CHAPTER 1
General Provisions
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: LETMAN
(1) Actual or compensatory;
(2) Moral;
(3) Nominal;
(4) Temperate or moderate;
(5) Liquidated; or
(6) Exemplary or corrective.
Article 2198. The principles of the general law on damages are hereby adopted insofar as they
are not inconsistent with this Code.
CHAPTER 2
Actual or Compensatory Damages
Article 2199. Except as provided by law or by stipulation, one is entitled to an adequate
compensation only for such pecuniary loss suffered by him as he has duly proved. Such
compensation is referred to as actual or compensatory damages.
Article 2200. Indemnification for damages shall comprehend not only the value of the loss
suffered, but also that of the profits which the obligee failed to obtain. (1106)
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 non-performance of the obligation. (1107a)
Article 2202. In crimes and quasi-delicts, the defendant 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 been 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.
Article 2205. Damages may be recovered:
(1) For loss or impairment of earning capacity in cases of temporary or permanent
personal injury;
(2) For injury to the plaintiff's business standing or commercial credit.
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,
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.
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.
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 the 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 the 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.
Article 2209. If the obligation consists in the payment of a sum of money, and the debtor 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 per cent per annum. (1108)
Article 2210. Interest may, in the discretion of the court, be allowed upon damages awarded for
breach of contract.
Article 2211. In crimes and quasi-delicts, interest as a part of the damages may, in a 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 the obligation may be silent upon this point. (1109a)
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 2215. 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.
Articles 2195-2215
Cases:
- De Guzman vs Tumolva 188072 Oct 19, 2011
- Casio vs. September 16, 2005
- BPI Family Bank vs. Franco GR No. 123498 November 23, 2007
- Malonzo vs. Galang GR No. L-13851 July 27, 1960
- Heirs of Raymundo Castro vs. Bustos GR No. L-25913 February 29, 1969
- Araneta vs. Bank of America L-25414 July 30, 1971
- Philippine Hawk Corp. vs. Lee GR No. 166869 February 16, 2010
- The Philippine American General Insurance Company Inc 116940 June 11, 1997
- Philippine National Construction Corporation vs APAC Marketing Corporation GR No.
190957 June 5, 2013
- S.C. Megaworld Construction and Development vs. Parada 183804 September 11, 2013
- Spouses Consing vs. CA GR No. 143584 March 10, 2004
- People vs. Duban GR No. 141217 September 26, 2003
- Cuyco vs. Cuyco GR No. 168736 April 19, 2006
- Leen and Gunaban vs. CA 125187 January 16, 2002
- Grand Union Supermarket Inc. vs. Espino L-48250 December 28, 1979
- Ong vs. Bugalbal GR No. 149140 September 12, 2006