Exemplary Damages

Article 2229 of the Civil Code provides that exemplary damages may be imposed “by way of example or correction for the public good, in addition to the

moral, temperate, liquidated or compensatory damages.”  They are, however, not recoverable as a matter of right. They are awarded only if the guilty party acted in a wanton, fraudulent, reckless, oppressive or malevolent manner.

 

In this case, we agree with the CA that although the revocation was done in bad faith, respondents did not act in a wanton, fraudulent, reckless, oppressive or malevolent manner.  They revoked the SPA because they were not satisfied with the amount of the loan approved.  Thus, petitioners are not entitled to exemplary damages (Albert M. Ching, et al. Vs. Felix M. Bantolo, et al., G.R. No. 177086. December 5, 2012).