Pecuniary liabilities of persons criminally liable,
in the following order:
1. The reparation of the damage caused
2. Indemnification of the consequential damages
3. Fine
4. Costs of proceedings


It is applicable in case the properties of the offender are not
sufficient for the payment of all his pecuniary liabilities.
Hence, if the offender has insufficient or no property, there
is no use for Art 38.

Order of payment is mandatory.

Ex. Juan inflicted serious physical injuries against Pedro and
took the latter’s watch and ring. He incurred P500 worth of
hospital bills and failed to earn P300 worth of salary. Given
that Juan only has P1000 worth of property not exempt from
execution, it shall first be applied to the payment of the
watch and ring which cannot be returned, as such is covered by
“reparation of the damage caused,” thus, no. 1 in the order of
payment. The 500 and 300 are covered by “indemnification of
the consequential damage,” thus, no. 2 in the order of payment.