Philippine Context under the New Civil Code (Republic Act No. 386)

The concept of “loss” (perjuicio or daño y perjuicio) is one of the most fundamental in Philippine civil law. Every wrongful act or omission that causes loss to another gives rise to an obligation to repair that loss (Articles 20, 21, 19, 100, 1157, and 2176 of the Civil Code). The Supreme Court has repeatedly held that the purpose of damages is to place the injured party, as far as possible, in the position he would have been in had the wrong not been committed — neither enriching him nor leaving him impoverished.

While the Civil Code formally classifies damages into six kinds (actual/compensatory, moral, nominal, temperate, liquidated, and exemplary — Article 2197), legal scholars, commentators (Manresa, Sanchez Roman, Castan, as adopted in Philippine jurisprudence), and Supreme Court decisions have long recognized a more functional, substantive classification of loss into three principal categories:

Physical Loss (daño corporal o material físico)
Legal Loss (perjuicio jurídico or lesión jurídica)
Civil Loss (lucrum cessans or perjuicio civil/económico cesante)

These three categories exhaustively cover every form of compensable prejudice recognized in Philippine law.

1. Physical Loss (Daño Emergente Físico / Corporal o Material Directo)

Physical loss is the immediate, tangible detriment to the body of the person or to corporeal property.

Legal Basis

Article 2200: “Indemnification for damages shall comprehend not only the value of the loss suffered (damnum emergens)…”
Articles 2219(1) and (2): Moral damages are expressly recoverable in crimes and quasi-delicts causing physical injuries.
Article 2176: Quasi-delict covers “damage caused to another through an act or omission… there being fault or negligence.”

Sub-categories of Physical Loss

a. Bodily injury (lesiones físicas)

Medical, hospital, rehabilitation, and medicine expenses
Prosthetics, plastic surgery, therapy
Pain and suffering (although pain is technically moral, it originates from the physical injury)
Permanent disability or disfigurement

Supreme Court awards (as of 2025 guidelines in People v. Jugueta, as updated):

Slight physical injuries: ₱5,000–₱50,000 actual + moral
Less serious: ₱50,000–₱200,000
Serious: ₱200,000–₱500,000
In homicide/murder: civil indemnity ₱100,000–₱150,000 (2024–2025 levels) + actual expenses + loss of earning capacity

b. Damage to or destruction of property

Fair market value at the time of destruction (PNB v. CA, 1988) or cost of repair, whichever is lower (Article 2203)
Consequential expenses (transport, storage, etc.)

Proof required: Receipts, medical certificates, death certificate, police reports, photographs, repair estimates. When exact proof is impossible, temperate damages of at least ₱50,000–₱100,000 are awarded (Article 2224; Tan v. OMC Carriers, 2011).

2. Legal Loss (Lesión Jurídica / Perjuicio Jurídico / Violation of Personality Rights)

Legal loss is the infringement of a legally protected interest or right even when no physical or immediate economic harm is suffered. It is the purest form of “injury” as distinguished from “damage” in common-law terms.

Legal Basis

Article 19: Abuse of right doctrine
Article 20: Liability for violation of law
Article 21: Liability for acts contra bonus mores
Article 26: Protection of dignity, personality, privacy, honor, and peace of mind
Article 32: Direct liability for violation of constitutional rights (freedom of speech, privacy, due process, etc.)
Article 34: Liability of police officers for refusal or failure to render aid
Article 35: Liability for malicious prosecution

Typical Cases Producing Legal Loss Without Physical Harm

Illegal dismissal with malice or bad faith (moral damages ₱50,000–₱200,000, exemplary ₱50,000–₱200,000)
Defamation, libel, slander, intrusion of privacy (Article 26(1)–(4), R.A. 10175 Cybercrime Law, R.A. 9995 Anti-Photo Voyeurism Act)
Breach of promise to marry accompanied by deceit or seduction
Malicious prosecution or clearly unfounded civil action (Article 35)
Violation of constitutional rights by public officers (MHP Garments v. CA, 1994; Vinzons-Chato v. Fortune Tobacco, 2007)
Stalking, online harassment, revenge pornography

Damages Awarded for Pure Legal Loss

Moral damages (primary) — for mental anguish, wounded feelings, besmirched reputation, social humiliation (Article 2217)
Nominal damages — when the right is violated but no substantial loss is proven (Article 2221–2223)
Exemplary damages — to set an example, especially when the defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner (Article 2229–2230)
Attorney’s fees (Article 2208(1), (2), (4), (11))

The Supreme Court has consistently awarded ₱100,000–₱500,000 moral damages and ₱100,000–₱1,000,000 exemplary damages in serious violations of personality rights (e.g., ABS-CBN v. Nazareno, 2006; Expertravel & Tours v. CA, 2014; updates in 2024–2025 cyber-libel cases).

3. Civil Loss (Lucrum Cessans / Lost Profits / Civil Fruits Deprived)

Civil loss is the gain prevented or the expected income, profit, or benefit that the victim would have obtained had the wrongful act not occurred. It is called “civil” because it refers to the civil fruits (rentals, interests, earnings, business profits) that are part of the civil patrimony.

Legal Basis

Article 2200 (second part): “…but also the profits which the obligee failed to obtain (lucrum cessans)”
Article 2205(1): Lost profits are recoverable if they are proven with reasonable certainty
Article 442: Civil fruits are rents of buildings, price of leases of lands, income from enterprises, periodic pensions, etc.

Types of Civil Loss

a. Loss of earning capacity (most common in death or disability cases)
Formula upheld since Davila v. PAL (1968) and Villa Rey Transit v. CA (1968), as updated in 2025:

Net Earning Capacity = Life Expectancy × (Gross Annual Income − Necessary Living Expenses)

Life expectancy = 2/3 × (80 − age at death) or remaining years to 65, whichever is beneficial to heirs
Living expenses = 50% of gross income (standard deduction)

b. Lost business profits
Must be proven by financial statements, tax returns, contracts, industry averages (PNB v. CA, 2018). Mere speculation is not allowed, but reasonable certainty suffices.

c. Lost rentals or civil fruits from property wrongfully detained or damaged
Usufructuary or possessor in good faith/bad faith liable for fruits (Articles 443, 544–546, 549)

d. Lost opportunity costs in contractual breaches
Recoverable if foreseeable at the time of contract perfection (Article 2201(2))

Proof Required

For deceased victims: Certificate of employment, pay slips, income tax returns, affidavit of co-workers
For self-employed: Income tax returns for at least three years, financial statements
For businesses: Audited financial statements, sales invoices, contracts cancelled due to the wrong

When exact amount cannot be proven, temperate damages (₱500,000–₱2,000,000 in death cases) or reasonable estimates are allowed.

Summary Table of the Three Types of Loss

Type of Loss	Nature	Typical Compensation	Key Articles / Cases
Physical Loss	Tangible harm to body or things	Actual expenses, medical costs, civil indemnity, temperate	Arts. 2200, 2219(1)(2), 2224; Jugueta
Legal Loss	Violation of rights/dignity	Moral, nominal, exemplary, attorney’s fees	Arts. 19–21, 26, 32, 35; MHP Garments
Civil Loss	Gain prevented / profits lost	Loss of earning capacity, lost profits, civil fruits	Arts. 2200, 2205, 442; Davila v. PAL

Final Observations from Philippine Jurisprudence (up to December 2025)

All three types of loss may concur in a single case (e.g., a vehicular accident causing physical injuries → physical loss + pain (legal/moral) + lost income (civil loss)).
The plaintiff/claimant must prove the fact of loss; the court may appreciate the extent even without exact proof (temperate damages).
In criminal cases, civil liability is deemed instituted (Rule 111, Revised Rules of Criminal Procedure); the three types are awarded automatically in serious crimes.
Interest of 6% per annum (legal interest under BSP Circular No. 799) accrues from finality of judgment until full payment (Nacar v. Gallery Frames, 2013, as modified).
The Supreme Court continues to increase award levels every 3–5 years to adjust for inflation (latest adjustments in 2023–2024 circulars).

The tripartite classification — physical, legal, and civil loss — provides the most complete and practical framework for understanding and claiming damages under Philippine civil law. It reconciles the Code’s formal six-fold classification with the substantive reality of human prejudice recognized by over a century of jurisprudence.