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DAMAGES

Actual or compensatory damages must be specifically pleaded and proved with evidence, unless an exception applies. Exceptions include when liquidated damages were previously agreed upon, certain types of presumed damages like when a spouse or minor child dies, or forfeiture of bonds. Compensatory damages can cover losses suffered or unrealized profits, and may be recovered for loss of earning capacity or injury to business from temporary or permanent personal injury.

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0% found this document useful (0 votes)
27 views2 pages

DAMAGES

Actual or compensatory damages must be specifically pleaded and proved with evidence, unless an exception applies. Exceptions include when liquidated damages were previously agreed upon, certain types of presumed damages like when a spouse or minor child dies, or forfeiture of bonds. Compensatory damages can cover losses suffered or unrealized profits, and may be recovered for loss of earning capacity or injury to business from temporary or permanent personal injury.

Uploaded by

Giles Villareal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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COMPENSATORY OR ACTUAL DAMAGES – One is entitled to an adequate

compensation only for such pecuniary loss suffered by him as he has duly
proved, except as provided by law or by stipulation.

Necessity of Pleading. – To be recoverable, actual damages must be pleaded or


prayed for. However, when a prayer mentions only exemplary damages, moral
damages, and attorney’s fees and such further relief as this Honorable Court may
deem just and equitable,” the phrase “such other relief may include “actual
damages” if and when they are proved.1

Necessity of Proof.- Actual damages must be proved, otherwise, if the proof is


flimsy and non-substantial, no damages will be awarded. Actual and
compensatory damages require evidential proof. They cannot be presumed. 2

Exceptions to the Necessity of Proof.- In the following cases, actual damages


need not be proved:

a) In case liquidated damages had been previously agreed upon (Art. 2216);
b) In case of damages other than actual (Article 2216);
c) In case loss is presumed as when a child (minor) or a spouse dies
(Manzares v. Moreta, 38 Phil. 821); and
d) In case of forfeiture of bonds in favour of the government for the
purpose of promoting public interest or policy (like a bond for the
temporary stay of an alien). (Far Eastern Surety and Ins. Co vs. Court of
Appeals, L-12019, Oct. 16, 1958).

Kinds of Actual or Compensatory Damages:

a) Losses suffered, (amno vitando or dano emergente); Examples are: (1)


destruction of things; (2) fines or penalties that had to be paid; (3)
medical and hospitalization expense and (4) rents and agricultural
products not received in an agricultural lease.
b) Unrealized profits (lucro captando or lucro cesante or lucrom cessan)
Angeles v. Lerma, CCA, 45 O.G. No. 6, p. 2589. Lucrom Cessan is also a
basis for a reasonable expectation that profits would have continued has
there been no breach of contract; indemnification for damages based on
such expected profits is proper. For example, in the case of Cheng Sui
Yong vs. Intermediate Appellate Court, G.R. No. 64398, Nov. 6, 1990.

Examples of Lucro Cesante are:

1. Profits that could have been earned had there been no interruption in
the plaintiff’s business as evidenced by the reduced receipts of the
enterprise (Algarra v. Sandejas, 27 Phil. 284, Tan Vi vs. Alviar, 26 Phil.
566);
2. Profits because of a proposed future re-sale of property being purchased
if the existence of a contract there was known to the delinquent seller.
(Enriquez dela Caveda v. Diaz, 37 Phil. 982);
3. Interest on rentals that were not paid (T.M. Tuazon Inc. vs. Santiago, et
al., L-5079, July 31, 1956).

When Actual or Compensatory damages be recovered.- Article 2205 of the new


Civil Code provides: Damages may be recovered (1) for loss or impairment of

1
Heirs of Justiva vs. Court of Appeals, L-16396, Jan. 31, 1963.
2
Capco vs. Macasaet, G.R. No. 90888, Sept. 13, 1990.
earning capacity in cases of temporary or permanent personal injury; and (2) for
injury to the plaintiffs business standing or commercial credit.

MORAL DAMAGES

EXEMPLARY DAMAGES

NOMINAL DAMAGES

TEMPERATE DAMAGES

LIQUIDATED DAMAGES

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