A Philippine-context legal article on what you can recover, when you can recover it, and how courts compute and enforce it.

1) The baseline rule: “Winning” does not automatically mean you get damages or attorney’s fees

In Philippine civil litigation, a favorable judgment does not, by itself, guarantee that the prevailing party will recover:

Damages (actual, moral, exemplary, etc.), or
Attorney’s fees (the amount you paid your lawyer), or
Litigation expenses beyond taxable “costs.”

Courts award these items only if the law allows it and the claimant properly pleads, proves, and justifies them. In practice, the most common things a winning party collects are:

the principal amount / main relief (e.g., unpaid rent, unpaid loan, delivery of property),
interest (when applicable), and
costs of suit (limited court-taxable costs), while damages and attorney’s fees require additional legal and factual basis.

2) Key distinctions to understand upfront

A. “Damages” vs “Costs” vs “Attorney’s fees”

Damages Monetary amounts awarded as a remedy for injury or breach, governed mainly by the Civil Code (e.g., actual, moral, exemplary, nominal, temperate, liquidated damages).
Costs of suit (taxable costs) Items the Rules of Court allow to be “taxed” or charged to the losing party (often modest compared to lawyer’s fees). Costs are not meant to reimburse everything you spent; they are a defined set of recoverable items.
Attorney’s fees Two different meanings in Philippine law:
- (i) The lawyer’s compensation agreement (what you owe your lawyer under your retainer/contract).
- (ii) Attorney’s fees as “damages” (a court-awarded amount under Civil Code Article 2208 or other law/stipulation). The court-awarded attorney’s fees (as damages) are not automatic and must be justified.

B. “Attorney’s fees as damages” belongs to the party—not automatically to the lawyer

An award of attorney’s fees as damages is generally in favor of the litigant, not the counsel. How that amount is shared or paid to counsel depends on:

the client-lawyer contract, and/or
a lawyer’s charging lien on the judgment proceeds (subject to the rules on attorney’s lien and proper notice).

3) The Civil Code menu of damages in Philippine civil cases

A. Actual or compensatory damages (Civil Code Art. 2199, related provisions)

What it is: Reimbursement for proven pecuniary loss (e.g., repair costs, medical bills, lost income, unpaid obligations, replacement cost, measurable business losses).

Core requirement: Prove both (1) the fact of loss and (2) the amount of loss. Courts typically require competent evidence, often:

receipts/invoices,
contracts,
payroll or accounting records,
bank records,
credible testimony tied to documents.

Common reasons courts deny/reduce actual damages:

amounts are speculative,
receipts are missing or unreliable,
the loss is not shown to be caused by the defendant’s act/breach,
claimed losses are remote or not the natural/probable consequence.

Breach of contract nuance (Art. 2201):

If the obligor acted in good faith, liability is usually limited to damages that are natural and probable consequences and those foreseeable at the time of contracting.
If there is fraud, bad faith, malice, or wanton attitude, liability can expand to all damages reasonably attributable to the breach.

B. Moral damages (Arts. 2217, 2219, 2220 and related)

What it is: Compensation for mental anguish, serious anxiety, wounded feelings, social humiliation, and similar non-pecuniary injury.

Not automatic: Moral damages are awarded only in recognized situations, and the claimant must show:

a legal basis (e.g., cases listed in the Civil Code, or where jurisprudence recognizes it), and
a factual basis (credible evidence of the suffering and the wrongful act).

Important limitations:

In breach of contract, moral damages are generally recoverable only when the defendant acted in bad faith or the breach was attended by fraud/malice (Art. 2220).
Moral damages are discretionary in amount; courts aim to compensate, not enrich.

C. Exemplary or corrective damages (Arts. 2229–2235)

What it is: Damages imposed by way of example or correction when the defendant’s act is attended by gross bad faith, wantonness, fraud, or malevolence.

Prerequisite rule (common in practice): Exemplary damages typically require that the claimant is also entitled to some form of damages (commonly compensatory, moral, or temperate), because exemplary damages are not usually awarded in a vacuum.

Practical link to attorney’s fees: One express ground for awarding attorney’s fees as damages is when exemplary damages are awarded (Art. 2208).

D. Nominal damages (Arts. 2221–2223)

What it is: A token sum awarded to vindicate a right that was violated, even if no substantial loss is proven.

Mutual exclusivity: Nominal damages generally cannot be awarded together with compensatory damages for the same act, because nominal damages assume no proven pecuniary loss needing compensation.

E. Temperate or moderate damages (Art. 2224)

What it is: A reasonable amount awarded when the court is convinced that some pecuniary loss occurred but the claimant cannot prove the exact amount with certainty.

Typical use: When actual loss is real but evidence is incomplete (e.g., receipts missing) and the court finds it unfair to award nothing.

F. Liquidated damages (Arts. 2226–2228)

What it is: Damages pre-agreed in a contract (e.g., “10% liquidated damages upon default,” “₱50,000 as liquidated damages”).

Court control: Even if stipulated, courts can reduce liquidated damages if they are iniquitous or unconscionable or function as an oppressive penalty.

4) Interest: often the biggest add-on to a winning money judgment

A. Legal basis and the modern standard rate

Philippine courts generally apply 6% per annum as the legal interest rate in many situations (especially after the jurisprudential shift aligned with the BSP’s policy change). How and when it runs depends on the nature of the obligation and whether the amount was liquidated/ascertainable.

B. The main timing rules (practical summary)

Loans or forbearance of money (e.g., unpaid loan, unpaid price treated as credit)
- If there is a stipulated interest rate, courts may apply it (subject to rules on unconscionability and other limits).
- If no stipulated rate, legal interest may run (commonly 6% p.a.) from default, which often requires demand (judicial or extrajudicial), depending on the obligation and the circumstances.
Obligations not involving loans/forbearance (e.g., damages from breach/quasi-delict)
- If the amount of damages is liquidated or can be determined with certainty at the time of demand, interest may run from demand.
- If the claim is unliquidated and becomes certain only upon judgment, interest usually runs from the date of judgment.
After finality of judgment (post-judgment interest) Once the decision becomes final and executory, the total monetary award commonly earns 6% per annum until full satisfaction. This is meant to compensate for delay in payment of a final judgment.

C. Interest usually applies to the whole money judgment

Post-judgment interest often applies to the total adjudged amount (principal, damages, attorney’s fees awarded as damages, etc.), because the entire sum becomes a judgment debt once final.

5) Attorney’s fees after you win: when courts may award them (and when they won’t)

A. The default: each party bears its own lawyer’s fees

As a rule, the losing party does not pay the winning party’s lawyer’s fees simply because they lost. Philippine courts treat attorney’s fees awards as an exception, not the norm.

B. The governing rule: Civil Code Article 2208 (core grounds)

Attorney’s fees and expenses of litigation may be recovered in specific cases, including (among others):

when there is a stipulation in the contract,
when the defendant’s act/omission compelled the plaintiff to litigate with third persons or to incur expenses to protect an interest,
in malicious prosecution,
in clearly unfounded civil action or proceeding against the plaintiff,
when the defendant acted in gross and evident bad faith in refusing to satisfy a plainly valid claim,
in actions for support,
in certain actions involving recovery of wages (in contexts where applicable law allows),
when exemplary damages are awarded,
and other cases where the court deems it just and equitable (this “equitable” ground is not a blank check; it still requires factual and legal justification).

C. Three practical requirements courts insist on

Even if one of the grounds exists, courts commonly require that:

Attorney’s fees are specifically prayed for (or otherwise properly put in issue),
There is factual basis in the record (what conduct justified fees), and
The decision states the legal basis and reasoning—awards cannot be made as a routine add-on.

D. Amount: “reasonable,” not punitive

Courts may award attorney’s fees as:

a fixed amount, or
a percentage of the amount recovered, but the amount must be reasonable under the circumstances. Even with a contractual attorney’s fee clause, courts may reduce what they find excessive or unconscionable.

E. Attorney’s fees vs “expenses of litigation”

Article 2208 also recognizes expenses of litigation (e.g., certain necessary expenses to litigate) as potentially recoverable. But courts typically require proof and a tight connection to the litigation and the wrongful act—many day-to-day spending items may not be reimbursed unless clearly allowable.

6) “Costs of suit” under the Rules of Court: what you can recover even without proving damages

Separate from attorney’s fees is costs, which are governed by procedural rules. Costs usually include specific, taxable items such as:

certain filing and docket-related fees,
sheriff’s fees and lawful service/enforcement fees,
costs of producing the record/transcripts in some settings,
and other items defined by the rules and allowed by the court.

Key point: Costs are not a full reimbursement of everything you spent, and they are usually much smaller than attorney’s fees.

7) Pleading and proof: why many “winning” parties still get no damages or attorney’s fees

A. You must plead damages properly

Actual damages should be itemized and supported.
Moral/exemplary/temperate/nominal must be stated with a legal basis and supporting facts.
Attorney’s fees must be prayed for and grounded on Article 2208 or another legal/stipulatory basis.

In civil procedure practice, special damages (those not presumed and requiring specific proof) must be specifically alleged; courts do not award them on generalized allegations.

B. You must prove damages by preponderance of evidence

The civil standard is preponderance of evidence. Courts reject damages based on:

speculation,
self-serving estimates with no documentation,
losses not causally linked to the defendant’s act,
expenses that are not shown to be necessary and reasonable.

C. The decision must contain justification

Even when evidence exists, courts commonly require that the judgment itself explains the basis for awarding each type of damages and attorney’s fees. Unsupported, “template” awards are frequently removed or reduced on appeal.

8) Special situations that affect post-win recovery

A. Counterclaims: the defendant can recover damages and attorney’s fees too

A “winning party” could be:

a plaintiff who proved the complaint, or
a defendant who defeated the complaint and proved a counterclaim (e.g., damages for bad faith suit, attorney’s fees under Art. 2208).

Attorney’s fees recovery for a prevailing defendant commonly depends on showing that the suit was clearly unfounded, brought in bad faith, or fits another Article 2208 ground—plus proper pleading of the counterclaim.

B. Provisional remedies and bond damages (attachment/injunction/replevin)

When a party used provisional remedies (like preliminary attachment or preliminary injunction) and the court later determines it was wrongful, the injured party may claim damages against the bond, subject to strict procedural timing and requirements under the Rules of Court. Missing the procedural window can forfeit bond-damage recovery even if you ultimately win.

C. Compromise, satisfaction, and partial payments

If the judgment is satisfied by:

settlement,
partial payments,
levy/garnishment, the computation of remaining principal and interest matters. Payments are typically applied according to the judgment terms and legal rules; disputes often arise if the debtor pays “principal only” while interest continues.

D. Appeals and finality

You cannot usually enforce collection by execution until the judgment is final and executory, except in limited situations where execution pending appeal is allowed under strict conditions. Finality is also central to the start of post-judgment interest and execution steps.

9) Enforcement after winning: turning the award into actual money

A favorable decision becomes collectible through execution:

entry of judgment / finality,
motion for execution (or issuance of writ as a matter of right when final),
sheriff enforcement (demand, levy on property, garnishment of bank accounts, sale at public auction where applicable),
satisfaction and accounting.

Winning on paper but failing to locate collectible assets is common; enforcement often determines whether damages and attorney’s fees are actually realized.

10) Practical “what courts commonly award” patterns (without assuming entitlement)

In many civil cases involving money claims, awards often break down as:

Principal (e.g., unpaid amount)
Interest (pre-judgment depending on demand/liquidation; plus post-judgment interest after finality)
Proven actual damages (if receipts/records support)
Temperate damages (occasionally, when loss is clear but proof is incomplete)
Moral and exemplary damages (more common when bad faith, fraud, or oppressive conduct is clearly shown, and the case category supports them)
Attorney’s fees as damages (only when Article 2208 or a statute/stipulation applies and the decision explains why)
Costs of suit (taxable procedural costs)

11) A compact checklist of what must be present to recover each item

Actual damages

Clearly alleged + itemized
Causation shown
Amount proven by competent evidence

Moral damages

Case type supports it (statutory/jurisprudential category)
Wrongful act/bad faith shown where required
Credible proof of mental/social injury
Amount left to court discretion but must be supported

Exemplary damages

Qualifying bad faith/fraud/wantonness
Usually alongside other damages
Justification stated in the decision

Temperate damages

Loss shown but not exactly quantifiable
Court finds it equitable to award a moderate sum

Liquidated damages

Valid stipulation
Not unconscionable; may be reduced by the court

Attorney’s fees (as damages)

Specifically prayed for
Falls under Art. 2208 (or other law/stipulation)
Factual basis proven (e.g., bad faith, unjust refusal, clearly unfounded action, exemplary damages awarded)
Amount reasonable and explained

Costs

Taxable under the Rules of Court
Usually granted to the prevailing party unless the court directs otherwise

12) The guiding policy behind the doctrine

Philippine civil litigation remedies are designed to:

compensate real injury (actual damages),
vindicate rights (nominal damages),
address proven non-pecuniary harm (moral damages),
deter egregious conduct (exemplary damages),
and prevent routine shifting of lawyer’s fees (attorney’s fees as a carefully controlled exception).

This policy is why courts repeatedly emphasize: damages and attorney’s fees must be pleaded, proven, and justified—not presumed from the fact of winning.