EDUARDO M. COJUANGCO, JR., petitioner, vs.

COURT OF APPEALS, THE PHILIPPINE CHARITY SWEEPSTAKES OFFICE

and FERNANDO O. CARRASCOSO, JR., respondents.
G.R. No. 119398. July 2, 1999
FACTS:
Eduardo Cojuangco, a businessman and a sportsman, was the owner of several
racehorces, which he entered in the sweepstakes races from March 6, 1986 to
September 18, 1989. The said racehorses won first, second and third places which
granted Cojuangco with prizes from PCSO. Cojuangco sent PCSO demand letters
claiming the prizes but Carracoso replied stating that he was advised by the PCGG
to withhold the prizes in the mean time. The RTC held that PCSO and Carrascoso
had no authority to withhold the winnings since no writ of sequestration was issued
by the PCGG. The trial court also said that Carrascosos initiative of not issuing the
prizes were manifestations of Bad Faith. The Court of Appeals, however, held that
Carrascoso was merely carrying out the instructions of PCGG backed by the
intention to protect public interest. The appellate court said that Carrascoso was in
good faith since he replied to demand letters, he released the winnings upon
PCGGs advice nad he had no objection to the partial execution.
ISSUE:
Whether the award for damages against Carrascoso is warranted by evidence and
the law.
RULING:
The Court ruled that Carrascoso acted in good faith. Bad faith, to be recognized by
court, should be constituted by dishonest purpose, moral obliquity, and conscious
doing of a wrong. The Court further stated that a public official shall not be liable by
way of moral and exemplary damages for acts done in the performance of their
official duties unless there is no clear showing of bad faith, malice and gross
negligence. But Carrascoso should still be liable under Article 32(6) which states
rights against deprivation of property without due process of law. There was a
violation of Cojuangcos constitutional right even if done in good faith since no writ
for the sequestration of his racehorse winnings. Therefore, Cojuangcos petition was
granted and Carrasco is obliged to pay nominal damages worth P/ 50,000.00.