VII.  STRICT  LIABILITY  TORTS  a. Possessor  of  Animals  (Art.  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  or  from  the fault  of  the  person  who   has  suffered  damage.CASES:

1. VESTIL  V.  COURT  OF  APPEALS,  179  SCRA  47

b. Manufacturers  and  processors  of  foodstuffs  (Art.  2187)

Manufacturers   and   processors   of   foodstuffs,   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.

CASES:1. GUILATCO  VS.  CITY  OF  DAGUPAN  G.R.  NO.  61516

c. Head  of  Family  (Art.  2193)

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

CASES:1. DINGCONG  V.  KANAAN,  72  PHIL  14

d. Allied   Laws:   Sec   97-‐102,   Consumer   Act;   Sec.   31,   Corporation  Code

PHILIPPINE CONSUMER ACT/CHAPTER V/ LIABILITY FOR PRODUCT AND SERVICE:

Article 97. Liability for the Defective Products. – Any Filipino or foreign manufacturer, producer, and any importer, shall be liable for redress, independently of fault, for damages caused to consumers by defects resulting from design, manufacture, construction, assembly and erection, formulas and handling and making up, presentation or packing of their products, as well as for the insufficient or inadequate information on the use and hazards thereof.A product is defective when it does not offer the safety rightfully expected of it, taking relevant circumstances

into consideration, including but not limited to:a) presentation of product;b) use and hazards reasonably expected of it;c) the time it was put into circulation.A product is not considered defective because another better quality product has been placed in the market.The manufacturer, builder, producer or importer shall not be held liable when it evidences:a) that it did not place the product on the market;b) that although it did place the product on the market such product has no defect;c) that the consumer or a third party is solely at fault.Article 98. Liability of Tradesman or Seller. – The tradesman/seller is likewise liable, pursuant to the preceding article when;a) it is not possible to identify the manufacturer, builder, producer or importer.b) the product is supplied, without clear identification of the manufacturer, producer, builder or importer;c) he does not adequately preserve perishable goods. The party making payment to the damaged party may exercise the right to recover a part of the whole of the payment made against the other responsible parties, in accordance with their part or responsibility in the cause of the damage effected.Article 99. Liability for Defective Services. – The service supplier is liable for redress, independently of fault, for damages caused to consumers by defects relating to the rendering of the services, as well as for insufficient or inadequate information on the fruition and hazards thereof.The service is defective when it does not provide the safety the consumer may rightfully expect of it, taking the relevant circumstances into consideration, including but not limited to:a) the manner in which it is provided;b) the result of hazards which may reasonably be expected of it;c) the time when it was provided.A service is not considered defective because of the use or introduction of new techniques.The supplier of the services shall not be held liable when it is proven:a) that there is no defect in the service rendered;b) that the consumer or third party is solely at fault.Article 100. Liability for Product and Service Imperfection. – The suppliers of durable or nondurable consumer products are jointly liable for imperfections in quality that render the products unfit or inadequate for

consumption for which they are designed or decrease their value, and for those resulting from inconsistency with the information provided on the container, packaging, labels or publicity messages/advertisement, with due regard to the variations resulting from their nature, the consumer being able to demand replacement to the imperfect parts.If the imperfection is not corrected within thirty (30) days, the consumer may alternatively demand at his option:a) the replacement of the product by another of the same kind, in a perfect state of use;b) the immediate reimbursement of the amount paid, with monetary updating, without prejudice to any losses and damages;c) a proportionate price reduction.The parties may agree to reduce or increase the term specified in the immediately preceding paragraph; but such shall not be less than seven (7) nor more than one hundred and eighty (180) days.The consumer may make immediate use of the alternatives under the second paragraph of this Article when by virtue of the extent of the imperfection, the replacement of the imperfect parts may jeopardize the product quality or characteristics, thus decreasing its value.If the consumer opts for the alternative under sub-paragraph (a) of the second paragraph of this Article, and replacement of the product is not possible, it may be replaced by another of a different kind, mark or model: Provided, That any difference in price may result thereof shall be supplemented or reimbursed by the party which caused the damage, without prejudice to the provisions of the second, third and fourth paragraphs of this Article.Article 101. Liability for Product Quantity Imperfection. – Suppliers are jointly liable for imperfections in the quantity of the product when, in due regard for variations inherent thereto, their net content is less than that indicated on the container, packaging, labeling or advertisement, the consumer having powers to demand, alternatively, at his own option:a) the proportionate priceb) the supplementing of weight or measure differential;c) the replacement of the product by another of the same kind, mark or model, without said imperfections;d) the immediate reimbursement of the amount paid, with monetary updating without prejudice to losses and damages if any.The provisions of the fifth paragraph of Article 99 shall

apply to this Article.The immediate supplier shall be liable if the instrument used for weighing or measuring is not gauged in accordance with official standards.Article 102. Liability for Service Quality Imperfection. – The service supplier is liable for any quality imperfections that render the services improper for consumption or decrease their value, and for those resulting from inconsistency with the information contained in the offer or advertisement, the consumer being entitled to demand alternatively at his option:a) the performance of the services, without any additional cost and when applicable;b) the immediate reimbursement of the amount paid, with monetary updating without prejudice to losses and damages, if any;c) a proportionate price reduction.Reperformance of services may be entrusted to duly qualified third parties, at the supplier's risk and cost.Improper services are those which prove to be inadequate for purposes reasonably expected of them and those that fail to meet the provisions of this Act regulating service rendering.

CORPORATION   CODE   ||   TITLE   III   ||   BOARD   OF   DIRECTORS/TRUSTEES/OFFICERS

Sec. 31. Liability of directors, trustees or officers. - Directors or trustees who willfully and knowingly vote for or assent to patently unlawful acts of the corporation or who are guilty of gross negligence or bad faith in directing the affairs of the corporation or acquire any personal or pecuniary interest in conflict with their duty as such directors or trustees shall be liable jointly and severally for all damages resulting therefrom suffered by the corporation, its stockholders or members and other persons.When a director, trustee or officer attempts to acquire or acquires, in violation of his duty, any interest adverse to the corporation in respect of any matter which has been reposed in him in confidence, as to which equity imposes a disability upon him to deal in his own behalf, he shall be liable as a trustee for the corporation and must account for the profits which otherwise would have accrued to the corporation.

VIII.   NATURE  AND  ENFORCEMENT  OF  LIABILITY

a. Between  Tortfeasors:  Solidary

Article   2194.   The   responsibility   of   two   or   more   persons   who   are  liable  for  a  quasi-‐delict  is  solidary.

b. No  double  recovery  for  same  act  or  omissionArticle   2176.   Whoever   by   act   or   omission   causes   damage   to   another,  there  being  fault  or  negligence, is  obliged  to  pay  for   the  damage  done.    Such  fault or  negligence,  if  there  is  no  pre-‐ existing   contractual relation   between   the   parties,   is   called   quasi-‐delict and  is  governed  by  the  provisions  of  this  Chapter.

Cases:1. Coca-cola vs. Social Security Commission, GR no.

159323, July 31, 2000;2.

c. Requirement  as  to  Reservation

Rule  111,  Section  3,  2000  Rules  of  Criminal Procedure  Sec.   3.   When   civil   action   may   proceed   independently.   ␣   In   the   cases   provided   in   Articles   32,   33,   34   and   2176   of   the   Civil   Code of   the   Philippines,   the   independent   civil   action   may   be   brought  by  the  offended  party.  It  shall proceed  independently   of  the  criminal  action  and shall  require  only  a  preponderance   of   evidence.   In no   case,   however,   may   the   offended   party   recover   damages   twice   for   the   same   act   or   omission   charged   in  the  criminal  action.

d. Manner  of  enforcement  distinguished  from:1.

d.1  culpa  criminal;d.2  culpa  contractual.

IX.       SPECIAL  TORTS

Cases:1. QUEZON   CITY   GOVERNMENT,   ET.   AL.   V.   DACARA,   GR  

NO.   150304,  JUNE  15,  2005;2. DBP  V.  CA,  ET.  AL.,  GR  NO.  137916,  DEC.  8,  2004;3. MVRS PUBLICATION ET AL VS ISLAMIC DA’WA COUNCIL OF THE

PHILIPPINES, GR NO. 135306, JAN. 28, 2003.4. LAGON  V.  CA,  ET.  AL.,  GR  NO.  119107,  MAR.  18,  20055. U-‐BIX  V.  MILLIKAN,  GR  NO.  173318,  SEPT.  23,  2008

X.     KINDRED  TORTS:  MEDICAL  MALPRACTICE

Cases:1. REYES  V  SISTERS  OF  MERCY  Hospital  G.R.  130547

October  3,   2000;2. PROFESSIONAL   SERVICES,   INC.   V.   AGANA,   GR   NO.  

126297,   JAN.  31,  2007  AND  GR  NO.  126297,  FEB.  2, 2010;

3. GARCIA-‐RUEDA  V.  PASCASIO,  ET.  AL.,  GR  NO.  118141, SEPT.   5,  1997;

4. RAMOS  V.  CA,  ET.  AL.,  GR  NO.  124354,  DEC.  29,  1999;5. SPS.  FLORES  V.  SPS.  PINEDA,  GR  NO.  158996,  NOV.  14,

2008;

PART  II.  DAMAGES

I.     INTRODUCTORY  CONCEPTS   a.    Damages, defined.;

  b.    Damages  distinguished  from:

           b.1.    Damage  b.2.    Injury

c.  Kinds  of  damages  recoverable  

Art.  2197,  NCC.    Damages  may  be:    

1)Actual  or  compensatory; 2)Moral;   3) Nominal;  4) Temperate  or  moderate;  5) Liquidated;  or 6)  Exemplary  or  corrective.  

ACTUAL  OR  COMPENSATORY  

a.    Definition  Art.   2199,   NCC.   Except   as   provided   for   by   law   or   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.

Art.   2200,   NCC.     Indemnification   for   damages   shall   comprehend   not   only   the   value   of   the   loss   suffered,   but   also   that  of  the  profits  which  the  oblige  failed  to  obtain.

b.  Components  of  actual  damages            b.1.    value  of  loss  suffered  (daño  emergente)   - Art.  2200            b.2    profits  not  obtained  or  realized  (lucro  cesante)  - Art. 2200            b.3.  loss  of  earning  capacity  for  personal  injury              

 b.3.1.    Formula  in  determining  loss  of  earning  capacity    

2/3  x  (80  ␣  ATD)  x  GAI

Cases: 1. PEOPLE  V.  MUYCO,  331  SCRA  192;2. VICTORY  LINER  V.  GAMMAD,  ET.  AL.,  GR  NO.  159636,

NOV.   25,  2004;3. PHIL  HAWK  CORP  V.  VIVIAN  TAN  LEE,  GR  NO.  166869,

FEB.   16,  2010;

b.4. Attorney’s fees and interestArt. 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.

Art. 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)Art.  2209,  NCC.    

Art. 2212. Interest due shall earn legal interest from the time it is judicially demanded, although the obligation may be silent upon this point. (1109a)CASES:

1. QUIRANTE  V.  IAC,  GR  NO.  73886,  JAN.  31,  1989;2. PNB  V.  CA,  APRIL  25,  1996;3. PADILLO  V.  CA,  371  SCRA  27;4. EASTERN  SHIPPING  LINES,  INC.  V.  CA,  234  SCRA

78  (1994);5. SUNGA-‐CHAN  V.  CA,  GR  NO.  164401,  JUNE  25,

2008;6. AIR  FRANCE  V.  DE  CASTRO,  GR  NO.  188691,

OCT.  31,  2009;c.    Extent  of  Recoverable  Damages  

c.1. In contracts and quasi-contracts where there is:c.1.a. Good faith on obligor

Art.   2201,   NCC.     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.

CASES:1. BATONG  BUHAY  V.  CA,  147  SCRA  4;

c.1.b.    Bad  faith  in  obligor

CASES:1. GENERAL  ENTERPRISES  V.  LIANGA  BAY,  11

SCRA  73;

c.2.    In  crimes  and  quasi-‐delictsArt.   2202,   NCC.     In   crimes   and   quasi-‐

delicts,   the   defendant   is   liable  for  all  the  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.

CASES:1. MARIKINA  AUTO  LINE  TRANSPORT

CORPORATION  V.   PEOPLE,  ET.  AL.,  GR  NO. 152040,  MARCH  31,  2006;

c.3.    In  crimes  and  quasi-‐delicts  resulting  in  death    

Art. 2206. The amount of damages for death caused by a crime or quasi-delict shall be at least three thousand pesos, even though there may have been mitigating circumstances. In addition:1)The defendant shall be liable for the loss of

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

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

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

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

d.    Mitigation  and  assessment  of  actual  damages

Art. 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.

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

e.    Subrogatory  Right  of  Insurer  

Art. 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.

III.   MORAL  DAMAGES      a.    Definition  

Art. 2217. Moral damages include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury. Though incapable of pecuniary computation, moral damages may be recovered if they are the proximate result of the defendant's wrongful act for omission.b. Purpose.

Cases:1. SIMEX INTERNATIONAL V. CA, GR. NO. 88013, MARCH 19, 1990;2. MAKABALI  V.  CA,  GR  NO.  46877,  JAN.  22,  1988

c.    Burden  of  Proof;  Quantum  of  Evidence.Cases:

1. PNB  V.  CA,  GR  NO.  45776,  MARCH  30,  1988;2. RAAGAS  V.  RAYA,  22  SCRA  839;3. SAN  MIGUEL  BREWERY,  INC.  V.  MAGNO,  21  SCRA  292;

c.1.    As  distinguished  from  actual  damages

d.    When  awardable,  when  notArt. 2218. In the adjudication of moral damages, the sentimental value of property, real or personal, may be considered.

Art. 2219. Moral damages may be recovered in the following and analogous cases:

(1) A criminal offense resulting in physical injuries; (2) Quasi-delicts causing physical injuries; (3) Seduction, abduction, rape, or other lascivious acts; (4) Adultery or concubinage; (5) Illegal or arbitrary detention or arrest; (6) Illegal search; (7) Libel, slander or any other form of defamation; (8) Malicious prosecution; (9) Acts mentioned in Article 309; (10) Acts and actions referred to in Articles 21, 26, 27, 28, 29, 30, 32, 34, and 35.The parents of the female seduced, abducted, raped, or abused, referred to in No. 3 of this article, may also recover moral damages.The spouse, descendants, ascendants, and brothers and sisters may bring the action mentioned in No. 9 of this article, in the order named.

Art. 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.Art.  309,  NCC.    Any  person  who  shows  disrespect  to  the  dead,   or   wrongfully   interferes   with   a   funeral   shall   be   liable   to   the   family  of the  deceased  for  damages,  material  and  moral.  

Art.   217,   Labor   Code.     Jurisdiction   of   the   Labor   Arbiters   and   the   Commission.   ␣   (a)   Except   as   otherwise   provided   under   this   Code,   the Labor   Arbiters   shall   have   original   and   exclusive   jurisdiction   to   hear   and   decide,   within   thirty   (30)   calendar   days   after   the   submission   of   the   case   by   the   parties   for   decision   without   extension,   even   in   the   absence   of   stenographic   notes,   the   following   cases   involving   all   workers,   whether  agricultural  or  non-‐agricultural:  1.  Unfair  labor  practice  cases;  2.  Termination  disputes;  3.  If  accompanied  with  a  claim  for  reinstatement,  those  cases   that   workers   may   file   involving   wages,   rates   of   pay,   hours   of   work  and other  terms  and  conditions  of  employment;  4.   Claims   for   actual,   moral,   exemplary   and   other   forms   of   damages arising  from  the  employer-‐employee  relations;  5.  Cases  arising  from  any  violation  of  Article  264  of  this  Code,   including   questions   involving   the   legality   of   strikes   and   lockouts;  and  6.  Except  claims  for  Employees  Compensation,  Social  Security,   Medicare and  maternity  benefits,  all  other  claims  arising  from   employer-‐employee   relations,   including   those   of   persons   in   domestic   or   household   service, involving   an   amount   exceeding   five   thousand   pesos   (P5,000.00)   regardless   of   whether  accompanied  with  a  claim  for  reinstatement.  (b)  The  Commission  shall  have  exclusive  appellate  jurisdiction   over  all cases  decided  by  Labor  Arbiters.  (c)  Cases  arising  from  the  interpretation  or  implementation  of   collective   bargaining   agreements   and   those   arising   from   the   interpretation   or   enforcement   of   company   personnel   policies   shall  be  disposed  of  by  the Labor  Arbiter  by  referring  the  same   to   the   grievance   machinery   and   voluntary   arbitration   as   may   be   provided   in   said   agreements.   (As   amended   by   Section   9,   Republic  Act  No.  6715,  March  21,  1989).

CASES:1. TULFO  V.  PEOPLE,  GR  NO.  161032,  SEPT.  16,  2008;2. GUILATCO  V.  CITY  OF  DAGUPAN,  supra.;3. FILINVEST  V.  MENDEZ,  GR  NO.  66419,  JULY  31,  1987   LOPEZ  V.

PANAM,  16  SCRA  431;4. LAO  V.  CA,  GR  NO.  80808,  JULY  11,  1991,  199  SCRA  58;5. GUTIERREZ  V.  VILLEGAS,  8  SCRA  527;6. RAMOS  V.  RAMOS,  61  SCRA  284;7. GALANG  V.  CA,  4  SCRA  55;8. MERCADO  V.  LIRA,  3  SCRA  124;9. PERMEX  V.  NLRC,  323  SCRA  231;10. GUTIERREZ  V.  VILLEGAS,  8  SCRA  528   YASONA  V.  DE  RAMOS,  GR  NO.

156339,  OCT.  6,  2004;11. EQUITABLE  BANKING  CORP.  V.  CALDERON,  GR  NO.  156168,   DEC.  14,

2004;12. SAVELLANO,  ET.  AL.,  V.  NORTHWEST  AIRLINES,  GR  NO.   151783,  JULY

8,  2003;13. CHINA  AIRLINES  V.  CHIOK,  GR  NO.  152122,  JULY  30,  2003.

e.    Latest  rule  on  corporationsCases:

1. MAMBULAO  LUMBER  V.  PNB,  22  SCRA  359;

2. ABS-‐CBN  BROADCASTING  CORP.  V.  CA,  GR  NO.  128690,  JAN.   21, 1999;

3. NAPOCOR  V.  PHILIPP  BROTHERS  OCEANIC,  INC.  ,  369  SCRA   629;4. FILIPINAS  BROADCASTING  NETWORK  V.  AGO  MEDICAL  AND  

EDUCATIONAL  CENTER,  GR  NO.  141994,  JAN.  17,  2005;5. REPUBLIC  V.  TUVERA,  GR  NO.  148246,  FEB.  16,  2007;6. BONIFACIO   VS.   RTC   OF   MAKATI,   GR   NO.   184800,   MAY   5,  

2010  (on  internet  libel);

IV.   NOMINAL  DAMAGES        Art. 2221. Nominal damages are adjudicated in order that a right of the plaintiff, which has been violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff for any loss suffered by him.Art. 2222. The court may award nominal damages in every obligation arising from any source enumerated in Article 1157, or in every case where any property right has been invaded.

Art. 2223. The adjudication of nominal damages shall preclude further contest upon the right involved and all accessory questions, as between the parties to the suit, or their respective heirs and assigns.  

Cases:1. GO  V.  IAC,  GR  NO.  68138,  MAY  13,  1991;2. MEDINA  V.  CRESENCIA,  L-‐8194,  JULY  11,  1956;3. VENTENILLA  V.  CENTINO,  GR  NO.  L-‐14333,  JAN.  28,  196;

V.   TEMPERATE  OR  MODERATEArt. 2224. Temperate or moderate damages, which are more than nominal but less than compensatory damages, may be recovered when the court finds that some pecuniary loss has been suffered but its amount can not, from the nature of the case, be provided with certainty.Art. 2225. Temperate damages must be reasonable under the circumstances.

Cases:1. PLENO  V.  CA,  GR  NO.  56505,  MAY  9,  1988;2. BPI  INVESTMENT  V.  DG  CARREON,  371  SCRA  58;3. GSIS  V.  DEANG,  365  SCRA  613;4. RAMOS,  ET.  AL.  V.  CA,  ET.  AL.,  supra.;5. PT  &  T  V.  CA,  GR  NO.  139268,  SEPT.  3,  2002;6. REPUBLIC  V.  TUVERA,  supra.;7. PHIL.  HAWK  CORP.  V.  VIVIAN  TAN  LEE,  supra.;

VI.   LIQUIDATEDArt. 2226. Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof.Art. 2227. Liquidated damages, whether intended as an

indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable.

Art. 2228. When the breach of the contract committed by the defendant is not the one contemplated by the parties in agreeing upon the liquidated damages, the law shall determine the measure of damages, and not the stipulation.

Cases:1. LAMBERT  V.  FAX,  26  PHIL  588;2. HL   CARLOS   CONSTRUCTION   V.   MARINA   PROPERTIES   CORP.,  

GR  NO.  147614,  JAN.  29,  2004;3. SCOTT AND CONSULTANTS AND RESOURCES DEVELOPMENT CORP VS.

CA ET. AL. G.R. 112916,  MAR.  16,  1995;

VII.   EXEMPLARY  OR  CORRECTIVE  DAMAGES

a. Nature

Art. 2229. Exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages.Art. 2223. The adjudication of nominal damages shall preclude further contest upon the right involved and all accessory questions, as between the parties to the suit, or their respective heirs and assigns.Art. 2224. Temperate or moderate damages, which are more than nominal but less than compensatory damages, may be recovered when the court finds that some pecuniary loss has been suffered but its amount can not, from the nature of the case, be provided with certainty.Art. 2225. Temperate damages must be reasonable under the circumstances.   

Art. 2226. Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof.Art. 2227. Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable.

Art. 2228. When the breach of the contract committed by the defendant is not the one contemplated by the parties in agreeing upon the liquidated damages, the law shall determine the measure of damages, and not the stipulation.

Art. 2229. Exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or

compensatory damages.Art. 2230. In criminal offenses, exemplary damages as a part of the civil liability may be imposed when the crime was committed with one or more aggravating circumstances. Such damages are separate and distinct from fines and shall be paid to the offended party.

Art. 2231. In quasi-delicts, exemplary damages may be granted if the defendant acted with gross negligence.

Art. 2232. In contracts and quasi-contracts, the court may award exemplary damages if the defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner.

Art. 2233. Exemplary damages cannot be recovered as a matter of right; the court will decide whether or not they should be adjudicated.

Art. 2234. While the amount of the exemplary damages need not be proved, the plaintiff must show that he is entitled to moral, temperate or compensatory damages before the court may consider the question of whether or not exemplary damages should be awarded. In case liquidated damages have been agreed upon, although no proof of loss is necessary in order that such liquidated damages may be recovered, nevertheless, before the court may consider the question of granting exemplary in addition to the liquidated damages, the plaintiff must show that he would be entitled to moral, temperate or compensatory damages were it not for the stipulation for liquidated damages.

Art. 2235. A stipulation whereby exemplary damages are renounced in advance shall be null and void.

b.    When  awardableCases:

1. DE  LEON  V.  CA,  GR  NO.  L-‐31931,  AUG.  31,  1988;2. OCTOT   VS.   YBANEZ   G.R.   NO.   L48643,   JANUARY   18,  

1982   |   111  SCRA  79;

VIII.     ASSESSMENT  OF  DAMAGESArt. 2204. In crimes, the damages to be adjudicated may

be respectively increased or lessened according to the aggravating or mitigating circumstances.Art. 2214. In quasi-delicts, the contributory negligence of the plaintiff shall reduce the damages that he may recover.

Art. 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.

 Art. 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.

Cases:1.INHELDER   CORPORATION   V.   CA,   GR   NO.   L-‐52358,   122   SCRA  

576;2.RAAGAS  V.  TRAYA,  ET.  AL.,  GR  NO.  L-‐20081,  FEB.  27,  1968;