In order to set an example for the public good, exemplary or corrective damages are awarded in addition to moral, temperate, liquidated or compensatory damages.
Lopez v. Pan American World Airways
G.R. No. L-22415, 30 March 1966
Plaintiffs were entitled to exemplary damages. “The rationale behind exemplary or corrective damages is, as the name implies, to provide an example or correction for public good. Defendant having breached its contracts in bad faith, the court, as stated earlier, may award exemplary damages in addition to moral damages (Articles 2229, 2232, New Civil Code).
“In view of its nature, it should be imposed in such an amount as to sufficiently and effectively deter similar breach of contracts in the future by defendant or other airlines. In this light, we find it just to award P75,000.00 as exemplary or corrective damages.”