ACTIONS AND DAMAGES IN CASE OF BREACH

Reporters:

Ryan Anthony G. Pereña

Marivic Z. Lozano

Remedies for Breach of Contract

Specific Performance

Recission

Cancellation

Damages in the form of Compensation

WHAT ARE DAMAGES?

- The pecuniary compensation, recompense or satisfaction for an injury sustained or as otherwise

expressed the pecuniary consequences which the law imposes for the breach of some duty or violation of

some right.

DISTINCTIONS

CONCURRENT CAUSES OF ACTIONConcurrent Cause- A legal priinciple which hold that where the concurrent or successive negligent acts or ommission of two or more persons, although acting independently of each other, are in combination, the direct and proximate cause of a single injury to a third person and it is impossible to determine in what proportion each contributed to the injury, either as reponsible for the whole injury, even his act alone might have not caused the entire injury.

If one’s injury is caused by the combined negligence of multiple tortfeasors, liability will be determined according to one of several tests.

1. Substantial Factor Test In cases where the negligent actions of each tortfeasor alone would have caused the entire injury by itself and the harm is indivisible such that damages cannot be apportioned among the tortfeasors, each is liable for causing the entire harm. To be liable, a defendant’s negligence must have played a substantial part in causing the harm.

2. Multiple Negligence In cases where the negligent actions of each defendant would not have caused the injury alone, each is liable for the damage each defendant actually caused.

3. Alternative Causes- If it cannot be determined which of the two negligent actors caused the injury, both are liable unless one can prove his innocence.

4. Enterprise Liability Theory Each member of an enterprise is liable for damages caused by the enterprise as a whole when there has been close cooperation among the different members and damages cannot be apportioned.

LIABILITY BASED ON CONTRACT:

Art. 2176. Whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. Such fault or negligence, if there is no pre-existing contractual relation between the parties, is called a quasi-delict.

CRIMINAL LIABLITY

Article 100. Civil liability of a person guilty of felony. - Every person criminally liable for a felony is also civilly liable.

QUASI DILECT- applies to the captain, officers and crew and other personnel

(VESSEL/AIR CARRIER)

SHIP OWNER OR THE OPERATOR- As employer may be liable under Article 2180 of the New Civil Code and Subsidiary liable under the Revised Penal Code.

CONCURRENCE WITH THIRD PERSONS- If the negligence of third persons concurs with the breach ( as in the case where was passenger was injured becuase the carrier collided with another vehicle) the liabilitty of the third person who was driving another vehicle and/or his employer may be based on quasi delict. The driver may be held criminally liable and civil liability may be imposed on him based on delict and the employer is subsidiary liable.

In case of injury to a passenger due to the negligence of the driver on which he was riding and the driver of another vehicle:

THE DRIVERS AND OWNERS OF THE TWO VEHICLES ARE JOINTLY AND SEVERALLY LIABLE FOR DAMAGES.

ALTERNATIVE CAUSES OF ACTION- Fabre vs Court of Appeals

ALTERNATIVE COMPENSATION SCHEME- Special Laws provide the commuting public with an easier was of recovering damages by requiring common carriers to have mandatory inusrance coverage for passengers and cargos.

NOTICE OF CLAIM AND PRESCRIPTIVE PERIODART 1170

Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages

ART 1145

The following actions must be commenced within six years:

(1) Upon an oral contract;

(2) Upon a quasi-contract.

ART 1146

The following actions must be instituted within four years:

(1) Upon an injury to the rights of the plaintiff;

(2) Upon a quasi-delict;

However, when the action arises from or out of any act, activity, or conduct of any public officer involving the exercise of powers or authority arising from Martial Law including the arrest, detention and/or trial of the plaintiff, the same must be brought within one (1) year.

NOTICE OF CLAIM AND PRESCRIPTIVE PERIOD

KINDS OF DAMAGES

MORAL DAMAGES (PBMF-MWSS)

Physical Suffering

Besmirched reputation

Mental Anguish

Fright

Moral Shock

Wounded Feelings

Social Humiliation

Serious Anxiety

MORAL DAMAGESPurpose

Moral damages is awarded only to enable the injured party to obtain means, diversions or amusements that will serve to alleviate the moral suffering he has undergone, by reason of defendant's culpable action and not intended to enrich a complainant at the expense of defendant

Manner of Determination

No proof of pecuniary loss is necessary. The assessment is left to the discretion of the court according to the circumstances of each case. However, there must be proof that the defendant caused physical suffering etc. 

GR:  Factual basis must be alleged. Aside from the need for the claimant to satisfactorily prove the existence of the factual basis of the damages, it is also necessary to prove its causal relation to the defendant’s act 

Exceptions: Criminal cases. Moral damages may be awarded to the victim in criminal proceedings in such amount as the court deems just without need for pleading or proof of the basis thereof.

MORAL DAMAGES

In Breach of Contract of Air Carriage, moral damages may be recovered where:

The mishap results in the death of a passenger; or

Where the carrier is guilty of fraud or bad faith; or

Where the negligence of the carrier is so *gross and reckless as to virtually amount to bad faith

*GROSS NEGLIGENCE – implies a want or absence of or failure to exercise even slight care of diligence, or the entire absence of care.

Notes:

The social and economic/financial standing of the offender and the offended party should be taken into consideration in the computation of moral damages

MORAL DAMAGESIN WHAT CASES MAY MORAL DAMAGES BE RECOVERED (enumeration not exclusive): a. Criminal offense resulting in physical injuries b. Quasi-delicts causing physical injuries c. Seduction, abduction, rape or other acts of lasciviousness d. Adultery and concubinage e. Illegal or arbitrary detention or arrest f. Illegal search g. Libel, slander or other form of defamation h. Malicious prosecution i. Acts mentioned in art 309 of the RPC relating to disrespect of the dead and interference with funeral j. Acts and actions referred to in arts 21, 26, 27, 28, 29, 30, 32, 34 and 35 k. The parents of the female seduced, abducted, raped, or abused l . Spouse, descendants, ascendants and brother and sisters for acts mentioned in art 309 m. Art 2220 - in cases of willful injury to property or breaches of contract where defendant acted fraudulently or in bad faith

EXEMPLARY or CORRECTIVE DAMAGESPurpose

Exemplary or corrective damages are intended to serve as a deterrent to serious wrongdoings

Manner of Determination

1. That the claimant is entitled to moral, temperate or compensatory damages; and 

2. That the crime was committed with 1 or more aggravating circumstances, or the quasi- ‐delict was committed with gross negligence, or in contracts and quasi-contracts the act must be accompanied by bad faith or done in wanton, fraudulent, oppressive or malevolent manner. No proof of pecuniary loss is necessary.

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

NOMINAL DAMAGESPurpose

Vindicating or recognizing the injured party’s right to a property that has been violated or invaded.

Manner of Determination

No proof of pecuniary loss is necessary. Proof that a legal right has been violated is what is only required. Usually awarded in the absence of proof of actual damages.

 Art 2221

Nominal damages are adjudicated in order that a right of the plaintiff, which has been violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff for any loss suffered by him.

Art 2222

The court may award nominal damages in every obligation arising from any source enumerated in Article 1157, or in every case where any property right has been invaded.

Art 2223

The adjudication of nominal damages shall preclude further contest upon the right involved and all accessory questions, as between the parties to the suit, or their respective heirs and assigns.

TEMPERATE OR MODERATE DAMAGES

Purpose

When the court is convinced that there has been such a loss, the judge is empowered to calculate moderate damages rather than let the complainant suffer without redress.

Manner of Determination

May be recovered when the court finds that some pecuniary loss has been suffered but its amount cannot, from the nature of the case, be proved with certainty. No proof of pecuniary loss is necessary.

 

Art 2224

Temperate or moderate damages, which are more than nominal but less than compensatory damages, may be recovered when the court finds that some pecuniary loss has been suffered but its amount can not, from the nature of the case, be provided with certainty.

ACTUAL OR COMPENSATORY DAMAGES

Purpose

Actual or compensatory damages simply make good or replace the loss caused by the wrong.

Manner of Determination

Claimant must produce competent proof or the best evidence obtainable such as receipts to justify an award therefore. Actual or compensatory damages cannot be presumed but must be proved with reasonable certainty.  

Damages in Personal Injury Cases

All medical expenses as well as other reasonable expenses that he incurred to treat his or his relative’s injuries. Medical expenses may even include the amount spent for the plastic surgery of the plaintiff or any procedure to restore the part of the body that was affected.

ACTUAL OR COMPENSATORY DAMAGES

Damages in Case Death Results All that the plaintiff spent during the wake and funeral of the deceased. Expenses after the burial are

not compensable. The heirs are not entitled to an award of damages for the expenses incurred relating to the 9th day, 40th day and 1st year death anniversaries.

Art 2206.

The amount of damages for death caused by a crime or quasi-delict shall be at least three thousand pesos, even though there may have been mitigating circumstances. In addition:

1.The defendant shall be liable for the loss of the earning capacity of the deceased, and the indemnity shall be paid to the heirs of the latter; such indemnity shall in every case be assessed and awarded by the court, unless the deceased on account of permanent physical disability not caused by the defendant, had no earning capacity at the time of his death;

2.If the deceased was obliged to give support according to the provisions of Article 291, the recipient who is not an heir called to the decedent's inheritance by the law of testate or intestate succession, may demand support from the person causing the death, for a period not exceeding five years, the exact duration to be fixed by the court;

3.The spouse, legitimate and illegitimate descendants and ascendants of the deceased may demand moral damages for mental anguish by reason of the death of the deceased.

ACTUAL OR COMPENSATORY DAMAGESFixed Damage

The amount of fixed damages as contemplated in Art 2206 had been repeatedly increased by the Court and is now Php 50,000.00

Loss of Earning Capacity

Art 2206 (1)

(1)The defendant shall be liable for the loss of the earning capacity of the deceased, and the indemnity shall be paid to the heirs of the latter; such indemnity shall in every case be assessed and awarded by the court, unless the deceased on account of permanent physical disability not caused by the defendant, had no earning capacity at the time of his death;

Net Earning Capacity = Life Expectance x (Gross Annual Income less Necessary Living Expenses)

LIQUIDATED DAMAGESPurpose

Liquidated damages are frequently agreed upon by the parties, either by way of penalty or in order to avoid controversy on the amount of damages.

 

Manner of Determination

If intended as a penalty in obligations with a penal cause, proof of actual damages suffered by the creditor is not necessary in order that the penalty may be demanded (Art. 1228, NCC). No proof of pecuniary loss is necessary.

 

Special/Ordinary

Special

NOTE: Special Damages are those which exist because of special circumstances and for which a debtor in good faith can be held liable if he had been previously informed of such. circumstances.

WHEN LIQUIDATED DAMAGES MAY BE EQUITABLY REDUCED:

iniquitous or unconscionable

partial or irregular performance

Cases:Facts:

Issue:

Held:

- END OF REPORT –THANK YOU