LAW 101: More Or Less (or How To Compute For Damages In Case Of Wrongful Death)

In decided Supreme Court cases, the following damages have been commonly granted by the Supreme Court to the victims’ families in cases of wrongful death:

1. actual damages for related expenses (e.g. medical, funeral and burial expenses, transportation, food, phone calls, etc)
2. compensatory damages for loss of the victim’s earning capacity (computed below)
3. compensatory damages for wrongful death (now pegged at P100,000 per death; it was P50,0000 previously). This does not need proof other than the victim’s death.
4. moral damages (for “mental anguish”). This amount is at the court’s discretion.
5. exemplary damages (“by way of example or correction for the public good” hence, usually granted against common carriers). This amount is also at the court’s discretion.
6. attorney's fees.

It is the compensatory damages for loss of the victim’s earning capacity that is the tricky part. In the decided cases, the following computations were used:

X = amount of loss of the victim’s earning capacity
A = life expectancy
A = 2/3 x [(80 (years)) - (victim’s age)]. The capacity of the victim to earn even after retirement age is taken into account.
B = earning capacity
B = (gross annual pay) – (50% of gross annual pay). 50% is the assumed percentage of living expenses incurred out of one's pay.
X = A x B

Dealing with numbers following a tragedy for which these computations are to be used may seem cold but it is sincerely hoped that the above information will guide those concerned in getting redress.

Sources:

Title XVIII-Damages, The Civil Code of the Philippines;
Villa Rey Transit, Inc. vs. Court Of Appeals, G.R. No. L-25499, February 18, 1970;
Negros Navigation Co., Inc. vs. Court of Appeals, G.R. No. 110398, November 7, 1997;
People Of The Philippines vs. Claudio Teehankee, G.R. Nos. 111206-08, October 6, 1995.