Unfair Competition is not applicable in Education

Education, the training of minds and bodies of children and young men and
women can never be a business. Once a private school makes the admission that it is,
it forgets itself, it forgets also that education must depend for survival basically upon
competition.
The unrestrained delivery of ideas and knowledge to the citizens; and that is
why the law maker has never recognized that there can never be unfair competition.

Kindred Torts
Types
1. Medical malpractice
2. Legal malpractice
3. Liability of directors and trustees of a corporation
4. Nuisance

Medical Malpractice (Reyes vs. Sisters of Mercy Hospital, 2000)

A particular form of negligence which consist in the failure of a physician or
surgeon to apply to his practice of medicine that degree of care and skill which is
ordinarily employed by the profession in general, under similar conditions and in
like surrounding circumstances.

 Deviation from the standard operating procedure or that degree of skill and care
required.

Doctor-Patient Relationship

 Always a consensual contract wherein the parent knowingly seeks the

assistance of the physician on which the latter knowingly accepts the same.
 A doctor-patient relationship is created when a patient engages the services of a
physician, and the latter accepts to agrees to provide care to the patient.
NB: The mere fact that an individual approaches a physician and seeks diagnosis,
advice or treatment does not create the duty of care unless the physician agrees.
Exception: Where a job applicant or employee is examined by a doctor engaged by the
prospective or actual employer, there is NO doctor-patient relationship.

Elements of Medical Malpractice

1. There must be duty (on the part of the physician)
2. Breach by the physician on the standard operating procedure.
3. Breach caused injury to the patient
4. Proximate causation. – breach must be the proximate of the damage.

Duties of a Physician
1. To inform the patient fully of his conditions, and the results of the test made
2. If the physician discovers, or should know or discover, that the patient’s ailment is
beyond his knowledge or technical skill, ability or capacity to treat with likelihood
 of reasonable success, he is also under duty to disclose that fact to the patient and
advise him of the necessity of other or different treatment.
3. Duty to advise his patient to consult a specialist or one qualified in a method of
treatment which the physician is not qualified to give
4. Duty not to abandon the patient and to continue attendance until all the
conditions for his rightful withdrawal are complied with.

Evidential Rules in Medical Malpractice cases

What kind of evidence is needed to prove that a medical or health professional
committed medical malpractice or negligence?

 Expert testimony is needed to prove medical malpractice or negligence.

Why is an expert opinion needed to establish and prove medical malpractice?

 Malpractice actions are determinable only in the light of scientific knowledge, it

has been recognized that expert testimony is usually necessary to support the
conclusion of causation.

What kind of testimony based on scientific knowledge is needed to prove

medical malpractice?
a. Evidence as to the recognized standards of the medical community in the
particular kind of cases
b. A showing that the physician negligently departed from this standard in his
treatment.

Acts Constituting Medical negligence

1. Wrong diagnosis
2. Unwarranted abandonment
3. Operating without patient’s consent where a patient is in possession of his
faculties and no emergency exists
4. Failing to give the patient or his family or attendants all necessary and proper
instructions as to the care and attention to be given to the patient and the
cautions to be observed.
5. Allowing a foreign substance to enter or remain in the body of the person
operated on, and this extends to the sponges and pads.
6. Failing to give warning when attending to a patient afflicted with contagious
disease
7. Writing an erroneous prescription; and
8. Issuing wrongful certificate of insanity or imbecility.

Res Ipsa Loquitor in Medical Negligence Cases (Exception to the general rule
requiring for an expert testimony)
In medical malpractice suit, the doctrine of res ipsa loquitor allows the mere
existence of an injury to justify a presumption of negligence on the part of the person
who controls the instrument causing the injury, provided that the following requisites
concur:
1. The accident is of a kind which ordinarily does not occur in the absence of
someone’s negligence;
 2. It is cause by an instrumentality within the exclusive control of the defendant/s
3. The possibility of contributing conduct which would make the plaintiff
responsible is eliminated

Examples of cases where the Doctrine of Res Ipsa Loquitor was applied
1. Leaving a foreign object in the body of the patient after an operation
2. Injuries sustained on a healthy part of the body which was not under, or in the
area of treatment
3. Removal of the wrong part of the body when another part was intended
4. Knocking out a tooth while a patient’s jaw was under anesthetics for the
removal of his tonsils; and
5. Loss of an eye while the patient was under the influence of anesthetics, during
or following an operation for appendicitis, among others.

Doctrines in Line with Medical Negligence / Malpractice

I. Captain of the Ship Doctrine – In medical negligence cases, it is not only the
physician or other medical professional who is directly involved in the operation
that can be made liable. A surgeon in charge of the operation can also be made
liable for the negligence committed by their assistants if the latter is under their
control when the operation and the resulting injury happened.

II. Doctrine of Corporate Responsibility or the Principle of Apparent

Authority (Vicarious Liability) – Under the Labor Code, consultants are not
considered employees of the hospital. However, Even when no employment
relationship exists between the hospital and medical practitioner but it is
shown that the hospital holds out to the patient that the doctor is its agent, the
hospital may be held vicariously liable.

Requisites:
1. The hospital, or its agent, acted in a manner that would lead a reasonable
person to conclude that the individual who was alleged to be negligent was
an employee or agent of the hospital (i.e., displaying the photos of their
consultants)
2. Where the acts of the agent create the appearance of authority, the plaintiff
must also prove that the hospital had knowledge of and acquiesced in them;
and
3. The plaintiff acted in reliance upon the conduct of the hospital or its agent,
consistent with ordinary care and prudence.

III. Doctrine of Informed Consent – IN a situation where the physician-patient

relationship is said to arise, there also arises a corresponding duty or obligation
on the part of the physician to disclose to the patient whatever grave risks of
injury that might be incurred from a proposed course of treatment.

o If the patient agreed to the treatment, there is a conclusive presumption

that the doctor disclosed all the risks to the patient.

Essential elements:
1. The physician had a duty to disclose material risks
2. He failed to disclose or inadequately disclosed those risks
 3. AS a direct and proximate result of the failure to disclose, the patient
consented to treatment he otherwise would not have consented to
4. The plaintiff was injured by the proposed treatment.

IV. Doctrine of Unlawful Restraint – A patient cannot be detained in a hospital for

non-payment of the hospital bill. If the patient cannot pay the hospital or
physician’s bill, the law provides a remedy for them to pursue, that is, by filing
the necessary suit in court for recovery of such fee or bill.
o Pursuant to RA No. 9439, AN act prohibiting the detention of patients
in hospitals and medical clinics on grounds of nonpayment of hospital
bills or medical expenses.
Exceptions:
1. The hospital can legally detain a patient against their will when they are a
detained or convicted prisoner
2. When the patient is suffering from a very contagious diseases where their
release will be prejudicial to public health. (police power of the state)
3. When the patient is mentally ill such that their release will endanger public
safety
4. In other exigent cases as may be provided by law; or
5. To momentarily prevent a patient from leaving the premises or any part
thereof because they refuse to comply with some reasonable conditions
imposed by the hospital.

Negligence of Lawyers
General Rule: A client is bound by the mistakes of his counsel.
Exception: The reckless imprudence or gross negligence of counsel deprives the
client of due process of law, or when the application of the rule results in the
outright deprivation of one’s property through a technicality.
If the negligence of the counsel is gross, palpable, pervasive, reckless and inexcusable,
then it does not bind the client since, in such case, the client is effectively deprived of
his or her day in court. (Reyes vs. NLRC, 2009)

Negligence of Judges
Illustrative cases:
1. While it is not the presiding judge who makes the entries in the docket book, still
the trial judge is expected to adopt a system of record management and organize
his docket in order to bolster the prompt and effective dispatch of business-proper
and efficient court management is the responsibility of the judge (Heirs of Spouses
Jose v. Beldia)

2. A judge is negligent if he fails to observe that degree of care, precaution and

vigilance required of his position, in not properly supervising the court’s personnel,
particularly those in charge of the docket books.

3. A judge who willfully or negligently renders a decision causing damages to another

shall indemnify the latter for the damages caused. Art. 20, NCC)

4. A judge is also civilly liable for damages, if in refusing or neglecting to decide a case
without just cause, a person suffered material or moral loss without prejudice to
any administrative action that may be taken against him. (Art. 27, NCC) –
Dereliction of duty
5. Some judges do not exactly begin the hearing of cases at 8:30 o’clock in the
morning and 2:00 in the afternoon.

6. Some judges report to their office late in the morning and yet return to the office
late in the afternoon. It is expected that they read all cases set.

7. Some judges go home early after trial in the morning but they fail to return in the
afternoon. Hence, orders and decisions are delayed

8. Some judges dismissed early at noon time because of lunch invitations in the city
hotels or restaurants

9. Some judges go home early after hearing in the morning because of some
appointments outside their field of jurisdiction.

Liability of Directors and Trustees of a Corporation

Under Section 31 of the Corporation Code, directors, and trustees who are
guilty of gross negligence or bad faith in directing the affairs of the corporation or
acquire any personal or pecuniary interest in conflict with their duty as such directors
or trustees shall be liable jointly and severally for all damages resulting therefrom
suffered by the corporation, its stockholders or members and other persons.

Nuisance, as a Kindred Tort

Art. 694, NCC. A nuisance is any act, omission, establishment, business, condition of
property, or anything else which:
1. Injures or endangers the health or safety of others; or
2. Annoys or offends the senses
3. Shocks, defies, or disregards decency or morality
4. Obstructs or interferes with free passage of any public highway or street, or any
body of water
5. Hinders or impairs the use of property
Nuisance is applied to that class of wrongs which arises from unreasonable,
unwarrantable, or unlawful use by a person of his own property and produces such
material annoyance, inconvenience, discomfort, or hurt that the law will presume a
consequent damage.

Distinctions
1. Nuisance v. Trespass – Nuisance consists of a use of one’s own property in
such a manner as to cause injury to the property or other right or interest of
another and generally results from the commission of an act beyond the limits
of the property affected, while a Trespass is a direct infringement of another’s
right of property.

2. Nuisance v. Negligence – Liability for negligence is based on want of proper

care, while ordinarily, a person who creates or maintains a nuisance is liable
for the resulting injury to other regardless of the degree of care or skill exercised
to avoid such injury.

Classifications or Kinds of Nuisance

General Classifications:
1. Those which in their nature are nuisance per se or are so denounced by the
common law or by statute
2. Those which in their nature are not nuisances, but may become so by reason of
their locality, surrounding or the manner in which they may be conducted,
manage, etc.,
3. Those which in their nature may be nuisance but as to which there may be
honest differences of opinion in impartial minds; and
4. Nuisances are further classified into temporary and permanent and as public
private, and mixed.

Concept of Damages
Damages generally means the compensation which the law will award for an
injury done; compensation, recompense, satisfaction in money for loss or injury
sustained.
Damages are pecuniary consequences which the law imposes for the breach of
some duty or violation of some right.

Damages may mean either (As provided for by the Civil Code)
a. The injury or loss caused to another by violation of his or her legal rights; ; or
b. The sum of money which the law awards impose as a pecuniary compensation,
recompense, or satisfaction for an injury done or a wrong sustained as a
consequence either of a breach or contractual obligation or tortious act.

Distinction; Damages from other terms which appears synonymous

1. Damage v. Damages – Damage is defined to be the loss, injury, or deterioration
caused by negligence, design, or accident of one person to another with respect
to the latter’s personal property; while Damages signifies compensation in
money for the loss or damage.

2. Damage v. Costs – Costs are awarded as damages only where the

circumstances of the particular case are proved and allowed by law.

3. Damages v. Verdict – Verdict expresses the final decision of a jury, whereas

“damages” expresses in money sustained by a plaintiff and includes both the
original damage and whatever interest ought to be added to make a just verdict.

4. Damages v. Debt – Debt does not mean damages and an action to recover
damages is not an action to recover debt.

5. Damages v. Value – Damages may mean much more than value, even when the
value of property constitutes the principal element of damages.

6. Damages v. Injury – Injury is the wrongful act or tort which causes loss or harm
to another. Damages are allowed as an indemnity to the person who suffers loss
or harm from injury.
NB: There may be damages without an injury, and an injury without damages.
(Damnum absque Injuria)
Damnum Absque Injuria
“Damnum” – means only harm, hurt, loss, damage
“Injuria” – means something done against the right of the party, producing damage,
and has no reference to the fact or amount of damage.
Damnum Absque Injuria (Loss or damage without legal injury)
Concept: There can be damage without injury in those instances in which the loss or
harm was not the result of a violation of a legal duty.
In damnum absque injuria cases, the injured person alone bears the consequences
because the law affords no remedy for damages resulting from an act that does not
amount to a legal injury or wrong.
Basis for Recovery of Damages

- Just compensation - It is indemnity or reparation for the loss or injury

sustained by the injured party so that he/she may be made whole and restored
as nearly as possible to the position or condition he was prior to the injury

When to recover damages?

RULE: There is no right to damages where there is no wrong.
There must be something which the law recognizes as a wrong, some breach of a legal
duty, some violation of a legal right, some default or neglect, some failure in
responsibility, sustained by a party claiming damages.

Period to file action for damages

Art. 1146, NCC. The following actions must be instituted within four (4) years:
1. Upon an injury to the rights of the plaintiff;
2. Upon a quasi-delict.

Classification of Damages
I. General / Ordinary Damages – those that are necessarily or natural the
result from the wrong. They are such as might accrue to any person
similarly situated.
II. Special damages – those which arise directly but not necessarily or by
implication of law, from the act or default complained of. Those which exist
because of special circumstances.
NB: General / Ordinary Damages need not be specially pleased and may be embraced
in the general plea. But Special Damages must be specifically prayed for.

Kinds of Damages under the Civil Code.

Art 2197 of the NCC enumerates (MANTLE)
1. Actual or Compensatory
2. Moral
3. Nominal
 4. Temperate or moderate
5. Liquidated; and
6. Exemplary or corrective.

Actual or compensatory Damages

Definition: Actual or Compensatory Damages are those recoverable because of
pecuniary loss – in business, trade, property, profession , job or occupation.
Just compensation for the loss suffered, are practically synonymous with actual
damages under the American System.

Requirements for the Grant of Actual Damages

RULE: To seek recovery for actual damages, it is necessary to prove with a reasonable
degree of certainty, premised upon competent proof and on the best evidence
obtainable by the injured party, the actual amount of loss.
Courts must point out specific facts which show a basis for the amount of
compensatory or actual damages.

Components of Actual Damages

Two (2) components:
a. The value of the loss suffered (AMNO VITANDO or DANO EMERGENTE); and,
b. The profits which were not obtained or realized. (LUCRO CAPTANDO OR
LUCRO CESSANTE OR LUCROM CESSAN)

Damages may be recovered:

i. For loss or impairment of earning capacity, in cases of temporary or
permanent injury; or
ii. For injury to the plaintiff’s business standing or commercial credit.

Formula to Determine loss of Income Capacity (Villa Rey Transit v. CA, 1970)
1. Life expectancy = 2/3 (80 – age of the Deceased)
2. Gross annual Income = Monthly earnings x no. of months (12)
3. Net earning capacity = Life expectancy (Gross Annual Income – Living expenses)
Absence of evidence to prove living expenses: There arises a presumption that it is
50% of the gross income.

How about when the deceased person was still a student or a minor at the time of his
death? Is the award of damages based on loss of earning capacity allowed when the
deceased had no means to earn income?

 YES. It is because the loss of earning capacity is awarded not for the loss of
earnings but for the loss of capacity to earn a living. Thus, it can be awarded to
the heirs of the deceased minor.

Applicable Rules
General Rule: The indemnification for loss of earning capacity partakes of the nature
of actual damages which must be duly proved.
Exception: Testimonial evidence will suffice if the victim is:
a. Self-employed earning less than the minimum wage under current labor laws
and judicial notice may be taken of the fact that in the victim’s line of work, no
documentary evidence is available; or
b. Employed as a daily wage worker earning less than the minimum wage under
current labor laws.

Computation of Interest

 Article 2209 to 2213, NCC

Monetary Interest v. Compensatory Interest:
Monetary Interest – refers to the compensation set by the parties for the use or
forbearance of money.
Compensatory interest – refers to the penalty or indemnity for damages imposed by
law of by the courts.

Rules on Award of Interest in the Concept of Actual and Compensatory Damages

Lara’s Gifts & Decors, Inc. vs. Midtown Industrial Sales, Inc. , 2019
1. When the obligation is breached, and it consists in the payment of a sum of
money, i.e., a loan or forbearance of money, goods, credits, or judgments, the
interest due shall be that which is stipulated by the parties in writing, provided
it is not excessive and unconscionable, which, in the absence of a stipulated
reckoning date, shall be computed from default, i.e., from extrajudicial or
judicial demand in accordance with Article 1169 of the Civil Code.

UNTIL FULL PAYMENT, without compounding any interest unless compounded

interest is expressly stipulated by the parties, by law or regulation. Interest due
on the principal amount accruing as of judicial demand shall SEPARATELY
earn legal interest at the prevailing rate prescribed by the BSP from the time of
judicial demand until full payment.

2. In the absence of stipulated interest, in a loan or forbearance of money, goods,

credits or judgments, the rate of interest on by the principal amount shall be
the prevailing legal interest prescribed by the BSP, which shall be computed
from default, i.e., from extrajudicial or judicial demand in accordance with
Article 1169 of the Civil Code, UNTIL FULL PAYMENT, without compounding
interest unless compounded interest is expressly stipulated by law or
regulation.

Interest due on the principal amount accruing as of judicial demand shall

SEPARATELY earn legal interest at the prevailing rate prescribed by the BSP
from the time of judicial demand until full payment.

3. When the obligation, not constituting a loan or forbearance of money, goods or

credits or judgments is breached, an interest on the amount of damages
awarded may be imposed in the discretion of the court at the prevailing legal
interest prescribed by the BSP, pursuant to Articles 2210 and 2011 of the Civil
Code.
 NO interest, however, shall be adjudged on unliquidated claims or damages
until the demand can be established with reasonable certainty. Accordingly,
where the amount of the claim or damages is established with reasonable
certainty, the prevailing legal interest shall begin to run from the time the claim
is made extrajudicially or judicially (Art. 1169, Civil Code) UNTIL FULL
PAYMENT, but when such certainty cannot be so reasonably established at the
time the demand is made, the interest shall begin to run only from the date of
the judgment of the trial court (at which time the quantification of damages
may be deemed to have been reasonably ascertained) UNTIL FULL PAYMENT.

The actual base for the computation of the interest shall, in any case be on the
principal amount finally adjudged, without compounding any interest unless
compounded interest is expressly stipulated by law or regulation.

Attorney’s Fees

- Extraordinary in nature.

Indemnity for damages to be awarded to an injured person or to the plaintiff.

Attorney’s fee belongs to the party litigant NOT HIS LAWYER. It forms part of his
judgment recoveries against the losing party.

Rules on Award of Attorney’s fees

GENERAL RULE: IN the absence of any stipulation, attorney’s fees and expense
litigation, other than judicial costs, CANNOT BE RECOVERED:
Exceptions
1. IN case there is a stipulation for the award of attorney’s fees
2. When exemplary damages are awarded
3. When the defendant’s act or omission has compelled the plaintiff to litigate with
third persons or to incur expenses to protect his interest
4. In criminal cases for malicious prosecution against the plaintiff
5. In case of a clearly unfounded civil action or proceedings against the plaintiff.
6. Where the defendant acted in gross and evident bad faith in refusing to satisfy
the plaintiff’s plainly valid, just and demandable claim
7. IN actions for legal support
8. In actions for recovery of wages of household helpers, laborers and skilled
workers
9. In actions for indemnity under the Worker’s Compensation and Employee’s
Compensation
10.In a separate civil action to recover civil liability arising from a crime
11.When at least double judicial costs are awarded; and
12.IN any other cases where the court deems it just and equitable that attorney’s
fees and expenses of litigation should be recovered.