Damages it may be defined as a sum of money which the law awards or imposes as pecuniary compensation, recompense, or satisfaction for an injury done or a wrong sustained as a consequence of the breach of some duty or the violation of some right.The different kinds of damages recoverable under our NCC are:1. Actual or Compensatory damages, or the compensation awarded to a person for such pecuniary loss suffered by him as he has duly proved. To seek recovery for actual damages, it is essential that the injured party proves the actual amount of loss with reasonable degree of certainty premised upon proof and on the best evidence available. 2 kinds of actual or compensatory damages: Dano emergente refers to the value of the loss suffered. Lucro Cesante refers to the profits which the obligee failed to obtain. In crimes and quasi-delicts, the defendant is 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 forseen or could have reasonably been foreseen by the defendant. In contracts and quasi-contracts, the damages for which the obligor who acted in good faith is liable shall be those that are natural and probable consequences of the breach of the obligation, and which the parties have 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.

2. Moral Damages, or the compensation awarded to a person for physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury. Art. 2219 of the NCC enumerates the instances when moral damages may be recovered. Under our law, the only instances where moral damages are recoverable in damage actions predicated on culpa contractual are:(1) Where the mishap results in the death of the passenger; and(2) Where it is proved that the carrier was guilty of fraud or bad faith, even if death does not result. According to the SC, moral damages are to be fixed in the discretion of the court taking into consideration the educational, social and financial standing of the parties. The SC expressly declared that the amount of damages awarded has been determined by considering the official, political, social, and financial standing of the offended parties on one hand and the business and financial position of the offender on the other hand. (Lopez vs. Pan American Airways, March 30 1966) The SC declared, the task of fixing the moral and exemplary damages, as well as attorneys fees, is primarily with the trial court. Xxx In order that moral damages may be awarded, there must be pleading and proof or moral suffering, mental anguish, fright and the like. Mere allegations do not suffice; they must be substantiated by clear and convincing proof. In breaches of contract, moral damages are awarded if the defendant was shown to have acted fraudulently or with malice or bad faith. The damage to the reputation and social standing of the respondents entitles them to moral damages. Well-settled is the rule that the financial credit of a businessman is a prized and valuable asset, it being a significant part of the foundation of his business. Any adverse reflection therein constitutes some financial loss to him. (Araneta vs. Bank of America, 40 S 144) The following are the requisites for the award of moral damages:(1) There is injury, whether physical, mental or psychological clearly sustained by the claimant;(2) There is a culpable act or omission factually established;(3) The wrongful act or omission of the defendant is the proximate cause of the injury sustained by the claimant;(4) Award of damages is predicated on any of the cases stated in Art. 2219, NCC. Art. 2219 of the NCC which provides that moral damages may be recovered for malicious prosecution would more than sufficiently serve as a basis for relief in court against a party who has maliciously caused another to baselessly and unjustifiably undergo a criminal prosecution for an offense he knows the latter had not committed. GR: Moral damages and exemplary damages are not recoverable in damage actions predicated on a breach of promise to marry because it is not actionable. Exception: if the act of the defendant in breaking his promise to marry is accompanied by any of the acts enumerated in Art. 2219 of the NCC, such as seduction, abduction, rape or lascivious acts, or that the act is contrary to morals, good customs or public policy. This time, the basis of the recovery will not be breach of promise to marry. Moral damages may be recovered in culpa contractual where the defendant acts in bad faith or malice in the breach of contract. With respect to the amount of moral damages to be awarded, the well-entrenched principle is that the grant thereof depends upon the discretion of the court considering the circumstances of each case. Moral damages may be recovered under Art. 21 of the NCC which provides that any person who willfully causes loss or injury to another in a manner that is contrary to morals, good customs and public policy shall compensate the latter for the damage. Accordingly, in Tenchaves vs. Escano (15 S 355, 17 S 674), the SC held that the acts of the wife in not complying with her wifely duties , her denial of consortium and desertion of her husband are acts which constitute a willful infliction of injury upon the husbands feelings in a manner contrary to moral, good customs or public policy for which No. 10 or Art. 2219 of the NCC authorizes an award for moral damages. A brother or a sister cannot recover moral damages for mental anguish by reason of the death or the deceased. According to No. 3 of Art. 2206 of the NCC, only 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.

3. Nominal damages, or an amount awarded to a person in order that his right, which had been violated or invaded be vindicated or recognized and not for the purpose of indemnifying the plaintiff for any loss suffered by him.

4. Temperate or moderate damages, or the compensation which is more than nominal but less than compensatory damages, awarded to a person when the court finds that he has suffered some pecuniary loss, but its amount cannot, from the nature of the case, be proved with certainty. This may be recovered when the court finds that some pecuniary loss has been suffered but its amount cannot, from the nature of the case be proved with certainty. Examples: In the case of Araneta vs. Bank of America (40 S 144), injury to ones commercial credit or the goodwill of the business firm is often hard to show in terms of money. Rationale: that from the nature of the case, definite proof of pecuniary loss cannot be adduced, although the court is convinced that the aggrieved party suffered some pecuniary loss. Temperate and nominal damages are incompatible and cannot be granted concurrently.

5. Liquidated damages, or that agreed upon by the parties to a contract, to be paid in case of breach thereof.

6. Exemplary or corrective damages, or that imposed by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages. They are awarded to serve as a deterrent to serious wrong doings and as a vindication of undue sufferings and wanton invasion of the rights of an injured or a punishment for those guilty of outrageous conduct. In Art. 2231, NCC, explicitly authorizes the imposition of exemplary damages in cases of quasi-delicts if the defendant acted with gross negligence. The following are the rules governing the award of exemplary or corrective damages:(1) Exemplary damages 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. 2229, NCC);(2) In criminal offense, exemplary as 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. 2230, NCC);(3) In quasi-delicts, exemplary damages may be granted if the defendant acted with gross negligence. (Art. 2232, NCC);(4) 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. 2232, NCC);(5) Exemplary damages cannot be recovered as a matter of right; the court will decide whether or not they should be adjudicated. (Art. 2233, NCC);(6) 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 may be awarded. In order that the principal or master can be held liable for exemplary damages based upon the wrongful act of his agent or servant, he should have participated in the doing of such wrongful act or should have previously authorized or subsequently ratified it with full knowledge of the facts. Attorneys fees The award of attorneys fees as part of damages is considered just and equitable when a party is compelled to litigate or incur expenses to protect his interest by reason of an unjustified act of the other party. GR: in the absence of stipulation, attorneys fees and expenses or litigation, other than judicial costs, cannot be recovered.Exceptions:1. When exemplary damages are awarded, attorneys fees may also be recovered where exemplary damages are awarded;2. When the defendants act or omission has compelled the plaintiff to litigate with third persons or to incur expenses to protect his interest;3. In criminal cases or 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 plaintiffs 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 workmens compensation and employers liability laws;9. In separate civil action to recover civil liability arising from crime;10. When at least double judicial costs are awarded;11. In any other case where the court deems it just and equitable that attorneys fees and expenses of litigation should be recovered.In all cases, the attorneys fees and expenses of litigation must be reasonable. (Art. 2208, NCC)

Cases:1. Air France vs. Carrascoso: A contract to transport passengers is quite different kind and degree from ny other contractual relation. And this, because of the relation which an air-carrier 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.

So it is, that any rude or discourteous conduct on the part of the employees towards a passenger gives the latter an action for damages against the carrier.Notes:A. When death occurs as a result of a crime, the heirs of the deceased are entitled to the following items of damages:1. As indemnity for the death of the victim of the offense imposed even 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 deceased an amount fixed by the court according to the circumstances of the deceased related to his actual income at the time of death and his probable like 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, NCC, the recipient who is not an heir, may demand support from the accused for not more than five (5) years, the exact duration to be fixed by the court.3. As moral damages for mental anguish an amount to be fixed by the court. They 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 had been filed or when exemplary damages are waived.)6. Interests in the proper cases.7. It must be emphasized that he 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 ---

B. It is well-settled that the defense of due diligence in the selection and supervision of employees is not available as a defense in damage actions based on culpa contractual. It is, of course, available in actions based on culpa aquiliana where there is a disputable presumption to the effect that the fault or negligence of the employee is the fault of negligence of the employer, but in actions based on culpa contractual, the fault or negligence of the employee is conclusively presumed to be the fault or negligence of the employer. Art. 1759 of the NCC expressly declares that the liability of common carriers does not cease upon proof that they exercised due diligence in the selection and supervision of their employees.Page 5 of 5