How do you define actual or compensatory damages? One situation in which actual damages are awarded is when the defendant has inflicted injury upon the plaintiff. Actual damages or compensatory damages refer to the money paid to the plaintiff to cover for the damages caused by the defendant. Other types of damages also exist and these include property damage, lost wages, medical care and many others.

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. 

Have you been screening your phone calls to avoid collectors who are constantly nagging you to settle your unpaid credit card balance? Have you been threatened to face a lawsuit if you fail to repay a lender? If incessant calls from creditors caused you to be allergic to phone calls, being armed with the basic principles of the consequences for non-payment of debt can give you greater peace of mind. In fact, it can be a whiff of fresh air if you heard the statement that no one will end up in jail for non-payment of debt. 

Before you allow paranoia to feast on you, know more about the laws associated with unsettled debt.

Some common laws that are said to violate the constitutional prohibition against non-imprisonment of debt:

Credit Cards

The Access Devices Regulation Act of 1998 (RA. 8484) states that any person who obtains the money or anything that is valuable with the use of an access device with the sole intent to defraud or with intent to gain and fleeing once motive has been executed will be held liable for a crime punishable with a fine and imprisonment. In addition, a cardholder who intentionally abandons the residence, place of employment or business that was declared on the application or credit card without informing the credit card company of the current place where he could be reached will also be liable for a crime. If during the abandonment, the person has outstanding and unpaid balance which is past due for at least 90 days and is more than P10,000.00, the individual shall be prima facie presumed to have used his access device or credit card with intent to defraud.

Bouncing Checks 

Bouncing Checks Law (BP22) has also been viewed as a violation of constitutional prohibition against non-imprisonment for debt. In the context of this law, the non-payment of an obligation is not its main concern. The law is not designed to force a debtor to settle his debt. The main purpose of the law is to prevent anyone with the gumption to make checks that don’t have any value with the intention of putting them in circulation. Checks have become a substitute for cash and widely accepted as a medium of payment especially in trade and commerce and when the confidence of using these checks are marred due to its misuse, its value and usefulness will also be diminished. 

Trust Receipts

Trust receipts and bouncing checks share the same argument based on the Trust Receipts Law (PD 115), which states, if a person fails to turn over the proceeds of the sale of goods which are considered covered by a trust receipt or if the person fails to return said goods if they have not been sold, penal sanctions shall be imposed. The punishment is due to the abuse of confidence and dishonesty in the handling of goods or money.

In the Philippines married couples have two options to put an end to marital union: annulment and legal separation. While divorce advocates have been fighting for the legalization of divorce in the Philippines, there is no sign yet that people who want it legalized will emerge victorious. However, it is a different scenario in Muslim Mindanao or in Islamic laws to be more specific. In fact, Islamic laws grant three kinds of divorce and each of them has separate rules. These three kinds of divorce are talaq, li’an and khula. 

Islamic divorce in Mindanao defined: 

1. Talaq

In a talaq divorce, the Muslim husband initiates a divorce and pronounces the word talaq (I divorce you)  to his wife, but this can be withdrawn if both parties decide for reconciliation.  The word talaq can only be withdrawn twice and divorce will be considered irrevocable the third time the word is pronounced. In order to complete irrevocable divorce, the husband needs to comply with the requirements. 

2. Khula

Khula gives a woman the right to seek a divorce. The woman must also follow a waiting period and as compared to the right of men to initiate divorce, women’s rights are only limited. Women will be granted divorce if the husband failed to provide her basic needs or if there was no intercourse taking place for more than two months. Women must also repay marriage expenses and her dowry. If the child is older than seven years, the woman who seeks a divorce will not be granted child custody. However, the custody will be granted if the child is below seven years. By the time the child reaches the age of seven, the woman must give full custody to the father.  

3. Lian

Lian is also referred to as mulaana and this type of divorce is initiated when the husband accused the wife of adultery. This divorce is based on Quranic verses. There are three conditions that must be met for the husband to initiate Lian:

• The marriage state must be continuing.

• The marriage must be valid and there should be witnesses when the marriage was solemnized. 

• The husband must be liable to become a witness and has not received any punishment of qazf in the past. 

The financial obligations in divorce will also dependent on the length of marriage. The income levels of either the husband or the wife will also be taken into consideration. Once divorce is granted, the Islamic laws will apply wherein the wife is not entitled to the assets that have been earned during marriage.