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Torts - Week 10 - Concept and Actual Damages - Coggle Diagram
Torts - Week 10 - Concept and Actual Damages
1. Concept of Damages
A. Importance and Definition
B. When Allowed
C. Law on Damages
D. Types of Damages
(NCC 2197) -
Actual or compensatory;
Moral;
Nominal;
Temperate or moderate;
Liquidated; or
Exemplary or corrective.
E. Apportionment of Damages
Apportionment
- entire amount of damages is apportioned amongst everyone who cooperated in the commission of a crime according to their degrees of liability, respective responsibilities and actual participation. (People v. Gambao)
Source
- Primarily the Civil Code and laws, but NCC 2198 provides that the principles of general law on damages are adopted if not inconsistent with the Civil Code.
Obligations
- Damages may be awarded for breach of any of the obligaitons enumerated under NCC 1157 as per NCC 2195.
General Rule
- plaintiff must have suffered damage as a result of a legal wrong inflicted by the defendant.
Damage v. Injury
Injury
- Illegal invasion of a legal right
Damage
- Loss, hurt or harm which results from the injury.
Damages
- compensation awarded for the damages suffered.
Damage without Injury
- if the damage suffered was not due to a violation of a legal duty, there is damage without injury.
Definition
- Generally, amount of money awarded by the court as a remedy for the injured.
Why Money
- money expresses the amount of outrage, sympathy or even contempt felt by the court, so that arguably money means the whole gamut of emotional states as well as pleasure.
TL;DR
- Money can mean anything. (O'malley)
2. Actual or Compensatory Damages
(NCC 2199)
A. Definition/Purpose
- To provide adequate compensation for proven pecuniary loss suffered.
B. Proof required
B1. Pleading and proof of actual damage
- An award of actual damages must be alleged and proved. Not based on personal knowledge of the court. However, same cases have judges that do this.
B2. Nature of Loss and proof
- Must be for damage that is capable of pecuniary estimation. Thus, cannot be awarded for invaluable things. In those cases, moral, temperate, nominal damages instead.
Market Value
- Generally, actual damages only covers market value of the thing. In cases where items have value beyond such value, no need to pay beyond market value.
Burden of Proof
- on the claimant. Must be proven with a reasonable degree of certainty, premised upon competent proof or the best evidence obtainable. (Oceaneering Contractors v. Barretto)
C. Loss Covered
(2200)
C1. In General
- Indemnification for damages covers both value of the loss suffered and also the profits which the obligee failed to obtain.
C2. In Contracts and Quasi-Contracts (2201)
- Contemplates (2) scenarios. Obligor is either in Good Faith or Bad Faith.
C3. Crimes and Quasi Delicts (2202)
- Foreseability and good faith are irrelevant. Liable for all the natural and probable consequences of the act or omission complained of.
C4. Earning Capacity, Business Standing
(2205)
C4a. LOSS OR IMPAIRMENT OF EARNING CAPACITY
- Covers loss sustained by the dependents or heirs of the deceased. This represents the portion that the deceased would have used to support the heirs. (Magbanua v. Tabusares Jr.)
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FORMULA FOR UNEARNED INCOME (VIlla Rey v. CA
Net Earning Capacity
= life expectancy x (gross annual income) - reasonable and necessary living expenses)
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SCOPE (2205)
-
For loss or impairment of earning capacity in cases of temporary or permanent personal injury;
For injury to the plaintiff's business standing or commercial credit.
CRIMES
- Damages may be increased or decreased due to the presence of aggravating or mitigating circumstances.
MINORITY
- Irrelevant to the adjustment of damages. Minority has no bearing on actual or compensatory damages which is the equivalent of civil liability in criminal cases under RPC 107.
GOOD FAITH
- Obligor liable only for natural and probable consequences of the breach of the obligation and that which could be reasonable foreseen at the time the obligation was constituted.
BAD FAITH
- Malice, fraud, or wanton attitude makes the Obligor liable for all damages which may be reasonably attributed to non-performance.
Daño Emergente
- Loss of what is already possessed.
Lucro Cesante
- Benefit that would have been received. Damage is failure to receive benefit. (PNOC v. CA)
D. Death by crime or quasi-delict
- this is referred to as civil or death indemnity. (2206)
D1. Civil/Death Indemnity
- Mandatory and granted to heirs upon mere proof of commission of the crime.
D2. Loss of earning Capacity
- Awarded in every case. This is for loss of capacity to earn money, not loss of earnings. (Philippine Hawk v. Lee)
EXCEPTION -
When the deceased suffered from a permanent physical disability not caused by the defendant such that they had no earning capacity at the time of their death.
PROOF -
Documentary evidence must be presented for loss of earning capacity.
EXCEPTIONS (PH Hawk v. Lee)
The deceased is self-employed and earning less than the minimum wage under current labor laws, in which case, judicial notice may be taken of the fact that in the deceased's line of work no documentary evidence is available;
The deceased is employed as a daily wage worker earning less than the minimum wage under current labor laws
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AMOUNT -
P75,000 when the proper imposable penalty is death.
P50,000 If Reclusion Perpetua or below.
E. Rape Cases
- Civil indemnity is fixed at the amount of P75,000. This is mandatory upon a finding of rape. (People v. Anticamara)
F. Attorney's Fees
(2208) - General rule, no award of attorney's fees.
G. Interest
- Damages can take the form of interest. Payment of regular interest constitutes the price or cost of the use of the money. Until principal sum is returned, interest continues to accrue. A person holding sum after maturity of loan is unjust enrichment. (2209)
H. Duty to Minimize
- Party suffering loss or injury must exercise due diligence to minimize damages resulting from act or omission. (2203)
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WHEN PAID -
The obligation consists in the payment of a sum of money;
Debtor incurs in delay
No stipulation to the contrary.
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EXCEPTIONS
Contrary Stipulation in law or contract
Exemplary Damages are awarded
An act or omission of the defendant has compelled plaintiff to litigate with third persons or incur expenses to protect their interest
Criminal cases of malicious prosecution against the plaintiff
Clearly unfounded civil action or proceedings against plaintiff
The defendant has acted in gross and evident bad faith in refusing to satisfy the plaintiff's valid, just and demandable claim
Actions for legal support
Recovery of wages of household helpers, laborers and skilled workers
Actions for indemnity under workmen's compensation and employer's liability laws
Separate civil action to recover civil liability arising from a crime
When at-least double judicial costs are awarded.
Any other case where court deems it just and equitable that attorney's fees and expenses of litigation should be covered.
Exemplary Damages
- Does not necessarily mean that attorney's fees are also awarded at the same time. Only that they may be. Absence of exemplary means attorney's fees can't be recovered if no other circumstances are present.
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Definition -
Not payment for services rendered by a lawyer but "An award made in favor of a litigant, not his counsel. Litigant is the judgment creditor who may enforce the judgment for attorney's fees by execution" Quirante v. IAC
Requirement of Allegation -
Attorney's fees must be specifically prayed for to be granted. (Briones v. Macabagdal)
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Except as provided by law or Stipulation
- Conflicting interpretations. Can mean either if pecuniary loss is proven, damages may not be awarded or even if not proven damages can be awarded.
ARTICLE 2199
. Except as provided by law or by stipulation, one is entitled to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved. Such compensation is referred to as actual or compensatory damages.