3. Temperate or Moderate Damages

Abrazaldo Doctrine

Temperate damages may be awarded where the amount of the actual damages, the heirs are entitled to, cannot be shown. In People v. Abrazaldo, the Court awarded P25,000 in temperate damages under the amounts then applicable. (People v. Abrazaldo, G.R. No. 124392, February 7, 2003)

Updated: Heirs who cannot substantiate death, wake, and burial expenses may receive ₱50,000 in temperate damages in lieu of actual damages (Apura v. People, G.R. No. 222892, 18 March 2021).

Injury to business standing and commercial credit of plaintiff

Compensatory damages may be awarded in the concept of temperate damages for injury to business reputation or business standing, loss of goodwill, and loss of customers who shifted their patronage to competitors. (Article 2205; Coca – Cola Bottlers Philippines Inc. v. Sps. Jose Bernardo and Lilibeth Bernardo, doing business under the name and style of “Jolly Beverage Enterprises,” G.R. No. 190667, September 4, 2017)

TEMPERATE OR MODERATE DAMAGES

Temperate damages are those damages, which are more than nominal but less than compensatory, and may be recovered when the court finds that some pecuniary loss has been suffered but its amount cannot be proved with certainty. (NCC, Art. 2224)

Updated: A court may award the prevailing temperate-damages amount instead of a lower amount of proven actual damages (Prieto v. Cajimat, G.R. No. 214898, 8 June 2020).

Nature of Temperate Damages

Temperate or moderate damages rest on equity. They provide relief when a person has clearly suffered pecuniary loss but cannot adequately prove its exact amount. (Equitable PCI Bank v. Tan, G.R. No. 165339, August 23, 2010)

Temperate damages may be awarded:

• In lieu of actual damages; or
• In lieu of damages for loss of earning capacity.

When the nature of the case prevents definite proof of pecuniary loss, but the court is convinced that a loss occurred, the judge may assess moderate damages rather than leave the injured party without redress for the defendant’s wrongful act. (GSIS v. Spouses Labung-Deang, G.R. No. 135644, February 24, 2003)

In a death case, temperate damages may be awarded instead of actual damages even if some expenses were proved, when the amount proved is lower than the applicable award of temperate damages. (Prieto v. Cajimat, G.R. No. 214898, June 8, 2020)

Elements of Temperate Damages

• Some pecuniary loss;
• The amount of the pecuniary loss cannot, from the nature of the case, be proved with certainty; and
• The damages awarded are reasonable.

Q: Nanito Evangelista filed a complaint for damages against Andolong over the latter's failure to give the former's share in the net profits derived from their business. However, this was evidenced solely by the documentary exhibits which disclosed the gross monthly revenue and not the actual profit earned. During the course of the proceedings, Andolong was declared in default. Consequently, it was no longer possible for Evangelista to prove the actual profit earned since such documents were in possession of Andolong. Can Evangelista recover damages if the net profits can no longer be ascertained?

A: YES. Evangelista can recover damages although the exact amount of the net profits remained unproven. This comes in the form of temperate or moderate damages. Temperate damages 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 provided with certainty. Consequently, in computing the amount of temperate or moderate damages, it is usually left to the discretion of the courts, but the amount must be reasonable, bearing in mind that temperate damages should be more than nominal but less than compensatory. (Nanito Evangelista V. Spouses Nero Andolong Iii and Erlinda Andolong et al., G.R. No. 221770, November 16, 2016)

Q: Alfredo and his family were sound asleep in their home when he was roused from sleep by the sound of stones hitting his house. Alfredo went to the living room and peered through the jalousie window. The terrace light allowed him to recognize his neighbor and co-worker, Bacerra.

Bacerra threw stones at Alfredo's house while saying, "Vulva of your mother." Just as he was about to leave, Bacerra exclaimed, "[V]ulva of your mother, Old Fred, I'll bum you now." Bacerra then left. Troubled by Bacerra's threat, Alfredo waited for him to return. Alfredo sat down beside the window. At around 4:00a.m., he heard dogs barking outside. Alfredo looked out the window and saw Bacerra walking towards their nipa hut, which was located around 10 meters from their house.

Bacerra paced in front of the nipa hut and shook it. Moments later, Alfredo saw the nipa hut burning. Alfredo sought help from his neighbors to smother the fire. Edgar contacted the authorities for assistance, but it was too late. The nipa hut and its contents were completely destroyed. The local authorities conducted an investigation on the incident. Ultimately, the trial court and the Court of Appeals found him guilty beyond reasonable doubt of simple arson, and was ordered to pay temperate damages of ₱50,000 to Alfredo. Is the award of temperate damages proper?

A: YES. Under Article 2224 of the Civil Code, temperate damages may be awarded when there is a finding that "some pecuniary loss has been suffered but its amount [cannot], from the nature of the case, be proved with certainty." The amount of temperate damages to be awarded in each case is discretionary upon the courts as long as it is "reasonable under the circumstances."

Private complainant clearly suffered some pecuniary loss as a result of the burning of his nipa hut. However, private complainant failed to substantiate the actual damages that he suffered. Nevertheless, he is entitled to be indemnified for his loss. The award of temperate damages amounting to ₱50,000.00 is proper and reasonable under the circumstances. (Marlon Bacerra y Tabones vs, People of the Philippines, G.R. No. 204544, July 3, 2017)