What Is Civil Liability?

Civil liability arises when a person violates a private right or breaches an obligation.

The purpose of civil law is not to punish but to compensate.

In everyday terms, civil cases usually happen when someone fails to do what they promised or causes harm. Common examples include breaking a contract, not paying a debt, or refusing to honor an agreement.

The usual ways the court fixes these problems are by ordering the person to pay money, fulfill their promise or obligation, return property, or pay damages for the harm caused.

The injured party files a civil case in court to recover what is owed.

What Is Criminal Liability?

Criminal liability arises when a person commits an act defined and penalized by law as a crime or felony. Both crime and felony are similar although there are technical differences that should not bother you at this moment.

The purpose of criminal law is to punish an offense against the State. Popular examples of offenses include Murder, Estafa, Theft, Graft and Corruption, etc.

Even if a private individual files the complaint, the case is prosecuted in the name of the People of the Philippines. This means even if a “regular person” is the one who complains, the criminal case is still handled by the government and goes forward in the name of the People of the Philippines. The private individual isn’t the one “doing” the prosecution—the State is. The role of the complainant is to testify for the government.

Criminal penalties may include:

• Imprisonment
• Fines
• Other statutory penalties

Before a criminal case is filed in court, it undergoes preliminary investigation to determine whether there is reasonable certainty of conviction based on the evidence submitted.

Here’s an article that explains what preliminary investigation is.

Can One Act Create Both Civil and Criminal Liability?

Yes. Under the law, “every person criminally liable for a felony is also civilly liable.” (Article 100, Revised Penal Code). In this case, the civil liability arises from the commission of the crime.

For example:

If a person commits Estafa:

• The offender incurs criminal liability for committing the fraudulent act, which may result in imprisonment, a fine, or both.
• At the same time, the offender incurs civil liability, which requires the restitution of the amount defrauded or the payment of damages to the injured party. That just means the offender must return whatever he fraudulently took plus damages

Let’s take another example. A public officer is found guilty of Graft and Corruption:

• The public officer incurs criminal liability for violating the Graft and Corrupt Practices Law, which may result in imprisonment, fines, and perpetual disqualification from holding public office.
• At the same time, the public officer incurs civil liability, which requires the return of any ill-gotten wealth and the payment of damages to the government or any party who suffered injury as a result of the unlawful act.

In criminal cases, civil liability arising from the offense is often deemed instituted together with the criminal action, unless waived or reserved. In simple terms, when a criminal case is filed, the civil case is usually already included in it—“automatically incorporated”—you don’t have to file a separate case to recover money or damages.

Let’s take a concrete example. If you are holding a bounced check and you file a criminal case under the Bouncing Checks Law, the court will not only decide the penalty (such as a fine), but will also order the accused to pay you the amount of the check.

This means that if someone commits a crime, the court will not only decide whether the person is guilty, but also how much they must pay the victim for the harm caused. This means the civil liability is determined in the criminal action, except if there is an express waiver of the liability or if there is a reservation to file a separate civil action.

This is why criminal cases can also involve monetary awards.

I mentioned two exceptions to the “automatically-included-civil-claim rule”: waiver of civil liability and reservation to file a separate civil action.

If the private complainant gives up the right to claim damages, he is said to have waived his right to claim damages. In that case, the court will not award the damages. Rare, but it happens. The private complainant may also choose to file a separate civil action. In certain instances, the law allows that. There are strategic reasons why a separate civil case is preferred like flexibility in legal strategy, avoiding complications in the criminal case, speed and control for the victim.

This article explains the effect of acquittal in a criminal case on the civil liability.

When Is a Dispute Purely Civil?

A dispute is often purely civil when:

• There was no deceit at the beginning of the transaction.
• There was no intent to defraud.
• The obligation arose from a simple breach of contract.
• The disagreement involves interpretation of contractual terms.

Many criminal complaints involving business transactions fail because the evidence only shows non-payment — not criminal intent.

If you are facing a criminal complaint based on a contractual dispute, your counter-affidavit must clearly demonstrate the absence of elements required for criminal liability. Conversely, if you are intending to file a criminal case involving an agreement, the complaint must prove criminal intent—not just breach of agreement.

This article will give you an idea what criminal intent really is.

Why the Distinction Matters

Misclassifying a civil dispute as a criminal case has serious consequences for the complainant.

• Possible dismissal during preliminary investigation
• Delay in proper civil recovery
• Unnecessary litigation costs

Understanding the difference helps determine the proper legal remedy from the beginning.

Disclaimer

The contents of this article are provided for informational purposes only and do not constitute legal advice. No attorney-client relationship is created by reading this article or by communicating through this website. Legal outcomes depend on specific facts and applicable law. Contact us for consultation.