oblicon: notes/transcriptions 1

Areola vs CA

Under the law governing reciprocal obligations, particularly the second paragraph of Article 1191, ¹⁶ the injured party, petitioner-insured in this case, is given a choice between fulfillment or rescission of the obligation in case one of the obligors, such as respondent insurance company, fails to comply with what is incumbent upon him. However, said article entitles the injured party to payment of damages, regardless of whether he demands fulfillment or rescission of the obligation.

Nominal damages are "recoverable where a legal right is technically violated and must be vindicated against an invasion that has produced no actual present loss of any kind, or where there has been a breach of contract and no substantial injury or actual damages whatsoever have been or can be shown.

Article 2201

            Extent of liability

In contracts and quasi-contracts, the damages for which the obligor who acted in good faith is liable shall be those that are the natural and probable consequences of the breach of the obligation, and which the parties have foreseen or could have reasonably foreseen at the time the obligation was constituted.

In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages which may be reasonably attributed to the non-performance of the obligation. (1107a)

Eggshell Skull/ Thin Skull Doctrine

-          If there is bad faith, fraud, malice or wanton attitude, the breaching party will be liable for ALL damages attributable to the non performance of the obligation.

Bad faith

            -it is a state of mind, dishonest purpose

            -The fraudulent deception of another person; the intentional or malicious refusal to perform some duty or contractual obligation.

One can make an honest mistake about one's own rights and duties, but when the rights of someone else are intentionally or maliciously infringed upon, such conduct demonstrates bad faith.

Kinds of damages

MENTAL

1.            Moral damages – they include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation and similar injury.

2.            Exemplary damages – imposed by way of example or correction for public good.

3.            Nominal damages – damages to justify a right.

4.            Temperate damages – may be recovered if the court finds that some pecuniary loss has been suffered by its amount cannot, from the nature of the case, be proved with certainty.

5.            Actual damages – these refer to the pecuniary loss that may be recovered. It includes the value of the loss suffered and profits not realized.

6.            Liquidated damages – those agreed upon by the parties to a contract, to be paid in case of breach.

Fraud

§  Fraud in obtaining consent- can be ratified

§  Fraud in the performance of the obligation- cannot be ratified

Causal fraud- vitiated consent- makes the contract voidable

Incidental fraud- does not affect the validity of the contract- but can claim damages

§  Future fraud

A waiver of an action for future fraud cannot be waived. If there is an agreement for its waiver, the same is void (Article 1171). Thus, the debtor will still be liable for damages if he commits fraud in the performance of his obligation despite the waiver.

§  Past fraud

A waiver of an action for past fraud may be waived, since the commission of fraud can no longer be encouraged. A past fraud can be validly waived, because what is waived is the effect of fraud and such waiver is an act of generosity on the part of the victim of the fraud.

Fraud is not presumed rather it has to be proved.

Negligence

The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place. When negligence shows bad faith, the provisions of Articles 1171 and 2201, paragraph 2, shall apply.

If the law or contract does not state the diligence which is to be observed in the performance, that which is expected of a good father of a family shall be required. (1104a)

Degrees of negligence

            Slight diligence- only grave negligence will make the debtor liable

            Ordinary diligence/ Diligence of a good father- ordinary negligence will make debtor liable

            Extraordinary diligence- even slight negligence will make the debtor liable

PAL vs. CA

The duty to exercise the utmost diligence on the part of common carriers is for the safety of passengers as well as for the members of the crew or the complement operating the carrier, the airplane in the present case. And this must be so for any omission, lapse or neglect thereof will certainly result to the damage, prejudice, nay injuries and even death to all aboard the plane, passengers and crew members alike.

Picart vs Smith

            The test by which to determine the existence of negligence in a particular case may be stated as follows: Did the defendant in doing the alleged negligent act use that reasonable care and caution which an ordinarily prudent person would have used in the same situation?

PNCC vs CA

The question as what would constitute the conduct of a prudent man in a given situation must be determined in the light of human experience and in view of the facts involved in the particular case. 

What are the things to be considered?

-nature of obligation

-

Proximate cause

            -an act from which an injury results as a natural, direct, uninterrupted consequence and without which the injury would not have occurred

Efficient cause

            -that which actually precipitates an accident or injury

Layugan vs IAC

            Res Ipsa Loquitur

"Where the thing which causes injury is shown to be under the management of the defendant, and the accident is such as in the ordinary course of things does not happen if those who have the management use proper care, it affords reasonable evidence, in the absence of an explanation by the defendant, that the accident arose from want of care.

Last clear chance

            1. both parties are negligent

2. negligence must not be contemporaneous

3. party who had the last clear chance failed to so he must bear the consequence of the negligent act

Culpa Contractual

            Lasam vs Smith

It is sufficient to reiterate that the source of a common carrier's legal liability is the contract of carriage, and by entering into the said contract, it binds itself to carry the passengers safely as far as human care and foresight can provide, using the utmost diligence of a very cautious person, with a due regard for all the circumstances. The records show that this obligation was not met by the respondents.

Culpa Aquiliana

            Air France vs Carrascoso

The act of the airline crew is the source of tortuous act.

1. May an employer invoke the contributory negligence of the other person as proximate cause in culpa contractual?

NO!

The doctrine of proximate cause is applicable only in actions for quasi-delict, not in actions involving breach of contract. The doctrine is a device for imputing liability to a person where there is no relation between him and another party. In such a case, the obligation is created by law itself. But, where there is a pre-existing contractual relation between the parties, it is the parties themselves who create the obligation, and the function of the law is merely to regulate the relation thus created.

-Calalas vs CA

2. Does a pre-existing contractual relations between the parties absolutely bar a cause of action for quasi- delict?

NO!

           

The contract of air carriage, therefore, generates a relation attended with a public duty. Neglect or malfeasance of the carrier's employees, naturally, could give ground for an action for damages.

Thus, "Where a steamship company ⁴⁵ had accepted a passenger's check, it was a breach of contract and a tort, giving a right of action for its agent in the presence of third persons to falsely notify her that the check was worthless and demand payment under threat of ejection, though the language used was not insulting and she was not ejected." ⁴⁶ And this, because, although the relation of passenger and carrier is "contractual both in origin and nature" nevertheless "the act that breaks the contract may be also a tort".

-Air France

-Singson vs BPI

3. May there be 2 causes of action arising from the same singular negligent act?

YES!

Consequently, a separate civil action lies against the offender in a criminal act, whether or not he is criminally prosecuted and found guilty or acquitted, provided that the offended party is not allowed, if he is actually charged also criminally, to recover damages on both scores, and would be entitled in such eventuality only to the bigger award of the two, assuming the awards made in the two cases vary. In other words, the extinction of civil liability referred to in Par. (e) of Section 3, Rule 111, refers exclusively to civil liability founded on Article 100 of the Revised Penal Code, whereas the civil liability for the same act considered as a quasi-delict only and not as a crime is not extinguished even by a declaration in the criminal case that the criminal act charged has not happened or has not been committed by the accused

-Elcano vs Hill

4. Since the nature of negligence in culpa cont from culpa acq can one institute ..

Metro manila transit vs ca

Vinluan vs ca

1. May negligence be established even if there is no direct evidence?

YES! Res ipsa loquitur.

The doctrine can be invoked only when under the circumstances, direct evidence is absent and not readily available.[39] This is based in part upon the theory that the defendant in charge of the instrumentality which causes the injury either knows the cause of the accident or has the best opportunity of ascertaining it while the plaintiff has no such knowledge, and is therefore compelled to allege negligence in general terms and rely upon the proof of the happening of the accident in order to establish negligence.[40] The inference which the doctrine permits is grounded upon the fact that the chief evidence of the true cause, whether culpable or innocent, is practically accessible to the defendant but inaccessible to the injured person.[41]

-Macalinao vs Ong

2. Is it always the burden of the plaintiff to prove the allegations in culpa contractual case?

NO!

Art. 1756. In case of death of or injuries to passengers, common carriers are presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence as prescribed by articles 1733 and 1755.

In culpa contractual, the moment a passenger dies or is injured, the carrier is presumed to have been at fault or to have acted negligently, and this disputable presumption may only be overcome by evidence that he had observed extra-ordinary diligence as prescribed in Articles 1733, 1755 and 1756 of the New Civil Code ² or that the death or injury of the passenger was due to a fortuitous event ³ (Lasam v. Smith, Jr., 45 Phil. 657).

-Phil rabbit vs IAC

Delay

Ordinary delay- failure to perform an obligation on time

Legal delay- failure to perform an obligation on time which failure constitutes a breach of contract

-          Liable for damages

-          There is already a demand made judicially or extra judicially

Demand is not necessary when:

1. When the law so provides.
2. When it is stipulated in the contract.

Example:

A contract was made stating that on 12/102010 sacks of rice should be delivered w/out need for demand. - this is not considered as a stipulation

A contract was made stating that on 12/102010 sacks of rice should be delivered w/out need of demand and person would not be in default. – valid stipulation

Acceleration clause- all obligations would be due and demandable (person is not yet in default)

      - would be due and demandable and would make a person in default (person is in default)

3. When time is of the essence of the contract.
4. When demand would be useless.
5.  When admitted by party (based on logic)

Requisites of default:

1. Obligation must be due, demandable and liquidated
2. Debtor fails to perform his obligation on the date agreed upon
3. A demand, judicial or extra judicial made by the creditor upon the debtor to fulfill, perform or comply with his obligation otherwise, he will be in default
4. Failure of the debtor to comply with such demand

Effects of default

1. The debtor shall be liable for the payment of damages. (Article 1170).
2. If the obligation consists in the delivery of a determinate thing, he shall be responsible for any fortuitous event until he has effected the delivery (Article 1165).

Reciprocal obligation

            Performance may be set on different dates

To put the seller on default, demand as a rule must be made. Delivery, upon the other hand, does not put the buyer in default, till after demand, unless demand is not required.

• Performance is not set on different dates

It is understood that performance must be simultaneous. One party cannot demand performance by the other, if the former himself cannot perform. And when neither has performed, there is compensatio morae.

            -from the moment one of the parties fulfills his obligation, delay by the other begins

 agcaoili vs gsis

1.      Mora solvendi – delay on the part of the debtor.

§  Mora solvendi ex re – debtor’s default in real obligations.

§  Mora solvendi ex persona – debtor’s default in personal obligation.

Requisites:

§  Obligation must be due.

§  There must be non-performance.

§  There must be demand, unless the demand is not required.

§  The demand must be for the obligation that is due.

2.      Mora accipiendi – default on the part of the creditor.

3.      Compensatio morae – when in a reciprocal obligation both parties are in default; here it is as if neither is in default.

Fortuitous event- that which could not be foreseen or which even if foreseen, was inevitable.

Force majeure is a kind of fortuitous event, usually caused by man

Essential characteristics:

1. The cause must be independent of the debtor’s will.
2. There must be impossibility of foreseeing the event or of avoiding it even if it can be foreseen.

Case of Austria vs ca

3. The occurrence of the event must be of such character as to render it impossible for the debtor to perform his obligation in a normal manner.
4. The obligor must be free from any participation in the aggravation of the injury resulting to the creditor.

NOTE:  When the effect of the fortuitous event is found to have been partly the result of a person’s participation – whether by active intervention, neglect or failure to act – the whole occurrence is humanized and removed from the rules applicable to acts of God.

Example: slippery road can be a fortuitous event but if you are over speeding then the occurrence is already humanized.

Must not be negligent or must do misconduct.

An act of God cannot be invoked to protect a person who has failed to take steps to forestall the possible adverse consequences of such a loss. One's negligence may have concurred with an act of God in producing damage and injury to another; nonetheless, showing that the immediate or proximate cause of the damage or injury was a fortuitous event would not exempt one from liability. When the effect is found to be partly the result of a person's participation - whether by active intervention, neglect or failure to act - the whole occurrence is humanized and removed from the rules applicable to acts of God.

Case of Mindex

There is fortuitous event:

1. Robbery- Case of Austria

*In robbery, check first if what was stolen is money. Money is a generic thing and genus never perishes so fortuitous event will not extinguish the liability of the person.

*If the place or thing you are doing is risky then there is no fortuitous event because you knew of the dangers that you will face in being there or doing such thing.

2. Typhoon- Case of Southwestern

The school/institution must prove that the building was built strong and not below standard.

3. Arson- (Case of Mindex)

In this case there is no fortuitous event because the “equipment” was just left without anyone guarding it. Therefore it was open to persons who had the intent of destroying it.

No fortuitous event:

1. Mechanical defect- lasam, tugade

*its not fortuitous per se. You must check if there is negligence on the part of the person such as not checking the condition of the car, etc.

2. Knowing and appreciating the peril posed by the swollen stream and its swift current- rep vs Luzon stevedoring

*this shows that the event is not unforeseen

3. Defect in video tape
4. Leaving a heavily flooded barge floating for a considerable number of hours, knowing that the barge does not have any power of its own and is totally defenseless from the ravages of the sea- schintz

Effects in obligations: 1174

Gen rule: obligor is not liable

Exceptions

Law- example 1165, if in default/ deliver to 2 persons with different interest (if lost: maybe replaced with money)

Stipulation

Nature of obligation requires assumption of risk- best example is insurance

Generic thing – because genus never perishes

 

Obligation

A juridical relation whereby a creditor may demand from a debtor, the observance of a determinate conduct, which may be in a form of giving, doing, or not doing; And in case of breach may demand satisfaction from the assets of the latter.

An obligation is a juridical necessity to give, to do or not to do. (Article 1156)

§  Juridical necessity - An obligation is considered a juridical necessity because in case of non-compliance, the courts of justice may be called upon to compel performance.

§  To Give – An obligation to give is a real obligation because a physical thing is required to be given and delivered by one of the contracting parties to the other.

§  To Do – An obligation to do is a personal positive obligation made by one party to do something for the other.

§  Not to Do – An obligation not to do is a personal negative obligation made by one party to another to refrain or not to do something.

Elements of obligation

1. Active subject (creditor/obligee) – one who has the right to demand performance of the obligation.
2. Passive subject (debtor /obligor) – one who is obliged to perform the obligation.
3. Prestation – the object or subject matter of the obligation. It may consist of giving, doing or not doing something.
4. Efficient cause (vinculum/ juridical tie/legal tie) – which binds the parties to the obligation and which may arise either from bilateral or unilateral acts of persons. The efficient cause of an obligation may be any of the five sources of obligation.

Kinds of obligation according to subject matter

Sources of obligation

1.      Law

Obligations derived from law are not presumed. Only those expressly determined in the Civil Code or in special laws are demandable, and shall be regulated by the precepts of the law, which establishes them; and as to what has not been foreseen, by the provisions on Obligations (Article 1158)

2.      Contract

A meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service (Article 1305).

Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. (Article 1159)

Innominate contracts:

a.       Do ut des – I give that you may give.

b.      Do ut facias – I give that you may do.

c.       Facio ut des – I do that you may give.

d.      Facio ut facias – I do that you may do.

3.      Quasi Contract

Is a certain lawful, voluntary and unilateral acts giving rise to a juridical relation to the end that no one shall be unjustly enriched at the expense of another.

Kinds:

a.       Negotiorum gestio (unauthorized management)

This takes place when a person voluntarily takes charge of another’s abandoned business or property without the owner’s authority. Reimbursement must be made to the gestor for necessary and useful expenses.

b.      Solutio indebiti (undue payment)

This takes place when something is received when there is no right to demand it, and it was unduly delivered thru mistake. The recipient has the duty to return it.

Is quasi-contract an implied contract?

            No, because in a quasi-contract (unlike in an implied contract) there is no meeting of the minds.

4.      Delict

RPC Art 100: Every person criminally liable is also civilly liable.

            If no reservation is made then the civil action is deemed instituted with the criminal action.

Scope of civil liability:

a.       Restitution

b.      Reparation of damage caused

c.       Indemnification for consequential damages

Effect of acquittal in a criminal case:

1.      Reasonable doubt- no civil liability

2.      Exempting circumstance- has civil liability

3.      Only preponderance of evidence, not beyond reasonable doubt- has civil liability

Independent civil action

            Art 32 - violations of constitutional rights
            Art. 33 – defamation, physical injuries, fraud
            Art. 34 – failure of police to perform duty to those in need
            Art 2176

*Shall proceed independently from the criminal action

*Still needs reservation under Rule 111 Sections 1 and 3 of the New Rules in Criminal Procedure (according to book)

*need not be reserved (according to sir)

5.      Quasi Delict

These are acts or omissions that cause damage to another, there being no contractual relation between the parties.

(see notes in the table)

1.      Compliance with an obligation

a.       Obligation to give

·         Specific thing (5)

A thing is determinate when it is particularly designated or physically segregated from all others of the same class

Duties in giving a determinate thing:

1.      Preserve or take care with diligence of a good father of a family

2.      To deliver the fruits of the thing

o   Personal rights- a right enforceable against a definite person or group of person

o   Real rights- a right enforceable against the world

3.      To deliver its accessories and accessions

4.      To deliver the thing itself

5.      To pay damages in case of breach of obligation

·         Generic thing

A thing is indeterminate or generic when it is not particularly designated or physically segregated from all others of the same class

Duties in giving a generic thing:

1. To deliver a thing which is of neither superior nor of inferior quality

        Creditor cannot demand a thing of superior quality

        Debtor cannot deliver a thing of inferior quality

2. To pay damages in case of breach of obligation

b.      Obligation to do

1244- act or forbearance cannot be substituted by another act against the will of the oblige

c.       Obligation not to do

Kinds of delivery:

a.       Actual delivery – where physically, the property changes hands.

b.      Constructive delivery – that where the physical transfer is implied.

§  Tradition simbolica – symbolical delivery.

§  Tradition longa manu – delivery by mere pointing out of the object.

§  Traditio brevi manu – delivery whereby a possessor of a thing not as an owner, becomes the possessor as owner.

§  Traditio constitutum possessorium – delivery whereby a possessor of a thing as an owner, retains possession no longer as an owner, but in some other capacity.

§  Tradition by the execution of legal forms and solemnities.

What are the remedies of the creditor?

1.      If the debtor fails to perform his obligation to deliver a determinate thing.

a.       To compel the debtor to make the delivery (Article 1165).

b.      To demand damages from the debtor (Article 1170).

2.      If the debtor fails to perform his obligation to deliver a generic thing.

a.       To ask that the obligation be complied with at the expense of the debtor (Article 1165).

b.      To demand damages from the debtor (Article 1170)

3.      If the debtor fails to perform his obligation in obligation to do.

a.       If the debtor fails to perform the obligation or performs it but contravenes the tenor thereof:

§  Creditor may have the obligation executed at the expense of the debtor (Article 1167).

§  He may also demand damages from the debtor. (Article 1170)

No person can be compelled to perform an act against his will. To do so will constitute slavery or involuntary servitude, which is prohibited by the Constitution.

b.      If the debtor performs the obligation but does it poorly:

§  Creditor may have the same be undone at debtor’s expense. (Article 1167)

§  Creditor may also demand damages from the debtor (Article 1170)

4.      If the debtor does what has been forbidden him.

a.       The creditor may demand that what has been done be undone.

b.      He may also demand damages from the debtor.

2.      Breach of Obligation and grounds for Liability