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I.
(7)
GENERAL PRINCIPLES
Article 2195.
The provisions of this Title shall be
respectively applicable to all obligations mentioned in
article 1157.
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
in conflict with this Code.
Article 2197. Damages may be: (M.E.N.T.A.L.)
(1)
Actual or compensatory;
(2)
Moral;
(3)
Nominal;
(4)
Temperate or moderate;
(5)
Liquidated; or
(6)
Exemplary or corrective.
ACTUAL OR COMPENSATORY
as
COMPONENT ELEMENTS
SUBROGATION
Article 2207
If the plaintiff's property has been insured, and he has
received indemnity from the insurance company for the
injury or loss arising out of the 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.
Pan Malayan Insurance Corp. vs. CA 184 SCRA 54
If the insured property is destroyed or damaged through
the fault or negligence of a party other than the assured, then the
insurer, upon payment to the assured, will be subrogated to the
rights of the assured to recover from the wrongdoer to the extent
that the insurer has been obligated to pay. Payment by the insurer
to the assured operates as an equitable assignment to the former
of all remedies which the latter may have against the third party
whose negligence or wrongful act caused the loss. The right of
subrogation is not dependent upon, nor does it grow out of, any
privity of contract or upon written assignment of claim. It accrues
simply upon payment of the insurance claim by the insurer.
C.
ATTORNEYS
LITIGATION
FEES
AND
EXPENSES
OF
(7)
INTEREST
2.
(3)
Note: In
1.
2.
3.
4.
5.
6.
7.
8.
WHEN RECOVERABLE
1.
CONTRACTUAL RELATION
were travelling with first class tickets issued by defendant and yet
they were given only the tourist class. At stop-overs, they were
expected to be among the first-class passengers by those awaiting
to welcome them, only to be found among the tourist passengers. It
may not be humiliating to travel as tourist passengers; it is
humiliating to be compelled to travel as such, contrary to what is
rightfully to be expected from the contractual undertaking.
Simex International v. CA 183 SCRA 360
The initial carelessness of a bank, aggravated by the lack
of promptitude in repairing the error constituted gross negligence, if
not wanton bad faith. Moral damages is adjudicated for the loss
suffered, and NOT for the vindication of a right.
2.
EXTRA-CONTRACTUAL RELATION
There are cases where from the nature of the case, definite
proof of pecuniary loss cannot be offered, although the court is
convinced that there has been such a loss.
Araneta vs. Bank of America 40 SCRA 144
The Code Commission, in explaining the concept of
temperate damages under Article 2224, makes the following
comment:
"In some States of the American Union, temperate
damages are allowed. There are cases where from the nature of
the case, definite proof of pecuniary loss cannot be offered,
although the court is convinced that there has been such loss.
For instance, injury to one's commercial credit or to the goodwill
of a business firm is often hard to show with certainty in terms
of money. Should damages be denied for that reason? The
judge should be empowered to calculate moderate damages in
such cases, rather than that the plaintiff should suffer, without
redress from the defendant's wrongful act."
VI. LIQUIDATED DAMAGES
Note: This is awarded in the nature of a penalty
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 of
each case.
Article 2226. Liquidated damages are those agreed upon by
the parties to a contract, to be paid in case of breach
thereof.
Note: An essential pre-requisite is that the contract must be VALID
Article 2227. Liquidated damages, whether intended as an
indemnity or a penalty, shall be equitably reduced if they
are iniquitous or unconscionable.
5.
6.