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Regina Via G.

Garcia
Persons and Family Relations

CALIFORNIA CLOTHING, INC. vs. QUIONES
G.R. No. 175822 (October 23, 2013)

A. Legal Facts
Respondent, Shirley G. Quiones, a ticketing agent of Cebu Pacific Air, bought a pair of black
jeans worth P2,098.00 from Guess USA Boutique. While she was on her way to Mercury Drug Store, a
Guess employee approached her and said that she failed to pay for the black jeans. Nevertheless, she
presented an official receipt and suggested that they should talk about the matter in the Cebu Pacific
Office located within the mall. While they were in the office, the Guess employees allegedly humiliated
her in front of the clients of Cebu Pacific, repeatedly demanded payment and even searched the
respondents wallet to check how much money she had. Another argument ensued and after that,
respondent went home. The Guess employees submitted two letters to the Director of Cebu Pacific
narrating the incident but the said letters were not received.
Respondent filed a complaint for damages against the petitioners, California Clothing, Inc.,
Excelsis Villagonzalo, Imelda Hawayon and Michelle S. Ybaez, alleging that due to the incident, she
suffered physical anxiety, sleepless nights, mental anguish, fright, serious apprehension, besmirched
reputation, moral shock and humiliation. She demanded payment for moral, nominal, and exemplary
damages, as well as attorneys fees and litigation expenses.
Petitioners stated that they approached the respondent to clarify whether or not payment was
made and that they approached and talked to the respondent in a gentle and polite manner. They sought
payment for moral and exemplary damages, attorneys fees and litigation expenses as counterclaim.
The Regional Trial Court dismissed both the complaint and counterclaim stating that the
petitioners acted in good faith and the respondent was the one who put herself in that situation by inviting
the Guess employees to the Cebu Pacific Office to discuss about the issue of payment. However, the
Court of Appeals reversed and set aside the Regional Trial Court decision stating that there was
preponderance of evidence showing the petitioners acted in bad faith but, Hawayon and Villagonzalo
were absolved from liability due to good faith. Since petitioners acted in bad faith, respondent was entitled
to damages and attorneys fees.

B. Legal Issue
Whether or not petitioners acted in bad faith which resulted to the Court of Appeals awarding
moral damages and attorneys fees to respondent, Shirley G. Quiones.

C. Ruling
Yes, petitioners acted in bad faith and the award for moral damages and attorneys fees to
respondent was proper. The Supreme Court affirmed the Court of Appeals decision. The principle of
abuse of rights under Article 19 of the Civil Code is present in the case. Respondent complained when
petitioners embarrassed her and insisted that she did not pay for the black jeans despite the issuance of
an official receipt in her favor.
The court cited the case of Carpio vs. Valmonte in which the elements of abuse of rights were
enumerated. The elements of abuse of rights are as follows: (1) there is a legal right or duty; (2) which is
exercised in bad faith; (3) for the sole intent of prejudicing or injuring another. The elements stated are
complete in the present case. First, petitioners continued to insist that there was no payment made when
respondent already presented the black jeans with the original receipt. Second, they accused the
respondent that not only did she fail to pay for the black jeans but she intentionally stole it and quickly left
the shop. Third, the letters sent to the respondents employer was not only intended to ask for assistance
in collection of the payment but also to ruin the respondents reputation.
The exercise of rights is subject to limitations. Thus, it must be in accordance with the purpose of
its establishment and not abused.
Respondent was awarded P50,000.00 as moral damages and P20,000.00 as attorneys fees.