Sumalinog, Jaz Ann T.

Topic: Simple Loan- Interest

Mendoza v. Sps. Gomez

G.R. No. 160110 | June 18, 2014
Perez, J.

FACTS:
 Isuzu Elf truck owned by respondent Leonora Gomez and driven by Antenojenes Perez
was hit by a Mayamy Transportation bus owned by Teresita Gutierrez but registered
under petitioner Elvira Lim and driven by petitioner Mariano Mendoza.
 With this, an information for reckless imprudence was filed against Mendoza. A separate
complaint was also filed against Mendoza and Lim for damages seeking actual damages,
compensation for lost income, moral damages, exemplary damages, attorney’s fees and
cost for suit.
 Because of the incident, Perez as well as others on board of the Isuzu truck sustained
injuries necessitating medical treatment amounting to P11,267.35, which amount was
shouldered by respondents. The truck also sustained extensive damages amounting to
P147,757.40. Respondents added that such incident deprived them of daily income of
P1,000 as they were engaged in buying plastic scraps and delivering them to recycling
plants.
 RTC found Mendoza liable for direct personal negligence under Art. 2176 of the Civil
Code while Lim was liable under Art.2180. Both were ordered to pay solidarily the cost of
repair of the damaged vehicle amounting P142,757.40; P1,000 per day from 7 Mar 1997
to Nov 1997 for the unrealized income of the respondents; P100,000 s moral damages
plus P50,000 as exemplary damages; P50,000 as attorney’s fees; and to pay the costs of
suit.
 On appeal, CA affirmed RTC’s decision with the exception of the award of unrealized
income.
 Hence, this petition.

ISSUE: WON interest can be imposed as part of damage.

RULING: Yes, interest as part of damage is allowed.

Interest by way of damages has been defined as interest allowed in actions for breach of contract
or tort for the unlawful detention of money already due. This type of interest is frequently called
“moratory interest.” Article 2211 of the Civil Code provides that in crimes and quasi-delicts,
interest as part of the damage, may, in a proper case, be adjudicated in the discretion of the
court. Generally, interest is allowed as a matter of right for failure to pay liquidated claims when
due. For unliquidated claims, however, Article 2213 of the Civil Code provides that interest
cannot be recovered upon unliquidated claims or damages, except when the demand can be
established with reasonable certainty.

In this case, although the award of exemplary damages is unliquidated in the sense that
petitioners cannot know for sure, before judgment, the exact amount that they are required to pay
to respondents, the award of actual or compensatory damages, however, such as the truck
repairs and medical expenses, is liquidated in that they can be measured against a reasonably
certain standard. Moreover, justice would seem to require that the delay in paying for past losses
which can be made reasonably certain should be compensated through an award of interest.