Exemplary or Corrective Damages Flashcards

1
Q

What are exemplary damages?

A

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.

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2
Q

Why are there exemplary damages?

A

Exemplary damages are required by public policy for
wanton acts must be suppressed. They are an antidote so
that the poison of wickedness may not run through the body
politic. (Report of the Code Com., pp. 75-76).

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3
Q

When is exemplary damages not allowed to be awarded?

A

In the absence of moral, temperate, liquidated, or compensatory
damages, no exemplary damages can be granted, for
exemplary damages are allowed only in ADDITION to any of
the four kinds of damages mentioned. (Ventanilla v. Centeno,
L-14333, Jan. 28, 1961; Fores v. Miranda, 105 Phil. 266 and
Francisco v. GSIS, L-18155, Mar. 30, 1963).

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4
Q

Can “Other remedies which may be just and equitable in the premises” grant exemplary damages?

A

Yes. It is advisable
to specifi cally ask in the complaint for exemplary damages
(in the proper cases), but the general prayer in the complaint
for “other remedies which may be just and equitable in the
premises” can allow, if warranted, the grant of exemplary
damages. (See Darang v. Belizor, L-19487, Jan. 31, 1967

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5
Q

What is the case of Guilatco v City of Dagupan

A

To serve as an example for the public good, it is high
time that the court should serve warning to the city or cities
concerned to be more conscious of their duty and responsibility
to their constituents, especially when they are engaged
in construction work or when there are manholes on their
sidewalks or streets which are uncovered, to immediately
cover the same, in order to minimize or prevent accidents to
the poor pedestrians.
Too often in the zeal to put up “public impact” projects
such as beautifi cation drives, the end is more important than
the manner in which the work is carried out. Because of this
obsession for showing off, such trivial details as misplaced
fl ower pots betray the careless execution of the projects, causing
public inconvenience and inviting accidents

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6
Q

What is the rationale behind Exemplary damages?

A

The rationale behind exemplary or corrective damages
is to provide an example or correction for the public good.
A driver running at full speed on a rainy day, on a slippery
road in complete disregard of the hazards to life and limb
of other people cannot be said to be acting on anything less
than gross negligence. The frequent incidence of accidents of
this nature caused by taxi drivers, indeed, demands corrective
measures.

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7
Q

Give me an example of Exemplary Damages

A

Exemplary damages were imposed against a corporation
which persisted in oppressively invading another’s rights
despite “cease and desist orders” from the Public Service
Commission. This imposition of exemplary damages would
be a reminder that economic power will never justify a
reckless disregard of the rights of others. (Castro, et al.
v. Ice and Cold Storage Industries, et al., L-10147, Dec.
27, 1958).

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8
Q

Give me an example of Exemplary Damages

A

A victim shot in the jaw by the minor son of the defendant
with the father’s gun was given an award of P18,000.
The Court said that this will remind licensed possessors
of fi rearms of their peremptory duty to adequately
safeguard such dangerous weapons at all times, and to take all requisite measures to prevent minors and other
unauthorized parties from having access thereto. Moreover,
competent observers have recently called attention
to the fact that the growing teenage hooliganism in our
society is principally due to parent’s complacency in and
neglect of their progeny. (Araneta, et al. v. Arreglado, et
al., 104 Phil. 529).

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9
Q

Give me an example of Exemplary Damages

A

Exemplary damages in the amount of P2,000 was awarded
in a case where the overseer of a mango store abused
the confi dence of a female customer by subjecting her
to indignities. According to the Court, this bespeaks of
a perverse nature, dangerous to the community. (Doming-
ding and Aranas v. Ng, et al., 103 Phil. 111)

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10
Q

Give me an example of Exemplary Damages

A

[NOTE: If a mayor in good faith dismisses an employee
although the former was not authorized, exemplary
damages of P2,000 should be considered excessive, and
must be reduced to P1,000. Exemplary damages, in a case
like this, according to the Court, should be imposed only
to curtail the abuses that some public offi cials are prone
to commit upon coming to power, in utter disregard of
the civil service rules which constitute the only safeguard
of the tenure of offi ce guaranteed by the Constitution.
(Diaz, et al. v. Amante, L-9228, Dec. 26, 1958)].

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11
Q

In the case of People v. Erlindo Talo
GR 125542, Oct. 25, 2000
FACTS: Accused-appellant Erlindo Talo was charged
and found guilty of forcible abduction with rape and sentenced
to death and to pay complainant Doris Saguindang
the amount of P30,000 as moral damages and costs of
the suit.

Is the award for exemplary damages reasonable?

A

HELD: The trial court’s decision was upheld but
the penalty was reduced to reclusion perpetua and with
the damages awarded modifi ed. In accordance with jurisprudence
(People v. Baid, GR 129667, Jul. 31, 2000;
People v. Dreu, GR 126282, Jun. 20, 2000; and People
v. Licanda, GR 134084, May 4, 2000), complainant
Saguindang must be paid P50,000 as civil indemnity,
P50,000 as moral damages, and the additional amount of P25,000 as exemplary damages, in view of the attendance
of aggravating circumstances, pursuant to Art. 2229 of
the Civil Code. (See People v. Santos, GR 131103, and
143472, Jun. 29, 2000).

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12
Q

Give me an example of Exemplary Damages

A

If an employee commits a wrongful act, may his employer
be required to pay exemplary damages? NO, except insofar
as said employer had participated in or ratifi ed the
act. The rule is that exemplary damages are imposed
primarily on the wrongdoer as a deterrent in the commission
of similar acts in the future. Since exemplary
damages are penal in character, the motive authorizing
their infl iction will not be imputed by presumption to
the principal when the act is committed by an agent
or servant. Inasmuch as they are granted not by way
of compensation, but as a punishment to the offender
and as a warning to others, they can only be awarded
against one who has participated in the offense and the
principal therefore cannot be held liable for them merely
by reason of wanton, oppressive, or malicious intent on
the part of the agent. Moreover in this jurisdiction, in
case of crimes, exemplary damages may be imposed only
when the crime is committed with one or more aggravating
circumstances. (Art. 2230, Civil Code and Rotea v.
Halili, L-1203, Sep. 30, 1960).

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13
Q

Can a court award damages that are beyond its jurisdiction?

A

If the amount of exemplary damages is NOT specifi c the
court can grant same only in an amount that should NOT
exceed its jurisdiction. (Singson, et al. v. Aragon, et al., 92
Phil. 514).

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14
Q

What is the Effect of Granting Exemplary Damages on a Claim for
Nominal Damages?

A

If exemplary damages are granted, nominal damages
can not be given. (Medina, et al. v. Cresencia, et al., L-8194,
Jul. 11, 1956).

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15
Q

Are exemplary damages part of the civil liability in criminal offenses?

A

Yes, 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 fi nes and shall
be paid to the offended party.

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16
Q

An example of exemplary damages in criminal offenses

A

Exemplary Damages in Criminal Offenses
If a driver, in a criminal case, is convicted and made
civilly liable, but exemplary damages are NOT IMPOSED,
the employer cannot in a subsequent case brought to recover
subsidiary civil liability against him — be made liable for
exemplary damages. As Justice JBL Reyes has aptly pointed
out — “No such damages were imposed on the driver, and
the master, as person subsidiarily liable, cannot incur greater
civil liability than his convicted employee, any more than a
guarantor can be held responsible for more than the principal
debtor. (Cf. Civil Code, Art. 2064).” (Vicente Bantoto, et al. v.
Salvador Bobis, et al. & Crispin Vallejo, L-18966, Nov. 22,
1966).

17
Q

Exemplary Damages in Quasi-Delicts

A

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

Here the defendant must have acted with GROSS NEGLIGENCE.
And even then, the grant is only discretionary on
the part of the Court.

18
Q

In contracts and quasi-contracts, can the court award exemplary damages?

A

Yes. WFROM. 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.

19
Q

When is an employer liable for exemplary damages?

A

Lourdes Munsayac v. Benedicta de Lara
L-21151, Jun. 26, 1968
FACTS: A driver of a jeepney was found recklessly negligent
in causing injuries to his passenger. Is the owner-operator
of the jeepney liable for exemplary damages (in addition to
other kinds of damages)?
HELD: Not necessarily. A principal or master can be
held liable for exemplary or punitive damages based upon the
wrongful act of his agent or servant only when he participated
in the doing of such wrongful act or has previously authorized
or subsequently ratifi ed it, with full knowledge of the facts.
Exemplary damages punish the intent — and this cannot be
presumed on the part of the employer merely because of the
wanton, oppressive, or malicious intent on the part of the
agent.

20
Q

When is an employer liable for exemplary damages?

A

Silverio Marchan and Philippine Rabbit Bus
Co., Inc. v. Arsenio Mendoza, et al.
L-24471, Jan. 31, 1969
FACTS: The driver of a common carrier, thru gross or
reckless negligence caused injury to some of the passengers.
Issue: May exemplary or corrective damages be awarded?
HELD: Yes, exemplary damages may be awarded in
contracts and quasi-contracts if the defendant company, thru
its driver, acted in a “wanton, fraudulent, reckless, oppressive
or malevolent manner.” (Art. 2232; see also Laguna-Tayabas
Bus Co. v. Diasanta, L-19882, Jun. 30, 1964).

21
Q

Can exemplary damages be awarded if there is no wanton, fraudeulent, oppressive chu chu?

A

Noda v. Cruz-Arnaldo
GR 67322, Jun. 22, 1987
The insured’s claim or demand for exemplary damages
cannot be sustained if he fails to show that the insurer, in
contesting payment, had acted in a wanton, oppressive or
malevolent manner to warrant the imposition of corrective
damages.

22
Q

Are exemplary damages granted as a matter of right?

A

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

23
Q

Exemplary Damages Not a Matter of Right

A

The grant is discretionary. Be it noted, however, that in
the Court’s discretion, the same may be granted even if not
expressly pleaded or prayed for. (See Singson v. Aragon, 92
Phil. 514).

24
Q

Amount of Exemplary Damages Need Not Be Proved

A

Exemplary damages need NOT be alleged and proved
(Singson, et al. v. Aragon, et al., 92 Phil. 514) but note the
conditio sine qua non in the article.

25
Q

Culpa Contractual and exemplary damages

A

In a case of culpa contractual, while diligence of a good
father of a family in selecting and supervising employees is
NOT a proper or complete defense for the employer, still it
is important that such damages be shown or proved: fi rstly,
because the damages may be mitigated or decreased; and
secondly, because if this diligence be not shown, exemplary
damages may be charged against the employer. (See Villa Rey
Transit v. Bello, L-18957, Apr. 23, 1963).

26
Q

Philippine National Bank v. CA, Spouses Antonio

A

So Hu & Soledad del Rosario and Spouses
Mateo Cruz & Carlita Ronquillo
GR 126908, Jan. 16, 2003
FACTS: Spouses So Hu have not suffi ciently proved that
PNB acted maliciously and in bad faith when it foreclosed the
property. On the contrary, PNB believed, although mistakenly,
that it still had an unpaid claim for which the property stood
as a security.

HELD: Records do not support any basis for awarding
moral damages to private respondents, spouses So Hu. Such
damages, to be recoverable, must be the proximate result
of a wrongful act or omission the factual basis for which is
satisfactorily established by the aggrieved party. (Expertravel
& Tours, Inc. v. CA, 309 SCRA 141 [1991]).

27
Q

Is a stipulation for exemplary damages being renounced, valid?

A

This renouncing is NULL and VOID.