seller in preserving perishable goods;

Q When is the product considered defective?

 When its safety as expected not ensured by looking into:

 Presentation of product;
 Use & hazards expected;
 Time line in circulation

Q Can a product be considered DEFECTIVE because a product of better quality exists?

No.

Q PRESCRIPTION IN CONSUMER ACT CASES

2 years:

o From transaction consummation;

o From commission of deceptive or unfair and unconscionable act or practice;
o From discovery (for hidden defects)

GENERAL BANKING LAW

(RA 8791 – May 23, 2000)

Q Are liabilities for prohibited transactions under the GBL limited to the GBL itself?

NO. Damages under Art. 2176 CC and the RPC may also be claimed by the P, w/o prejudice to the penalties
and admin sanctions against the violator provided under Sections 66 and 70 of GBL, and Sections 34-37 of
the CENTRAL BANK ACT – RA 7653,.

Q CITE PROHIBITED TRANSACTIONS BY DOEA

a) Falsifying Entries in Bank Reports/Statement;

b) Taking part in Fraudulent Transaction causing D to bank or TP;
c) Undue Disclosure (w/o Court Order) of Info affecting FUNDS or PROPERTIES in custody of bank;
d) Receive Gifts/Commission in bank transactions affecting bank loan or accommodation.

Q CITE PROHIBITED TRANSACTIONS BY BANK BORROWER

a) Fraudulent Overvaluation of Collateral property in loan or Credit Transaction;

b) False Representation or Misrepresentation re loan/credit transactions;
c) Attempt to Defraud in Bank’s court action against him for recovery;
d) Offering DOEA to influence action of bank;

Q CITE PROHIBITED TRANSACTIONS BY CENTRAL BANK EXAMINER, EE OR OFFICER

Same as enumerated above.

Q What is the relation between BANK and DEPOSITOR

One of Loan. Not Deposit. A bank deposit is really a loan which creates the relationship of debtor (bank) and
creditor (depositor)
Art. 1980 CC “Fixed, Saving, and current deposits of money in banks and similar institutions shall be
governed by the provisions concerning simple loan.”
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Q What is QUANTUM OF DILIGENCE required from banks pertaining to accounts of DEPSITORS?

“Highest Degree of Care.” Because of the FIDUCIARY NATURE of relationship between B and D and banking
business is imbued with PUBLIC INTEREST.

CORPORATION CODE OF THE PHILIPPINES

(BP 68 – May 1, 1980)
(Law that governs private corporations)

Q CITES INSTANCES WHERE TORT LIABILITY ARISES UNDER CORP CODE.

a) Corporation by Estoppel (Ostensible Corporation). Effect: Liable as General Partners;

b) DTO Voting for Patently Unlawful Act of the Corp or Gross Negligence / BF;
c) Ultra Vires Acts of Corp (Engaged in unauthorized Acts);
d) Issuance of Watered Stocks (Price is less than par or issued value, excess of fair value);
e) Close Corporation Directors for Corporate Tort (Solidary unless LIABILITY INSURANCE exists)

Q NATURE OF LIABILITY OF DTO:

Joint and Solidary [Solidary liability]

Q Can a corporation be liable for crime?

No. Only its DOTA. Corporation is by fiction of law so no criminal intent can be ascribed.

CODE OF COMMERCE
(BP 68 – May 1, 1980)
(Law that governs private corporations)

 Shipowners & Ship Agents for acts of Captain;

 Ship Agents for acts of Captain in vigilance over goods (To excuse: Abandon the ship with the
implements)

 Defense of SO/SA: Captain acted beyond his authority unless such action redounded to the benefit of
the Vessel.

Q- Liabilities of Captain:

a) Lack of Skill/Negligence; Crimes in Boat;

b) Theft Robberies by Crew;
c) Losses or Fines for violating regulations of customs, police, health and navigation;
d) Mutinies on board;
e) Misuse of power or non-fulfillment of duties;
f) Unreasonable change of sea course;
g) Entering wrong port;
h) Non-observance of regulation in Lights & Maneuver

Q- What is a Charter Party? Is it a person or what?

A Charter Party is not actually a party or person but a CONTRACT.

It is a contract whereby the SO/A leases a portion or whole of a vessel for the transport of goods or persons
from one port to another.
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Charter party – it is a contract by virtue of which the owner or the agent of the vessel leases for a certain
price the whole or portion of the vessel for the transportation of goods or persons from one port to another.

Q- What is a Partial or Whole Charter?

Partial – the Vessel may carry cargo of others or other passengers

Whole – exclusive to the chatterer.

Q- Liabilities in Charter Party (Damage arising from)

1. Over-capacity;
2. Substitution of Vessel
3. Extra-loading of non-charterer’s cargo despite whole charter party
4. Delay in putting to sea the chartered vessel.
5. Charterer’s loading of cargo other than the stated cargo in the CP;
6. Loading of goods for purpose of Illicit Commerce.
7. Pre-arrival unloading of goods by Charterer unless under FORCE MAJEURE situation.

Q- What is BILL OF LADING

Both a CONTRACT and a RECEIPT

Q- Liabilities in BILL OF LADING

o Captain obliged to unload cargo upon arrival and to release to holder of the BL or consignee upon
presentment of the BL.

o Shipper liable for storage if cargo not claimed within designated period.

Q- What is COLLISION OF VESSELS

The impact of 2 moving vessels.

Q- What is ALLISION OF VESSELS

The impact between a moving vessel against a stationary vessel

Q- Liabilities in COLLISION OF VESSELS

o The vessel at fault is liable for damages

o If the fault is indeterminable like under fortuitous event, each vessel bears her own damage.

Q- What is SHIPWRECK?

o Incapacitating a vessel for navigation;

o Loss of vessel at sea

Q- Who is liable in SHIPWRECK?

The one whose negligence causes the shipwreck.

LABOR CODE OF THE PHILIPPINES

(PD 442 – Nov. 1, 1974 –Several amendments thereafter followed)

Q- ILLEGAL RECRUITMENT
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 PROHIBITED ACTIVITIES of Recruiter (Art. 34)

 Excess (beyond 10%) Attorney’s Fees (Art. 111)
 Withholding of Wages thru FIST (force, intimidation, stealth & threat) (Art. 116)
 Illegal deduction to ensure employment or retention thereof. (Art. 117)
 Retaliatory Measures of ER due EE’s complaint or testimony (Art 118)
 Discrimination against women on account of her SEX (Art 135)
 Maltreatment of Househelpers (Art. 147)
 ULP (Art. 247)

INTELLECTUAL PROPERTY CODE

(Laws on Copyright & Patent and Trademarks & Trade Names; RA 8293)
(Effectivity Jan I, 1998)

Q- Elements of Patent Infringement –

 Making, using, offering for sale or importing patented product

 Without the authorization for patentee

Q- Effect if Damages cannot be reasonably determined

o Sum equivalent to Reasonable Royalty

Q- Maximum ACTUAL DAMAGES AWARD in INFRINGEMENT CASES

o Not exceeding 3 x the actual damages.

Q- Liability of INDUCER or PROVIDER of COMPONENT for

INFRINGING patented products.

Joint and Solidary with Direct Infringer.

Q- May infringement happen even without a sale yet?

YES.

Q- Other examples of INFRINGEMENT.

 unfair competition,
 false designation of origin;
 false description of products or representation

LOCAL GOVERNMENT CODE

(RA 7160 – Effective January 1, 1992)

Q- Are LGUs exempt from liability for DAMAGES?

NO. (Sec. 24 & Sec. 60)

LAND TRASPORTATION & TRAFFIC CODE CODE

(RA 4136 – Effective June 20, 1994)

Criminal Action for Reckless Imprudence does not bar QD case.

Q- Duties of Driver in case of Accident

1. Stop upon accident;

2. Aid Victim if any.
3. Present Driver’s License if asked by anybody
4. Give His True Full Name & Address
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5. Give Owner’s Full Name & Address

Q- EXCEPTIONS TO DUTY TO AID VICTIM

a) Imminent danger of serious harm from other persons by reason of the accident;
b) Reporting incident to nearest Law Enforcer;
c) Calling Doctor or Nurse;

WAREHOUSE RECEIPTS LAW

(Act 2137 as amended - Effective Feb 5, 1912)

Q- WAREHOUSEMAN’S LIAIBLITY

a) Misdelivery of goods (to the wrong person)

b) Despite authorized Delivery - if there is Stop Order from the rightful owner or possessor of the goods;
c) Non-existence of goods
d) Failure of goods to correspond to the description in the WR.
e) Loss or Damage of goods due to negligence

CODE OF PROFESSIONAL RESPONSIBILITY

Q- WHAT ARE THE FOUR MAJOR DUTIES OF A LAWYER

a) Duty to Society
b) Duty to Legal Profession
c) Duty to Courts
d) Duty to Clients

Note: Any breach of this responsibility shall be cause for prosecution, if the act amounts to a crime, for
action for damages, and for disbarment.

THE CHILD AND YOUTH WELFARE CODE

(PD 603, Dec 10, 1974, as amended by RA 7610)

Q- Are Parents liable for the Torts committed by their children below 21 years old?

Yes, if the children are under their parental authority.

TRUST RECEIPTS LAW

(PD 115- effective Jan 29,1973)

Q- What is the gravamen of the offense?

Failure of the entrustee to turn over the goods to the entrustor not sold or to turn over the proceeds of the
goods not sold upon demand.

Q- Where does TORT come in under this law?

The ENTRUSTEE assumes risk of loss of goods received in trust. (Note even fortuitous event cannot exempt
him from such liability)
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GENERAL BONDED WAREHOUSE ACT

(Act 3893- effective Nov 16, 1931)

Q- Liability of Warehouseman? (Storage)

o Aggrieved party may sue on the bond to recover the damage suffered by him due to the
negligence of the Warehouseman.

ANTI-SEXUAL HARASSMENT ACT OF 1995

(RA 7877- effective February 14, 1995)

Q- Essence of this crime?

 Undue exercise of authority or abuse of power, or moral ascendancy over the victim who is placed
under such authority or power;
 Sexual favor is demanded or requested by the abuser

Q- What is the setting?

 Work, Education or Training-Related Sexual Harassment

Q- Who are the offenders?

1. Employer
2. Employee
3. Manager
4. Supervisor
5. Agent of Employer
6. Teacher,
7. Instructor
8. Professor
9. Coach
10. Trainor
11. Any other person

Note: Common element = exercising authority / influence / moral ascendancy over victim.

Q- Liability for Damages of EMPLOYER, HEAD OF OFFICE, EDUCATIONAL OR TRAINING INSTITUTION

Joint and solidary with the offender, PROVIDED:

 Employer etc is duly informed of the SH

 ER etc took no action.
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LECTURE ON TORTS AND DAMAGES

DAMAGES

Q What is the scope of the provisions of damages?

o Civil Code – Art 2195 to 2235

o All obligations mentioned in Art 1157. CC

Q Concept of Damages

General

 Pecuniary compensation, recompense or satisfaction for an injury sustained;

 Pecuniary consequences imposed by law for breach of duty or violation of rights;
 Depreciation in Value.

Civil Code

 Monetary award for injury to person because of the legal harm;

 Monetary award for loss he suffered for violation of his rights.

Q INJURY, DAMAGE, DAMAGES distinguished

Injury - Invasion of legal right

Damage - Loss or harm arising from injury
Damages - Compensation for the damage suffered

Q Bases for award of TORT DAMAGES

1. Breach of duty by defendant;

2. Injury to plaintiff proximately caused by D’s breach;
3. Compensation to Plaintiff commensurate to loss

Q DAMAGES distinguished from RESTITUTION & INJUNCTION

o Damages - Compensation for the damage suffered;

o Restitution - Restoration of gains he obtained
o Injunction - Forbids threatened action
Requires Positive Action of D to change course.

Q Special Provisions and Laws on Damages

 If there are special provisions on damages elsewhere in the CC, they govern;
 Provisions on damages under special laws – suppletory only – must not conflict with 2195-2235 CC.
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 Workmen’s Compensation due to work-related DEATH, ILLNESS OR INJURY, Workmen’s

Compensation prevails.

Q Elements of Damages Recoverable

1. Time Losses –Value if lost time or earning capacity

2. Injury Expense – expenses incurred due to injury

– Personal Injury (Medical expenses and related items)
– Property Injury (Loss in Value, Lesser Cost to Repair/Replace)

3. Pain & Suffering – Intangible Losses, Emotional Distress & Consciousness of Loss

Q Evidence of Fact, Amount and Cause of Damage must be established:

o Damage is not presumed; it must be proved including the amount and cause of damage.

Principle applicable here:

“The fact that the damages suffered cannot be calculated with absolute exactness or mathematical accuracy
is not a bar to recovery”

Q Workmen’s Compensation for Work-Related DII?

Governed by Labor Code , not Civil Code.

Q KINDS OF DAMAGES UNDER CIVIL CODE

1. Actual or Compensatory
2. Moral
3. Nominal
4. Temperate or Moderate
5. Liquidated
6. Exemplary/Corrective

Q What is the concept of ACTUAL or COMPENSATORY Damages?

ACTUAL or COMPENSATORY Damages – damages awarded as compensation/indemnity for the proven

Pecuniary Loss suffered.

“Pecuniary” means something related to money or money value.

Q BRIEF RULINGS ON ACTUAL DAMAGES.

1. Actual Damages need to be specifically PLEADED in the complaint and PROVED in trial.
2. AD Award may be executed pending appeal.
3. Purpose of Award for AD is to make good or to replace the loss caused by wrong.
4. Interest may be recovered in sum of money cases.
5. An injured passenger cannot recover for services gratuitously rendered or for medical services not
suited to his injury.
6. Plaintiff who did not appeal from a judgment giving him lesser award cannot be granted higher
award than what has become final.
7. The victim’s mother receiving an amount from insurance does not affect award of AD.

Q Kinds of Actual Damages

1. Actual Loss (Damnum Emergens)

2. Unrealized Profit (Lucrum Cesans - (if based on Reasonable
Estimate valid)
Note: Very common in business, property, profession (Damage to Biz goodwill)

Q DAMAGES IN CONTRACTS AND QUASI-CONTRACTS (ART. 2201)

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Obligor in GF - liable for natural and probable consequences of

breach which is foreseeable at the time of the obligation constitution.

Obligor in BF - liable for all damages that can be reasonably

attributed to the breach. (Note: Must be specially
pleaded and proved to obtain possible award)

Q DAMAGES IN CRIMES AND QUASI-DELICTS (ART. 2202)

 liable for the natural and probable consequences of the act

(regardless of the doer’s foreseeablity)

 for QD, the CONTRIBUTORY NEGLIGENCE of P reduces the recoverable damages. (Art. 2214)

Q Does the injured party have the duty to exercise DUE DILIGENCE to MINIMIZE the damage?

Yes, under Article 2203. But the Defendant must prove that the damage could have been mitigated or that
the amount thereof reduced.

Q What is the “Doctrine of Avoidable Consequences?”(Article 2203)

“Injured victims have responsibility to act reasonably to limit or mitigate losses incurred.”

Q What is the principle of Single Recovery? (Art. 2205)

(“The plaintiff gets only a single recovery, providing compensation for past and future losses.”)
– Loss of earning capacity. (Discounting awards to present value)

Q What are the usual damages that may be recovered from CRIME resulting in death?

1. Indemnity for death (P50,000);

2. Indemnity for Loss of Earning Capacity;
3. Moral Damages;
4. Exemplary Damages;
5. Attorney’s Fees and expenses of litigation;
6. Interest in proper cases.

Q SUBROGATION RIGHTS of INSURER to the RIGHTS of INSURED in PROPERTY INSURANCE. (Art.

2207)

P cannot recover anymore from D unless there is deficiency in insurance indemnity.

Reason for no recovery vs. D is because the INSURER is subrogated to P’s rights.

Q ATTORNEY’S FEES and EXPENSES of LITIGATION

General Rule:

No attorney’s fees (unless stipulated by the parties) or EXCEPT:

1. Exemplary Damages
2. P is Compelled to Litigate
3. Malicious Prosecution vs. P
4. Unfounded Civil Action vs. P
5. Gross & Evident BF to satisfy valid claim of P
6. Action for Legal Support
7. Recovery of Wages of workers
8. Action for Indemnity under Workmen’s Compensation
9. Separate Civil Action for crimes
10. Double judicial costs are awarded
11. Court discretion
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Q Damages in Obligation for Sum of Money

 Based on interest agreed upon

 If none, legal interest (now 12 % per annum based on C.B. Circ. No. 416 (7.29.74)
 May be awarded by court in breach of contract.

Q Stipulated interest may earn legal interest from judicial demand

 Case of compounding interest from judicial demand.

 Not applicable to non-stipulated interest situation

Q Guidelines for application of Proper Interest Rates

Please read Eastern Shipping lines, Inc. vs. CA, 234 SCRA 78, (1994) or 53 SCAD 207.

Q JUDICIAL EQUITABLE MITIGATION OF DAMAGES, in C, QC & QD

1. P’s contravention of C
2. P’s partial benefit from C
3. In exemplary damages where P acted on Counsel’s advice
4. Loss will happen as a matter of course
5. D does best to lessen P’s loss or injury

Q Distinguish Doctrine of Avoidable Consequence from Doctrine of Contributory Negligence.

DAC – comes into picture after cause of action arises

DCN – comes before or simultaneously with the cause

OTHER KINDS OF DAMAGES

1. MORAL DAMAGES (Art. 2217)

Q OTHER DAMAGES at DISCRETION OF COURT

 Liquidated Damages – must be stipulated otherwise even COURT has no power to award it.

 MENT– subject to Judicial Discretion. No pecuniary proof is necessary but facts supporting such claim
must be shown.

Q CONCEPT OF MORAL DAMAGES

1. Physical Suffering
2. Mental Anguish
3. Fright
4. Serious Anxiety
5. Besmirched Reputation
6. Wounded Feelings.
7. Moral Shock
8. Social Humiliation
9. and Similar Injury

Not capable of pecuniary computation but RECOVERABLE if PROXIMATE RESULT of wrongful act or omission.

Q Rationale of Moral Damages

“When there is a wrong, there is a remedy.” Layda vs. CA 90 Phil. 724

(1952)
Note: Award of moral damages is mandatory even in the absence of proof other than death of victim.

Q MORAL DAMAGES CANNOT BE EXECUTED PENDING APPEAL.

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Because these kinds of damages are uncertain until there is finality of the
case.

Q INSTANCES WHERE MORAL DAMAGES ARE AWARDED?

i) Stubborn to pay just obligation

j) Anguish suffered by parents due to abortion;
k) Refusing to implement decision by school to give honor to deceased student
l) Unwarranted power disconnection by MERALCO
m) Use of house as AD Material without consent of owner;
n) Veto in BF by Mayor of Resolution appropriating salary of VM;
o) Breach of promise to marry
p) Double Sale of real property;
q) Telegram not sent to US in time for news of death of relative in Phil.

Q MORAL DAMAGES IN PROPERTY LOSS.

Sentimental Value may be considered by the court. (Art. 2218)
Q CAUSES to award MORAL DAMAGES.

Please read the enumeration in Art. 2219

Q Does a JURIDICAL PERSON have the RIGHT TO RECOVER MD?

No, because it has no nervous system – “no feelings, no emotions, no senses”. (ABS-CBN vs. CA 301
SCRA 572, [1999]

2. NOMINAL DAMAGES (Art. 2221)

Q- What is the concept of NOMINAL DAMAGES?

The vindication or recognition of a right that has been violated but not an indemnification of any loss.
Even if the violation is simply technical, the award of ND is still proper.

Q- What is the effect of an AWARD of NOMINAL DAMAGES?

The award precludes the award of ATM. (LRTA vs. Navidad, 397 SCRA 75 [2003])

3. TEMPERATE or MODERATE DAMAGES (Art. 2224)

Q- What is the concept of TEMPERATE or MODERATE DAMAGES?

 There is PECUNIARY LOSS but its amount cannot be proved with certainty by nature of the case.
(Art. 2224)

4. LIQUIDATED DAMAGES (Art. 2226)

Q- What is the concept of LIQUIDATED DAMAGES?

 Priorly agreed by parties in a contract to the effect that any breach thereof gives rise to entitlement.
 May be reduced by the court if found to be INIQUITOUS or UNCONSCIONABLE.
 Attorney’s fees not stipulated are treated as AD but if priorly stipulated regarded as LIQUIDATED
DAMAGES.

5. EXEMPLARY OR CORRECTIVE DAMAGES

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Q- What is the concept of EXEMPLARY OR CORRECTIVE DAMAGES?

Imposed by way of example or correction for the public good in addition to ATML

Accessory to ATML, without which no award of ED is proper.