When can you recover moral damages for breach of contract?

Answer

Moral damages are generally not recoverable for an ordinary breach of contract. Under Civil Code Article 2220, they may be awarded only where the defendant acted fraudulently or in bad faith in breaching the contract. (The same article also allows moral damages for wilful injury to property when the court finds them justly due.)

The plaintiff must therefore plead and prove that aggravating state of mind — bad faith or fraud — not merely the fact of breach. This is read together with Article 2217 (what moral damages cover) and Article 1170 on liability for fraud, negligence, or delay in performing obligations. As with other moral damages, no proof of pecuniary loss is required and the amount rests in the court's discretion.

Sources & further reading

• Civil Code Art. 2220 — bad-faith breach
• Civil Code Art. 2217 — moral damages
• Full report: recovering moral, exemplary & nominal damages