Thursday, December 10, 2015

TORTS AND DAMAGES

Quasi-Delict
-          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 quasi-delict and is governed by the provisions of this Chapter (Art 2176, NCC).

Tort
-          It is a wrong independent of a contract, which arises from an act or omission of a person which causes some injury or damage directly or indirectly to another person.
-          It is the ordinary French word for “wrong”.
-          It is an offense against the individual but it may, at the same time, be a crime.
-          It may arise out of contractual relations

Tort vs Crime
Tort
-          It is a private wrong or injury.
-          It is an infringement of the private or civil rights of another, hence, pursued by the private individual.
-          It seeks indemnity for damage or injury sustained without seeking the imprisonment of the tortfeasor.
-          Quantum of evidence: Preponderance of evidence
-          Quantum of proof: Negligence or fault should be clearly established.
-          It is governed by the New Civil Code
Crime
-          It is an offense against the public being a punishable act and is pursued by the sovereign authority.
-          It generally seeks the curtailment of the liberty or imprisonment of the offender with possible civil liability.
-          Quantum of evidence: Proof beyond reasonable doubt
-          It is governed by the Revised Penal Code

Coverage of Quasi-delict: All wrongful acts or omissions
1.      They are not constitutive of contract.
2.      They are not punishable as offenses

Elements of Quasi-Delict
1.      Damage / Injury
2.      Negligence, by act or omission, of which defendant, or some person for whose acts, he must respond, was guilty
3.      Connection of the cause and effect between such negligence and damage.

Damage
-          It is the loss, hurt or harm which results from injury.

Damages
-          It refers to the recompense or compensation awarded for the damage suffered.

Fault
-          It is condition where a person acts in a way or manner contrary to what normally should have been done.

Negligence
-          The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place. (Art. 1173).
-          It is the failure to observe for the protection of the interests of another person, that degree of care, precaution and vigilance which the circumstances justly demand, whereby such other person suffers injury.

Moral Damages is not available in breach of contract of carriage
Exception:
1.      In cases in which the mishap results in the death of the passenger (Art 1764 inR 2206(3))
2.      In cases in which the carrier is guilty of fraud or bad faith (Art2220)

Test of determining Negligence
-          Would a prudent man, in the position of the person to whom negligence is attributed, foresee harm to the person injured as a reasonable consequence of the course about to be pursued? If so, the law imposed a duty on the actor to refrain from the course or take precaution against its mischievous results, and the failure to do so constitutes negligence. (Picart vs Smith)

FGU Corp vs CA
Facts:
            This was a two car collision. A car owned by Soriano and the other car owned by rent-a-car company (FILCAR) and driven by its lessee (Dahl-Jensen).
Issue:
            WON FILCAR is liable for the fault or negligence of the car lessee in driving the rented vehicle.
Ruling:
            No.
            Petitioner failed to prove the existence of negligence on the part of FILCAR. Respondent FILCAR being engaged in a rent-a-car business was only the owner of the car leased to Dahl-Jensen. As such, there was no vinculum juris between them as employer and employee.

No pre-existing contract between the parties: Quasi - Delicts
Except: when the contract was grossly violated or deliberate and malicious violation of the contract or the breach was palpably wanton, reckless, malicious, or in bad faith, oppressive or obscure.

Cases where Article 2176 is not applicable
1.      When there was a pre-existing contractual relation of employer and employee between the parties.
2.      When the fault or negligence is punished by law as crime.
3.      If the action is instituted after 4 years, it is deemed prescribed.
4.      When the injury suffered by a person is the result of a fortuitous event without human intervention.
5.      If there is no damage or injury caused to another party.
6.      When there is no breach of contract nor proof that an airline acted in wanton, fraudulent or malevolent manner, there is no basis for the award of any form of damages.

Quasi-delict vs Delict
Basis
Quasi-delict (Culpa-aquillana)
Delict or crime
Legal basis of liability
Fault or negligence
Law
Criminal intent
Not necessary
Essential
Nature of right violated
Private right; against private individual
Public right; against the State
Liability for damages
Every quasi-delict
Some crimes
Proofs needed
Preponderance of evidence
Proof beyond reasonable doubt
Sanction or penalty
Reparation or indemnification of the injury or damage
Either imprisonment, fine or both

Culpa-aquillana vs culpa-contractual
Basis
Culpa-aquillana
Culpa-contractual
Nature of negligence
Direct, substantive and independent
Merely incidental to the performance of the contractual obligation
Defense of good father of the family
Complete and proper defense insofar as parents, guardians, employers are concerned
Not a complete and proper defense in the selection and supervision of employees.
Presumption of negligence
No presumption
There is presumption as long as it can be prove that there was breach

Medical Malpractice
-          It is a particular form of negligence which consists in the failure of the physician or surgeon to apply to his practice of medicine that the degree of care and skill which is ordinarily employed by the profession generally, under similar conditions, and in like surrounding circumstances.
-          Elements:
1.      Duty
2.      Breach
3.      Injury
4.      Proximate causation

Apparent authority/ Holding out theory/ ostensible agency/ agency by estoppels
-          Art. 1869. Agency may be express, or implied from the acts of the principal, from his silence or lack of action, or his failure to repudiate the agency, knowing that another person is acting on his behalf without authority.
-          It imposes liability, not as the result of the reality of a contractual relationship, but rather because of the actions of a principal or an employer in somehow misleading the public into believing that the relationship or the authority exists.

Highest degree of diligence is required in the practice of medicine.

Medical negligence
-          It is a type of claim to redress a wrong committed by a medical professional that has caused bodily harm to or the death of a patient.

Res ipsa loquitur Doctrine
-          The thing speaks for itself
-          When applicable, the court is permitted to find the physician negligent upon proper proof of injury to the patient, without the aid of expert testimony, where the court from its fund of common knowledge can determine the proper standard of care.
-          When appropriate, the patient must prove a nexus between the particular act or omission complained of and the injury sustained while under the custody and management of the defendant without need to produce expert medical testimony to establish the standard of care.
-          Requisites for the applicability:
1.      The occurrence of an injury
2.      The thing which caused the injury was under the control and management of the defendant
3.      The occurrence was such that in ordinary course of things, would not have happened if those who had control or management used proper care
4.      The absence of explanation by the defendant.
-          Presumption of negligence on the part of the person who controls the instrument causing the injury, if:
1.      The accident is of a kind which ordinarily does not occur in the absence of someone’s negligence.
2.      It is caused by an instrumentality within the exclusive control of the defendant/s
3.      The possibility of contributing conduct which would make the plaintiff responsible is eliminated.

Captain of the Ship Doctrine
-          The operating surgeon is the person in complete charge of the surgery room and all personnel connected with the operation.

Article 2177. Responsibility for fault or negligence under the preceding article is entirely separate and distinct from civil liability arising from negligence under the Penal Code. But the plaintiff cannot recover damages twice for the same act or omission of the defendant

Modes of enforcing civil liability due to fault or negligence.
Injured party has the option:
1.      Criminal action which includes civil liability (Art. 100, RPC)
2.      Independent civil action (Quasi-delict)

Action against the employer:
1.      Primary liability (Art 2180, NCC)
2.      Subsidiary liability (Art 103, RPC)

Two separate civil liabilities arising from the same act or omission
1.      Civil liability ex delicto (Art. 100, RPC)
2.      Independent civil liabilities
a.       Culpa contractual
Article 31. When the civil action is based on obligation not arising from the act or omission complained of as a felony, such civil action may proceed independently of the criminal proceedings and regardless of the result of the latter.
b.      Intentional torts
Article 32.
Article 34.
c.       Culpa Aquillana (2176)

Rules for the recovery of civil liability arising from crime and other sources
1.      Death of the accused pending appeal of his conviction extinguishes his criminal liability as well as the civil liability based solely thereon.
2.      The claim for civil liability survives notwithstanding the death of the accused, if the same may also be predicated on a source of obligation other than delict.
3.      Where the civil liability survives, an action for recovery therefore may be pursued but only by way of filing a separate civil action.
4.      The statute of limitations on the civil liability is deemed interrupted during the pendency of the criminal case.

GR: Judgment of acquittal does not necessarily extinguish the civil liability of the accused
XPN:
1.      When it declares that the facts from which the civil liability might arise did not exist.
2.      When it declares that the accused in not the author of the crime.
3.      When the judgment expressly declares that the liability is only civil in nature.
4.      Where the liability is not derived or based on the criminal act of which the accused was acquitted.
5.      Where the acquittal is based on reasonable doubt.
6.      Where the civil action has prescribed.

Compulsion of adverse party to testify (Sec 6, Rule 132, ROC)

ARTICLE 2178. The provisions of Articles 1172 to 1174 are also applicable to quasi delict.

Article 1172.
Article 1173.
Article 1174.

ARTICLE 2179. When the plaintiff’s own negligence was the immediate and proximate cause of his injury, he cannot recover damages. But if his negligence was only contributory, the immediate and proximate cause of the injury being the defendant’s lack of due care, the plaintiff may recover damages, but the court shall mitigate the damages to be awarded.

Proximate cause
-          It is the adequate and efficient cause as in the natural order of events, and under the particular circumstances surrounding the case, would necessarily produce the event.
-          It is the cause which in  natural and continuous sequence, unbroken by any efficient intervening cause, produces the injury, and without which would not have occurred.
-          Rule: The death of the victim must be direct, natural and logical consequence of the wound inflicted upon him by the accused. (People vs Cardenas)
-          It is not applicable to actions involving breach of contract.

Test to determine existence of Proximate Cause
1.      Foreseeability test
·         Where the particular harm was reasonably foreseeable at the time of the defendant’s misconduct, his act or omission is the legal cause thereof.
2.      Natural and probable consequence test
·         Where the defendant’s liability is recognized only if the harm or injury suffered is the natural and probable consequence of his act or omission complained of.
3.      Sine qua non test
·         Where the defendant’s conduct will not be considered as proximate cause of the event if the event just the same would have occurred without it.
4.      Cause and conditions test
·         Where the distinction is made between the active cause of harm or injury and the existing conditions upon which that cause operated.
·         If the defendant has created only a passive static condition, which made the damage possible, he is not liable.
5.      Assumption of risk
a.       A caretaker of a carabao got gored to death by the animal while tending it.
b.      Taking an extension seat in the jeepney which is overloaded.
c.       Riding on a vehicle driven by drunk.

Contributory Negligence
-          It is the omission of the diligence required by the circumstances by virtue of which a person could have avoided injury to himself.
-          It is the conduct on the part of the injured party, contributing as a legal cause to the harm he has suffered, which falls below the standard which he is required to conform for his own protection.
-          It is not applicable in criminal cases, however it may mitigate civil liability of the defendant but cannot affect his criminal liability.
-          A child under 9 years of age is conclusively presumed incapable of contributory negligence as a matter of law.

Doctrine of comparative negligence
-          The negligence of both the plaintiff and of the defendant are compared for the purpose of reaching an equitable apportionment of their respective liabilities for the damages caused and suffered by the plaintiff.

Doctrine of last clear chance
-          Humanitarian negligence doctrine
-          Doctrine of supervening negligence
-          Exception to the rule on contributory negligence
-          Elements:
1.      Plaintiff is placed in danger by his own negligent act and he is unable to get out from such situation by any means;
2.      Defendant knows that the plaintiff is in danger and knows or should have known that the plaintiff was unable to extricate himself therefrom; and
3.      Defendant had the last clear chance or opportunity to avoid the accident through the exercise of ordinary care but failed to do so, and the accident occurred as a proximate result of such failure.
-          When not applicable:
a.       Collapse of building structure.
b.      When the claim or demand of the injured passenger is the enforcement of the carrier’s contractual obligation to bring him safely.
c.       When the injury or accident cannot be avoided by application of all means at hand after peril has been discovered.


Attractive Nuisance doctrine
-          One who maintains on his premises dangerous instrumentalities or appliances of a character likely to attract children in play, and who fails to exercise ordinary care to prevent children from playing therewith or resorting thereto, is liable to a child of tender years who is injured thereby, even if the child is technically a trespasser in the premises.
-          It is not applicable to bodies of water, in the absence of some unusual condition or artificial features other than mere water and its location.

Principal defenses in actions based on negligence. (Available for defendant)
a.       Emergency Rule
·         One who suddenly finds himself in a place of danger, and is required to act without time to consider the best means that may be adopted to avoid the impeding danger, is not guilty of negligence, if he fails to adopt what subsequently and upon reflection may have been a better method, unless the emergency in which he finds himself is brought about by his own negligence.
b.      Assumption of risk
·         It presupposes an intentional exposure to a known peril.
·         Workmen’s Compensation Act cases not covered.
c.       Contributory negligence
·         When the plaintiff’s own negligence was the immediate and proximate cause of his injury, he cannot recover damages.
d.      Volenti non fit injuria
·         It means that to which a person assents is not esteemed in the law as injury.
·         One is not legally injured if he has consented to the act complained of or was willing that it shall occur.
·         This is a specie of assumption of risk by conduct.

Rules in Doctrine of Comparative Negligence
1.      Pure Comparative Negligence Rule.
·         The plaintiff can recover from the defendant regardless of the extent of the negligence of the former.
2.      Arkansas Comparative Negligence
·         The plaintiff can recover if his negligence is lesser degree than that of the defendant
·         If 50/50, he cannot recover.

Rescue Doctrine or Humanitarian Doctrine
-          One who has, through his negligence, endangered safety of another may be held liable for injuries sustained by third person who attempts to save another from injury.

ARTICLE 2180. The obligation imposed by Article 2176 is demandable not only for one’s owns acts or omissions, but also for those of persons for whom one is responsible.
            The father and, in case of his death or incapacity, the mother, are responsible for the damages caused by the minor children who live in their company.
            Guardians are liable for damages caused by minors or incapacitated persons who are under their authority and live in their company.
            The owners and managers of an establishment or enterprise are likewise responsible for damages caused by their employees in the service of the branches in which the latter are employed or on the occasion of their functions.
            Employers shall be liable for the damages caused by their employees and household helpers acting within the scope of their assigned tasked, even though the former are not engaged in the business or industry.
            The State is responsible in like manner when it acts through a special agent; but not when the damage has been caused by the official to whom the task done properly pertains, in which case what is provided in Article 2176 shall be applicable.
            Lastly, teachers or head of establishments of arts and trades shall be liable for damages caused by the pupils and students or apprentices, so long as they remain in their custody.
            The responsibility treated of in this article shall cease when the persons herein mentioned proved that they observed all the diligence of a good father of a family to prevent damage.

Principle of Vicarious or imputed liability
-          The liability for the acts of others.

Requisites for vicarious or imputed liability of the parents
1.      The child is below 21 y/o
2.      The child committed a tortuous act to the damage and prejudice of another person
3.      The child lives in the company of the parent concerned whether single or married.

Enforcement of subsidiary liability of employer:
1.      He is indeed the employer of the convict;
2.      That he is engaged in some kind of industry;
3.      That the crime was committed by the employee in the discharge of his duties;
4.      Execution against the employee is unsatisfied.

Special errand or roving commission rule
GR: EE continuous in the service of his employer until he actually reaches home.
XPN: EE has left the direct route to his work or back home and in pursuing a personal errand of his own.

Article 218. The school, its administrators and teachers, or individual, entity or institution engaged in child care shall have special parental authority and responsibility over the minor child while under their supervision, instruction or custody.
            Authority and responsibility shall apply to all authorized activities whether inside or outside the premises of the school, entity or institution.

Article 219. Those given the authority and responsibility under the preceding Article shall be principally and solidarily liable for damages caused by the act or omission of the unemancipated minor. The parents, judicial guardians or the persons exercising substitute parental authority over the said minor shall be subsidiary liable.
            The respective liabilities of those referred to in the preceding paragraph shall not apply if it is proved that they exercised the proper diligence required under the particular circumstances.
            All other cases not covered by this and the preceding articles shall be governed by the provisions of the Civil Code on quasi-delicts.

ARTICLE 2181. Whoever pays for the damage caused by his dependents or employees may recover from the latter what he has paid or delivered in satisfaction of the claim.

ARTICLE 2182. If the minor or insane person causing damage has no parents or guardian, the minor or insane person shall be answerable with his own property in an action against him where a guardian ad litem shall be appointed.

ARTICLE 2183. The possessor of an animal or whoever may make use of the same is responsible for the damage which it may cause, although it may escape or be lost. This responsibility shall cease only in case the damage should come from force majeure of from the fault of the person who has suffered damage.

Wild beast theory

Exceptions to the rule of liability of the possessor
1.      If the damage was caused by force majeure.
2.      If the damage was caused by the fault of the plaintiff or person injured.
3.      If the damage was caused by the act of a third person.

ARTICLE 2184. In motor vehicle mishaps, the owner is solidarily liable with his driver, if the former, who was in the vehicle, could have, by the use of due diligence, prevented the misfortune. It is disputably presumed that a driver was negligent, if had been found guilty of reckless driving or violating traffic regulations at least twice within the next preceding two months.
            If the owner was not in the motor vehicle, the provisions of Article 2180 are applicable.

ARTICLE 2185. Unless there is proof to the contrary, it is presumed that a person driving a motor vehicle has been negligent if at the time of the mishap, he was violating any traffic regulation.
ARTICLE 2186. Every owner of a motor vehicle shall file with the proper government office a bond executed by a government-controlled corporation or office, to answer for damages to third persons. The amount of the bond and other terms shall be fixed by the competent official.

Motor Vehicle Bond

ARTICLE 2187. Manufacturers and processors of food stuffs, drinks, toilet articles and similar goods shall be liable for death or injuries caused by any noxious or harmful substances used, although no contractual relation exists between them and the consumers.

Plaintiff has 4 options on remedies:
1.      Theory of strict liability in torts;
2.      Fault or negligence;
3.      Breach of warranty;
4.      Crime anchored on violation of the Food and Drugs Act (Absolute criminal liability).

ARTICLE 2188. There is prima facie presumption of negligence on the part of the defendant if the death or injury results from his possession of dangerous weapons or substances, such as firearms and poison, except when the possession or use thereof is indispensable in his occupation or business.

ARTICLE 2189. Provinces, cities and municipalities shall be liable for damages for the death of, or injuries suffered by, any person by reason of the defective condition of roads, streets, bridges, public buildings, and other public works under their control or supervision.

ARTICLE 2190. The proprietor of a building or structure is responsible for the damages resulting from its total or partial collapse, if it should be due to lack of necessary repairs

ARTICLE 2191. Proprietors shall also be responsible for damages caused:
(1)   By the explosion of machinery which has not been taken care of with due diligence, and the inflammation of explosive substances which have not been kept in a safe place and adequate place;
(2)   By excessive smoke, which may be harmful to person or property;
(3)   By the falling of trees situated at or near highways or lanes, if not caused by force majeure;
(4)   By emanations from tubes, canal, sewers or deposits of infectious matter, constructed without precautions suitable to the place.

ARTICLE 2192. If damages referred to in the two preceding articles should be the result of any defect in the construction mentioned in Article 1723, the third person suffering damages may proceed only against the engineer or architect or contractor in accordance with said article, within the period therein fixed

Prescriptive period
-          15 years from the time the cause of action had accrued.

ARTICLE 2193. The head of a family that lives in a building or a part thereof, is responsible for the damages caused  by things thrown or falling from the same

Nature of liability
-          Both absolute and exclusive.

ARTICLE 2193. The responsibility of two or more person who are liable for quasi-delict is solidary.

DAMAGES
CHAPTER I
GENERAL PROVISONS

Damage
-          It includes any and all damages that a human being may suffer in any and all manifestations of his life:
Physical or material,
Moral or psychological,
Mental or spiritual,
Financial,
Economic,
Social,
Political,
Religious.

ARTICLE 2195. The provisions of this Title shall be respectively applicable to all obligations mentioned in Article 1157.
Sources of Obligations (Article 1157)
1.      Law
2.      Contracts
3.      Quasi Contracts
4.      Acts or omissions punished by law; and
5.      Quasi-delicts.

ARTICLE 2196. The rules under this Title are without prejudice to special provisions on damages formulated elsewhere in this Code. Compensation for workmen and other employees in case of death, injury or illness is regulated by special laws. Rules governing damages laid down in other laws shall be observed insofar as they are not conflict with this Code.

ER-EE relationship
Rule
-          Moral damages are recoverable where the dismissal of the employee was attended by bad faith or fraud or constituted an act oppressive to labor, or was done in manner contrary to morals, good customs or public policy
-          Exemplary damages may be awarded if the dismissal is effected in a wanton, oppressive or malevolent manner.

ER-EE relations is merely incidental examples
-          Tort
-          Malicious prosecution
-          Breach of contract
-          When the claimant seeks to recover a debt from a former EE
-          Claimant seeks liquidated damages for enforcement of a prior employment contract.

ARTICLE 2197. Damages may be: (AMN TLE)
(1)   Actual or compensatory;
(2)   Moral;
(3)   Nominal;
(4)   Temperate;
(5)   Liquidated; or
(6)   Exemplary or corrective.

Damages
-          It refer to the pecuniary compensation, recompense, or satisfaction for an injury sustained by the injured party to be paid by the person who caused the injury.
ARTICLE 2198. The principles of the general law on damages are hereby adopted insofar as they are not inconsistent with this Code.

CHAPTER II
ACTUAL AND COMPESATORY DAMAGES

ARTICLE 2199. Except as provided by law or by stipulation, on 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.

Rules
-          It must be especially alleged and substantiated by proof.
-          Competent proof or best evidence obtainable.
-          Absolute certainty is not necessary.
-          No filing fee for actual damages is required.
-          In no instance shall the judge grant damages more than what had been proved in court.
-          The award for actual damages may be executed pending appeal.

GR: Damages must be proved.
XPN:
1.      When the penalty clause agreed is agreed upon in the contract between the parties. (article 1226);
2.      When the liquidated damages have been agreed upon. (Article 2226);
3.      When the loss is presumed as when a child or spouses died as a result of the act or omission of a person.
4.      Forfeiture of bonds in favor of the Government for the purpose of promoting public policy or interest.
5.      Death caused within the contemplation of Article 2206.

ARTICLE 2200. Indemnification for damages shall comprehend not only the value of the loss suffered, but also the profits which the oblige falied to obtain.

Kinds of actual or compensatory damages.
1.      Damnum Emergens
·         The value of actual pecuniary loss for what the claimant already possesses before the incident which must be supported by receipts or the best evidence available.
2.      Lucrum cessans
·         The expected profits which were not realized by reason of the act of the offender or tortfeasor.
·         Ganacias frustadas.

ARTICLE 2201. In contracts and quasi-contracts, the damages for which the obligor who acted in good faith is liable shall be those that are the natural and probable consequences of the breach of the obligation, and which the parties have foreseen or could have reasonably foreseen at the time the obligation was constituted.
            In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages which may be reasonably attributed to the performance of the obligation.

ARTICLE 2202. In crimes and quasi-delicts, the defendants shall be liable for all damages which are the natural and probable consequences of the act or omission complained of. It is not necessary that such damages have been foreseen or could have reasonably foreseen by the defendant.

ARTICLE 2203. The party suffering loss or injury must exercise the diligence of a good father of a family to minimize the damages resulting from the act or omission in question.

ARTICLE 2204. In crimes, the damages to be adjudicated may be respectively increased or lessened according to the aggravating or mitigating circumstances.

Aggravating circumstances
-          It serves to increase the penalty because of the unusual perversity by the offender.
-          If there is no aggravating circumstance, exemplary damages shall not be imposed.

Mitigating circumstance
-          It serves to decrease the penalty imposable by law.

ARTICLE 2205. Damages may be recovered:
(1)   For the loss or impairment of earning capacity in cases of temporary or permanent personal injury;
(2)   For injury to the plaintiff’s business standing of commercial credit.

Formula for Computation
Unearned Income
-          Net earning capacity (X) = life expectancy x gross annual income less living expenses (50% of gross annual income).
Life expectancy
-          2/3 x (80 – age of the deceased)

ARTICLE 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. (195 FC), the recipient who is not an heir called to the decedent’s inheritance by the law of the 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.

Cases where Article 2206 was not applicable
1.      The father of the fetus which was aborted without the former’s consent is not entitled to recover from the aborting doctor actual damages.
2.      The brother of a person
3.      Expenses relating to 9th day, 40th day and 1st year death anniversaries as these are incurred after considerable lapse of time from the burial of the victim.
4.      Where the widow of the victim did not testify on any mental anguish or emotional distress which she suffered.
5.      When the offense filed is only for illegal possession of firearm and the killing merely aggravated it.

ARTICLE 2207. If the plaintiff’s property has been insured, and he has received indemnity for the insurance company from the injury or loss arising out of wrong or breach of contract complained of, the insurance company shall be subrogated to the rights of the insured against the wrongdoer or the person who has violated the contract. If the amount paid by the insurance company does not fully cover the injury or loss, the aggrieved party shall be entitled to recover the deficiency from the person causing the loss or injury.

Principle of subrogation

Instances when principle of subrogation does not apply.
1.      When the assured by his own act releases the wrongdoer or third person liable for the loss or damage, from liability.
2.      When the insurer pays the assured the value of the loss goods without notifying the carrier who has good faith settled the assured’s claim for loss.
3.      When the insurer pays the assured for a loss which is not a risk covered by the policy.

ARTICLE 2208. In the absence of stipulation, attorney’s fees and expenses of litigation, other than judicial costs, cannot be recovered, except:
(1)   When exemplary damages are awarded;
(2)   When the defendant’s act or omission has compelled the plaintiff to litigate with third persons or to incur expenses to protect his interest;
(3)   In criminal cases of malicious prosecution against plaintiff;
(4)   In case of a clearly unfounded civil action or proceeding against the plaintiff;
(5)   Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff’s plainly valid, just and demandable claim;
(6)   In actions for legal support;
(7)   In actions for recovery of wages of household helpers, laborers and skilled workers;
(8)   In actions for indemnity under workmen’s compensation and employer’s liability laws;
(9)   In a separate civil action to recover civil liability arising from a crime;
(10)                       When at least double judicial costs are awarded;
(11)                       In any other case where the court deems it just and equitable that attorney’s fees and expenses of litigation should be recovered;
In all cases, the attorney’s fees and expenses of litigation must be reasonable.

Two concepts of Attorney’s fees
1.      Ordinary concept
·         The reasonable compensation paid to lawyer for the legal services he has rendered to a client who has engaged him.
·         Quantum meruit – as much as one deserves.
2.      Extraordinary concept
·         An indemnity for damages ordered by the court to be paid by the losing party to the prevailing party in a litigation
·         Stipulation on payment: the fees agreed upon are in the nature of liquidated damages.

Elements of Malicious Prosecution
1.      That the defendant was the prosecutor or that he instigated the commencement of the criminal action;
2.      That the plaintiff was acquitted;
3.      That the prosecutor acted without probable cause; and
4.      That he was actuated by improper and sinister motives.

ARTICLE 2209. If the obligation consists in the payment of a sum of money, and the debtors incurs in delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the interest agreed upon, and in the absence of stipulation, the legal interest, which is six percent per annum.

Reckoning period for payment of interest
-          From the date of demand (Judicial or extrajudicial demand)

ARTICLE 2210. Interest may, in the discretion of the court, be allowed upon damages awarded for breach of contract.

Reckoning period
-          From the date of judgment of the trial court was rendered.

ARTICLE 2211. In crimes and quasi-delicts, interest as a part of the damages may, in proper case, be adjudicated in the discretion of the court.

ARTICLE 2212. Interest due shall earn legal interest from the time it is judicially demanded, although obligation may be silent on this point

Accrued interest
-          Interest due in an obligation.

ARTICLE 2213. Interest cannot be recovered upon unliquidated claims or damages, except when the demand can be established with reasonable certainty.

ARTICLE 2214. In quasi-delicts, the contributory negligence of the plaintiff shall reduce the damages that he may recover.

ARTICLE 2015. In contracts, quasi-contracts, and quasi-delicts, the court may equitably mitigate the damages under circumstances other than the case referred to in the preceding article, as in the following instances:
(1)   That the plaintiff himself has contravened the terms of the contract;
(2)   That the plaintiff has derived some benefit as a result of the contract;
(3)   In cases where exemplary damages are to be awarded, that the defendant acted upon the advice of counsel;
(4)   That the loss would have resulted in any event;
(5)   That since the filing of the action, the defendant has done his best to lessen the plaintiff’s loss or injury.

CHAPTER III
OTHER KINDS OF DAMAGES

ARTICLE 2216. No proof of pecuniary loss is necessary in order that moral, nominal, temperate, liquidated or exemplary damages may be adjudicated. The assessment of such damages, except liquidated ones, is left to the discretion of the court, according to the circumstances


ARTICLE 2220. Willful injury to property may be a legal ground for awarding moral damages if the court should find that, under the circumstances, such damages are justly due. The same rule applies to breaches of contract where the defendant acted fraudulently or in bad faith.

Malice or bad faith
-          It implies a conscious or intentional design to do a wrongful act for a dishonest purpose or moral obliquity.
-          It includes gross, but not simple negligence.

ARTICLE 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.

Nominal damages
-          Are not for indemnification of loss but for vindication of right violated.



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