SECTION 5. - Exemplary or 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 damages. Rationale: Suppress wanton acts Serve as a deterrent to serious wrong doings and as a vindication of undue sufferings and wanton invasion of the rights of an injured or as a punishment of those guilty of outrageous conduct. Requisites: 1. Imposed by way of example or correction in addition to compensatory, moral, temperate, or liquidated damages, and only after the claimants right to them has been established. 2. They cannot be recovered as a matter of right, their determination depending upon the amount of compensatory damages that may be awarded to the claimant. 3. The act must be accompanied by bad faith or done in wanton, fraudulent, oppressive or malevolent manner. Exemplary damages are imposed in addition to the moral, temperate, liquidated, or compensatory damages, hence, in the absence of any of the four kinds of damages mentioned, exemplary damages cannot be granted.

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. Exemplary damages are awarded when an aggravating circumstance is attendant in the case. The Court no longer makes a distinction whether the aggravating circumstance is qualifying or ordinary so long that it is stated in the information or the complaint. (People vs. Catubig, GR No. 137842, August 23, 2011)

Art. 2231. In quasi-delicts, exemplary damages may be granted if the defendant acted with gross negligence. Malice Fraud Insult Gross negligence Wanton and reckless disregard of the right of the plaintiff

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. General Rule: Damages for breach are limited to the pecuniary loss sustained Exception: Where the breach amounts to an independent, willful tort; the defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner. Art. 2233. Exemplary damages cannot be recovered as a matter of right; the court will decide whether or not they should be adjudicated. Courts will grant exemplary damages if the defendant acted with gross negligence (Art 2231), or in wanton, fraudulent, reckless, oppressive, or malevolent manner (Art 2232) in disregard of his obligation.

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 be entitled to moral, temperate or compensatory damages were it not for the stipulation for liquidated damages. Rules
1. The amount of the exemplary damages need not be proved to be entitled thereto but the

plaintiff must show that he is entitled to moral, temperate or compensatory damages.

2. Where liquidated damages have been agreed upon, the plaintiff must show that he is

entitled to moral, temperate or compensatory damages were it not for the stipulation for liquidated damages. Exemplary damages need not be proved, it need not also be alleged.
Reason: It is merely incidental or dependent upon the court may award as

compensatory damages. Art. 2235. A stipulation whereby exemplary damages are renounced in advance shall be null and void. Waiver in advance of exemplary damages is null and void being contrary to public policy.