Lazatin vs.

Twao

- Writ of attachment secured by Lazatin OTG that respondent allegedly

did not give any security for the payment of the amount, and that Rs
are about to remove or dispose of the property with intent to defraud
their creditors.

- Actual or compensatory/moral > moral damages may be

recovered in the following and analogous cases: malicious
prosecution
> Malicious prosecution identical to the wrongful issuance and levy of
an attachment

> Requisites for recovery:

1. attachment was sued out maliciously
2. no probable cause

- In the absence of malice, injuries to credit, reputation and business

are too remote and speculative to be recovered.

- what if there is no malice? COMPENSATORY only - confined to the

actual loss from deprivation of the property attached or injury to it, or
in case of closing business, to the probable profits of the business,
during the time of its stoppage.

Heirs of Borlado vs. CA

Serapio <3 Balbina = Heirs of Simeon

> Serapio sold lot to Francisco Bacero
> Francisco died.
> franciscos widow sold lot to Sps. Bienvenido Bulan and Salvaion
Borbon (DoAS)
> Salvacion paid corresponding taxes
> 1972: Ps forcibly entered and wrested physical possession of the
property
> Complaint for ejectment - In favor of Rs. CA affirmed.

> TC and CA awarded Rs with damages: 100 cavans of palay every

year. > NOT ALLOWED. Damages can be paid only with legal
tender, and palay is not a legal tender in the Philippines.

People vs. Dianos

- Murder, frustrated and attempted murder - Teresita Ortiz (murder),

Zaldy Ortiz (attempted murder), Virgilio Ortiz (attempted murder),
Lizette Ortiz (frustrated murder), Ricardo Pabo (murder)
> Residents of Cypress Point Village, Irisan, Baguio
> Transaction gone awry
> Threw hand grenade
> Shooting, armalite - one was hit in the neck, one was hit in the
abdomen and wrist, chest and left arm, buttocks
> Police fired at jeep used by accused but the latter was still able to
escape.

RTC: Guilty

> Guilty (SC)

Damages - sum of money which the law awards or imposes as

pecuniary compensation, recompense, or satisfication for an injury
done or a wrong sustained as a consequence of either a breach of a
contractual obligation or a tortuous or illegal act

Damage - actionable loss, hurt, or harm which results from the

unlawful act, omission or negligence of another

** Damages are the amounts recoverable or that which can be

awarded to the damage done or sustained.

Actual or compensatory
GR: requires actual proof of pecuniary loss.
EXC: Damages for death caused by a crime or quasi-delict- can be
awarded to the heirs by proof alone of such fact of death

GR: No proof of pecuniary loss necessary in order to award moral,

nominal, temperate, liquidated or exemplary damages - Sound
discretion of the court

Actual VS. Indemnification for consequential damages in ROC 100

and 104 (3)
- Civil indemnity ex delicto can be awarded without need of further
proof than the fact of commission of the felony; only proof of damage
or injury
- Actual damages have to be established with reasonable degree of
certainty; proof of damages or pecuniary loss

Scott Consultants vs. CA

- P is lessee of 2 registered mining locators - Kadakilaan Estate and

San Mateo Mines Exploration
. Terminated operating agreement for mining. San Mateo Mines
prevented P from gaining access, occupying, exploring and developing
the existing mining claims.
> P sustained damage of not less than P300K a day
> P500K for exemplary damages
> P200K for attys fees

- Court issued TRO and WPMI, but was dissolved because San Mateo
filed a bond.

> R filed answer with counterclaim of P1M as moral damages, P500K

as exemplary dmaages, and P200K for attys fees

W/N P is entitled to conduct exploration and similar activities withi nthe

mining claims

RTC - dismissed
CA - Affirmed, also deleted moral damages OTG that the testimonies
of the witnesses did not prove that Rs reputation was besmirched.
Sustianed award of actual damages.

Amount of damages purely speculative, no explanation as to extent

given by TC

Basilan Lumber vs. CA

Cagayan delivers to Basilan. Basilan sells to Japanese through East

Asiatic (agent). Cagayan failed to deliver enough, ship was docked for
several daysn. Basilan asks for damages payment of demurrage
and dead freight. Basilan has not yet paid demurrage and dead
freight.

In an action for breach of contract of sale of logs, caused by the failure

of the supplier to furnish the agreed quantity, as a result of which the
exporter of the logs became liable for demurrage and dead freight,
may the exporter be allowed to recover the amount of demurrage and
dead freight even if the same has not been actually paid for by the
exporter?

Basilan Lumber >>> Cagayan Timber Export Company

> CGT agreed to deliver 1.2M board feet of exportable logs not later
than May 31, 1951.
> In a subsequent agreement, the number of logs was reduced to
500K board feet, and delivery thereof to be made not later than July
15, 1951
> In another subsequent agreement, contract was amended - 740K
board feet to be delivered on September 1, 1951
> Further agreed that a minimum of 50K board feet per gang per hatch
per weather working day would be loaded.

BL sold logs to a Japanese buyer, who entered into a contract with BL

through the East Asiatic Company, which acted as intermediary.

Logs were to be loaded on Kanatsu Maru, chartered by the Japanese

buyer.

Stayed in the port, but was able to load only 483,672 board feet

Failed to load the board feets, so demurrage amounted to $4,141.16.

> Dead freight (freight of logs not delivered shipside: $5,673.43)
> total: P19,629.18/$9.814.59 > amount awarded by CFI

Legal interest amounted to P2K

CA: CFI reversed. Damages in question are yet to be suffered and are
not actual. > Prospective damages
> Reasonably certain to occur (US)
> In this jurisdiction, the rule is that no recovery of damages can be
had without satisfactory proof of the real existence of such damages,
and that the true measure of damages for the breach of a contract is
what the P has lost by the breach

> 2199 denies the grant of speculative damages

> While agent has already paid the Japanese buyer, there is no proof
that R had already paid the agent said damages, or that it had already
been required to pay the same.
> No payment, no damages

Abesamis vs. Woodcraft

- Letters of demand do not prove loss of credit

Seavan vs. Carrier

Siguenza vs. CA

Double sale:
>Seller: Ps
> 1st sale: Maningo
> 2nd sale: Sps. Quimbo
> Quimbo discovered 1st sale. Demanded return of DP. alleged that as
a result of the deceit and misrepresentation, the spouses were
prevented from constructing their house worth P100K which if
constructed at the present would cost them 300% more than the
original amount.

SC: No actual damages recoverable because no construction has

even started yet. Amount asked for is purely speculative.

> the best evidence obtainable by the injured party must be

presented; and thus, the bare assertion of an amount lost and the
accompanying documentary evidence are inadequate if not
speculative.

General Enterprises vs. Lianga Bay

Lianga Bay Logging - Producer

General Enterprises - Distributor

> Producer stopped supplying logs for export. Distributor reminded

Producer that it had a contract to fulfill relative to its log production but
producer did not heed this reminder. Distributor initiated the present
action alleging breach of contract and praying for actual and
compensatory damages.
>> 400K actual damages
>> 100K exemplary
>> 40K Attys fees
- Allowed to recover based on reasonable estimate.

Solid Homes vs. CA

- Rs sold to Solid Homes (Contract to Sell and To Buy) 6 parcels of

land in QC and Marikina.
> Rs alleged that SH violated the terms of the agreement by refusing
to pay the balance of P4M++ and by failing to negotiate a settlement
with the tenants and squatters of the property despite its receipt from
Investco of P350K for that specific purpose.

TC ruled in favor of Rs. Awarded P4M+ and 250K as attys fees.

CA just modified attys fees from 250 to 50K

SC: AF should not have been awarded. It is allowed only when

claimant is compelled to litigate with a third person or to incur
expenses to protect his interest by reason of an unjustified act or
omission of the party from whom it is sought.
> Ps act of withholding payment was justified. The disagreement on
demandability of amount due and accrual date of interest >
supervening circumstances and perceived inexplicitness of the
contract itself.
>> Investco sold the very same parcels of AFPMBA

First Metro vs. Este Del Sol

> AF as provided in penal clauses are in the nature of liquidated

damages. So long as such stipulation does not contravene any law,
morals or public order, it is binding upon the parties. Nonetheless,
courts are empowered to reduce the amount of AFs if the same is
iniquitous or unconsionable.
- Amount: P3,188,630.75 UNCONSCIONABLE!!! - A reduction of
AFs to 10% is appropriate and reasonable under the facts and
circunstances of the case.

PCIB vs. Alejandro

o Basis of the award is the amount garnished and the length of time
respondents have been deprived of the use of their money by reason
of the wrongful attachment
o May also be based upon:
(1) the amount and the character of the services rendered;
(2) the labor, time and trouble involved;
(3) the nature and importance of the litigation and business in which
the services were rendered;
(4) the responsibility imposed;
(5) the amount of money and the value of the property affected by the
controversy or involved in the employment
(6) the skill and the experience called for in the performance of the
services;
(7) the professional character and the social standing of the attorney;
(8) the results secured, it being a recognized rule that an attorney may
properly charge a much larger fee when it is contingent than when it is
not

- Considering the short period of time it took to have the writ lifted,
the favorable decisions of the court below, the absence of evidence as
to the professional character and social standing of the attorney
handling the case and the amount garnished, the award of attorneys
fees should be fixed not at 1M but only at 200k.

Prudential Bank vs. CA

- AFs are proper when exemplary damages are awarded. R was

compelled to engage the services of a lawyer and incurred expenses
to protect her interest.

> In this case, all the aforementioned weighed, and considering that
the amount involved in the controversy is only P36,770.41, the total
deposit of private respondent which was misposted by the bank, we
find the award of respondent court of P50,000.00 for attorneys fees,
excessive and reduce the same to P30,000.00.

Reformina vs. Tomol

- interest should only be 6%

> Tomol insists it should be 12% because of the Usury Law

- SC: 6% only because the action was for recovery of damages not
a loan or forbearance, to which the usury law applies

Castelo vs. CA

- Dispositive portion only mentioned to pay interest

> Deed of conditional sale (12%) or 2209 (6%)?

2209
> Measure of damages: stipulation
> No stipulation: payment of additional interest at a rate equal to the
regular or monetary interest
> No regular interest agreed upon: Legal interest at ^%, and 12% in
case of loans or forbearances of money

> Stipulation was controlling

Eastern Assurance vs. Calumpang

> Claim for indemnity from the fire insurance policy was refused, so
respondent filed a complaint for breach of contract with damages.

ICTSI vs. FGU

Forbearance in the context of the usury law is a contractual obligation

of lender or creditor to refrain, during a given period of time, from
requiring the borrower or debtor to repay a loan or debt then due and
payable.

SIGA-AN vs. VILLANUEVA

Interest is a compensation fixed by the parties for the use or

forbearance of money. This is referred to as monetary interest. Interest
may also be imposed by law or by courts as penalty or indemnity for
damages. This is called compensatory interest.18 The right to interest
arises only by virtue of a contract or by virtue of damages for delay or
failure to pay the principal loan on which interest is demanded.19

> No monetary interest because none stipulated/agreed upon

> Legal interest of 6% because it was neither a loan nor forbearance,
and based on solutio indebiti

Nacar vs. Gallery Frames

Re: computation of legal interest: the Court laid down the

guidelines in the Eastern Shipping Lines case, later modified to
embody BSP-MB Circular No. 799, which pegged the rate of legal
interest, in the absence of stipulation, to 6% per annum effective July
1, 2013:

o When an obligation, regardless of its source, is breached, the

contravenor can be held liable for damages as determined by the Civil
Code provisions on damages.

o With regard award of interest in the concept of actual and

compensatory damages, the rate of interest and the accrual thereof, is
as follows:

When obligation consisting in the payment of a sum of money is

breached (loan, forbearance), interest due = that which may have
been stipulated in writing. In addition, the interest due shall itself earn
legal interest, at 6% per annum (in the absence of stipulation),
computed from default (Article 1169).

When obligation not constituting loan/forbearance is breached, an

interest on the amount of damages awarded may be imposed at the
courts discretion at 6% per annum. No interest shall be adjudged on
unliquidated claims or damages except when/until the demand can be
established with reasonable certainty. If demand is established with
reasonable certainty, interest begins to run from the (extra)judicial
claim is made; otherwise, interest runs only from the date of the court
judgment. In any case, the actual base for computation of legal
interest shall be on the amount finally adjudged.

When judgment of the court awarding a sum of money becomes

final and executor, the rate of legal interest, in either of the two cases
above, shall be 6% per annum from such finality until satisfaction, the
interim period being deemed to be by then an equivalent to a
forbearance of credit.

Judgments that have become final and executory prior to July 1,

2013 shall not be disturbed and shall continue to be implemented
applying the interest rate fixed therein.

Estores vs. Sps. Supangan

- P failed to comply with obligation. P said they are willing to return

principal without any interest as that was not agreed upon.

Note: this case came before Nacar vs. Gallery Frames (2013).
Applicable interest rate in the absence of a stipulation is 12%.

PCI Leasing vs. Trojan

P and R entered into sale with lease agreement. P leased materials to

another person, and R considered this as a violation of the agreement.

> It was a loan secured with a chattel mortgage

TMIs right to the refund accrued from the time PCILF received the
proceeds of the sale of the mortgaged equipment. However, since TMI
never made a counterclaim or demand for refund due on the resulting
overpayment after offsetting the proceeds of the sale against the
remaining balance on the principal loan plus applicable interest, no
interest applies on the amount of refund due. Nonetheless, in accord
with prevailing jurisprudence,34 the excess amount PCILF must
refund to TMI is subject to interest at 12% per annum from finality of
this Decision until fully paid.

Mendoza vs. PAL

> Can of film was not unloaded and was brought back to Manila.
> Can of film was delivered one day late.

PALs defense: Paragraph 6 of the Way Bill, The carrier does not
obligate itself to carry the goods by any specified aircraft or on a
specified time. Said carrier being hereby authorized to deviate from
the route of the shipment without any liability therefor.

> PAL could not have foreseen the damages that would be suffered by
Mendoza upon failure to deliver the can of firm for the reason that
such was not even called to their attention.

> Tort or contract? CONTRACT!

- Petitioner is confused. He even asked for application of the Code of
Commerce > Invoked the contract of transportation
- His right to prompt delivery was derived from the contract of carriage
under which contract, PAL undertook to carry the can of film safely
and to deliver it to him promptly.
- SC: Common carriers are not obligated by law to carry and to deliver
merchandise, and persons are not vested with the right to prompt
delivery, unless such common carriers previously assume the
obligation. Said rights and obligations are created by a specific
contract entered into by the parties.
- Mendozas demand for the delivery of the can of film may be
regarded as a notice of his acceptance of the stipulation of the delivery
in his favor contained in the contact of carriage and delivery.

> PAL not liable for damages.

Cariaga vs. LTB

- Bus and train collision - Edgardo, a 4th year med student of UST,
was severely injured.
- LTB paid hospital expenses, gave Edgardo an allowance
- Edgardo and his parents filed an action to recover actual,
compansatory, moral and exemplary damages
- TC held it was negligence of the bus driver that caused the accident,
nd as a result, rendered LTB liable to pay Edgardo
> Basis of liability: Breach of contract of carriage
> 1903 is not applicable to obligations arising ex contractu but only to
extra-contractual obligations or to use the technical form of
expression, that article relates only to culpa aquiliana, and not to culpa
contractual.

Villa Rey vs. CA

Bus and bullcart collided. The bamboo pole placed on top of the
hayload and tied to the cart landed on the face of Quintos, who fell
from his seat.The left side of his face was fractured.

PAL vs. CA

> PAL plane crashed on Mt. Baco, Mindoro 1 hour and 15 minutes
after take off
> among the fatalities was Nicanor Padilla.
> demanded payment of 600k actual damages plus 60K exemplary
damages and attys fees

- At the time of his death, he was the President and General Manager
of the Padilla Shipping co, Inc, 29 y/o, single, in good health, legal
assistant of Padilla Law Office

> Following the procedure used by the Supreme Court in the case of
Davila vs. PAL, 49 SCRA 497, the trial court determined the victims
gross annual income to be P23,100 based on his yearly salaries of
P18,000 from the Padilla Shipping Company and P5,100 from the
Allied Overseas Trading Corporation. Considering that he was single,
the court deducted P9,200 as yearly living expenses, resulting in a net
income of P13,900 (not P15,900 as erroneously stated in the
decision). Since Nicanor Padilla was only 29 years old and in good
health, the trial court allowed him a life expectancy of 30 years.
Multiplying his annual net income of P13,900 by his life expectancy of
30 years, the product is P417,000 (not P477,000) which is the amount
of death indemnity due his mother and only forced heir (p. 58, Record
on Appeal; p. 117, Rollo).

People vs. Prades

- rape of a 17 year old; Senen Prades was her barriomate.
- 2 letters from Prades telling victim that he will leave his wife for her

> SC: TC erred in classifying the award of P50K as being in the

character of moral damages. Jurisprudence has elucidated that the
award authorized by crim law as civil liability ex delicto is equivalent to
actual or compensatory damages in civil law. For that matter, the civil
liability ex delicto provided by the RPC restitution, reparation,
indemnification all correspond to actual or compensatory damages.
> Civil indemnity is mandatory upon the finding of the fact of
rape; it is distinct from and should not be denominated as moral
damages, which are based on different jural foundations and
assessed by the court in the exercise of sound discretion.
> Recent judicial prescription is that indemnification shall be in the
increaed amount of P75,000 if the crime is committed or effectively
qualified by any of the circumstances under which the death penalty is
authorized by the applicable amendatory laws.
> Moral damages may additionally be awarded in a criminal
proceeding, in the amount the court deems just.
> Re: moral damages not alleged - Corollarily, the fact that
complainant has suffered the trauma of mental, physical and
psychological sufferings which constitute the bases for moral damages
are too obvious to still require the recital thereof at the trial by the
victim, since the Court itself even assumes and acknowledges such
agony on her part as a gauge of her credibility. What exists by
necessary implication as being ineludibly present in the case need not
go through the superfluity of still being proved through a testimonial
charade. Moral damages may be awarded to the victim in rape
cases without the necessity for pleading or proof of the basis
thereof
> penalty: death, 75K civil, 50K moral

People vs. Cepeda

> raped; requested to have a massage; Cepeda was their neighbor

> Defense: they were lovers (adulterous)
> That the victim had been married to her husband for seventeen (17)
years and is a mother of four (4) children whose ages at the time
ranged from seventeen (17), sixteen (16), fourteen (14) and ten
(10),23 rendered her exposure to public trial of rape all the more
embarrassing and painful.
> With regard to the civil liability, however, the trial courts award of
damages should be modified. Under controlling case law, an award of
Fifty Thousand Pesos (P50,000.00) as civil indemnity is mandatory
upon the finding of the fact of rape. This is exclusive of the award of
moral damages of Fifty Thousand Pesos (P50,000.00) without need
of further proof. The victims injury is now recognized as inherently
concomitant with and necessarily proceeds from the appalling crime of
rape which per se, warrants an award for moral damages.
50K indemnity, 50K moral damages, reclusion perpetua

People v.s Balgos

> Rape case of a 6 year old child

> played with nieces of accused, catching small crabs, accused called
her to buy cheese curls
> Defense: they were covered with a blanket, lying down and listening
to the radio, just inserted his finger
> 75K as civil indemnity, 50K as moral damages, death
People vs. Delos Santos

> 13 y/o brought to a vacant apartment by accused, raped her, her

natural father, jeepney driver
>Penalty: death, 50K moral should be added, increase civil
damages/compensatory to 75K

Heirs of Raymundo vs. Bustos

> killed Raymundo Castro, and petitioners herein are the heirs
> TC: guilty of homicide, with mitigating: passion/obfuscation and
voluntary surrender, indeterminate prison term of 2y 4m 1d of prision
correccional min to 8y 1d of prision mayor max, indemnity of P6,000
without prejudice to whatever the accused is entitled from GSIS for his
services of around 26 years as a public school teacher
> CA modified award of damages > Increased moral damages from
6K to 13,380 to compensate for the loss of earning of the decedent at
the annual salary of P2,676
> MR: 6K for moral damages, 13,380 representing decedents loss of
earnings
> SCs award
- 6K moral, 13,380 compensatory (loss of earning capacity), 6K
indemnity for death
- 6K indemnity for death cannot be modified because neither party has
appealed in relation thereto, and the case is before the SC on appeal
by the offended party only as to specific portions of the civil indemnity
to be paid by the respondent

Rules ITEMS OF DAMAGES that can be recovered by heirs in case

of death as a result of a crime:
1. As indemnity for the death of the victim of the offenseP12,000.00,
without the need of any evidence or proof of damages, and even
though there may have been mitigating circumstances attending the
commission of the offense.

2. As indemnity for loss of earning capacity of the deceasedan

amount to be fixed by the court according to the circumstances of the
deceased related to his actual income at the time of death and his
probable life expectancy, the said indemnity to be assessed and
awarded by the court as a matter of duty, unless the deceased had no
earning capacity at said time on account of permanent disability not
caused by the accused. If the deceased was obliged to give support,
under Art. 291, Civil Code, the recipient who is not an heir, may
demand support from the accused for not more than five years, the
exact duration to be fixed by the court.

3. As moral damages for mental anguish,an amount to be f ixed by

the court. This may be recovered even by the illegitimate descendants
and ascendants of the deceased.

4. As exemplary damages, when the crime is attended by one or more

aggravating circumstances,an amount to be fixed in the discretion of
the court, the same to be considered separate from fines.

5. As attorneys fees and expenses of litigation,the actual amount

thereof, (but only when a separate civil action to recover civil liability
has been filed or when exemplary damages are awarded).

6. Interests in the proper cases.

7. It must be emphasized that the indemnities for loss of earning
capacity of the deceased and for moral damages are recoverable
separately from and in addition to the fixed sum of P12,000.00
corresponding to the indemnity
for the sole fact of death, and that these damages may, however, be
respectively increased or lessened according to the mitigating or
aggravating circumstances, except items 1 and 4 above, for obvious
reasons.

People vs. Quilaton

> murder; deceased scolded accused, as employee, for sleeping

inside the office, accused joked about it and this led to a heated
altercation
> Defense: Manahan was following him, became alarmed, self-
defense (Manahan attacked him with a bladed weapon)
> reclusion perpetua
> indemnity of 100K, 26,445 as actual damages incurred for burial and
other expenses of the deceased, 250K for moral damages

> SC: homicide only - evident premeditation and treachery not duly
proven

> Re: Damages awarded:

1. 26,445 actual damages Not contested
2. 100K - indemnity for death should be reduced to 50K to conform
with prevailing jurisprudence
3. 250K moral damages SC found that Court lumped these
monetary obligations into moral damages
Compensable amount of lost earnings:
1. number of years for which the victim would otherwise have lived
2. rate of loss sustained by the heirs of the deceased
Take note of formula for computation of life expectancy

> Aside from the ordinary indemnity of 50K, Quilaton has to:
1. compensate the heirs for loss of earning capacity
2. give support for education of the sisters who had been dependent
on deceased
3. pay for moral damages for the mental anguish suffered by them

> Earning capacity:

1. Approx 234,000 per year (gross earnings with 23 pesos per day and
261 working days), 120K deducted as necessary expenses = net
earnings: 114,000

> 20K moral damages brother testified that their mother suffered a
mild stroke upon learning of her sons death - semi-paralysis

> FINAL award/penalty: 10y min to 17y 4m max

1. 50K as indemnity for death
2. 26,445 actual damages
3. 114,000 lost earnings
4. 10K educ assistance to 2 sisters
5. 20K moral damages

Sps Perea vs. Sps. Zarate

> bus operator is a common carrier; the school bus hit by a train
> RTCs awards (Perea should pay):
1. 50K indemnity
2. 100K actual damages
3. 2,109,071 loss of earning capacity
4. 4M moral
5. 1M exemplary
6. 200K attys fees
7. costs of suit

> CAs awards:

1. actual damages reduced to 59,502.76
2. 2.5M moral damages
3. Attys fees deleted

> Loss of earning capacity (according to TC and CA)

- life expectancy is 39.3 years (reckoned from 21 y/o when he started
college instead of 15 y/o when he died)
- 280/day minimum wage = GROSS: 110,716.65 inclusive of 13th
month pay = 4,351,164
- 2,189,664 deducted as estimated expenses
- net income of 2,161,500
BUT Zarates claimed only 2,109,071, so this is only what the court
can grant

> SC:
1. Computation of loss of earning capacity is well-founded, contrary to
the petitioners claim that it was speculative. > In another case, the
CA and RTC computed the loss of earning capacity on the basis that
the victim was a pilot. In this case, the computation of his earning
capacity was premised on him being a lowly minimum wage earner,
despite being enrolled in a prestigious high school.
2. Moral damages of 2.5M is reasonable because it was meant to
assuage the deep mental anguish of the parents over their sons
death. Long passage of time > mental anguish was inflicted in 1996,
this case is in 2012
3. 1M exemplary damages also reasonable > as a common carrier,
the petitioners needed to be vigorously reminded to observe their duty
to exercise extraordinary diligence to prevent a senseless accident
from happening again.

Lopez vs. Pan American World Airways

> first class accommodations from Tokyo to San Francisco,

accommodations were confirmed
> Had to attend business conference in San Francisco, wife had to
undergo a medical check up in Mayo Clinic > First class
overbooked, so they were forced to take the flight as tourist
passengers. > Noted that they did so under protest, and without
prejudice to further action against the airline.
> Suit for damages was filed by Lopez against Pan-Am alleging
breach of contract in bad faith.

Awarded the following:

1. 100K moral damages
2. 20K exemplary
3. 25K attys fees

Pan Am questioned the finding of bad faith. SC said that bad faith
attended the fact that they failed to notify Lopez and his family of the
accidental cancellation of their reservation along with the reservations
of others months before their trip. Also, the person who failed to notify
them of the cancellation of their trip was given a promotion and was
even recognized by Pan Am.

What other facts?

1. Lopez was a senator, former VP, senate president tempore (justified
increase of moral damages)
2. Promotion of self-interest > Bad faith means a breach of a known
duty through some motive of interest or ill-will. Self-enrichment or
fraternal interest, and not personal ill-will.

Zulueta vs. Pan American World Airways

> Passenger took too long to load the plane after a 30-minute
stopover. He had to look for a CR, first one was full of soldiers, to
relieve himself after a rough flight.
> Off-loaded passengers

> CA award:
1. 5,502.85 actual damages
2. 1M moral
3. 400K exemplary
4. 100K attys fees

> SC: among the factors courts take into account in assessing moral
damages are the professional, social, political and financial standing of
the offended parties on one hand, and the business and financial
position of the offender on the other.

> Moral damages reduced because of petitoners belligerent attitude

(he delayed the plane)
- Why awarded?
- rude and rough reception plaintiff received, menacing attitude when
he was asked to open his bags, told them that 4th bag was missing
but they said they didnt give a damn, scornful reference, Mrs Zulueta
was hospitalized after a nervous breakdown

> Nature of a contract to transport passengers

- A contract to transport passengers is quite different in kind and
degree from any other contractual relation. And this, because of the
relation which an aircarrier sustains with the public. Its business is
mainly with the travelling public. It invites people to avail of the
comforts and advantages it offers. The contract of air carriage,
therefore, generates a relation attended with a public duty. Neglect or
malfeasance of the carriers employees naturally could give ground for
an action for damages.

Mambulao vs. PNB

- P acquired loan from PNB, failed to pay amortizations. PNB found

out P had already stopped its operations. Chattel mortgaged (offered
real estate, machinery, logging and transportation equipments as
collaterals) were foreclosed.

- Clearly therefore, the trial court fell into error when it awarded interest
on accrued interests, without any agreement to that effect and before
they had been judicially demanded.

- MORAL DAMAGES: Ps claim for moral damages, however, seems

to have no legal or factual basis. Obviously, an artificial person like
herein appellant corporation cannot experience physical sufferings,
mental anguish, fright, serious anxiety, wounded feelings, moral shock
or social humiliation which are basis of moral damages. A corporation
may have a good reputation which, if besmirched, may also be a
ground for the award of moral damages. The same cannot be
considered under the facts of this case, however, not only because it is
admitted that herein appellant had already ceased in its business
operation at the time of the foreclosure sale of the chattels, but also for
the reason that whatever adverse effects of the foreclosure sale of the
chattels could have upon its reputation or business standing would
undoubtedly be the same whether the sale was conducted at Jose
Panganiban, Camarines Norte, or in Manila which is the place agreed
upon by the parties in the mortgage contract.

First Lepanto vs. Chevron

- Chevron/Caltex sued FLT for payment of unpaid oil and petroleum

purchases made by its distributor, Fumitechniks.
- Fumitechniks was issued surety bond by FLT for the amount of
15.7M, in compliance with the requirement for the grant of a credit line
with respondent to guarantee payment/remittance of the cost of fuel
products withdrawn within the stipulated time in accordance with the
terms and conditions of the agreement.
- Fumitechniks defaulted. Check for payment was dishonored
(Account Closed)
- Chevron filed a complaint for a sum of money - pay P15.08M+ with
interest, costs and attys fees.
- FTL asserted that the surety bond was issued for the purpose of
securing the performance of the obligations embodied in the principal
agreement, which contract should have been attached and made part
thereof.

RTC - Dismissed complaint

CA ruled in favor of Chevron.

W/N a surety is liable to the creditor in the absence of a written

contract with the principal

- The extent of a suretys liability is determined by the language of the

suretyship contract or bond itself. It cannot be extended by implication,
beyond the terms of the contract.

Re: moral damages - TC correctly dismissed counterclaim for moral

damages and attys fees.
- The filing alone of a civil action should not be a ground for an award
of moral damages.
- A juridical person is generally not entitled to moral damges because,
unlike a natural person, it cannot experience physical suffering or such
sentiments as wounded feelings, serious anxiety, mental anguish or
moral shock. Although in some recent cases we have held that the
Court may allow the grant of moral damages to corporations, it is not
automatically granted; there must still be proof of the existence of the
factual basis of the damage and its causal relation to the defendants
acts. This is so because moral damages, though incapable of
pecuniary estimation, are in the category of an award designed to
compensate the claimant for actual injury suffered and not to impose a
penalty on the wrongdoer.

Re: attys fees - Petitioner is likewise not entitled to attorneys fees.

The settled rule is that no premium should be placed on the right to
litigate and that not every winning party is entitled to an automatic
grant of attorneys fees.30 In pursuing its claim on the surety bond,
respondent was acting on the belief that it can collect on the obligation
of Fumitechniks notwithstanding the nonsubmission of the written
principal contract.

Sweet Lines vs. CA

> By-passed a port of call without previous notice

- Rs purchased first class tickets from P. Vessel proceeded to

Tacloban instead of docking at Catbalogan.
- Breach of contract of carriage
- Engine trouble

RTCs awards:
1. 75K as moral damages: 30K for Quintos, 25K for Jesuit father, 10K
for Veloso and 10K for Cabras
2. 30K as exemplary or corrective damages
3. Interest at the legal rate of 6%
4. 5K as attys fees
5. costs of suit

Bad faith means a breach of a known duty through some motive or

interest or ill-will. Self-enrichment or fraternal interest, and not
personal illwill, may have been the motive, but it is malice
nevertheless.

- SC found damages excessive and reduced it to 3K for each

respondent.
Vasquez Vda. De Arroyo vs. CA

La Vina and Arroyo entered into an agreement. La Vina will redeem

mortgage from DBP. Arroyo will mortgage the property in favor of any
banking or lending institution. Money from the 2nd mortgage will be
used by La Vina as loan, using the same property as collateral.

In accordance with the agreement of the plaintiff and defendant, the

former applied for a loan with the SSS in the amount of P120,000.00.
The special power of attorney, however, signed and executed by
defendant in favor of plaintiff authorizing the latter to mortgage the
property was incomplete because it did not contain the technical
description of the land. Plaintiff went to the defendant in Iloilo for the
latter to execute a proper SPA. Found out that the land was
mortgaged already.

After some persuasion, she was able to get the special power of
attorney prepared but the same was eventually revoked by the
defendant. Defendant even caused the publication of the revocation in
the Iloilo Times newspaper.

10K moral damages - violation of the contract and for publishing

the notice of revocation in Iloilo times and for filing the baseless and
unwarranted criminal case for estafa.

- Bad faith? There was no need for the publication of the revocation of
the power of atty nor the filing of criminal charges because the parties
could have amicably talked things over first.
Magbanua vs. IAC

- Plaintiffs are share tenants of defendants. D diverted free flow of

water from their farm lots, farm lots dried up. Ps were told to vacate
their areas for they cannot plant palay any longer due to lack of water.

- Asked for 10K moral damages and exemplary each, 5K attys fees

IAC deleted award of moral and exemplary damages and attys fees.
> TC: attached photos of dried up farms and wilted palay crops;
complete closure of water supply during the period of inspection of the
PC team; poor harvest could not have been due to the negligence of
the tenants.
> IAC: no showing of bad faith (wala man lang explanation)

- SC: Moral damages should be awarded > It appears that

petitioners were denied irrigation water for their farm lots in order to
make them vacate their landholdings. Ds violated Ps rights and
caused prejudice to the latter by the unjustified diversion of water.
> Also entitled to exemplary damages because Ds acted in an
oppressive manner. Thus, also entitled to AFs.

Mayo vs. People

- Based on 2219; permanently deformed face because of a vehicular

accident; also claimed moral damages OTG that her boyfriend left her
hahahaha
- moral damages reduced only

Domingding vs. Ng
- baskets of mangoes. Ng got 150 baskets, but P alleges they got 400.
Thus, P set up a claim for the payment of 400. Ng was looking for her
brother-in-law in the mango store. Araas, the manager of P, saw Ng.
Araas - acts of lasciviousness in a taxi - source of counterclaim for
damages.

- the social and financial standings of the offender and the offended
party are additional elements which should be taken into account for
the determination of the amount of moral damages.

- From the record we also understand that the offended party is an

exporter of mangoes who, evidently, does not seem to have much
capital because she only pays for the mangoes when the same is
sold. Neither does the offender seem or appear to be of much financial
consequence because he was only the overseer or manager of a
mango store.

> With all the above circumstances in mind, the Tribunal believes that
the sum of P50,000, assessed by the court a quo, is excessive.
P1,000 should be sufficient as moral damages, but the offender
should be required to pay punitive damages in the amount of P2,000
because of his act in abusing the confidence of a customer belonging
to the weaker sex, which bespeaks of a perverse nature dangerous to
the community.

San Andres vs. CA

- reduced
- malicious prosecution for a case of estafa - basis was that buyer of
logs forgot to pay, now suing OTG that the complainant
misrepresented the facts stated, giving a number of more logs in the
complaint than what was really sold.

- moral damages are in the category of an award desgiend to

compensate the claimant for actual injury suffered and not to impose a
penalty on the wrongdoer.

Tan Kapoe vs. Masa

- a tenant wanted to convert share tenancy to leasehold, landlords

refused but tenant won in agrarian court. Landowners retaliated by
filing subsequent cases against tenant, which were eventually
dismissed.

- moral and exemplary damages were awarded.

Mercado vs. Lira

- in cases of brech of contract of tranporttion,, tere should be bad faith

or fraud on the part of the offending party for a successful claim of
moral damages.

- none awarded in this case because the cause was the bursting of
the tires

Philippine Rabbit vs. Esguerra

The contention of petitioners with respect to the award of moral

damages is meritorious. This Court has repeatedly held (Cachero v.
Manila Yellow Taxicab, Inc., G. R. No. L 8721, promulgated May 23,
1957; Necesito v. Paras, et al., G. R. No. L1060510606, promulgated
June 30, 1958; Fores v. Miranda, G. R. No. L12163, promulgated
March 4, 1959; Tamayo v. Aquino, et al., G. R. No. L12634,
promulgated May 29, 1959) that moral damages are not recoverable in
actions for damages predicated on a breach of the contract of
transportation, as in the instant case, in view of the provisions of
Articles 2219 and 2220 of the New Civil Code. The exceptions are (1)
where the mishap results in the death of a passenger, and (2) where it
is proved that the carrier was guilty of fraud or bad faith, even if death
does not result. (Rex Taxicab Co., Inc. vs. Jose Bautista, et al., G. R.
No. L15392, Sept. 30, 1960).

The Court of Appeals found that the two vehicles sideswiped each
other at the middle of the road. In other words, both vehicles were in
their respective lanes and that they did not invade the lane of the
other. It cannot be said therefore that there was fraud or bad faith on
the part of the carrier's driver. This being the case, no moral damages
are recoverable.

Bagumbayan vs. IAC

- waiter spilled drinks on dress

Equitable Banking Corp vs. IAC

- malicious prosecution

Guita vs. CA
As to the generality of the statement of mental unfitness to work,
suffice it to say that the certification should be read and construed as a
whole, So viewed, it is clear that the statement can refer only to
unfitness to work as security guard, for it was that position, and no
other, from which Haguisan was separated. The said position was the
only subject matter of the certification.

LBC vs. CA

delay in delivery of cash pack

Lufthansa vs. CA

No Moral Damages. The breach was not attended by fraud or bad

faith, however. When Petra Wilhelm; petitioner airline's ticket agent at
its Frankfurt Airport office, informed private respondent that an
authorization from Manila was needed before she could give an
endorsement, what was foremost in her mind was the policy regarding
currency restrictions in effect at that time, which was made known and
explained to private respondent in San Francisco. Apparently, the
significance of the previously confirmed reservation completely
escaped Mrs. Wilhelm on that occasion. The omission or failure of
petitioner airline then to give private respondent the required
endorsement was thus evidently due to a misappreciation of the
significance of private respondent's previously confirmed reservation,
and not to any willful desire to deny private respondent the night to
utilize another airline.

Vda. De Medina vs. Cresencia

x - vehicular accident, smashed into meralco post > Nominal
damages cannot co-exist with compensatory damages. The purpose
of nominal damages is to vindicate or recognize a right that has been
violated, in order to preclude further contest thereon; and not for the
purpose of indemnifying the plaintiff for any loss suffered by him.

- The law requires the approval of the public service commission in

order that a franchise, or any privilege pertaining thereto, may be sold
or leased without infringing the certificate issued to the grantee.

Northwest Airlines vs. Cuenca

/ - Offense had been committed with full knowledge of the fact that
respondent was an official representative of the Republic of the
Philippines

Facts: This case arose when R Cuenco, then Commissioner of Public

Highways, purchased a first class ticket from Manila to Tokyo via
Petioner Airlines (NAL) to attend an official conference at Tokyo.
Cuenco paid in full the price of the ticket. When he boarded NALs
plane at Mla, he was seated first class.

However, upon arrival at Okinawa, he was asked to transfer to the

tourist class, and when he refused, stating that he was an official of
the Philippines to said conference in Tokyo, he was rudely compelled
to transfer to the tourist class, in view of the other passengers. Hence,
Cuenco filed an action for damages against P NAL.

RTC: Awarded 20k moral damages, 5k exemplary damages, 2k atty

fees
CA: 20k moral damages CONVERTED into NOMINAL DAMAGES

Issue: WON award of nominal damages was correct

Held: Yes
Ratio: Although P Cuencos ticket bore the marks W/L, meaning
waitlisted, P Cuenco was entitled to believe that his seat was already
confirmed, considering that he has already paid the ticket in full, and
he was allowed to take such seat when he boarded the plane at
Manila. Also, NAL was already informed about R Cuencas OFFICIAL
GOVERNMENTAL BUSINESS at Tokyo. Still, he was rudely
compelled to transfer to the tourist class, without even an explanation
as to why he had to transfer, or if there was someone to replace him at
his seat who had a better right to said seat.

Since the offense had been committed with full knowledge of the fact
that respondent was an official representative of the Republic of the
Philippines, the sum of P20,000 awarded as damages may well be
considered as merely nominal.

Cogeo-Cubao vs. CA

/ - property right - CPC was issued to another jeep operator of the

same route

- A certificate of public convenience is included in the term property

in the broad sense of the term. It can be sold by the holder thereof
because it has considerable value and is considered valuable asset.

- It is private property but it is also affected with a public interest.

 insofar as the interest of the State is involved, a CPC does not
confer upon the holder any proprietary right or interest or franchise in
the route covered thereby and in the public highways. However, with
respect to other persons and other public utilities, a CPC as a
property, which represents the right and authority to operate its
facilities for public service, cannot be taken or interfered with without
due process of law

Araneta vs. Bank of America

- R, in two occasions, erroneously marked the check with Account

Closed

actual - 30K
moral - 20K - besmirched reputation; his reputation was well-
established and well-known as international trader
temperate - 50K
exemplary - 10K
AFs - 10K

- Award of TDs legally justified. Considering all the circumstances,

including the rather small size of Ps account with respondent, the
amounts of the checks were wrongfully dishonored, and the fact that R
tried to rectify the error soon after it was discovered, although the
rectification came after the damage had been caused, we believe that
an award of P5,000 is sufficient.

- Code Commission - 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 ones commercial credit or to the goodwill of a business firm is often
hard to show with certainty in terms of money.

Manila Banking Corp. vs. IAC