Introduction

In the Philippine legal system, the term "danyos perwisyo" is a colloquial or Filipinized rendition of the Spanish phrase "daños y perjuicios," which translates to "damages and prejudices." This concept is deeply embedded in civil law, particularly in obligations and contracts, torts (quasi-delicts), and crimes with civil liability. Rooted in the New Civil Code of the Philippines (Republic Act No. 386, enacted in 1950), "danyos perwisyo" encompasses the compensation awarded to an injured party for losses suffered due to another's fault, negligence, or breach. It represents the principle of restorative justice, aiming to restore the aggrieved party to their position before the harm occurred.

The Civil Code draws heavily from Spanish civil law traditions, where "daños" refers to direct harm or injury, and "perjuicios" to consequential losses or prejudices. In practice, Philippine courts use these terms interchangeably with "damages" in English, but the nuance highlights both tangible and intangible harms. This article explores the full scope of "danyos perwisyo," including its definitions, classifications, legal bases, computation, evidentiary requirements, limitations, and relevant jurisprudence. It underscores the constitutional foundation under Article III, Section 1 of the 1987 Constitution, which prohibits deprivation of property without due process, extending to the right to recover damages.

Legal Definition and Scope

Under Article 2195 of the Civil Code, every person who, contrary to law, willfully or negligently causes damage to another shall indemnify the latter for the same. "Danyos perwisyo" thus refers to the pecuniary compensation for any detriment—physical, emotional, financial, or reputational—arising from:

Contracts: Breach of obligation (Article 1170), where the debtor is liable for damages from fraud, negligence, or delay.
Quasi-Contracts: Unjust enrichment (Article 2154), requiring restitution including damages.
Delicts (Crimes): Civil liability ex delicto (Article 100, Revised Penal Code), where offenders must pay for damages alongside criminal penalties.
Quasi-Delicts (Torts): Independent civil actions for fault or negligence (Article 2176), even without criminal intent.

The term broadly covers all forms of indemnity, but it is most associated with actual or compensatory damages, which reimburse quantifiable losses. Unlike punitive systems in other jurisdictions, Philippine damages are primarily compensatory, though exemplary damages serve a deterrent function.

Classifications of Damages Under Philippine Law

Article 2197 enumerates six types of damages, all falling under the umbrella of "danyos perwisyo" in varying contexts:

Actual or Compensatory Damages (Article 2199): Reimbursement for proven pecuniary loss, including value of loss suffered (daño emergente) and profits not realized (lucro cesante). Requires substantial evidence like receipts or expert testimony.
Moral Damages (Article 2217): Compensation for mental anguish, fright, serious anxiety, besmirched reputation, or similar non-pecuniary injuries. Awarded in cases of physical injury, defamation, or wrongful acts (e.g., illegal dismissal under Labor Code).
Nominal Damages (Article 2221): Vindication of a right violated without substantial loss, typically a symbolic amount (e.g., PHP 1,000) to affirm legal infringement.
Temperate or Moderate Damages (Article 2224): Awarded when actual damages are proven to exist but cannot be precisely quantified, such as in personal injury cases where exact future medical costs are uncertain.
Liquidated Damages (Article 2226): Pre-agreed penalties in contracts for breach, enforceable unless unconscionable.
Exemplary or Corrective Damages (Article 2229): Imposed by way of example or correction for the public good, in addition to other damages, when the act involves gross negligence or bad faith.

Special laws expand these, such as Republic Act No. 386 (Civil Code) integrations with the Consumer Act (RA 7394) for product liability damages, or the Anti-Torture Act (RA 9745) for enhanced moral and exemplary awards.

Legal Bases and Prerequisites for Awarding Damages

To claim "danyos perwisyo," the plaintiff must establish:

Causation: The damage must directly result from the defendant's act or omission (proximate cause doctrine, Article 2202).
Fault or Negligence: For quasi-delicts, ordinary prudence standard applies (Article 1173); for contracts, good faith is presumed unless proven otherwise.
Quantification: Actual damages need proof beyond reasonable doubt in criminal cases but preponderance of evidence in civil ones.

In crimes, civil liability is inherent (Article 100, RPC), allowing integrated claims in criminal proceedings or separate civil actions. Under the Rules of Court (Rule 111), civil aspects may be reserved or instituted independently.

Limitations include:

Mitigation Duty: The injured party must minimize losses (Article 2203).
Prescription: Actions for damages prescribe in 4 years for quasi-delicts (Article 1146), 5 years for oral contracts, or 10 years for written ones (Article 1144).
No Double Recovery: Compensation from insurance or other sources may offset awards (Article 2206).
Public Policy: Damages cannot be awarded for illegal acts or against public morals.

Computation and Evidence

Computation varies by type:

Actual Damages: Based on market value, replacement cost, or lost earnings (e.g., in wrongful death, Article 2206 provides for loss of earning capacity: net income x life expectancy).
Moral Damages: Discretionary, guided by circumstances; courts often award PHP 50,000–500,000 for serious cases.
Exemplary Damages: Typically 25–50% of actual damages, capped by judicial discretion.

Evidence includes documents (bills, contracts), testimonies, and expert opinions. In cyberlibel (RA 10175), damages may include online reputation harm assessments.

Interest accrues at 6% per annum on damages from finality of judgment (Article 2209, as amended by BSP Circular No. 799).

Jurisprudence on "Danyos Perwisyo"

Supreme Court rulings shape the application:

Batangas Laguna Tayabas Bus Co. v. Intermediate Appellate Court (G.R. No. 74387, 1988): Clarified proximate cause in quasi-delicts, awarding actual and moral damages for negligence in accidents.
People v. Jugueta (G.R. No. 202124, 2016): Standardized damages in heinous crimes, including PHP 100,000 civil indemnity, moral, and exemplary damages each for murder.
Meralco v. Ramoy (G.R. No. 158911, 2009): Awarded temperate damages when actual losses were certain but unquantifiable.
ABS-CBN v. Court of Appeals (G.R. No. 128690, 1999): In breach of contract, liquidated damages upheld if not iniquitous.
Lambert v. Heirs of Rey Castillon (G.R. No. 160709, 2005): Emphasized no moral damages without proof of suffering.

These cases illustrate judicial temperance, ensuring awards are reasonable and evidence-based.

Special Contexts and Applications

Labor Law: In illegal dismissal (Labor Code, Article 279), backwages and separation pay constitute damages; moral damages for bad faith terminations.
Family Law: In annulment (Family Code, Article 45), damages for psychological incapacity; support as a form of ongoing indemnity.
Environmental Law: Under RA 8749 (Clean Air Act), damages for pollution include ecological restoration costs.
Human Rights: In extrajudicial killings (RA 9851), exemplary damages deter state abuses.
Intellectual Property: RA 8293 allows actual damages plus profits for infringement.

For corporations, vicarious liability (Article 2180) holds employers accountable for employees' damages.

Defenses and Remedies

Defenses include force majeure (Article 1174), contributory negligence (reducing awards, Article 2179), or assumption of risk. Remedies involve filing in Regional Trial Courts (for amounts over PHP 400,000) or Metropolitan Trial Courts (below), with appeals to the Court of Appeals and Supreme Court.

Alternative dispute resolution via mediation (RA 9285) can settle damage claims amicably.

Conclusion

"Danyos perwisyo" embodies the Philippine civil law's commitment to equity and restitution, ensuring that harms are redressed proportionately. While rooted in Spanish heritage, it has evolved through legislation and jurisprudence to address modern issues like digital harms and environmental degradation. Claimants must navigate evidentiary hurdles and procedural rules, but the system prioritizes fairness. For specific cases, consulting legal professionals is essential, as awards depend on factual nuances. This framework not only compensates victims but also promotes accountability in societal interactions.