Friday, June 22, 2012

Formula for compensatory damages for the loss of the victim’s earning capacity

See -  http://sc.judiciary.gov.ph/jurisprudence/2012/june2012/195534.htm


"x x x.


However, we modify the CA’s decision on the other awards of damages.

          In accordance with current jurisprudence, we delete the award of P20,000 as actual damages and, in its stead, award P30,000.00 as temperate damages.[28]  We also award the heirs of the victim compensatory damages for the loss of the victim’s earning capacity, there being testimonial and documentary evidence on record to support the award.[29]  The wife of the victim testified that the victim was 36 years old and was a soldier receiving a monthly salary of more than P9,000.00. The victim’s pay slip was also presented, showing his earnings of P9,576.00 a month.[30] The award of compensatory damages for loss of earning capacity is computed using the following formula:

Net earning capacity (x)    =         life expectancy x gross annual income -living expenses (50% of gross annual income) [31]


          Under this formula, we award to the heirs of the victim the amount of P1,685,184.48 as compensatory damages for the victim’s loss of earning capacity, calculated as follows:

x        =      2(80-36)   [P 114,912.00 – 57,456.00]
                        3

          =      29.33   P 57,456.00

          =      P 1,685,184.48




          Finally, we also award P30,000.00 as exemplary damages, in accordance with prevailing jurisprudence, since the killing was attended by treachery.[32]

x x x."