Updating of Memorandum Circular No. 4-01, Series of 2001 (Guidelines on Awarding Moral and Exemplary Damages)

August 26, 2004NLRC MEMORANDUM CIRCULAR NO. 4-01-04ATO:All Presiding/Commissioners and Executive/Labor Arbiters   SUBJECT:Updating of Memorandum Circular No. 4-01, Series of 2001 (Guidelines on Awarding Moral and Exemplary Damages) In order to further address the growing concern of our clientele, especially the employer sector regarding the alleged wanton disregard by our Labor Arbiters of the law and jurisprudence on damages, particularly the awarding of damages in unconscionable amounts, this Commission in its en banc session has adopted a Resolution providing for guidelines on awarding moral and exemplary damages (Memorandum Circular No. 4-01, series of 2001), which is hereby reiterated and updated as follows: HSCAITI. Statutory Bases of Moral and Exemplary DamagesArticle 2197 of the Civil Code provides that "damages" may be "moral" and "exemplary or corrective".On the matter of moral damages, Article 2217 of the Civil Code provides:a) "ART. 2217. Moral damages include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury. Though incapable of pecuniary computation, moral damages may be recovered if they are the proximate result...