Published — May 23, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: WHAT ARE LIQUIDATED DAMAGES?
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Exemplary damages or corrective damages are imposed, by way of example or correction for the public good.
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Exemplary damages are mere additions which may or may not be granted at all depending upon the necessity of setting an example for public good as a form of deterrent to the repetition of the same act by anyone.
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Exemplary damages cannot be recovered as a matter of right.
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.
They are also known as “punitive” or “vindictive” damages.
Exemplary damages are mere additions which may or may not be granted at all depending upon the necessity of setting an example for public good as a form of deterrent to the repetition of the same act by anyone.
The rationale behind exemplary damages is to provide an example or correction for the public good and not to enrich the victim (Rana v. Wong, G.R. No. 192861, June 30, 2014).
Civil Code provides that:
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.
For fault or negligence, if there is no pre-existing contractual relation between the parties, is called a quasi-delict. And in quasi-delicts, exemplary damages may be granted if the defendant acted with gross negligence.
In contracts and quasi-contracts, the court may award exemplary damages if the defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner.
Exemplary damages cannot be recovered as a matter of right. The court will decide whether or not they should be adjudicated.
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.
A stipulation whereby exemplary damages are renounced in advance shall be null and void.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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