Liquidated Damages Exemplary Damages

Art. 2226 – Art. 2235

TORTS AND DAMAGES

ARTICLE 2226

Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof.

ARTICLE 2227

Liquidated damages whether intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable.

ARTICLE 2228

When the breach of the contract committed by the defendant is not the one contemplated by the parties in agreeing upon the liquidated damages, the law shall determine the measure of damages, and not the stipulation.

ARTICLE 2229

Exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages.

ARTICLE 2230

In criminal offenses, exemplary damages as a part of the civil liability may be imposed when the crime was committed with one or more aggravating circumstances. Such damages are separate and distinct from fines and shall be paid to the offended party.

ARTICLE 2231

In quasi-delicts, exemplary damages may be granted if the defendant acted with gross negligence.

ARTICLE 2232

In contracts and quasi-contracts, the court may award exemplary damages if the defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner.

ARTICLE 2233

Exemplary damages cannot be recovered as a matter of right; the court will decide whether or not they should be adjudicated.

ARTICLE 2234

While the amount of the exemplary damages need not be proved, the plaintiff must show that he is entitled to moral, temperate or compensatory damages before the court may consider the question of whether or not exemplary damages should be awarded.

ARTICLE 2234 …continued

In case liquidated damages have been agreed upon, although no proof of loss is necessary in order that such liquidated damages may be recovered, nevertheless, before the court may consider the question of granting exemplary in addition to the liquidated damages, the plaintiff must show that he would be entitled to moral, temperate or compensatory damages were it not for the stipulation for liquidated damages.

ARTICLE 2235

A stipulation whereby exemplary damages are renounced in advance shall be null and void.