Académique Documents
Professionnel Documents
Culture Documents
I. INTRODUCTION
st
1 definition
1. unlawful violation
nd
2 definition
1. an act or omission
2. producing injury to another
3. without any previous existing lawful relation
4. of which said act or omission may be said to be a natural outgrowth or incident
rd
3 definition
1. a private / civil wrong or injury
2. other than breach of contract
3. for w/c the court will provide a REMEDY
4. in the form of an action for damages
th
4 definition
1. violation
2. of a duty
Note: There must ALWAYS be a VIOLATION of SOME DUTY that must give rise by OPERATION OF LAW and not by mere agreement of the parties.
It may be:
2
KEYWORD: BAD-FI
2. Negligence – involves VOLUNTARY ACTS OR OMISSIONS which result in injury to others WITHOUT INTENDING TO CAUSE THE SAME;
The ACTOR FAILS TO EXERCISE DUE CARE in performing such acts or omissions
3. Strict liability in tort – the person is made LIABLE INDEPENDENT OF FAULT OR NEGLIGENCE upon submission of proof of certain facts
3 ELEMENTS OF TORT
DEFINITION OF QUASI-DELICT
Art. 2176 – Whoever
by act or omission
causes damage to another
there being FAULT OR NEGLIGENCE
is obliged to PAY FOR THE DAMAGE DONE.
Such FAULT OR NEGLIGENCE
if there is NO PRE-EXISTING CONTRACTUAL RELATION between the parties
is called a QUASI-DELICT
and is governed by the provisions on Quasi-delicts (Art. 2176-2194; 19 provisions) of the Civil Code.
TORTS QUASI-DELICT
Anglo-American in origin Roman in origin
Spanish-Philippine concept
Broader - Includes not only negligence but also Covers ONLY ACTS/OMISSION
intentional criminal acts (e.g. assault, battery, w/c cause DAMAGE TO ANOTHER
false imprisonment, deceit) because of FAULT/NEGLIGENCE
there being NO PRE-EXISTING
CONTRACTUAL RELATION
between the parties
This is called
NON-CONTRACTUAL NEGLIGENCE
The concept of tort came to our legal system The Code Commission rejected to use the term
after the Philippines became a colony of the Tort, which is broader, b/c in the general plan of
USA as a result of the Treaty of Paris signed on the Ph legal system, the INTENTIONAL AND
12/10/1898 MALICIOUS ACTS, with certain exceptions, are
governed by the PENAL CODE
1. Extinction of the criminal action does not carry with it that of the civil unless it proceeds from a declaration in a final judgment that the fact from which the civil might arise does not exist. In this
case, the fact from which the civil might arise exists (i.e., forcible opening and demolition of Vergara’s stall and loss of their goods) and this was not denied by the accused.
2. When a criminal action is instituted, the civil action for the recovery of civil liability arising from the offense shall be deemed instituted with the criminal action UNLESS the offended party:
a. WAIVES the civil action (waiver of civil action)
b. RESERVES the right to institute it SEPARATELY (reservation of the right to file a separate civil action)
c. INSTITUTES the CIVIL ACTION prior to the criminal action (prior institution of an independent civil action)
3. Article 29 of the Civil Code: "When the accused in a criminal prosecution is acquitted on the ground that his guilt has not been proved beyond reasonable doubt, a civil action for damages for the
same act or omission may be instituted. Such action requires only a preponderance of evidence. Upon notion of the defendant, the court may require the plaintiff to file a bond to answer for
damages in case the complaint should be found to be malicious.
What Article 29 clearly and expressly provides is a remedy for the plaintiff in case the defendant has been acquitted in a criminal prosecution on the ground that his guilt has not been proved
beyond reasonable doubt. It merely emphasizes that a civil action for damages is not precluded by an acquittal for the same criminal act or omission. The Civil Code provision does not state that
the remedy can be availed of only in a separate civil action. A separate civil case may be filed but there is no statement that such separate filing is the only and exclusive permissible mode of
recovering damages.
There is nothing contrary to the Civil Code provision in the rendition of a judgment of acquittal and a judgment awarding damages in the same criminal action. The two can stand side by side. A
judgment of acquittal operates to extinguish the criminal liability. It does not, however, extinguish the civil liability unless there is clear showing that the act from which civil liability might arise did
not exist.
There appear to be no sound reasons to require a separate civil action to still be filed considering that the facts to be proved in the civil case have already been established in the criminal
proceedings where the accused was acquitted.
To require a separate civil action simply because the accused was acquitted would mean needless clogging of court dockets and unnecessary duplication of litigation with all its attendant loss of
time, effort, and money on the part of all concerned.
FACTS:
One morning Chief Galdones, complying with the instructions contained in Memorandum No. 32 of Mayor Roy Padilla, and upon seeing that Antonio Vergara had not vacated the premises in question,
with the aid of his policemen, forced upon the stall and ordered the removal of the goods inside the store of Vergara, at the same time taking inventory of the goods taken out, piled them outside in front of
the store and had it cordoned with a rope,and after that it ordered the demolition of said stall of Antonio Vergara. The CFI of Camarines Norte convicted Roy Padilla, Filomeno Galdonez et al of the crime
grave coercion and to pay damages.
The petitioners appealed to the CA and they were acquitted but ordered to pay jointly and severally to complainants the amount of P9,600.00, as actual damages.
ISSUE:
Whether or not the respondent court committed a reversible error in requiring the petitioners to pay civil indemnity to the complainants after acquitting them from the criminal charge.
RULING:
No. The CA is correct in awarding actual damages to the complainants by reason of the demolition of the stall and loss of some of their properties.
In the case before us, the petitioners were acquitted not because they did not commit the acts stated in the charge against them. There is no dispute over the forcible opening of the market stall, its
demolition with axes and other instruments, and the carting away of the merchandize. The petitioners were acquitted because these acts were denominated coercion when they properly constituted some
other offense such as threat or malicious mischief.
While appellants are entitled to acquittal, they nevertheless are civilly liable for the actual damages suffered by the complainants by reason of the demolition of the stall and loss of some of their properties.
The extinction of the penal action does not carry with it that of the civil, unless the extinction proceeds from a declaration in a final judgment that the fact from which the civil might arise did not exist. (Rule
111, Sec. 3(c), Rev. Rules of Court; Laperal v. Aliza, 51 OG.R. 1311, People v. Velez, 44 OG. 1811). In the instant case, the fact from which the civil might arise, namely, the demolition of the stall and loss
of the properties contained therein exists, and this is not denied by the accused. And since there is no showing that the complainants have reserved or waived their right to institute a separate civil action,
the civil aspect therein is deemed instituted with the criminal action. (Rule 111, Sec. 1, Rev. Rules of Court).
Section 1 of Rule 111 of the Rules of Court states the fundamental proposition that when a criminal action is instituted, the civil action for recovery of civil liability arising from the offense charged is
impliedly instituted with it. There is no implied institution when the offended party expressly waives the civil action or reserves his right to institute it separately. (Morte Sr. v. Alvizo, Jr., 101 SCRA 221).
The extinction of the civil action by reason of acquittal in the criminal case refers exclusively to civil liability ex delicto founded on Article 100 of the Revised Penal Code. (Elcano v. Hill, 77 SCRA 98; Virata
v. Ochoa, 81 SCRA 472). In other words, the civil liability which is also extinguished upon acquittal of the accused is the civil liability arising from the act as a crime.
As early as 1942, the Supreme Court speaking through Justice Jorge Bocobo in Barredo v. Garcia, et al. 473 Phil. 607 laid down the rule that the same punishable act or omission can create two kinds of
civil liabilities against the accused and, where provided by law, his employer. There is the civil liability arising from the act as a crime and the liability arising from the same act as a quasidelict. Either one of
these two types of civil liability may be enforced against the accused. However, the offended party cannot recover damages under both types of liability. For instance, in cases of criminal negligence or
crimes due to reckless imprudence, Article 2177 of the Civil Code provides: "Responsibility for fault or negligence under the preceding article is entirely separate and distinct from the civil liability arising
from negligence under the Penal Code. But the plaintiff cannot recover damages twice for the same act or omission of the defendant"
"Sec. 3. Other civil actions arising from offenses.- In all cases not included in the preceding section the following rules shall be observed:
(c) Extinction of the penal action does not carry with it extinction of the civil, unless the extinction proceeds from a declaration in a final judgment that the fact from which the civil might arise did not exist. In
other cases, the person entitled to the civil action may institute it in the jurisdiction and in the manner provided by law against the person who may be liable for restitution of the thing and reparation or
indemnity for the damage suffered.
The judgment of acquittal extinguishes the liability of the accused for damages only when it includes a declaration that the facts from which the civil might arise did not exist. Thus, the civil liability is NOT
extinguished:
1. by acquittal where the acquittal is based on reasonable doubt (PNB v. Catipon, 98 Phil. 286) as only preponderance of evidence is required in civil cases;
2. where the court expressly declares that the liability of the accused is not criminal but only civil in nature (De Guzman v. Alvia, 96 Phil. 558; People v. Pantig, supra) as, for instance, in the
felonies of estafa, theft, and malicious mischief committed by certain relatives who thereby incur only civil liability (See Art. 332, Revised Penal Code); and,
3. where the civil liability does not arise from or is not based upon the criminal act of which the accused was acquitted (Castro v. Collector of Internal Revenue, 4 SCRA 1093; See Regalado,
Remedial Law Compendium, 1983 ed., p. 623).
"When the accused in a criminal prosecution is acquitted on the ground that his guilt has not been proved beyond reasonable doubt, a civil action for damages for the same act or omission may be
instituted. Such action requires only a preponderance of evidence. Upon notion of the defendant, the court may require the plaintiff to file a bond to answer for damages in case the complaint should be
found to be malicious.
"If in a criminal case the judgment of acquittal is based upon reasonable doubt, the court shall so declare. In the absence of any declaration to that effect, it may be inferred from the text of the decision
whether or not the acquittal is due to that ground."
More recently, we held that the acquittal of the defendant in the criminal case would not constitute an obstacle to the filing of a civil case based on the same acts which led to the criminal prosecution.
There appear to be no sound reasons to require a separate civil action to still be filed considering that the facts to be proved in the civil case have already been established in the criminal proceedings
where the accused was acquitted. Due process has been accorded the accused. He was, in fact, exonerated of the criminal charged. The constitutional presumption of innocence called for more vigilant
efforts on the part of prosecuting attorneys and defense counsel, a keener awareness by all witnesses of the serious implications of perjury, and a more studied consideration by the judge of the entire
records and of applicable statutes and precedents. To require a separate civil action simply because the accused was acquitted would mean needless clogging of court dockets and unnecessary
duplication of litigation with all its attendant loss of time, effort, and money on the part of all concerned.
"On the morning of February 8th, because the said Vergaras had not up to that time complied with the order to vacate, the co-accused Chief of Police Galdones and some members of his police force,
went to the market and, using ax, crowbars and hammers, demolished the stall of the Vergaras who were not present or around, and after having first inventoried the goods and merchandise found
therein, they had them brought to the municipal building for safekeeping. Inspite of notice served upon the Vergaras to take possession of the goods and merchandise thus taken away, the latter refused to
do so.
"The loss and damage to the Vergaras as they evaluated them were:
P9,600.00
"It is not disputed that the accused demolished the grocery stall of the complainants Vergaras and carted away its contents. The defense that they did so in order to abate what they considered a nuisance
per se is untenable. This finds no support in law and in fact. The couple has been paying rentals for the premises to the government which allowed them to lease the stall. It is, therefore, far-fetched to say
that the stall was a nuisance per se which could be summarily abated.
The only supposed obstacle is the provision of Article 29 of the Civil Code, earlier cited, that "when the accused in a criminal prosecution is acquitted on the ground that his guilt has not
been proved beyond reasonable doubt, a civil action for damages for the same act or omission may be instituted." According to some scholars, this provision of substantive law calls for a
separate civil action and cannot be modified by a rule of remedial law even in the interests of economy and simplicity and following the dictates of logic and common sense.
We see no need to amend Article 29 of the Civil Code in order to allow a court to grant damages despite a judgment of acquittal based on reasonable doubt. What Article 29 clearly and
expressly provides is a remedy for the plaintiff in case the defendant has been acquitted in a criminal prosecution on the ground that his guilt has not been proved beyond reasonable
doubt. It merely emphasizes that a civil action for damages is not precluded by an acquittal for the same criminal act or omission. The Civil Code provision does not state that the remedy
can be availed of only in a separate civil action. A separate civil case may be filed but there is no statement that such separate filing is the only and exclusive permissible mode of
recovering damages.
There is nothing contrary to the Civil Code provision in the rendition of a judgment of acquittal and a judgment awarding damages in the same criminal action. The two can stand side by
side. A judgment of acquittal operates to extinguish the criminal liability. It does not, however, extinguish the civil liability unless there is clear showing that the act from which civil liability
might arise did not exist.
The offended party may, of course, choose to file a separate action. These do not exist in this case. Considering moreover the delays suffered by the case in the trial, appellate, and review
stages, it would be unjust to the complainants in this case to require at this time a separate civil action to be filed.
2. Syquia v. CA, GR 98695 (January 27, 1993) *concrete vault for coffin
DOCTRINE: Negligence is the omission of that diligence which is required by the nature of the obligation and corresponds to the circumstances of the person, of the time and of the place. In the absence
of stipulation or provision of law to the contrary, the diligence required in the performance of the obligation shall be that of a good father of a family.
FACTS:
Juan Syquia authorized and instructed the Manila Memorial to inter the remains of his son Vicente Syquia. After about a month, preparatory to transferring the remains to a newly purchased family plot
also at the same cemetery, the concrete vault encasing the coffin of the deceased was removed from its niche underground.
As the concrete vault was being raised to the surface, the Syquias discovered that the vault had a hole near the bottom and it appeared that water drained out of the hole, and they caused the opening of
the concrete vault and discovered that the interior walls showed evidence of total flooding, the coffin was entirely damaged by water, the entire lining of coffin, and the exposed parts of the deceased's
remains were damaged and soiled.
The Syquias filed a claim for damages against Manila Memorial due to unlawful and malicious breach by Manila Memorial of its obligation to deliver a defect-free vault designed to protect the remains of
the deceased and the coffin against the elements which resulted in the desecreation of deceased’s grave and in the alternative, because of Manila Memorial’s gross negligence conformably to Art. 2176 of
the NCC in failing to seal the concrete vault but the RTC dismissed the complaint stating that the act of boring a hole in the vault was necessary so as to prevent the vault from floating away. CA affirmed
judgment of dismissal.
ISSUE:
Whether there was no tort because of a pre-existing contract and the absence of fault or negligence
RULING:
None.
Naay pre-existing contract but walay negligence.
Had there been negligence, liable for breach of contract.
In this case, no negligence
There’s a reason for boring a hole to the vault.
“Article 2176. Whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. Such fault or negligence, if there is no pre-
existing contractual relation between the parties, is called a quasi-delict x x x.” (Underscoring Ours).
In this case, it has been established that the Syquias and the Manila Memorial Park Cemetery, Inc., entered into a contract entitled “Deed of Sale and Certificate of Perpetual Care”[6] on
August 27, 1969. That agreement governed the relations of the parties and defined their respective rights and obligations. Hence, had there been actual negligence on the part of the Manila
Memorial Park Cemetery, Inc., it would be held liable not for a quasi-delict or culpa aquiliana, but for culpa contractual as provided by Article 1170 of the Civil Code, to wit:
“Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages.”
The Manila Memorial Park Cemetery, Inc. bound itself to provide the concrete box to be used in the interment. Rule 17 of the Rules and Regulations of private respondent provides that:
“Rule 17. Every earth interment shall be made enclosed in a concrete box, or in an outer wall of stone, brick or concrete, the actual installment of which shall be made by the employees of the
Association.”[7]
Pursuant to this above-mentioned Rule, a concrete vault was provided on July 27, 1978, the day before the interment, and was on the same day, installed by private respondent’s employees in the grave
which was dug earlier. After the burial, the vault was covered by a cement lid.
Petitioners however claim that private respondent breached its contract with them as the latter held out in the brochure it distributed that the “x x x lot may hold single or double internment (sic)
underground in sealed concrete vault.”[8] Petitioners claim that the vault provided by private respondent was not sealed, that is, not waterproof. Consequently, water seeped through the cement enclosure
and damaged everything inside it.
We do not agree. There was no stipulation in the Deed of Sale and Certificate of Perpetual Care and in the Rules and Regulations of the Manila Memorial Park Cemetery, Inc. that the vault would be
waterproof. Private respondent’s witness, Mr. Dexter Heuschkel, explained that the term “sealed” meant “closed.”[9] On the other hand, the word “seal” is defined as “x x x any of various closures or
fastenings x x x that cannot be opened without rupture and that serve as a check against tampering or unauthorized opening.”[10] The meaning that has been given by private respondent to the word
conforms with the cited dictionary definition. Moreover, it is also quite clear that “sealed” cannot be equated with “waterproof”. Well settled is the rule that when the terms of the contract are clear and leave
no doubt as to the intention of the contracting parties, then the literal meaning of the stipulation shall control.[11] Contracts should be interpreted according to their literal meaning and should not be
interpreted beyond their obvious intendment.
“When plaintiff-appellant Juan J. Syquia affixed his signature to the Deed of Sale (Exhibit “A”) and the attached Rules and Regulations (Exhibit “1”), it can be assumed that he has accepted defendant-
appellee’s undertaking to merely provide concrete vault. He can not now claim that said concrete vault must in addition, also be waterproofed (sic). It is basic that the parties are bound by the terms of their
contract, which is the law between them (Rizal Commercial Banking Corporation vs. Court of Appeals, et al. 178 SCRA 739). Where there is nothing in the contract which is contrary to law, morals, good
customs, public order, or public policy, the validity of the contract must be sustained (Phil. American Insurance Co. vs. Judge Pineda 175 SCRA 416). Consonant with this ruling, a contracting party cannot
incur a liability more than what is expressly specified in his undertaking. It cannot be extended by implication, beyond the terms of the contract (Rizal Commercial Banking Corporation vs. Court of
Appeals, supra). And as a rule of evidence, where the terms of an agreement are reduced to writing, the document itself, being constituted by the parties as the expositor of their intentions, is the only
instrument of evidence in respect of that agreement which the law will recognize, so long as its (sic) exists for the purpose of evidence (Starkie, Ev., pp. 648, 655, Kasheenath vs. Chundy, 5 W.R. 68 cited
in Francisco, Revised Rules of Court in the Phil. p. 153, 1973 Ed.). And if the terms of the contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its
stipulations shall control (Santos vs. CA, et al., G.R. No. 83664, Nov. 13, 1989; Prudential Bank & Trust Co. vs. Community Builders Co., Inc., 165 SCRA 285; Balatero vs. IAC, 154 SCRA 530).”[13]
We hold, therefore, that private respondent did not breach the tenor of its obligation to the Syquias. While this may be so, can private respondent be liable for culpa aquiliana for boring the hole on the
vault? It cannot be denied that the hole made possible the entry of more water and soil than was natural had there been no hole.
The law defines negligence as the “omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the
place.” [14] In the absence of stipulation or legal provision providing the contrary, the diligence to be observed in the performance of the obligation is that which is expected of a good father
of a family.
The circumstances surrounding the commission of the assailed act - boring of the hole - negate the allegation of negligence. The reason for the act was explained by Henry Flores, Interment
Foreman, who said that:
“Q: It has been established in this particular case that a certain Vicente Juan Syquia was interred on July 25, 1978 at the Parañaque Cemetery of the Manila Memorial Park Cemetery, Inc., will you please
tell the Hon. Court what or whether you have participation in connection with said internment (sic)?
A: A day before Juan (sic) Syquia was buried our personnel dug a grave. After digging the next morning a vault was taken and placed in the grave and when the vault was placed on the
grave a hole was placed on the vault so that water could come into the vault because it was raining heavily then because the vault has no hole the vault will float and the grave would be
filled with water and the digging would caved (sic) in and the earth, the earth would (sic) caved in and fill up the grave.”[15] (Underscoring ours)
Except for the foreman’s opinion that the concrete vault may float should there be a heavy rainfall, from the above-mentioned explanation, private respondent has exercised the diligence of
a good father of a family in preventing the accumulation of water inside the vault which would have resulted in the caving in of earth around the grave filling the same with earth.
Thus, finding no evidence of negligence on the part of private respondent, We find no reason to award damages in favor of petitioners.
3. Gashem Shookat Baksh v. CA, GR 97336, 217 SCRA (1993) *moral seduction
DOCTRINES:
1. Any person who wilfully causes loss and injury to another in a manner that is contrary to morals, good customs and public policy shall compensate the latter for the damage. (Art. 21, NCC)
2. Breach of promise to marry is NOT actionable per se.
3. Moral seduction is actionable under Art. 21 of the NCC
4. Where a man's promise to marry is in fact the proximate cause of the acceptance of his love by a woman and his representation to fulfill that promise thereafter becomes the proximate cause of
the giving of herself unto him in a sexual congress, proof that he had, in reality, no intention of marrying her and that the promise was only a subtle scheme or deceptive device to entice or
inveigle her to accept him and to obtain her consent to the sexual act, could justify the award of damages pursuant to Article 21 not because of such promise to marry but because of the fraud
and deceit behind it and the willful injury to her honor and reputation which followed thereafter. It is essential, however, that such injury should have been committed in a manner contrary to
morals, good customs or public policy.
5. The private respondent surrendered her virginity, the cherished possession of every single Filipina, not because of lust but because of moral seduction
6. To constitute seduction there must in all cases be some sufficient promise or inducement and the woman must yield because of the promise or other inducement. If she consents merely from
carnal lust and the intercourse is from mutual desire, there is no seduction.
7. In an action by the woman, the enticement, persuasion or deception is the essence of the injury; and a mere proof of intercourse is insufficient to warrant a recovery.
FACTS:
Petitioner Gashem Shookat Baksh, a medical student studying in Dagupan City, courted and proposed to marry private respondent Marilou Gonzales, a virgin, 22 years old, single, Filipino and of good
moral character and reputation duly respected in her community. Private respondent accepted his love on the condition that they would get married, her parents approved of her living with him also on
such condition. Thereafter, petitioner started to maltreat her and threatened to kill her; he even forced he to get an abortion when she became pregnant. One day petitioner asked private respondent not to
live with him anymore as he is already married to someone living in Bacolod City; but he in fact only lived with the other woman and did not marry her.
Because of petitioner’s promise to marry her, private respondent resigned from her job, and her father a tricycle driver already looked for sponsors for the wedding, started preparing for the reception, and
invited relatives and friends to the wedding.
Private respondent filed a complaint for damages against the petitioner for violation of their agreement to get married. RTC ruled in favor of private respondent and CA affirmed in toto RTC’s decision.
ISSUE:
Whether damages may be recovered for a breach of promise to marry
RULING:
Yes, damages may be recovered not really because of his breach of promise to marry, but based on Article 21 of the Civil Code. Any person who willfully causes loss or injury to another in a manner that is
contrary to morals, good customs or public policy shall compensate the latter for the damage.
Breach of promise to marry per se is not an actionable wrong. However, where a man’s promise to marry is in fact the proximate cause of the acceptance of his love by a woman and his representation to
fulfill that promise thereafter becomes the proximate cause of the giving of herself unto him in a sexual congress, proof that he has in reality no intention of marrying her and that the promise was only a
subtle scheme or deceptive device to entice her to accept him and obtain her consent to the sexual act, could justify the award of damages pursuant to Art 21 because of the fraud and deceit behind it and
the willful injury to her honor and reputation which followed thereafter. It is essential however, that such injury should have been committed in a manner contrary to morals, good customs or public policy.
It was the petitioner’s fraudulent and deceptive protestations of love for and promise to marry private respondent that made her surrender her virtue and womanhood to him and to live with him on the
honest and sincere belief that he would keep said promise, and it was likewise these fraud and deception of petitioner that made private respondent’s parents agree to their daughter’s living-in with him
preparatory to their supposed marriage.
------
In the light of the above laudable purpose of Article 21, We are of the opinion, and so hold, that where a man's promise to marry is in fact the proximate cause of the acceptance of his love by a woman
and his representation to fulfill that promise thereafter becomes the proximate cause of the giving of herself unto him in a sexual congress, proof that he had, in reality, no intention of marrying her and that
the promise was only a subtle scheme or deceptive device to entice or inveigle her to accept him and to obtain her consent to the sexual act, could justify the award of damages pursuant to Article 21 not
because of such promise to marry but because of the fraud and deceit behind it and the willful injury to her honor and reputation which followed thereafter. It is essential, however, that such injury should
have been committed in a manner contrary to morals, good customs or public policy.
In the instant case, respondent Court found that it was the petitioner's "fraudulent and deceptive protestations of love for and promise to marry plaintiff that made her surrender her virtue and womanhood
to him and to live with him on the honest and sincere belief that he would keep said promise, and it was likewise these fraud and deception on appellant's part that made plaintiff's parents agree to their
[24]
daughter's living-in with him preparatory to their supposed marriage." In short, the private respondent surrendered her virginity, the cherished possession of every single Filipina, not because of
lust but because of moral seduction -- the kind illustrated by the Code Commission in its example earlier adverted to. The petitioner could not be held liable for criminal seduction punished
under either Article 337 or Article 338 of the Revised Penal Code because the private respondent was above eighteen (18) years of age at the time of the seduction.
Prior decisions of this Court clearly suggest that Article 21 may be applied in a breach of promise to marry where the woman is a victim of moral seduction.
[25]
Thus, in Hermosisima vs. Court of Appeals, this Court denied recovery of damages to the woman because:
"x x x we find ourselves unable to say that petitioner is morally guilty of seduction, not only because he is approximately ten (10) years younger than the complainant -- who was around
thirty-six (36) years of age, and as highly enlightened as a former high school teacher and a life insurance agent are supposed to be -- when she became intimate with petitioner, then a mere
apprentice pilot, but, also, because the court of first instance found that, complainant ‘surrendered herself’ to petitioner because, ‘overwhelmed by her love' for him, she 'wanted to bind' him 'by
having a fruit of their engagement even before they had the benefit of clergy.’"
[26]
In Tanjanco vs. Court of Appeals, while this Court likewise hinted at possible recovery if there had been moral seduction, recovery was eventually denied because We were not convinced that such
seduction existed. The following enlightening disquisition and conclusion were made in the said case:
"The Court of Appeals seems to have overlooked that the example set forth in the Code Commission's memorandum refers to a tort upon a minor who had been seduced. The essential feature is
seduction, that in law is more than mere sexual intercourse, or a breach of a promise of marriage; it connotes essentially the idea of deceit, enticement, superior power or abuse of confidence on the part
of the seducer to which the woman has yielded (U.S. vs. Buenaventura, 27 Phil. 121; U.S. vs. Arlante, 9 Phil. 595).
‘To constitute seduction there must in all cases be some sufficient promise or inducement and the woman must yield because of the promise or other inducement. If she consents merely from
carnal lust and the intercourse is from mutual desire, there is no seduction (43 Cent. Dig. tit. Seduction, par. 56). She must be induced to depart from the path of virtue by the use of some species of
arts, persuasions and wiles, which are calculated to have and do have that effect, and which result in her ultimately submitting her person to the sexual embraces of her seducer' (27 Phil. 123).
'On the other hand, in an action by the woman, the enticement, persuasion or deception is the essence of the injury; and a mere proof of intercourse is insufficient to warrant a recovery.
Accordingly it is not seduction where the willingness arises out of sexual desire or curiosity of the female, and the defendant merely affords her the needed opportunity for the commission of the act. It has
been emphasized that to allow a recovery in all such cases would tend to the demoralization of the female sex, and would be a reward for unchastity by which a class of adventuresses would be swift to
profit.' (47 Am. Jur. 662)
xxx
Over and above the partisan allegations, the facts stand out that for one whole year, from 1958 to 1959, the plaintiff-appellee, a woman of adult age, maintained intimate sexual relations with appellant,
with repeated acts of intercourse. Such conduct is incompatible with the idea of seduction. Plainly there is here voluntariness and mutual passion; for had the appellant been deceived, had she
surrendered exclusively because of the deceit, artful persuasions and wiles of the defendant, she would not have again yielded to his embraces, much less for one year, without exacting early fulfillment of
the alleged promises of marriage, and would have cut short all sexual relations upon -finding that defendant did not intend to fulfill his promise. Hence, we conclude that no case is made under Article 21 of
[27]
the Civil Code, and no other cause of action being alleged, no error was committed by the Court of First Instance in dismissing the complaint."
[28]
In his annotations on the Civil Code, Associate Justice Edgardo L. Paras, who recently retired from this Court, opined that in a breach of promise to marry where there had been carnal knowledge,
moral damages may be recovered:
"x x x if there be criminal or moral seduction, but not if the intercourse was due to mutual lust. (Hermosisima vs. Court of Appeals, L-14628, Sept. 30, 1960; Estopa vs. Piansay, Jr., L-14733, Sept.
30, 1960; Batarra vs. Marcos, 7 Phil. 56 (sic); Beatriz Galang vs. Court of Appeals, et al., L-17248, Jan. 29, 1962). (In other words, if the CAUSE be the promise to marry, and the EFFECT be the carnal
knowledge, there is a chance that there was criminal or moral seduction, hence recovery of moral damages will prosper. If it be the other way around, there can be no recovery of moral damages, because
here mutual lust has intervened). x x x."
together with "ACTUAL damages, should there be any, such as the expenses for the wedding preparations (See Domalagon v. Bolifer, 33 Phil. 471)."
[29]
Senator Arturo M. Tolentino is also of the same persuasion:
[30] [31]
"It is submitted that the rule in Batarra vs. Marcos still subsists, notwithstanding the incorporation of the present article in the Code. The example given by the Code Commission is correct, if there was
seduction, not necessarily in the legal sense, but in the vulgar sense of deception. But when the sexual act is accomplished without any deceit or qualifying circumstance of abuse of authority or influence,
but the woman, already of age, has knowingly given herself to a man, it cannot be said that there is an injury which can be the basis for indemnity.
But so long as there is fraud, which is characterized by wilfullness (sic), the action lies. The court, however, must weigh the degree of fraud, if it is sufficient to deceive the woman under the circumstances,
because an act which would deceive a girl sixteen years of age may not constitute deceit as to an experienced woman thirty years of age. But so long as there is a wrongful act and a resulting injury, there
should be civil liability, even if the act is not punishable under the criminal law and there should have been an acquittal or dismissal of the criminal case for that reason."
We are unable to agree with the petitioner's alternative proposition to the effect that granting, for argument's sake, that he did promise to marry the private respondent, the latter is nevertheless also at
[32]
fault. According to him, both parties are in pari delicto; hence, pursuant to Article 1412(1) of the Civil Code and the doctrine laid down in Batarra vs. Marcos, the private respondent cannot recover
[33]
damages from the petitioner. The latter even goes as far as stating that if the private respondent had "sustained any injury or damage in their relationship, it is primarily because of her own doing," for:
"x x x She is also interested in the petitioner as the latter will become a doctor sooner or later. Take notice that she is a plain high school graduate and a mere employee ... (Annex "C") or a waitress (TSN,
p. 51, January 25, 1988) in a luncheonette and without doubt, is in need of a man who can give her economic security. Her family is in dire need of financial assistance (TSN, pp. 51-53, May 18, 1988).
[34]
And this predicament prompted her to accept a proposition that may have been offered by the petitioner.”
These statements reveal the true character and motive of the petitioner. It is clear that he harbors a condescending, if not sarcastic, regard for the private respondent on account of the latter’s ignoble
birth, inferior educational background, poverty and, as perceived by him, dishonorable employment. Obviously then, from the very beginning, he was not at all moved by good faith and an honest
motive. Marrying with a woman so circumstanced could not have even remotely occurred to him. Thus, his profession of love and promise to marry were empty words directly intended to
fool, dupe, entice, beguile and deceive the poor woman into believing that indeed, he loved her and would want her to be his life's partner. His was nothing but pure lust which he wanted
satisfied by a Filipina who honestly believed that by accepting his proffer of love and proposal of marriage, she would be able to enjoy a life of ease and security.
Petitioner clearly violated the Filipino’s concept of morality and so brazenly defied the traditional respect Filipinos have for their women. It can even be said that the petitioner committed such deplorable
acts in blatant disregard of Article 19 of the Civil Code which directs every person to act with justice, give everyone his due and observe honesty and good faith in the exercise of his rights and in the
performance of his obligations.
No foreigner must be allowed to make a mockery of our laws, customs and traditions.
The pari delicto rule does not apply in this case for while indeed, the private respondent may not have been impelled by the purest of intentions, she eventually submitted to the petitioner in sexual
congress not out of lust, but because of moral seduction. In fact, it is apparent that she had qualms of conscience about the entire episode for as soon as she found out that the petitioner was not
[35]
going to marry her after all, she left him. She is not, therefore, in pari delicto with the petitioner. Pari delicto means "in equal fault; in a similar offense or crime; equal in guilt or in legal fault." At most, it
could be conceded that she is merely in delicto.
"Equity often interferes for the relief of the less guilty of the parties, where his transgression has been brought about by the imposition or undue influence of the party on whom the burden of the original
[36]
wrong principally rests, or where his consent to the transaction was itself procured by fraud.”
[37]
In Mangayao vs. Lasud, We declared:
"Appellants likewise stress that both parties being at fault, there should be no action by one against the other (Art. 1412, New Civil Code). This rule, however, has been interpreted as applicable only
where the fault on both sides is, more or less, equivalent. It does not apply where one party is literate or intelligent and the other one is not (c.f. Bough vs. Cantiveros, 40 Phil. 209)."
We should stress, however, that while We find for the private respondent, let it not be said that this Court condones the deplorable behavior of her parents in letting her and the petitioner stay together in
the same room in their house after giving approval to their marriage. It is the solemn duty of parents to protect the honor of their daughters and infuse upon them the higher values of morality and dignity.
4. LRTA v. Navidad, GR 145804, 397 SCRA 75 (2003) *train passenger fell on the tracks b/c of an alleged fistfight with the guard
Facts:
After buying a token, Nicanor Navidad entered the LRT station. He was drunk and while standing on the platform, he got into an argument with the security guard, Junelito Escartin when the latter
approached him. It led to a fistfight and Navidad fell on the tracks and was struck and killed by a train driven by Rodolfo Roman. A complaint for damages was filed by the heirs of Navidad against
Escartin, Roman, the LRTA, the Metro Transit Organization, Inc., and Prudent Security Agency. The trial court found Escartin (guard) and Prudent (employer of the guard) jointly and severally liable while
the complaint against LRTA (common carrier) and Roman (driver) was dismissed for lack of merit. The Court of Appeals absolved Prudent and held LRTA and Roman jointly and severally liable and
replaced compensatory damages to nominal damages.
Issues:
1.) Whether the Court of Appeals is correct
2.) Whether nominal damages may co-exist with compensatory damages
Held:
1.) Yes. There was a breach contract by the LRTA due to its failure to observe high or extraordinary diligence required of a common carrier. Navidad is entitled to all the rights and protection under a
contractual relation after having paid the fare and entered the station. The duty of a common carrier to carry their passengers safely using utmost diligence with due regard for all circumstances obligates it
not only during the course of the trip but for so long as the passengers are within its premises and where they ought to be in pursuance to the contract of carriage. Also, a carrier is presumed to
have been at fault or been negligent, and by simple proof of injury, the passenger need not establish the fault or negligence of the carrier or its employees.
Once the fault of Escartin is established, Prudent would be liable on the presumption of its failure to observe diligence of a good father of a family in the selection and supervision of its
employees.
What presumption will That the employer failed to That the CC failed to exercise
arise exercise due diligence in the extraordinary diligence in
selection and supervision of performing its obligations
his employees
Defense Employer exercised due Cannot use the same defense
diligence in the selection and
supervision of the employee
2.) No. It is an established rule that nominal damages cannot co-exist with compensatory damages. Nominal damages are awarded in order that a right of the plaintiff, which has been violated by
the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff for any loss suffered by him. The award was deleted.
B. DISTINCTIONS
i. Culpa Aquiliana
ii. Culpa Contractual
iii. Culpa Criminal
The employer is
subsidiarily liable
What must be Existence of a contract Fault or negligence of Innocence of the
proven must be proven the defendant must be accused is presumed
proven until the contrary is
proven
If it is proven and it is also
proven that the contract
was not complied with, it is
presumed that the debtor
is at fault
Negligence Negligence is only Negligence is direct, Negligence is direct,
incidental to the substantive and substantive and
performance of an existing independent independent
obligation based on
contract
There is a pre-existing
contract or obligation
Defense of a good father of Complete and proper defense Not a complete and proper
family insofar as PARENTS, defense in the selection and
GUARDIANS, EMPLOYERS supervision of the employees
are concerned
Presumption of negligence No presumption of There is presumption of
negligence negligence as long as it can
be proved that there was
breach of contract
The injured party must prove
the negligence of the
defendant The defendant must prove
that there was NO
NEGLIGENCE in the carrying
Otherwise, the complaint of
out of the terms of the
the injured party will be
contract
dismissed
FACTS:
Sunga was a passenger in a jeepney owned and operated by Calalas. As the jeepney was filled, Sunga was given by the conductor a stool at the back of the vehicle. On the way to Sibulan, the jeepney
stopped to let a passenger off. Just as Sunga was giving way to the outgoing passenger, a truck driven by Verena and owned by Salva bumped the rear portion of the jeepney. Sunga sustained injuries.
Medical procedures were done. She was confined in the hospital. Her attending physician certified she would remain on a cast and walk in crutches for a period of three months. Sunga filed a complaint
for damages against Calalas, alleging violation of the contract of carriage by the former in failing to exercise the diligence required of him as a common carrier. Calalas, on the other hand, filed a third-party
complaint (Civil Case 3940) against Salva, the owner of the truck. RTC rendered judgment against Salva and absolved Calalas. holding that it was the driver of the truck who was responsible for the
accident. It took cognizance of Case No. 3940 filed by Calalas against Salva and Verena, for quasi-delict, in which Branch 37 of the same court held Salva and his driver Verena jointly liable to Calalas for
the damage to his jeepney. On appeal to the CA, the ruling of the lower court was reversed on the ground that Sunga’s cause of action was based on a contract of carriage, not quasi-delict, and that the
common carrier failed to exercise the diligence required under the Civil Code. The appellate court dismissed the third-party complaint against Salva and adjudged Calalas liable for damages to Sunga.
ISSUE:
WON Sunga is bound by the ruling in Civil Case 3940
HELD:
No. Sunga was never a party to that case and, therefore, the principle of res judicata does not apply, and the issues in Civil Case No. 3490 and in the present case are different. The issue in Civil Case
No. 3490 was whether Salva and his driver Verena were liable for quasi-delict for the damage caused to petitioner’s jeepney. On the other hand, the issue in this case is whether petitioner is liable on his
contract of carriage. The first, quasi-delict, also known as culpa aquiliana or culpa extra contractual, has as its source the negligence of the tortfeasor. The second, breach of contract or culpa contractual,
is premised upon the negligence in the performance of a contractual obligation. Consequently, in quasi-delict, the negligence or fault should be clearly established because it is the basis of the action,
whereas in breach of contract, the action can be prosecuted merely by proving the existence of the contract and the fact that the obligor, in this case the common carrier, failed to transport his passenger
safely to his destination. In case of death or injuries to passengers, Art. 1756 of the Civil Code provides that common carriers are presumed to have been at fault or to have acted negligently unless they
prove that they observed extraordinary diligence as defined in Arts. 1733 and 1755 of the Code. This provision necessarily shifts to the common carrier the burden of proof.
There is, thus, no basis for the contention that the ruling in Civil Case No. 3490, finding Salva and his driver Verena liable for the damage to petitioners jeepney, should be binding on Sunga.
Facts:
There was a head-on collision between a taxi of the Malate taxicab driven by Fontanilla and a carretela directed by Dimapilis. The carretela was over-turned, and a passenger, a 16-year old boy, Garcia,
experienced injuries from which he died. A criminal action was filed against Fontanilla, and he was sentenced. The court in the criminal case granted the petition to reserve the civil action. Garcia and
Almario, parents of the deceased, on March 7, 1939, filed a civil action against Barredo, the proprietor of the Malate Taxicab and employer of Fontanilla, making him primarily and directly responsible
under culpa acquiliana of Article 2180 of the Civil Code of the Philippines. It is undisputed that Fontanilla’s negligence was the cause of the accident, as he was driving on the wrong side of the road at
high speed, and there was no showing that Barredo exercised the diligence of a good father of a family, a defense to Article 2180 of the said Code. Barredo’s theory of defense is that Fontanilla’s
negligence being punished by the Revised Penal Code, his liability as employer is only subsidiary, but Fontanilla, was not sued for civil liability. Hence, Barredo claims that he cannot be held liable.
Issue:
Whether or not Barredo, as employer is civilly liable for the acts of Fontanilla, his employee.
Held:
Quasi-delict or culpa acquiliana is a distinct legal institution under the Civil Code of the Philippines is completely separate and independent from a delict or crime under the Revised Penal Code. In this
jurisdiction, the same negligent act causing damage may produce civil liability (subsidiary) arising from a crime under Article 103 of the Revised Penal Code of the Philippines; or create an action for quasi-
delicto or culpa aquiliana under Articles 2179 and 2180 of the Civil Code and the parties are free to choose which course to take. And in the instant case, the negligent act of Fontanilla produces two (2)
liabilities of Barredo: First, a subsidiary one because of the civil liability of Fontanilla arising from the latter’s criminal negligence under Article 103 of the Revised Penal Code, and second, Barredo’s
primary and direct responsibility arising from his presumed negligence as an employer under Article 2180 of the Civil Code. As the plaintiffs are free to choose what remedy to take, they preferred the
second, which is within their rights. This is the more expedious and effective method of relief because Fontanilla was either in prison or just been released or had no property. Barredo was held liable for
damages.
FACTS:
Jose Cangco, was employed by Manila Railroad Company as clerk. He lived in San Mateo, Rizal, located upon the line of the defendant railroad company, and in coming daily by train to the company's
office in the city of Manila where he worked, he used a pass, supplied by the company, which entitled him to ride upon the company's trains free of charge.
January 20, 1915, the plaintiff was returning home by rail from his daily labors; and as the train drew up to the station in San Mateo the plaintiff while making his exit through the door, took his position
upon the steps of the coach.
On the side of the train where passengers alight at the San Mateo station there is a cement platform which begins to rise with a moderate gradient some distance away from the company's office and
extends along in front of said office for a distance sufficient to cover the length of several coaches. As the train slowed down another passenger, Emilio Zuniga, also an employee of the railroad company
got off the same car, alighting safely at the point where the platform begins to rise from the level of the ground.
When Jose Cangco stepped off, one or both of his feet came in contact with a sack of watermelons with the result that his feet slipped from under him and he fell violently on the platform. His body at once
rolled from the platform and was drawn under the moving car, where his right arm was badly crushed and lacerated. After the plaintiff alighted from the train the car moved forward possibly six meters
before it came to a full stop.
The accident occurred on a dark night, and the train station was lit dimly by a single light located some distance away, objects on the platform where the accident occurred were difficult to discern,
especially to a person emerging from a lighted car.
The sack of melons on the platform is because it was the customary season for harvesting these melons and a large lot had been brought to the station for shipment to the market. This row of sacks was
so placed that there was a space of only about two feet between the sacks of melons and the edge of the platform; and it is clear that the fall of the plaintiff was due to the fact that his foot alighted upon
one of these melons at the moment he stepped upon the platform. His statement that he failed to see these objects in the darkness is readily to be credited.
The plaintiff was drawn from under the car in an unconscious condition, and with serious injuries. He was immediately brought to a hospital where an examination was made and his arm was amputated.
He was then carried to another hospital where his second operation was performed and the member was again amputated higher up near the shoulder. Expenses reached the sum of P790.25 in the form
of medical and surgical fees and for other expenses in connection with the process of his treatment.
August 31, 1915, he instituted this proceeding in the CFI Manila to recover damages of the defendant company, founding his action upon the negligence of the servants and employees of the
defendant in placing the sacks of melons upon the platform and in leaving them so placed as to be a menace to the security of passenger alighting from the company's trains. At the hearing
in the CFI, the trial judge, found the facts substantially as above stated, and although negligence was attributable to the defendant by reason of the fact that the sacks of melons were so placed as to
obstruct passengers passing to and from the cars, nevertheless, the plaintiff himself had failed to use due caution in alighting from the coach and was therefore precluded from recovering. Judgment was
accordingly entered in favor of the defendant company, and the plaintiff appealed.
ISSUE:
WON there was contributory negligence on the part of the plaintiff.
RULING:
No. In determining the question of contributory negligence in performing such act - that is to say, whether the passenger acted prudently or recklessly - the age, sex, and physical condition of the
passenger are circumstances necessarily affecting the safety of the passenger, and should be considered.
The employees of the railroad company were guilty of negligence in piling these sacks on the platform. Their presence caused the plaintiff to fall as he alighted from the train; and that they constituted an
effective legal cause of the injuries sustained by the plaintiff. It follows that the defendant company is liable for the damage unless recovery is barred by the plaintiff's own contributory negligence.
The foundation of the legal liability of the defendant is the contract of carriage, and that the obligation to respond for the damage which plaintiff has suffered arises from the breach of that contract by
reason of the failure of defendant to exercise due care in its performance.
Its liability is direct and immediate, imposed by article 1903 of the Civil Code, which can be rebutted by proof of the exercise of due care in their selection and supervision. Article 1903 of the Civil Code is
not applicable to obligations arising ex contractu, but only to extra-contractual obligations. In commenting upon article 1093, Manresa clearly points out the difference between "culpa, substantive and
independent, which of itself constitutes the source of an obligation between persons not formerly connected by any legal tie" and culpa considered as an "accident in the performance of an obligation
already existing.
---------------
Article 1903 of the Civil Code the law creates a presumption that he has been negligent in the selection or direction of his servant, but the presumption is rebuttable and yields to proof of due care and
diligence in this respect.
"From this article two things are apparent: (1) That when an injury is caused by the negligence of a servant or employee there instantly arises a presumption of law that there was negligence on the part of
the master or employer either in the selection of the servant or employee, or in supervision over him after the selection, or both; and (2) that that presumption is juris tantum and not juris et de jure,
and consequently, may be rebutted. It follows necessarily that if the employer shows to the satisfaction of the court that in selection and supervision he has exercised the care and diligence of a good
father of a family, the presumption is overcome and he is relieved from liability.
"This theory bases the responsibility of the master ultimately on his own negligence and not on that of his servant. This is the notable peculiarity of the Spanish law of negligence. It is, of course, in striking
contrast to the American doctrine that, in relations with strangers, the negligence of the servant is conclusively the negligence of the master."
The opinion there expressed by this Court, to the effect that in case of extra-contractual culpa based upon negligence, it is necessary that there shall have been some fault attributable to the defendant
personally, and that the last paragraph of article 1903 merely establishes a rebuttable presumption, is in complete accord with the authoritative opinion of Manresa, who says (vol. 12, p. 611) that the
liability created by article 1903 is imposed by reason of the breach of the duties inherent in the special relations of authority or superiority existing between the person called upon to repair the damage and
the one who, by his act or omission, was the cause of it.
On the other hand, the liability of masters and employers for the negligent acts or omissions of their servants or agents, when such acts or omissions cause damages which amount to the breach of a
contract, is not based upon a mere presumption of the master's negligence in their selection or control, and proof of exercise of the utmost diligence and care in this regard does not relieve the master of
his liability for the breach of his contract.
The fundamental distinction between obligations of this character and those which arise from contract, rests upon the fact that in cases of non-contractual obligation it is the wrongful or negligent act or
omission itself which creates the vinculum juris, whereas in contractual relations the vinculum exists independently of the breach of the voluntary duty assumed by the parties when entering into the
contractual relation.
The position of a natural or juridical person who has undertaken by contract to render service to another, is wholly different from that to which article 1903 relates. When the source of the obligation upon
which plaintiff's cause of action depends is a negligent act or omission, the burden of proof rests upon plaintiff to prove the negligence—if he does not his action fails. But when the facts averred show a
contractual undertaking by defendant for the benefit of plaintiff, and it is alleged that plaintiff has failed or refused to perform the contract, it is not necessary for plaintiff to specify in his pleadings whether
the breach of the contract is due to wilful fault or to negligence on the part of the defendant, or of his servants or agents. Proof of the contract and of its nonperformance is sufficient prima facie to warrant
a recovery.
"As a general rule * * * it is logical that in case of extra-contractual culpa, a suing creditor should assume the burden of proof of its existence, as the only fact upon which his action is based; while on the
contrary, in a case of negligence which presupposes the existence of a contractual obligation, if the creditor shows that it exists and that it has been broken, it is not necessary for him to prove the
negligence." (Manresa, vol. 8, p. 71 [1907 ed., p. 76].)
As it is not necessary for the plaintiff in an action for the breach of a contract to show that the breach was due to the negligent conduct of defendant or of his servants, even though such be in fact the
actual cause of the breach, it is obvious that proof on the part of defendant that the negligence or omission of his servants or agents caused the breach of the contract would not constitute a defense to the
action. If the negligence of servants or agents could be invoked as a means of discharging the liability arising from contract, the anomalous result would be that persons acting through the medium of
agents or servants in the performance of their contracts, would be in a better position than those acting in person. If one delivers a valuable watch to a watchmaker who contracts to repair it, and the
bailee, by a personal negligent act causes its destruction, he is unquestionably liable. Would it be logical to free him from his liability for the breach of his contract, which involves the duty to exercise due
care in the preservation of the watch, if he shows that it was his servant whose negligence caused the injury? If such a theory could be accepted, juridical persons would enjoy practically complete
immunity from damages arising from the breach of their contracts if caused by negligent acts of omission or commission on the part of their servants, as such juridical persons can of necessity only act
through agents or servants, and it would no doubt be true in most instances that reasonable care had been taken in the selection and direction of such servants.
The contract of defendant to transport plaintiff carried with it, by implication, the duty to carry him in safety and to provide safe means of entering and leaving its trains (Civil Code, article
1258). That duty, being contractual, was direct and immediate, and its non-performance could not be excused by proof that the fault was morally imputable to defendant's servants.
ANOTHER TOPIC
The railroad company's defense involves the assumption that even granting that the negligent conduct of its servants in placing an obstruction upon the platform was a breach of its contractual obligation
to maintain safe means of approaching and leaving its trains, the direct and proximate cause of the injury suffered by plaintiff was his own contributory negligence in failing to wait until the train had come
to a complete stop before alighting. Under the doctrine of comparative negligence announced in the Rakes case (supra), if the accident was caused by plaintiff's own negligence, no liability is
imposed upon defendant, whereas if the accident was caused by defendant's negligence and plaintiff's negligence merely contributed to his injury, the damages should be apportioned. It is,
therefore, important to ascertain if defendant was in fact guilty of negligence.
We are of the opinion that the correct doctrine relating to this subject is that expressed in Thompson's work on Negligence (vol. 3, sec. 3010) as follows:
"The test by which to determine whether the passenger has been guilty of negligence in attempting to alight from a moving railway train, is that of ordinary or reasonable care. It is to be considered
whether an ordinarily prudent person, of the age, sex and condition of the passenger, would have acted as the passenger acted under the circumstances disclosed by the evidence. This
care has been defined to be, not the care which may or should be used by the prudent man generally, but the care which a man of ordinary prudence would use under similar circumstances,
to avoid injury." (Thompson, Commentaries on Negligence, vol. 3, sec. 3010.)
Or, if we prefer to adopt the mode of exposition used by this court in Picart vs. Smith (37 Phil. Rep., 809), we may say that the test is this; Was there anything in the circumstances surrounding the plaintiff
at the time he alighted from the train which would have admonished a person of average prudence that to get off the train under the conditions then existing was dangerous? If so, the plaintiff should have
desisted from alighting; and his failure so to desist was contributory negligence.
As the case now before us presents itself, the only fact from which a conclusion can be drawn to the effect that the plaintiff was guilty of contributory negligence is that he stepped off the car without being
able to discern clearly the condition of the platform and while the train was yet slowly moving. In considering the situation thus presented, it should not be overlooked that the plaintiff was, as we find, (1)
ignorant of the fact that the obstruction which was caused by the sacks of melons piled on the platform existed; (2) and as the defendant was bound by reason of its duty as a public carrier
to afford to its passengers facilities for safe egress from its trains, the plaintiff had a right to assume, in the absence of some circumstance to warn him to the contrary, that the platform was
clear. (3) The place, as we have already stated, was dark, or dimly lighted, and this also is proof of a failure upon the part of the defendant in the performance of a duty owing by it to the
plaintiff; (4) for if it were by any possibility conceded that it had a right to pile these sacks in the path of alighting passengers, the placing of them in that position gave rise to the duty to
light the premises adequately so that their presence would be revealed.
As pertinent to the question of contributory negligence on the part of the plaintiff in this case the following circumstances are to be noted: The company's platform was constructed upon a level higher than
that of the roadbed and the surrounding ground. The distance from the steps of the car to the spot where the alighting passenger would place his feet on the platform was thus reduced, thereby
decreasing the risk incident to stepping off. The nature of the platform, constructed as it was of cement material, also assured to the passenger a stable and even surface on which to alight.
Furthermore, the plaintiff was possessed of the vigor and agility of young manhood, and it was by no means so risky for him to get off while the train was yet moving as the same act would
have been in an aged or feeble person. In determining the question of contributory negligence in performing such act—that is to say, whether the passenger acted prudently or recklessly—the age, sex,
and physical condition of the passenger are circumstances necessarily affecting the safety of the passenger, and should be considered. Women, it has been observed, as a general rule, are less capable
than men of alighting with safety under such conditions, as the nature of their wearing apparel obstructs the free movement of the limbs. Again, it may be noted that the place was perfectly familiar to
the plaintiff, as it was his daily custom to get on and off the train at this station. There could, therefore, be no uncertainty in his mind with regard either to the length of the step which he was
required to take or the character of the platform where he was alighting. Our conclusion is that the conduct of the plaintiff in undertaking to alight while the train was yet slightly under way was not
characterized by imprudence and that therefore he was not guilty of contributory negligence.
II. QUASI-DELICT
Art. 2176
Whoever
by act or omission
causes damage or injury to another
there being fault or negligence
shall be obliged to pay for the damage done.
Such fault or negligence
if there is no pre-existing contractual relation between the parties
is called a quasi-delict
and is governed by the chapter on quasi-delict.
This article covers ALL WRONGFUL ACTS OR OMISSIONS
as long as they are NOT
1. The standard of conduct used in the Philippines is that of pater familias in Roman law or that what is referred to in Art. 1173 of the NCC in relation to Art. 2178 as a good father of a
family.
2. What should be determined in negligence cases is what is forseeable to a good father of a family.
3. A good father of a family is referred to as THE REASONABLE MAN, A MAN OF ORDINARY PRUDENCE, OR ORDINARY REASONABLE PRUDENT MAN.
4. Test of negligence: Would a prudent man, in the position of the person to whom negligence is attributed, foresee harm to the person injured as a reasonable consequence of the
course about to be pursued? If so the law imposes a duty on the actor to refrain from the course or take precaution against its mischievous results, and failure to do so constitutes
negligence.
Facts:
Picart was riding a pony on Carlatan Bridge, San Fernando, La Union. He pulled his pony over the bridge’s railing on the right instead of left upon seeing the automobile rapidly approaching. The driver of
the automobile, however, guided his car toward the plaintiff without diminution of speed until he was only a few feet away. He then turned to the right but passed so closely to the pony unfortunately the
pony being frightened when the automobile passed so close to them, jumped around and was struck on the hock of the left hind leg by the flange of the car and the limb was broken. The pony and its rider
were thrown off with some violence. As a result of its injuries the horse died. Picart received contusions that caused temporary unconsciousness and required medical attention for several days. Picart
seeks to render the sum of Php31,000 as damages. CFI La Union absolved Smith.
Issue:
Whether or not defendant was negligent and if the concept of last clear chance is attributable to him?
Held:
The defendant was guilty of negligence.
There was an appreciable risk that, if the animal in question was unacquainted with automobiles, he might get excited and jump under the conditions which here confronted him. When the defendant
exposed the horse and rider to this danger he was, in our opinion, negligent in the eye of the law.
The test by which to determine the existence of negligence in a particular case may be stated as follows: Did the defendant in doing the alleged negligent act use that reasonable care and caution
which an ordinarily prudent person would have used in the same situation? If not, then he is guilty of negligence. The law here in effect adopts the standard supposed to be supplied by the
imaginary conduct of the discreet paterfamilias of the Roman law.
The defendant Smith is negligent and liable under the doctrine of last clear chance although the plaintiff was guilty of negligence in being on the wrong side of the bridge as the defendant
had a fair opportunity to avoid the accident after he realized that the negligence by the plaintiff could not have placed himself in a position of greater safety.
The last clear chance was passed unto the defendant who drove the automobile. It was his duty to bring the car to an immediate stop or upon seeing no other persons were on the bridge to
take the other side and pass far away from the pony to avoid collision. Instead of doing this, Smith ran straight on until he was almost upon the horse. When Smith exposed the horse and
rider to this danger he was negligent in the eye of the law.
Under the circumstances, the doctrine of last clear chance applies which thus states: that the person who has the last clear chance to avoid the impending harm and fails to do so is chargeable
with the consequences, WITHOUT REFERENCE to the PRIOR NEGLIGENCE OF THE OTHER PARTY.
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FACTS:
In the year 1902, Teodorica Endencia executed a contract whereby she obligated herself to convey to Geo. W. Daywalt, a tract of land. It was agreed that a deed should be executed as soon as the title to
the land should be perfected by proceedings in the Court of Land Registration and a Torrens certificate should be produced therefore in the name of Teodorica Endencia. A decree recognizing the right of
Teodorica as owner was entered in said court in August 1906, but the Torrens certificate was not issued until later. The stipulated price was fixed at P4,000, and the area of the land enclosed in the
boundaries defined in the contract was stated to be 452 hectares and a fraction.
Upon October 3, 1908, the parties entered into still another agreement, superseding the old, by which Teodorica Endencia agreed upon receiving the Torrens title to the land in question, to deliver the
same to the Hongkong and Shanghai Bank in Manila, to be forwarded to the Crocker National Bank in San Francisco, where it was to be delivered to the plaintiff upon payment of a balance of P3,100.
The Torrens certificate was issued in 1909 to Teodorica Endencia, but in the course of the proceedings relative to the registration of the land, it was found by official survey that the area of the tract
inclosed in the boundaries stated in the contract was about 1.248 hectares of 452 hectares as stated in the contract. In view of this development Teodorica Endencia became reluctant to transfer the whole
tract to the purchaser, asserting that she never intended to sell so large an amount of land and that she had been misinformed as to its area.
This attitude of hers led to litigation in which Daywalt finally succeeded, upon appeal to the Supreme Court, in obtaining a decree for specific performance; and Teodorica Endencia was ordered to convey
the entire tract of land to Daywalt pursuant to the contract of October 3, 1908, which contract was declared to be in full force and effect. This decree appears to have become finally effective in the early
part of the year 1914.1
The defendant, La Corporacion de los Padres Recoletos, is a religious corporation, with its domicile in the city of Manila. Said corporation was formerly the owner of a large tract of land, known as the San
Jose Estate, on the island of Mindoro, which was sold to the Government of the Philippine Islands in the year 1909. The same corporation was at this time also the owner of another estate on the same
island immediately adjacent to the land which Teodorica Endencia had sold to Geo. W. Daywalt; and for many years the Recoletos Fathers had maintained large herds of cattle on the farms referred to.
Their representative, charged with management of these farms, was father Isidoro Sanz, himself a members of the order.
Father Sanz had long been well acquainted with Teodorica Endencia and exerted over her an influence and ascendency due to his religious character as well as to the personal friendship which existed
between them. Teodorica appears to be a woman of little personal force, easily subject to influence, and upon all the important matters of business was accustomed to seek, and was given, the advice of
father Sanz and other members of his order with whom she came in contact.
Father Sanz was fully aware of the existence of the contract of 1902 by which Teodorica Endencia agreed to sell her land to the plaintiff as well as of the later important developments connected with the
history of that contract and the contract substituted successively for it; and in particular Father Sanz, as well as other members of the defendant corporation, knew of the existence of the contract of
October 3, 1908, which, as we have already seen finally fixed the rights of the parties to the property in question.
When the Torrens certificate was finally issued in 1909 in favor of Teodorica Endencia, she delivered it for safekeeping to the defendant corporation, and it was then taken to Manila where it remained in
the custody and under the control of P. Juan Labarga the procurador and chief official of the defendant corporation, until the deliver thereof to the plaintiff was made compulsory by reason of the decree of
the Supreme Court in 1914.
When the defendant corporation sold the San Jose Estate, it was necessary to bring the cattle off of that property; and, in the first half of 1909, some 2,368 head were removed to the estate of the
corporation immediately adjacent to the property which the plaintiff had purchased from Teodorica Endencia. As Teodorica still retained possession of said property, Father Sanz entered into an
arrangement with her whereby large numbers of cattle belonging to the defendant corporation were pastured upon said land during a period extending from June 1, 1909, to May 1, 1914.
Under the first cause stated in the complaint in the present action the plaintiff seeks to recover from the defendant corporation the sum of P24,000, as damages for the use and occupation of the land in
question by reason of the pasturing of cattle thereon during the period stated. The trial court came to the conclusion that the defendant corporation was liable for damages by reason of the use and
occupation of the premises in the manner stated; and fixed the amount to be recovered at P2,497. The plaintiff appealed and has assigned error to this part of the judgment of the court below, insisting that
damages should have been awarded in a much larger sum and at least to the full extent of P24,000, the amount claimed in the complaint.
In the second cause of action stated in the complaint the plaintiff seeks to recover from the defendant corporation the sum of P500,000, as damages, on the ground that said corporation, for its own selfish
purposes, unlawfully induced Teodorica Endencia to refrain from the performance of her contract for the sale of the land in question and to withhold delivery to the plaintiff of the Torrens title, and further,
maliciously and without reasonable cause, maintained her in her defense to the action of specific performance which was finally decided in favor of the plaintiff in this court. The cause of action here stated
is based on liability derived from the wrongful interference of the defendant in the performance of the contract between the plaintiff and Teodorica Endencia; and the large damages laid in the complaint
were, according to the proof submitted by the plaintiff, incurred as a result of a combination of circumstances of the following nature: In 1911, it appears, the plaintiff, as the owner of the land which he had
bought from Teodorica Endencia entered into a contract (Exhibit C) with S. B. Wakefield, of San Francisco, for the sale and disposal of said lands to a sugar growing and milling enterprise, the successful
launching of which depended on the ability of Daywalt to get possession of the land and the Torrens certificate of title. In order to accomplish this end, the plaintiff returned to the Philippine Islands,
communicated his arrangement to the defendant,, and made repeated efforts to secure the registered title for delivery in compliance with said agreement with Wakefield. Teodorica Endencia seems to
have yielded her consent to the consummation of her contract, but the Torrens title was then in the possession of Padre Juan Labarga in Manila, who refused to deliver the document. Teodorica also was
in the end contract with the plaintiff, with the result that the plaintiff was kept out of possession until the Wakefield project for the establishment of a large sugar growing and milling enterprise fell through.
In the light of what has happened in recent years in the sugar industry, we feel justified in saying that the project above referred to, if carried into effect, must inevitably have proved a great success.
The fact that its officials may have advised her not to carry the contract into effect would not constitute actionable interference with such contract. Father Juan Labarga and his associates believed in
good faith that the contract could not be enforced and that Teodorica would be wronged if it should be carried into effect. Any advice or assistance which they may have given was,
therefore, prompted by no mean or improper motive. We do not credit the idea that they were in any degree influenced to the giving of such advice by the desire to secure to themselves the paltry
privilege of grazing their cattle upon the land in question to the prejudice of the just rights of the plaintiff. Malice in some form is generally supposed to be an essential ingredient in cases of interference
with contract relations. But upon the authorities it is enough if the wrong-doer, having knowledge of the existence of the contract relations, in bad faith sets about to break it up. Whether his motive is to
benefit himself or gratify his spite by working mischief to the employer is immaterial. Malice in the sense of ill-will or spite is not essential. Malice in some form is generally supposed to be an essential
ingredient in cases of interference with contract relations.
Upon the question as to what constitutes legal justification, a good illustration was put in the leading case. If a party enters into contract to go for another upon a journey to a remote and unhealthful
climate, and a third person, with a bona fide purpose of benefiting the one who is under contract to go, dissuades him from the step, no action will lie. But if the advice is not disinterested and the
persuasion is used for "the indirect purpose of benefiting the defendant at the expense of the plaintiff," the intermedler is liable if his advice is taken and the contract broken.
This brings us to the decision made by this court in Gilchrist vs. Cuddy (29 Phil. Rep., 542). It there appeared that one Cuddy, the owner of a cinematographic film, let it under a rental contract to the
plaintiff Gilchrist for a specified period of time. In violation of the terms of this agreement, Cuddy proceeded to turn over the film also under a rental contract, to the defendants Espejo and Zaldarriaga.
Gilchrist thereupon restored to the Court of First Instance and produced an injunction restraining the defendants from exhibiting the film in question in their theater during the period specified in the contract
of Cuddy with Gilchrist. Upon appeal to this court it was in effect held that the injunction was not improperly granted, although the defendants did not, at the time their contract was made, know the identity
of the plaintiff as the person holding the prior contract but did know of the existence of a contract in favor of someone. It was also said arguendo, that the defendants would have been liable in damages
under article 1902 of the Civil Code, if the action had been brought by the plaintiff to recover damages. The force of the opinion is, we think, somewhat weakened by the criticism contain in the concurring
opinion, where it is said that the question of breach of contract by inducement was not really involved in the case. Taking the decision upon the point which was rally decided, it is authority for the
proposition that one who buys something which he knows has been sold to some other person can be restrained from using that thing to the prejudice of the person having the prior and better right.
Translated into terms applicable to the case at bar, the decision in Gilchrist vs. Cuddy (29 Phil. Rep., 542), indicates that the defendant corporation, having notice of the sale of the land in question to
Daywalt, might have been enjoined by the latter from using the property for grazing its cattle thereon. That the defendant corporation is also liable in this action for the damage resulting to the plaintiff from
the wrongful use and occupation of the property has also been already determined. But it will be observed that in order to sustain this liability it is not necessary to resort to any subtle exegesis relative to
the liability of a stranger to a contract for unlawful interference in the performance thereof. It is enough that defendant use the property with notice that the plaintiff had a prior and better right.
We are of the opinion that neither the doctrine of Lumley vs. Gye [supra] nor the application made of it by this court in Gilchrist vs. Cuddy (29 Phil. Rep., 542), affords any basis for the recovery of the
damages which the plaintiff is supposed to have suffered by reason of his inability to comply with the terms of the Wakefield contract.
Whatever may be the character of the liability which a stranger to a contract may incur by advising or assisting one of the parties to evade performance, there is one proposition upon which all must agree.
This is, that the stranger cannot become more extensively liable in damages for the nonperformance of the contract than the party in whose behalf he intermeddles. To hold the stranger liable for damages
in excess of those that could be recovered against the immediate party to the contract would lead to results at once grotesque and unjust. In the case at bar, as Teodorica Endencia was the party directly
bound by the contract, it is obvious that the liability of the defendant corporation, even admitting that it has made itself coparticipant in the breach of the contract, can in no even exceed hers. This leads us
to consider at this point the extent of the liability of Teodorica Endencia to the plaintiff by reason of her failure to surrender the certificate of title and to place the plaintiff in possession.
It should in the first place be noted that the liability of Teodorica Endencia for damages resulting from the breach of her contract with Daywalt was a proper subject for adjudication in the action for specific
performance which Daywalt instituted against her in 1909 and which was litigated by him to a successful conclusion in this court, but without obtaining any special adjudication with reference to damages.
Indemnification for damages resulting from the breach of a contract is a right inseparably annexed to every action for the fulfillment of the obligation (art. 1124, Civil Code); and its is clear that if damages
are not sought or recovered in the action to enforce performance they cannot be recovered in an independent action. As to Teodorica Endencia, therefore, it should be considered that the right of action to
recover damages for the breach of the contract in question was exhausted in the prior suit. However, her attorneys have not seen fit to interpose the defense of res judicata in her behalf; and as the
defendant corporation was not a party to that action, and such defense could not in any event be of any avail to it, we proceed to consider the question of the liability of Teodorica Endencia for damages
without refernce to this point.
The most that can be said with refernce to the conduct of Teodorica Endencia is that she refused to carry out a contract for the sale of certain land and resisted to the last an action for specific
performance in court. The result was that the plaintiff was prevented during a period of several years from exerting that control over the property which he was entitled to exert and was meanwhile unable
to dispose of the property advantageously. Now, what is the measure of damages for the wrongful detention of real property by the vender after the time has come for him to place the purchaser in
possession?
The damages ordinarily and normally recoverable against a vendor for failure to deliver land which he has contracted to deliver is the value of the use and occupation of the land for the time during which it
is wrongfully withheld. And of course where the purchaser has not paid the purchaser money, a deduction may be made in respect to the interest on the money which constitutes the purchase price.
Substantially the same rule holds with respect to the liability of a landlord who fails to put his tenant in possession pursuant to contract of lease. The measure of damages is the value of the leasehold
interest, or use and occupation, less the stipulated rent, where this has not been paid. The rule that the measure of damages for the wrongful detention of land is normally to be found in the value of use
and occupation is, we believe, one of the things that may be considered certain in the law (39 cyc., 1630; 24 Cyc., 1052 Sedgewick on Damages, Ninth ed., sec. 185.) — almost as wellsettled, indeed, as
the rule that the measure of damages for the wrongful detention of money is to be found in the interest.
Where the purchaser desires to protect himself, in the contingency of the failure of the vendor promptly to give possession, from the possibility of incurring other damages than such as the incident to the
normal value of the use and occupation, he should cause to be inserted in the contract a clause providing for stipulated amount to the paid upon failure of the vendor to give possession; and no case has
been called to our attention where, in the absence of such a stipulation, damages have been held to be recoverable by the purchaser in excess of the normal value of use and occupation.
The discussion contained in the opinion of the court in that case leads to the conclusion that the damages recoverable in case of the breach of a contract are two sorts, namely, (1) the ordinary, natural,
and in a sense necessary damage; and (2) special damages.
Ordinary damages is found in all breaches of contract where the are no special circumstances to distinguish the case specially from other contracts. The consideration paid for an unperformed promise is
an instance of this sort of damage. In all such cases the damages recoverable are such as naturally and generally would result from such a breach, "according to the usual course of things." In case
involving only ordinary damage no discussion is ever indulged as to whether that damage was contemplated or not. This is conclusively presumed from the immediateness and inevitableness of the
damage, and the recovery of such damage follows as a necessary legal consequence of the breach. Ordinary damage is assumed as a matter of law to be within the contemplation of the parties.
Special damage, on the other hand, is such as follows less directly from the breach than ordinary damage. It is only found in case where some external condition, apart from the actual terms to the
contract exists or intervenes, as it were, to give a turn to affairs and to increase damage in a way that the promisor, without actual notice of that external condition, could not reasonably be
expected to foresee. Concerning this sort of damage, Hadley vs. Baxendale (1854) [supra] lays down the definite and just rule that before such damage can be recovered the plaintiff must show that the
particular condition which made the damage a possible and likely consequence of the breach was known to the defendant at the time the contract was made.
In the preceding discussion we have considered the plaintiff's right chiefly against Teodorica Endencia; and what has been said suffices in our opinion to demonstrate that the damages laid under the
second cause of action in the complaint could not be recovered from her, first, because the damages in question are special damages which were not within contemplation of the parties when the contract
was made, and secondly, because said damages are too remote to be the subject of recovery. This conclusion is also necessarily fatal to the right of the plaintiff to recover such damages from the
defendant corporation, for, as already suggested, by advising Teodorica not to perform the contract, said corporation could in no event render itself more extensively liable than the principle in the contract.
The Supreme Court did not give credence to Air France’s claim that the issuance of a first class ticket to a passenger is not an assurance that he will be given a first class seat. Such claim is simply
incredible.
Culpa Aquiliana
Here, the SC ruled, even though there is a contract of carriage between Air France and Carrascoso, there is also a tortuous act based on culpa aquiliana. Passengers do not contract merely for
transportation. They have a right to be treated by the carrier’s employees with kindness, respect, courtesy and due consideration. They are entitled to be protected against personal misconduct, injurious
language, indignities and abuses from such employees. So it is, that any rule or discourteous conduct on the part of employees towards a passenger gives the latter an action for damages
against the carrier. Air France’s contract with Carrascoso is one attended with public duty. The stress of Carrascoso’s action is placed upon his wrongful expulsion. This is a violation of
public duty by the Air France — a case of quasi-delict. Damages are proper.
11. Gilchrist v. Cuddy, 29 Phil. 542
Facts:
Cuddy, the owner of the film “Zigomar,” agreed to rent the film for 125 pesos to Gilchrist, a theater owner in Iloilo. Before the agreed date for delivery, Cuddy returned the payment of Gilchrist because he
entered into another contract with Espejo and Zaldarriago for a higher price of 350 pesos. Upon the application of Gilchrist, an ex-parte mandatory injunction was issued directing Cuddy to send the film to
Gilchrist and for Espejo and Zaldarriago to prohibit the showing of the film in their theater.
Issue:
WON Espejo and Zaldarriago are liable for tort interference even if they had no knowledge of the identity of one of the contracting parties?
Ruling:
Yes. Article 1902 of the Civil Code provides that a person who, by act or omission, causes damages to another when there is fault or negligence, shall be obliged to repair the damage done. There is
nothing in this article which requires as a condition precedent to the liability of a tort-feasor that he must know the identity of a person to whom he causes damages. In fact, the chapter wherein this article
is found clearly shows that no such knowledge is required in order that the injured party may recover for the damage suffered. The ground on which the liability of a third party for interfering with a contract
between others rests, is that the interference was malicious. In this case, Espejo and Zaldirriago’s motive for the interference was their desire to make profit and there is no malice beyond this desire.
However, this does not relieve them from the legal liability for interfering with the contract and causing it’s breach.
Injuction was the proper remedy because Gilchrist was facing the immediate prospect of diminished profits due to the inducement of Espejo and Zaldarriago to rent the film to them. The profits of the
Gilchrist depended upon the patronage of the public. Zigomar was the the feature film of his theather. This feature film is depended upon to secure a larger attendance. It is evident that the failure to
exhibit the feature film will reduce the receipts of the theater.
III. NEGLIGENCE
A. CONCEPT
C. PROOF OF NEGLIGENCE
suffering, which were ultimately brought about by Dr. Tuaño's grossly negligent conduct in prescribing medicine.
In its decision, the RTC dismissed the civil case for insufficiency of evidence. The CA denied petitioners' recourse and affirmed the appealed RTC decision.
Issue:
Whether petitioners failed to prove their claim for damages
Ruling:
There is no causal connection between the said breach and the resulting injury sustained by the patient. Petitioners didn't establish before the trial court that the physician ignored the standard medical
procedure, prescribed and administered medication with recklessness and exhibited an absence of the competence and skills expected of him. Petitioners also failed to present any expert testimony to
establish that Dr. Tuaño failed in his duty to exercise a standard of care expected of a competent physician and that what was prescribed was the cause of the glaucoma. The burden of proof was upon
petitioners to establish their case by a preponderance of evidence showing a reasonable connection between the alleged breach of duty and the damage sustained.
D. PRESUMPTION OF NEGLIGENCE
Furthermore, there was glaringly no attempt what so ever on the part of petitioner to explain the cause of the damage to the oven. The unexplained cause of damage to private respondents cargo
constitutes gross carelessness or negligence which by itself justifies the present award of damages.[45] The equally unexplained and inordinate delay in acting on the claim upon referral thereof to the
claims officer, Atty. Paco, and the noncommittal responses to private respondents entreaties for settlement of her claim for damages belies petitioners pretension that there was no bad faith on its part.
This unprofessional indifference of PALs personnel despite full and actual knowledge of the damage to private respondents cargo, just to be exculpated from liability on pure technicality and bureaucratic
subterfuge, smacks of willful misconduct and insensitivity to a passengers plight tantamount to bad faith[46] and renders unquestionable petitioners liability for damages.
43. D.M. Consunji, Inc. v. CA, G.R. No. 137873, 20 April 2001.
Facts:
th th
Jose Juego is a carpenter of D.M. Consunji Inc. While on board a platform and performing his work at the elevator of the 14 floor of the Renaissance Tower Builiding, Jose fell from the 14 floor causing
his death. The falling of the platform was due to the removal or getting lose of the pin which was merely inserted without a safety lock. Jose’s widow, Maria, filed a complaint for damages against DM
Consunji, which was granted by the RTC of Pasig. The Court of Appeals affirmed the decision in toto.
Issue:
WON D.M Consunji is liable for damages
Ruling:
Yes. D.M, Consunji is liable for damages. The doctrine of re ipsa loquitor ( the thing speaks for itself) provides that the facts and circumstances accompanying an injury may be such as to raise a
th
presumption that it was due to the negligence on the part of the defendant. In this case, the requisites for the applicability of the doctrine are present. First, no worker is going to fall from the 14 floor while
performing work unless someone is negligent. Second, the instrumentality is under the control and management of D.M. Consunji. Lastly, there was no contributory negligence attributable to Jose. These
circumstances warrant a presumption or inference that the accident was due to the negligence of the company and since it was not able to overturn the presumption , DM Consunji is liable for damages.
Negligence is the want of care required by the circumstances.It is a conduct that involves an unreasonably great risk of causing damage; or, more fully, a conduct that falls below the standard
established by law for the protection of others against unreasonably great risk of harm.The test of negligence is as follows:
Could a prudent man, in the case under consideration, foresee harm as a result of the course actually pursued? If so, it was the duty of the actor to take precautions to guard against that harm.
Reasonable foresight of harm, followed by ignoring of the suggestion born of this prevision, is always necessary before negligence can be held to exist.
Circumstances would show that the acts of the crane operator were rational and justified.
The question as to what would constitute the conduct of a prudent man in a given situation must of course be always determined in the light of human experience and in view of the facts involved in the
particular case. Abstract speculations cannot here be of much value but this much can be profitably said
v. Common carrier
Award of Damages for Aaron’s loss of earning capacity despite he being a high school student at the time of his death
The award is proper. Aaron was enrolled in a reputable school (Don Bosco). He was of normal health and was an able-bodied person. Further, the basis of the computation of his earning capacity was not
on what he would have become. It was based on the current minimum wage. The minimum wage was validly used because with his circumstances at the time of his death, it is most certain that had he
lived, he would at least be a minimum wage earner by the time he starts working. This is not being speculative at all.
The Teehankee case cannot be applied because it has different facts. There the petitioners verily assumed that the victim would become a pilot– hence, that made the assumption speculative. But in the
case of Aaron, there was no speculation as to what he might be – but whatever he’ll become, it is certain that he will at the least be earning minimum wage.
E. DEFENSES
ISSUE: Whether or not the defendant entity has complied with its contractual obligation to carry Teh Le Kim safe and sound to his destination.
RULING: The hydroplane, which carried the plaintiff, arrived at the Iloilo, as usual, with nothing more left to do but to take plaintiff safe and sound, ashore. In order to do this, it was necessary to wait for
the propeller to stop, turn the rear or tail end of the plane towards the shore, take the passengers out by the aforesaid rear or tail end thereof, place them in a banca and take them ashore. By sheer
common sense, the plaintiff ought to know that a propeller, be it that of a ship or of an aeroplane, is dangerous while in motion and that to approach it is to run the risk of being caught and injured thereby.
It is not difficult to understand that the Kim acted with reckless negligence in approaching the propeller while it was still in motion, and when the banca was not yet in a position to take him. Kim’s
negligence alone was the direct cause of the accident, the injury to his right arm and the subsequent amputation thereof were due entirely and exclusively to his own imprudence and not to the slightest
negligence attributable to the defendant entity or to its agents. Therefore, he alone should suffer the consequences of his act.
Comparative Negligence
The trial court absolved PCIB and held Citibank liable, which decision was affirmed in toto by the Court of Appeals.
Issue:
Whether there is contributory negligence on the part of Ford
Ruling:
YES. The general rule is that if the master is injured by the negligence of a third person and by the concurring contributory negligence of his own servant or agent, the latter's negligence is imputed to his
superior and will defeat the superior's action against the third person, assuming, of course that the contributory negligence was the proximate cause of the injury of which complaint is made. As well-
defined, proximate cause is that which, in the natural and continuous sequence, unbroken by any efficient, intervening cause produces the injury and without the result would not have occurred. It shows
that while the employees of Ford commenced the transactions attributable to an organized syndicate, in our interpretation, their actions were not the proximate cause of encashing the checks payable to
the CIR. The degree of Ford's negligence, if any, could not be characterized as the proximate cause of the injury to the parties. The mere fact that the forgery was committed by a drawer-payor's
confidential employee or agent, who by virtue of his position had unusual facilities for perpetrating the fraud and imposing the forged paper upon the bank, does not entitle the bank to shift the loss to the
drawer-payor, in the absence of some circumstance raising estoppel against the drawer. This rule likewise applies to the checks fraudulently negotiated or diverted by the confidential employees who hold
them in their possession.
RULING:
Yes. Bandoquillo and Quinquillera are liable for the negligent act of their driver. The judgment ordering defendants Gerosano and Estacion, as well as third party defendants Bandoquillo and Quinquillera,
to pay plaintiff, jointly and solidarily, the award of damages, should be mitigated in accordance with Article 2179 since there was contributory negligence on the part of respondent Noe.
Contributory Negligence
water.
The plaintiff spouses Ong brought an action for damages against the defendant alleging negligence in the selection and supervision of its employees, and if not negligent, they had the last clear chance to
revive Dominador. The lower court dismissed the complaint.
ISSUE:
Whether the defendant is guilty of negligence and therefore liable
RULING:
The defendant is not guilty of negligence; it has taken all necessary precautions to avoid danger to the lives of its patrons or prevent accident which may cause their death. It has been shown that the
swimming pools of the defendant are provided with a ring buoy, toy roof, towing line, oxygen resuscitator and a first aid kit. The bottom of the pool was also painted with black colors so as to insure clear
visibility. The defendant had done what is humanly possible under the circumstances to restore the life of minor Ong.
Neither does the Doctrine of Last Clear Chance find application in this case. The Doctrine of last Clear Chance means that a person who has the last clear chance to avoid the accident, notwithstanding
the negligent acts of his opponent, is considered in law solely responsible for the consequences of the accident.
Since minor Ong has went to the big swimming pool without any companion in violation of the rules and regulations of the defendant as regards the use of pools, and it appearing that the lifeguard
responded to the call for help as soon as his attention was called to it, applying all efforts into play in order to bring minor Ong back to life--- it is clear that there is no room for the application of the
Doctrine to impute liability to appellee. Minor Ong’s fault or negligence is the proximate and only cause of his death.
Held:
No. The accident was not due to the absence of warning signs, but to the unexplained abrupt swerving of the jeep from the inside lane. Antonio had not exercised the diligence required to avoid the
accident. His negligence was not only contributory but goes to be the very cause of the occurrence of the accident, and thereby precludes their right to recover damages. He could have stopped the
vehicle the moment it struck the accident mound if the jeep did not run quite fast. The purpose of the presence of the warning signs was to inform and warn the public of the presence of the excavations
but it could not have completely prevented the accident. Also, Estebans already knew of the presence of the excavations because they passed that street almost every day. Antonio has the last clear
chance or opportunity to avoid the accident. Therefore, it was his negligence that exposed him and his wife to danger; hence, he is solely responsible for the consequences of his imprudence.
have been foreseen or could have reasonably been foreseen by the defendant. 10 As Go's negligence was the root cause of the complained inconvenience, humiliation and embarrassment, Go is liable to
private respondents for damages.
Anent petitioner bank's claim that it is not "co-equally liable" with Go for damages, under the fifth paragraph of Article 2180 of the Civil Code, "Employers shall be liable for the damages caused by their
employees . . . acting within the scope of their assigned tasks." Pursuant to this provision, the bank is responsible for the acts of its employee unless there is proof that it exercised the diligence of a good
father of a family to prevent the damage. 11 Hence, the burden of proof lies upon the bank and it cannot now disclaim liability in view of its own failure to prove not only that it exercised due diligence to
prevent damage but that it was not negligent in the selection and supervision of its employees.
82. YHT Realty v. CA, G.R. No. 126780 (17 Feb 2005)
FACTS:
McLoughlin is an Australian businessman who used to stay at the Sheraton Hotel during his trips to the Philippines prior to 1984. He met Brunhilda Tan who befriended him. Tan convinced Mcloughlin to
transfer to the Tropicana from the Sheraton where afterwards he stayed during his trips. When McLoughlin arrived from Australia and registered with Tropicana, he rented a safety deposit box as his usual
practice. The box required two keys, the guest had one and one from the management. He placed US $10,000 in one envelope and US$5,000 in another, AU$10,000 in another envelope. He then took
from the box the envelope with US$5,000 and the one with AU$10,000 to go to Hong Kong for a short visit. When he arrived in HK, the envelope with US$5,000 only contained US$3,000, but he thought it
was just bad accounting.
After returning to Manila, he checked out of the Tropicana and left for Australia. When he arrived he discovered that the envelope with US$10,000 was short of US$5,000. He went back to the Philippines
and asked Lainez who had custody of the management key if some money was missing or returned to her, to which the latter answered there was none. He again registered at the Tropicana and rented a
safety deposit box. He placed an envelope containing US$15,000, another of AU$10,000. After some time, he opened his safety deposit box and noticed that US$2,000 and AU$4,500 was missing from
the envelopes. He immediately confronted Lainez who admitted that Tan opened the safety deposit box with the key assigned to McLoughlin. McLoughlin went up to his room where Tan was staying and
confronted her.
Tan admitted that she had stolen McLoughlin’s key and was able to open the safety deposit box with the assistance of Lainez and Lopez, the manager. McLoughlin Lopez and Tan sign a promissory note
for him for the loss. However, Lopez refused liability on behalf of the hotel, reasoning that McLoughlin signed an Undertaking for the Use of Safety Deposit Box which disclaims any liability of the hotel for
things put inside the box.
ISSUE:
Whether there was gross negligence on the part of the innkeepers.
RULING:
YES. Payam and Lainez, who were employees of Tropicana, had custody of the master key of the management when the loss took place. They even admitted that they assisted Tan on three separate
occasions in opening McLoughlin’s safety deposit box. The management contends that McLoughlin made its employees believe that Tan was his spouse for she was always with him most of the time.
The evidence on record is bereft of any showing that McLoughlin introduced Tan to the management as his wife. Mere close companionship and intimacy are not enough to warrant such conclusion.
They should have confronted him as to his relationship with Tan.
Art 2180, par (4) of the same Code provides that the owners and managers of an establishment or enterprise are likewise responsible for damages caused by their employees in the service of the
branches in which the latter are employed or on the occasion of their functions.
Given the fact that the loss of McLoughlin’s money was consummated through the negligence of Tropicana’s employees both the employees and YHT, as owner of Tropicana, should be held solidarily
liable pursuant to Art 2193.
F. CRIMINAL NEGLIGENCE
iii. Employers
Medical negligence/malpractice
90. Ramos v. CA, GR 124354, 29 Dec 1999 (D), 11 April 2002 (R)
Facts:
Petitioner Erlinda Ramos was referred to Dr. Hosaka for an operation to remove a stone from her gallbladder at De Los Santos Medical Center. Dr. Hosaka recommended Dr. Gutierrez to be their
anesthesiologist. Ramos requested that her sister-in-law, Herminda Cruz, the Dean of the College of Nursing at the Capitol Medical Center, be allowed to accompany her in the operating room.
Ramos was prepped early for the operation which was scheduled at 9:00am but Dr. Hosaka arrived at 12:10pm. At about 12:15 pm, Cruz heard Dr. Gutierrez complaining that it was difficult to intubate the
patient and noticed bluish discoloration of Ramos’ nail beds. Another doctor was called to intubate the patient and several medical interventions were implemented to treat the patient’s condition.
Ramos stayed in the ICU for a month and was released four months later. She had been in comatose since the operation until her death.
The RTC ruled in favor of Ramos but the decision was reversed by the CA.
The SC, in its 1999 decision, applying the control test, held that an employer-employee relationship exists between hospitals and their consultants and, therefore, DLSMC is solidarily liable with Dr.
Hosaka.
Issue:
WON DLSMC is an employer of Dr. Hosaka and therefore, solidarily liable.
Ruling:
No. There is no employer-employee relationship between DLSMC and Drs. Gutierrez and Hosaka which would hold DLSMC solidarily liable for the injury suffered by petitioner Erlinda under Article 2180 of
the Civil Code.
There is no showing that it is DLSMC which pays any of its consultants for medical services rendered by the latter to their respective patients. Moreover, the contract between the consultant and his patient
is separate and distinct from the contract between respondent hospital and said patient. The first has for its object the rendition of medical services by the consultant to the patient, while the second
concerns the provision by the hospital of facilities and services by its staff such as nurses and laboratory personnel necessary for the proper treatment of the patient.
Further, no evidence was adduced to show that the injury suffered by petitioner Erlinda was due to a failure on the part of respondent DLSMC to provide for hospital facilities and staff necessary for her
treatment.
Ruling:
Yes. Medical Negligence is a wrong committed by a medical professional that has caused bodily harm to or death of a patient. There are 4 elements involved namely ; duty , breach , injury and proximate
cause. In this case, Dr. Flores already suspected that Teresita might be suffering from diabetes during her follow-up check up. A reasonably prudent health care provider would know that diabetes and its
complication were foreseeable harm that should have been taken into consideration rather than doing the D&c to ascertain the cause of vaginal bleeding. D&C was merely an elective procedure, not an
emergency case. Also, there is no record that insulin was administered prior and during the operation. Spouses Flores failed , as medical professionals , to comply with their duty to observe the standard
of care to be given to diabetic patients undergoing surgery. This breach of duty was the proximate cause of Teresita’s death making the spouses liable for damages.
92. Professional Services v. Natividad, G.R. Nos. 126297; 31 Jan 2007 (D), 11 Feb 2008 (R1); and 2 Feb 2010 (R2, en banc)
FACTS:
Professional Services, Inc. (PSI) was held solidarily liable with Dr. Ampil and Dr. Fuentes for damages for the injuries suffered by Natividad when Dr. Ampil and Dr. Fuentes neglected to remove from her
body two gauzes which were used in the surgery they performed on her. On appeal, the CA absolved Dr. Fuentes but affirmed the liability of Dr. Ampil and PSI, subject to the right of PSI to claim
reimbursement from Dr. Ampil. On petition for review, the SC affirmed the CA decision. The SC premised the direct liability of PSI to the Aganas on the following: (1) For the purposes of allocating
responsibility in medical negligence cases, an employer-employee relationship exists between hospitals and their consultants; and (2) PSI created the public impression that Dr. Ampil was its agent by
accrediting Dr. Ampil and advertising his qualifications. Thus, under the doctrine of apparent authority, PSI was liable for the negligence of Dr. Ampil.
ISSUE:
Whether PSI is liable to the Aganas
HELD:
Yes. PSI is liable to the Aganas, not under the principle of respondeat superior for lack of evidence of an employment relationship with Dr. Ampil but under the principle of ostensible agency for the
negligence of Dr. Ampil and, pro hac vice, under the principle of corporate negligence for its failure to perform its duties as a hospital.
While in theory a hospital as a juridical entity cannot practice medicine,[32] in reality it utilizes doctors, surgeons and medical practitioners in the conduct of its business of facilitating medical and surgical
treatment.[33] Within that reality, three legal relationships crisscross: (1) between the hospital and the doctor practicing within its premises; (2) between the hospital and the patient being treated or
examined within its premises and (3) between the patient and the doctor. The exact nature of each relationship determines the basis and extent of the liability of the hospital for the negligence of the
doctor.
Where an employment relationship exists, the hospital may be held vicariously liable under Article 2176[34] in relation to Article 2180[35] of the Civil Code or the principle of respondeat superior. Even
when no employment relationship exists but it is shown that the hospital holds out to the patient that the doctor is its agent, the hospital may still be vicariously liable under Article 2176 in relation to Article
1431[36] and Article 1869[37] of the Civil Code or the principle of apparent authority.[38] Moreover, regardless of its relationship with the doctor, the hospital may be held directly liable to the patient for its
own negligence or failure to follow established standard of conduct to which it should conform as a corporation.[39]
This Court still employs the control test to determine the existence of an employer-employee relationship between hospital and doctor. In Calamba Medical Center, Inc. v. National Labor Relations
Commission, et al.[40] it held:
Under the "control test", an employment relationship exists between a physician and a hospital if the hospital controls both the means and the details of the process by which the
physician is to accomplish his task.
xx xx xx
As priorly stated, private respondents maintained specific work-schedules, as determined by petitioner through its medical director, which consisted of 24-hour shifts totaling forty-eight
hours each week and which were strictly to be observed under pain of administrative sanctions.
That petitioner exercised control over respondents gains light from the undisputed fact that in the emergency room, the operating room, or any department or ward for
that matter, respondents' work is monitored through its nursing supervisors, charge nurses and orderlies. Without the approval or consent of petitioner or its medical director, no
operations can be undertaken in those areas. For control test to apply, it is not essential for the employer to actually supervise the performance of duties of the employee, it being
enough that it has the right to wield the power. (emphasis supplied)
Even in its December 29, 1999 decision[41] and April 11, 2002 resolution[42] in Ramos, the Court found the control test decisive.
In the present case, it appears to have escaped the Court's attention that both the RTC and the CA found no employment relationship between PSI and Dr. Ampil, and that the Aganas did not question
such finding. In its March 17, 1993 decision, the RTC found that defendant doctors were not employees of PSI in its hospital, they being merely consultants without any employer-employee relationship
and in the capacity of independent contractors.[43] The Aganas never questioned such finding.
PSI, Dr. Ampil and Dr. Fuentes appealed[44] from the RTC decision but only on the issues of negligence, agency and corporate liability. In its September 6, 1996 decision, the CA mistakenly referred to
PSI and Dr. Ampil as employer-employee, but it was clear in its discussion on the matter that it viewed their relationship as one of mere apparent agency.[45]
The Aganas appealed from the CA decision, but only to question the exoneration of Dr. Fuentes.[46] PSI also appealed from the CA decision, and it was then that the issue of employment, though long
settled, was unwittingly resurrected.
In fine, as there was no dispute over the RTC finding that PSI and Dr. Ampil had no employer-employee relationship, such finding became final and conclusive even to this Court.[47] There was no reason
for PSI to have raised it as an issue in its petition. Thus, whatever discussion on the matter that may have ensued was purely academic.
Nonetheless, to allay the anxiety of the intervenors, the Court holds that, in this particular instance, the concurrent finding of the RTC and the CA that PSI was not the employer of Dr. Ampil is correct.
Control as a determinative factor in testing the employer-employee relationship between doctor and hospital under which the hospital could be held vicariously liable to a patient in medical negligence
cases is a requisite fact to be established by preponderance of evidence. Here, there was insufficient evidence that PSI exercised the power of control or wielded such power over the means and the
details of the specific process by which Dr. Ampil applied his skills in the treatment of Natividad.Consequently, PSI cannot be held vicariously liable for the negligence of Dr. Ampil under the principle of
respondeat superior.
There is, however, ample evidence that the hospital (PSI) held out to the patient (Natividad)[48] that the doctor (Dr. Ampil) was its agent. Present are the two factors that determine apparent authority: first,
the hospital's implied manifestation to the patient which led the latter to conclude that the doctor was the hospital's agent; and second, the patients reliance upon the conduct of the hospital and the doctor,
consistent with ordinary care and prudence.[49]
Enrique testified that on April 2, 1984, he consulted Dr. Ampil regarding the condition of his wife; that after the meeting and as advised by Dr. Ampil, he asked [his] wife to go to Medical City to be
examined by [Dr. Ampil]; and that the next day, April 3, he told his daughter to take her mother to Dr. Ampil.[50] This timeline indicates that it was Enrique who actually made the decision on whom
Natividad should consult and where, and that the latter merely acceded to it. It explains the testimony of Natividad that she consulted Dr. Ampil at the instigation of her daughter.[51]
Moreover, when asked what impelled him to choose Dr. Ampil, Enrique testified:
Atty. Agcaoili: On that particular occasion, April 2, 1984, what was your reason for choosing Dr. Ampil to contact with in connection with your wife's illness?
A. First, before that, I have known him to be a specialist on that part of the body as a surgeon, second, I have known him to be a staff member of the Medical City which is a prominent and
known hospital. And third, because he is a neighbor, I expect more than the usual medical service to be given to us, than his ordinary patients.[52] (emphasis supplied)
Clearly, the decision made by Enrique for Natividad to consult Dr. Ampil was significantly influenced by the impression that Dr. Ampil was a staff member of Medical City General Hospital, and that said
hospital was well known and prominent. Enrique looked upon Dr. Ampil not as independent of but as integrally related to Medical City.
PSI's acts tended to confirm and reinforce, rather than negate, Enrique's view. It is of record that PSI required a consent for hospital care[53] to be signed preparatory to the surgery of Natividad. The form
reads:
reads:
Permission is hereby given to the medical, nursing and laboratory staff of the Medical City General Hospital to perform such diagnostic procedures and to administer such medications and
treatments as may be deemed necessary or advisable by the physicians of this hospital for and during the confinement of xxx. (emphasis supplied)
By such statement, PSI virtually reinforced the public impression that Dr. Ampil was a physician of its hospital, rather than one independently practicing in it; that the medications and treatments he
prescribed were necessary and desirable; and that the hospital staff was prepared to carry them out.
PSI pointed out in its memorandum that Dr. Ampil's hospital affiliation was not the exclusive basis of the Aganas decision to have Natividad treated in Medical City GeneralHospital, meaning that, had Dr.
Ampil been affiliated with another hospital, he would still have been chosen by the Aganas as Natividad's surgeon.[54]
The Court cannot speculate on what could have been behind the Aganas decision but would rather adhere strictly to the fact that, under the circumstances at that time, Enriquedecided to consult Dr. Ampil
for he believed him to be a staff member of a prominent and known hospital. After his meeting with Dr. Ampil, Enrique advised his wife Natividad to go to the Medical City General Hospital to be examined
by said doctor, and the hospital acted in a way that fortified Enrique's belief.
This Court must therefore maintain the ruling that PSI is vicariously liable for the negligence of Dr. Ampil as its ostensible agent.
Moving on to the next issue, the Court notes that PSI made the following admission in its Motion for Reconsideration:
51. Clearly, not being an agent or employee of petitioner PSI, PSI [sic] is not liable for Dr. Ampil's acts during the operation. Considering further that Dr. Ampil was personally engaged as a
doctor by Mrs. Agana, it is incumbent upon Dr. Ampil, as Captain of the Ship, and as the Agana's doctor to advise her on what to do with her situation vis-a-vis the two missing gauzes. In
addition to noting the missing gauzes, regular check-ups were made and no signs of complications were exhibited during her stay at the hospital, which could have alerted
petitioner PSI's hospital to render and provide post-operation services to and tread on Dr. Ampil's role as the doctor of Mrs. Agana. The absence of negligence of PSI from the
patient's admission up to her discharge is borne by the finding of facts in this case. Likewise evident therefrom is the absence of any complaint from Mrs. Agana after her
discharge from the hospital which had she brought to the hospital's attention, could have alerted petitioner PSI to act accordingly and bring the matter to Dr. Ampil's attention. But
this was not the case. Ms. Agana complained ONLY to Drs. Ampil and Fuentes, not the hospital. How then could PSI possibly do something to fix the negligence committed by Dr.
Ampil when it was not informed about it at all.[55] (emphasis supplied)
PSI reiterated its admission when it stated that had Natividad Agana informed the hospital of her discomfort and pain, the hospital would have been obliged to act on it.[56]
The significance of the foregoing statements is critical.
First, they constitute judicial admission by PSI that while it had no power to control the means or method by which Dr. Ampil conducted the surgery on Natividad Agana, it had the power to review or
cause the review of what may have irregularly transpired within its walls strictly for the purpose of determining whether some form of negligence may have attended any procedure done inside its
premises, with the ultimate end of protecting its patients.
Second, it is a judicial admission that, by virtue of the nature of its business as well as its prominence[57] in the hospital industry, it assumed a duty to tread on the captain of the ship role of any doctor
rendering services within its premises for the purpose of ensuring the safety of the patients availing themselves of its services and facilities.
Third, by such admission, PSI defined the standards of its corporate conduct under the circumstances of this case, specifically: (a) that it had a corporate duty to Natividad even after her operation to
ensure her safety as a patient; (b) that its corporate duty was not limited to having its nursing staff note or record the two missing gauzes and (c) that its corporate duty extended to determining Dr. Ampil's
role in it, bringing the matter to his attention, and correcting his negligence.
And finally, by such admission, PSI barred itself from arguing in its second motion for reconsideration that the concept of corporate responsibility was not yet in existence at the time Natividad underwent
treatment;[58] and that if it had any corporate responsibility, the same was limited to reporting the missing gauzes and did not include taking an active step in fixing the negligence committed.[59] An
admission made in the pleading cannot be controverted by the party making such admission and is conclusive as to him, and all proofs submitted by him contrary thereto or inconsistent therewith should
be ignored, whether or not objection is interposed by a party.[60]
Given the standard of conduct that PSI defined for itself, the next relevant inquiry is whether the hospital measured up to it.
PSI excuses itself from fulfilling its corporate duty on the ground that Dr. Ampil assumed the personal responsibility of informing Natividad about the two missing gauzes.[61] Dr. Ricardo Jocson, who was
part of the group of doctors that attended to Natividad, testified that toward the end of the surgery, their group talked about the missing gauzes but Dr. Ampil assured them that he would personally notify
the patient about it.[62] Furthermore, PSI claimed that there was no reason for it to act on the report on the two missing gauzes because Natividad Agana showed no signs of complications. She did not
even inform the hospital about her discomfort.[63]
The excuses proffered by PSI are totally unacceptable.
To begin with, PSI could not simply wave off the problem and nonchalantly delegate to Dr. Ampil the duty to review what transpired during the operation. The purpose of such review would have been to
pinpoint when, how and by whom two surgical gauzes were mislaid so that necessary remedial measures could be taken to avert any jeopardy to Natividads recovery. Certainly, PSI could not have
expected that purpose to be achieved by merely hoping that the person likely to have mislaid the gauzes might be able to retrace his own steps. By its own standard of corporate conduct, PSI's duty to
initiate the review was non-delegable.
While Dr. Ampil may have had the primary responsibility of notifying Natividad about the missing gauzes, PSI imposed upon itself the separate and independent responsibility of initiating the inquiry into
the missing gauzes. The purpose of the first would have been to apprise Natividad of what transpired during her surgery, while the purpose of the second would have been to pinpoint any lapse in
procedure that led to the gauze count discrepancy, so as to prevent a recurrence thereof and to determine corrective measures that would ensure the safety of Natividad. That Dr. Ampil negligently failed
to notify Natividad did not release PSI from its self-imposed separate responsibility.
Corollary to its non-delegable undertaking to review potential incidents of negligence committed within its premises, PSI had the duty to take notice of medical records prepared by its own staff and
submitted to its custody, especially when these bear earmarks of a surgery gone awry. Thus, the record taken during the operation of Natividad which reported a gauze count discrepancy should
have given PSI sufficient reason to initiate a review. It should not have waited for Natividad to complain.
As it happened, PSI took no heed of the record of operation and consequently did not initiate a review of what transpired during Natividads operation. Rather, it shirked its responsibility and passed it on to
others to Dr. Ampil whom it expected to inform Natividad, and to Natividad herself to complain before it took any meaningful step. By its inaction, therefore, PSI failed its own standard of hospital
care. It committed corporate negligence.
It should be borne in mind that the corporate negligence ascribed to PSI is different from the medical negligence attributed to Dr. Ampil. The duties of the hospital are distinct from those of the doctor-
consultant practicing within its premises in relation to the patient; hence, the failure of PSI to fulfill its duties as a hospital corporation gave rise to a direct liability to the Aganas distinct from that of Dr.
Ampil.
All this notwithstanding, we make it clear that PSIs hospital liability based on ostensible agency and corporate negligence applies only to this case, pro hac vice. It is not intended to set a
precedent and should not serve as a basis to hold hospitals liable for every form of negligence of their doctors-consultants under any and all circumstances. The ruling is unique to this
case, for the liability of PSI arose from an implied agency with Dr. Ampil and an admitted corporate duty to Natividad.[64]
Other circumstances peculiar to this case warrant this ruling,[65] not the least of which being that the agony wrought upon the Aganas has gone on for 26 long years, with Natividad coming to the end of
her days racked in pain and agony. Such wretchedness could have been avoided had PSI simply done what was logical: heed the report of a guaze count discrepancy, initiate a review of what went wrong
and take corrective measures to ensure the safety of Nativad. Rather, for 26 years, PSI hemmed and hawed at every turn, disowning any such responsibility to its patient. Meanwhile, the options left to the
Aganas have all but dwindled, for the status of Dr. Ampil can no longer be ascertained.[66]
was found negligent. Petitioner assails the CA in finding her guilty of negligence in not explaining all the possible side effects, she emphasized that she was not negligent in the procedures.
Issue:
Whether petitioner can be held liable for failure to fully disclose the side effects
Ruling:
Examining the evidence on record, we hold that there was adequate disclosure of material risks inherent in the chemotherapy procedure performed with the consent of Angelica’s parents. One thing to
consider is that of the nature of the disease itself. Each patient’s reaction to the chemical agents even with pre-treatment laboratory tests cannot be precisely determined by the physician. Also as a
physician, petitioner can reasonably expect the respondents to have considered the variables in the recommended treatment for their daughter afflicted with a life-threatening illness.
1. Whether or not Dr. Unite and Dr. Aquino acted negligently in handling Raymunda’s operation, resulting in her death.
2. Whether or not Dr. Reyes is liable, as the hospital owner, for the negligence of Dr. Unite and Dr. Aquino.
Ruling:
The cause of action against the doctors in these cases is commonly known as medical malpractice. It is a form of negligence which consists in the physician or surgeon's failure to apply to his practice that
degree of care and skill that the profession generally and ordinarily employs under similar conditions and circumstances.
In these cases, the court always seeks guidance from expert testimonies.
To prove that there is medical malpractice the plaintiff must establish the following:
iv. State
v. Teachers/heads of establishments
See liability of drivers and owners/employers under Section 13 of Republic Act No. 10586 or An Act Penalizing Persons Driving under the Influence of Alcohol, Dangerous Drugs and other Similar
Substances
Exceptionally, liability is created even where there may have been no fault or
negligence.
Art 19. Any person must, in the exercise of his rights and in the performances of his duties, act with justice, give everyone his due and observe honesty and good faith. (NCC)
Art. 21. Any person who wilfully causes loss or injury to another in a manner that is contrary to morals, good customs or public policy shall compensate the latter for the damage. (NCC)
“A moral wrong or injury, even if it does not constitute a violation of a statute law, should be compensated by damages. Moral damages (Art. 2217) may be recovered (Art. 2219). In Article 20, the liability
for damages arises from a wilful or negligent act contrary to law. In this article, the act is contrary to morals, good customs or public policy.”
Sec. 37. Embezzlement, etc. — If any person, before the assignment is made, having notice of the commencement of the proceedings in insolvency, or having reason to believe that insolvency
proceedings are about to be commenced, embezzles or disposes of any of the moneys, goods, chattels, or effects of the insolvent, he is chargeable therewith, and liable to an action by the assignee for
double the value of the property so embezzled or disposed of, to be recovered for the benefit of the insolvent's estate. (Insolvency Law)
Shell should be liable for indemnity for acts it committed in badfaith and with betrayal of confidence.
Wherefore, Shell must pay CALI double the amount of CALI’s airplane at the time Shell’s credit is transferred to its sister corporation in U.S.A
127. Silahis Int’l Hotel v. Soluta, G.R. No. 163087 (February 20, 2006)
FACTS:
Petitioner Jose Marcel Panlilio (Panlilio) was the Vice President for Finance of his co-petitioner Silahis International Hotel, Inc. The latter received several reports of illegal activities within the hotels
premises. He asked the security to conduct surveillance. Sometime in January 11, 1988, entered the union office located at the hotel basement, with the permission of union officer Henry Babay (Babay)
who was apprised about the suspected illegal activities, and searched the premises in the course of which Villanueva found a plastic bag under a table. When opened, the plastic bag yielded dry leaves of
marijuana. Panlilio thereupon ordered Maniego to investigate and report the matter to the authorities.
Criminal cases were filed against the employees of Silahis but the RTC dismissed the case citing the marijuana leaves are not admissible in evidence, coupled by the suspicious circumstance of its
confiscation.
Soluta and his fellow union officers, together with the union, thereafter filed before the Manila RTC a Complaint 12 against petitioners et al. including prosecuting Fiscal Jose Bautista and Atty. Eduardo
Tutaan who assisted in the prosecution of the case against them, for malicious prosecution and violation of their constitutional right against illegal search.
The Manila RTC rendered a decision dated June 2, 1994, holding the hotel, Panlilio, Maniego and Villanueva jointly and severally liable for damages as a result of malicious prosecution and illegal search
of the union office.
On appeal, the Court of Appeals affirmed with modification the trial court’s decision. It found herein petitioners et al. civilly liable for damages for violation of individual respondents’ constitutional right
against illegal search, not for malicious prosecution, set aside the award of actual damages to respondent union, and reduced the award of actual damages to individual respondents to P50,000
ISSUE:
Whether respondent individual can recover damages for violation of constitutional rights?
HELD:
Yes. The Petition is denied. Article 32 of the New Civil Code provides: ART. 32. Any public officer or employee, or any private individual, who directly or indirectly obstructs, defeats, violates or in any
manner impedes or impairs any of the following rights and liberties of another person shall be liable to the latter for damages.
The indemnity shall include moral damages. Exemplary damages may also be adjudicated. As constitutional rights, like the right to be secure in one’s person, house, papers, and effects against
unreasonable search and seizures, occupy a lofty position in every civilized and democratic community and not infrequently susceptible to abuse, their violation, whether constituting a penal offense or
not, must be guarded against. The Code Commission thus deemed it necessary to hold not only public officers but also private individuals civilly liable for violation of rights enumerated in Article 32 of the
Civil Code. That is why it is not even necessary that the defendant under this Article should have acted with malice or bad faith, otherwise, it would defeat its main purpose, which is the effective protection
of individual rights. 25 It suffices that there is a violation of the constitutional right of the plaintiff.
a. the other has property rights and privileges with respect to the use or enjoyment interfered with
b. the invasion is substantial
c. the defendant's conduct is a legal cause of the invasion
d. the invasion is either intentional and unreasonable or unintentional and actionable under general negligence rules.
A duty which the law of torts is concerned with is respect for the property of others, and a cause of action ex delicto may be predicated upon an unlawful interference by one person of the enjoyment by the
other of his private property. This may pertain to a situation where a third person induces a party to renege on or violate his undertaking under a contract.
The elements of tort interference are:
A. REMEDIES
decision convicting Sibayan, did not make any pronouncement as to the latter’s civil liability.
A reading of the complaint reveals that the allegations therein are
consistent with petitioners’ claim that the action was brought to recover civil liability arising from crime. Although there are allegations of negligence on the part of Sibayan and Viron Transit, such does not
necessarily mean that petitioners were pursuing a cause of action based on quasi delict, considering that at the time of the filing of the complaint, the cause of action ex quasi delicto had already
prescribed. Besides, in cases of negligence, the offended party has the choice between an action to enforce civil liability arising from crime under the Revised Penal Code and an action for quasi delict
under the Civil Code.
At the time of the filing of the complaint for damages in this case, the cause of action ex quasi delicto had already prescribed. Nonetheless, petitioners can pursue the remaining avenue opened for them
by their reservation, i.e., the surviving cause of action ex delicto. This is so because the prescription of the action ex quasi delicto does not operate as a bar to an action to enforce the civil liability arising
from crime especially as the latter action had been expressly reserved.
1. Yes, Pajarillo is guilty of negligence in shooting Evangeline as upheld by both the RTC and CA in separate decisions. The SC affirms these decisions since based on the evidence presented,
Pajarillo failed to substantiate his claims that Evangeline was seen roaming outside the vicinity of the bank and acting suspiciously which Pajarillo mistook as a bank robbery which led him to
draw his service firearm and shot Evangeline.
2. Yes, Safeguard Security Agency Inc. should be held solidarily liable for the damages awarded to the respondents. The nature of the respondents’ cause of action is determined in the complaint
itself, its allegations and prayer for relief. In the complaint, the respondents are invoking their right to recover damages against Safeguard for their indirect responsibility for the injury caused by
Pajarillo’s act of shooting and killing Evangeline under Article 2176. Thus, the civil action filed by respondents was not derived from the criminal liability of Pajarillo but one based on culpa
aquiliana or quasi delict which is a separate and distinct from the civil liability arising from crime.
As the employer of Pajarillo, Safeguard is primarily and solidarily liable for the quasi-delict committed by Pajarillo and is presumed to be negligent in the selection and supervision of his
employee by operation of law. The Court agrees with the RTC’s finding that Safeguard had exercised diligence in the selection of Pajarillo since records show that he underwent psychological
and neuropsychiatric evaluation, pre-licensing training course for security guards, as well as police and NBI clearances. However, Safeguard was not diligent in providing trainings, classroom
instructions and continuous evaluation of the security guard’s performance. Thus, the SC affirms with modification that the civil liability of Safeguard Security Agency Inc. is solidary and primary
under Article 2180 of the Civil Code.
144. Phil. Rabbit Bus Lines v. People, GR 147703 (April 14, 2004).
FACTS:
Accused Napoleon Roman was found guilty and convicted of the crime of reckless imprudence resulting to triple homicide, multiple physical injuries and damage to property. The trial court further ruled
that petitioner, in the event of the insolvency of accused, shall be liable for the civil liabilities of the accused. Evidently, the judgment against accused had become final and executory.
Simultaneously, petitioner filed its notice of appeal from the judgment of the trial court to which CA gave due course. CA ruled that the institution of a criminal case implied the institution also of the civil
action arising from the offense. Thus, once determined in the criminal case against the accused-employee, the employers subsidiary civil liability as set forth in Article 103 of the Revised Penal Code
becomes conclusive and enforceable. Since the notice of appeal filed by the accused had already been dismissed by the CA, then the judgment of conviction and the award of civil liability became final
and executory. Included in the civil liability of the accused was the employer's subsidiary liability.
Hence, this Petition.
ISSUE:
WON an employer may appeal independently of the accused
RULING:
NO.
The 2000 Rules of Criminal Procedure has clarified what civil actions are deemed instituted in a criminal prosecution. Only the civil liability of the accused arising from the crime charged is deemed
impliedly instituted in a criminal action, that is, unless the offended party waives the civil action, reserves the right to institute it separately, or institutes it prior to the criminal action. Hence, the subsidiary
civil liability of the employer under Article 103 of the Revised Penal Code may be enforced by execution on the basis of the judgment of conviction meted out to the employee.
It is clear that the 2000 Rules deleted the requirement of reserving independent civil actions and allowed these to proceed separately from criminal actions. Thus, the civil actions referred to in Articles 32,
33, 34 and 2176 of the Civil Code shall remain separate, distinct and independent of any criminal prosecution based on the same act.
What is deemed instituted in every criminal prosecution is the civil liability arising from the crime or delict per se (civil liability ex delicto), but not those liabilities arising from quasi-delicts, contracts or quasi-
contracts.
The subsidiary liability of petitioner is incidental to and dependent on the pecuniary civil liability of the accused-employee. Since the civil liability of the latter has become final and enforceable by reason of
his flight, then the former's subsidiary civil liability has also become immediately enforceable.
B. EFFECTS
i. Acquittal/dismissal (Art. 29, CC; R111 [2b] & 120 [2], ROC)
ii. Extinction of civil liability (Rule 111[2b], ROC)
145. Manantan v. CA, GR 107125 (January 29, 2001), 350 SCRA 387.
FACTS: Manantan is the driver of an automobile who drove and operated the same while along the Barangay Malvar, in said municipality, he sideswipe a passenger jeep causing or resulting to the death
of Ruben Nicolas a passenger of said jeepney. An information charging Manantan with reckless imprudence resulting in homicide was filed and on arraignment, petitioner pleaded not guilty to the charge.
The trial court acquitted Manantan. Private respondents filed their notice of appeal on the civil aspect of the trial court's judgment and prayed that the decision appealed from be modified and to ordered to
pay indemnity and damages. The appellate court decided in favor of Nicolas spouses. Hence, this present case.
ISSUE:
Whether or not court err in finding that petitioner's acquittal did not extinguish his civil liability
RULING:
Our law recognizes two kinds of acquittal, with different effects on the civil liability of the accused. First is an acquittal on the ground that the accused is not the author of the act or omission complained of.
This instance closes the door to civil liability, for a person who has been found to be not the perpetrator of any act or omission cannot and can never be held liable for such act or omission. There being no
delict, civil liability ex delicto is out of the question, and the civil action, if any, which may be instituted must be based on grounds other than the delict complained of. This is the situation contemplated in
Rule 111 of the RoC. The second instance is an acquittal based on reasonable doubt on the guilt of the accused. In this case, even if the guilt of the accused has not been satisfactorily established, he is
not exempt from civil liability which may be proved by preponderance of evidence only. Petitioner's acquittal was predicated on the conclusion that his guilt had not been established with moral certainty.
Stated differently, it is an acquittal based on reasonable doubt and a suit to enforce civil liability for the same act or omission lies.
VIII. DAMAGES
(3) Nominal;
(5) Liquidated; or
1. Whether the court correctly disallowed the P50,000 awarded to Francia for the diminution of the use of her right arm
2. Whether the court correctly disallowed the P48,000 representing unrealized income
3. Whether the court correctly reduced the award for actual and miscellaneous expenses from P10,000 to P3,977.
4. Whether the court correctly reduced the award of P50,000 moral damages to P30,000
HELD:
1. Yes. A person is entitled to the physical integrity of his or her body, and if that integrity is violated, damages are due and assessable. However, physical injury, like loss or diminution of use of an arm
or a limb, is not a pecuniary loss. Indeed, it is not susceptible of exact monetary estimation. Thus, the usual practice is to award moral damages for physical injuries sustained.
2. Yes. In some instances, the Court awards the cost of medical procedures to restore the injured person to his or her former condition. However, this award necessitates expert testimony on the cost of
possible restorative medical procedure. Petitioner failed to present evidence regarding the feasibility or practicability and the cost of a restorative medical operation on her arm. Thus, there is no basis
to grant her P48,000 for such expense.
3. Yes. Although actual damages include indemnification for profits which the injured party failed to obtain (lucro cesante or lucrum cesans), the rule requires that said person produce the best evidence
of which his case is susceptible. The bare and unsubstantiated assertion of Francia that she usually earned P200 a day from her market stall is not the best evidence to prove her claim of unrealized
income for the eight-month period that her arm was in plaster cast. Her testimony that it was their lessor who filed their income tax returns and obtained business licenses for them does not justify her
failure to present more credible evidence of her income. Furthermore, after her ten-day confinement at the hospital, she could have returned to her work at the public market despite the plaster cast
on her right arm, since she claimed to have two nieces as helpers.
4. No, insofar as Francia is concerned. In the case at bar, it was sufficiently shown during the trial that Francia’s right arm could not function in a normal manner and that, as a result, she suffered mental
anguish and anxiety. Thus, an increase in the amount of moral damages awarded, from P30,000 to P50,000, appears to be reasonable and justified. Renato also suffered mental anxiety and anguish
from the accident. Thus, he should be separately awarded P30,000 as moral damages.
Upon arrival in Manila, respondent sent a letter-complaint to Air France and filed a complaint for breach of contract of carriage and damages. The CFI found Air France in bad faith for violation of
the contract of carriage and an award of moral and exemplary damages in addition to actual damages was deemed proper. On appeal, the CA, only modified the damages. Petitioner questions the factual
findings of respondent court.
Issue:
Whether there is a breach of contract
Ruling:
Petitioner refutes this conclusion, claiming that the original ticket was discounted and non-endorsable on certain segments of the flight. A recurring ear infection was pleaded as reason necessitating
urgent return to Manila. Assuming arguendo a worsening pain or discomfort, private respondent appears to have still proceeded to four (4) other cities covering a period of at least six (6) days and leaving
open his date of departure from Hongkong to Manila.10 And, even if he claimed to have undergone medical examination upon arrival in Manila, no medical certificate was presented. He failed to even
remember his date of arrival in Manila. With a claim for a large amount of damages, the Court finds it unsual for respondent, a lawyer, to easily forget vital information to substantiate his plea. It is also
essential before an award of damages that the claimant must satisfactorily prove during the trial the existence of the factual basis of the damages and its causal connection to defendant's acts
Air France Manila acted upon the advise of ASPAC in denying private respondent's request. There was no evident bad faith when it followed the advise not to authorize rerouting. At worst, the situation
can be considered a case of inadvertence on the part of ASPAC in not explaining the non-endorsable character of the ticket. Of importance, however, is the fact that private respondent is a lawyer, and the
restriction box 16 clearly indicated the non-endorsable character of the ticket.
Article 2199. Except as provided by law or by stipulation, one is entitled to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved. Such compensation is referred
to as actual or compensatory damages.
Article 2200. Indemnification for damages shall comprehend not only the value of the loss suffered, but also that of the profits which the obligee failed to obtain. (1106)
Article 2201. In contracts and quasi-contracts, the damages for which the obligor who acted in good faith is liable shall be those that are the natural and probable consequences of the breach of the
obligation, and which the parties have foreseen or could have reasonably foreseen at the time the obligation was constituted.
In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages which may be reasonably attributed to the non-performance of the obligation. (1107a)
Article 2202. In crimes and quasi-delicts, the defendant shall be liable for all damages which are the natural and probable consequences of the act or omission complained of. It is not necessary that
such damages have been foreseen or could have reasonably been foreseen by the defendant.
Article 2203. The party suffering loss or injury must exercise the diligence of a good father of a family to minimize the damages resulting from the act or omission in question.
Article 2207. If the plaintiff's property has been insured, and he has received indemnity from the insurance company for the injury or loss arising out of the wrong or breach of contract complained of, the
insurance company shall be subrogated to the rights of the insured against the wrongdoer or the person who has violated the contract. If the amount paid by the insurance company does not fully cover
the injury or loss, the aggrieved party shall be entitled to recover the deficiency from the person causing the loss or injury.
Article 2209. If the obligation consists in the payment of a sum of money, and the debtor incurs in delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the
interest agreed upon, and in the absence of stipulation, the legal interest, which is six per cent per annum. (1108)
Article 2208. In the absence of stipulation, attorney's fees and expenses of litigation, other than judicial costs, cannot be recovered, except:
(4) In case of a clearly unfounded civil action or proceeding against the plaintiff;
(5) Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff's plainly valid, just and demandable claim;
(8) In actions for indemnity under workmen's compensation and employer's liability laws;
(9) In a separate civil action to recover civil liability arising from a crime;
In all cases, the attorney's fees and expenses of litigation must be reasonable.
the way to the Supreme Court (SC). The Supreme Court affirmed the decision of the Labor Arbiter and the decision became final on May 27, 2002. After the finality of the SC decision, Nacar filed a motion
before the LA for recomputation as he alleged that his backwages should be computed from the time of his illegal dismissal (January 24, 1997) until the finality of the SC decision (May 27, 2002) with
interest. The LA denied the motion as he ruled that the reckoning point of the computation should only be from the time Nacar was illegally dismissed (January 24, 1997) until the decision of the LA
(October 15, 1998). The LA reasoned that the said date should be the reckoning point because Nacar did not appeal hence as to him, that decision became final and executory.
ISSUE:
Whether or not the Labor Arbiter is correct.
RULING:
No. There are two parts of a decision when it comes to illegal dismissal cases (referring to cases where the dismissed employee wins, or loses but wins on appeal). The first part is the ruling that the
employee was illegally dismissed. This is immediately final even if the employer appeals – but will be reversed if employer wins on appeal. The second part is the ruling on the award of backwages and/or
separation pay. For backwages, it will be computed from the date of illegal dismissal until the date of the decision of the Labor Arbiter. But if the employer appeals, then the end date shall be extended until
the day when the appellate court’s decision shall become final. Hence, as a consequence, the liability of the employer, if he loses on appeal, will increase – this is just but a risk that the employer cannot
avoid when it continued to seek recourses against the Labor Arbiter’s decision. This is also in accordance with Article 279 of the Labor Code.
Anent the issue of award of interest in the form of actual or compensatory damages, the Supreme Court ruled that the old case of Eastern Shipping Lines vs. CA is already modified by the promulgation of
the Bangko Sentral ng Pilipinas Monetary Board Resolution No. 796 which lowered the legal rate of interest from 12% to 6%.
Respondent Cos filed a complaint for accion publiciana against the heirs of one Pastora Baetiong, the registered owner of the subject parcel of land. Petitioner Francisco is the daughter of the
deceased. The parties entered into a compromise agreement acknowledging the heirs of Baetiong as the owner of the land and stating that the heirs would lease to the respondents a portion of the land
for a period of 15 years, including the portion the respondents were already occupying.
5 years after, the heirs filed a motion for proper enforcement of compromise agreement when it was found out that the respondents were occupying a portion larger than that agreed upon. The
RTC granted the motion. The CA reversed the RTC’s ruling because the compromise was already terminated and executed. Moreover, the CA held that the heirs were precluded by laches from making
their claim because they were silent for almost 5 years.
Petitioner Francisco late filed a complaint for forcible entry against the respondent Cos. Respondent in turn contended that petitioner is already barred by res judicata. The trial court ruled in
favor of petitioner holding that there was no res judicata. The CA however, reversed the decision ruling that there was res judicata; therefore holding petitioner liable for P30,000 moral damages, P20,000
exemplary damages and P20,000 attorney’s fees due to malicious prosecution.
ISSUE:
Whether the award of damages was proper
RULING:
The award of damages was not proper.
The court wont uphold the award of moral damages because bad faith of the petitioner had not been preponderantly established in this case. Bad faith does not simply connote bad judgment or
negligence, but imports a dishonest purpose or some moral obliquity and conscious doing of a wrong. Bad faith should be established by clear and convincing evidence since the law always presumed
good faith.
Neither should exemplary damages be awarded. The plaintiff must show that he is entitled to moral, temperate or actual damages before the court may consider the question of whether
exemplary damages should be awarded. For the court to award exemplary damage, it must be shown that the party acted in a wanton, oppressive or malevolent manner. Furthermore, exemplary
damages are allowed in addition to moral damages such that no exemplary damages can be awarded unless the claimant first establishes his clear right to moral damages.
166. Interest: Agner v. BPI Family Savings, GR 182963, (June 03, 2013)
BSP Circular No. 799 series of 2013
Facts:
Spouses Agner obtained a 800k loan from CITIMOTORS. Spouse executed a promissory not with chattel mortgage over a Mitsubishi vehicle in favor of Citimotors, Inc. The contract stated that the spouse
would make a monthly payment of 17k and that 65 interest per month shall be imposed for failure to pay each installment. The PN also stated that in case of failure to pay, the entire amount shall be due
and payable without need of prior notice or demand.
Citimotors assigned all its interests in the PN to ABN AMRO BANK, which assigned the same to BPI FAMILY.
Spouses defaulted in payment. Hence, BPI sent a demand letter to petitioners, declaring the entire obligation as due and demandable, and requiring them to pay 570k or surrender of the mortgaged
vehicle. As the demand was ignored, BPI filed an action for replevin and damages before the Manila RTC. A writ of Replevin was issued; however, the vehicle is not seized. The RTC and CA ruled for BPI.
Issue:
Whether the defendant is liable to the alternative prayer for sum of money
Ruling:
YES. The remedies provided for in Art. 1484 are alternative, not cumulative. The exercise of one bars the exercise of the others. This limitation applies to contracts purporting to be leases of personal
property with option to buy by virtue of Art. 1485. The condition that the lessor has deprived the lessee of possession or enjoyment of the thing for the purpose of applying Art. 1485 was fulfilled in this
case by the filing by petitioner of the complaint for replevin to recover possession of movable property.
The vehicle subject matter of this case was never recovered and delivered to respondent despite the issuance of a writ of replevin. As there was no seizure that transpired, it cannot be said that petitioners
The vehicle subject matter of this case was never recovered and delivered to respondent despite the issuance of a writ of replevin. As there was no seizure that transpired, it cannot be said that petitioners
were deprived of the use and enjoyment of the mortgaged vehicle or that respondent pursued, commenced or concluded its actual foreclosure. The trial court, therefore, rightfully granted the alternative
prayer for sum of money, which is equivalent to the remedy of "exacting fulfillment of the obligation." Certainly, there is no double recovery or unjust enrichment to speak of.
167. City Trust v. Villanueva, G.R. No. 141011 (July 19, 2001)
FACTS:
Isagani C. Villanueva opened a savings account and a current account with Citytrust Banking Corporation with an automatic transfer arrangement.VILLANUEVA deposited some money in his savings
account with the Bank's Branch in Makati. Realizing that he had run out of blank checks, VILLANUEVA requested a new checkbook. He then filled up a checkbook requisition slip with the obligatory
particulars, except for his current account number which he could not remember. He expressed his predicament to a lady customer service representative of the BANK, who in turn assured him that she
could supply the information from the BANKs account records. After signing the requisition slip, he gave it to her.Pia Rempillo, another customer service representative of the BANK, saw VILLANUEVAs
checkbook requisition slip. She took it and proceeded to check the BANKs checkbook registerPia Rempillo, another customer service representative of the BANK, saw VILLANUEVAs checkbook
requisition slip. She took it and proceeded to check the BANKs checkbook register. When VILLANUEVA received from the BANK his requested checkbook, he immediately signed Check No. 396701
bearing the amount of P50,000 payable to the order of Kingly Commodities Traders and Multi Resources, Inc.VILLANUEVA thereafter delivered the check to Helen Chu, his investment consultant at Kingly
Commodities, with his express instruction to use said check in placing a trading order at Kingly Commodities future trading business. Two days later, VILLANUEVA received a call from Helen Chu,
informing him that she had already placed a trading order in his behalf and delivered the check to Kingly Commodities. The check was deposited with the China Banking Corporation. The next day, he
deposited P31,600 in cash to his savings account to cover the full amount of the check he issued. His deposits in both accounts totalled P51,304.91.
However, on 23 June 1986, VILLANUEVAs Check No. 396701 was dishonored due to insufficiency of funds and disparity in the signature. VILLANUEVA called Kingly Commodities and explained that
there was a mistake, on the same day, VILLANUEVA called up the BANKs Legaspi Village Branch Operations Manager, Maritess Gamboa, and inquired about the dishonor of his well-funded check. On 26
June 1986 at about 4:00 p.m., VILLANUEVA learned that his check was again dishonored due to insufficiency of funds.He then proceeded to the BANKs Legaspi Village Branch Office, together with his
investment consultant and his trading partner, to personally inquire into the matter. They were met by Marilou Genuino, the BANKs Branch Manager. There he complained that his trading order was
rejected because of the dishonor of the check ,that day. After making the necessary investigation, Genuino related to VILLANUEVA that the reason for the dishonor of the check was that the account
number assigned to his new checkbook was the account number of another depositor also named Isagani Villanueva but with a different middle initial.
To resolve the matter, Genuino promised to send to Kingly Commodities a managers check for P50,000 before 5:30 p.m., the deadline given to VILLANUEVA. Thereafter Villanueva sent a letter to the
BANK addressed to the President, Jose Facundo, demanding indemnification for alleged losses and damages suffered by him as a result of the dishonor of his well-funded check. The trial court
conceded, however, that the BANK was negligent when it failed to supply VILLANUEVAs correct account number despite its promise to do so; but its negligence was merely contributory, which would have
reduced the damages recoverable by VILLANUEVA. VILLANUEVA appealed to the Court of Appeals, and claimed that the BANK was guilty of gross or culpable negligence amounting to bad faith when its
customer service representative furnished an erroneous account number. He further contended that the same was the proximate cause of the repeated dishonor of his check. He should, therefore, be
entitled to an award of actual, moral and exemplary damages. However the appellate court affirmed the RTC decision.
ISSUE:
Whether Villanueva is entitled to his claim for damages.
RULING:
NO. Moral damages include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury. [21] Although incapable
of pecuniary computation, moral damages may be recovered if they are the proximate result of the defendants wrongful act or omission. [22] Thus, case law establishes the requisites for the award of
moral damages, viz: (1) there must be an injury, whether physical, mental or psychological, clearly sustained by the claimant; (2) there must be a culpable act or omission factually established; (3) the
wrongful act or omission of the defendant is the proximate cause of the injury sustained by the claimant; and (4) the award of damages is predicated on any of the cases stated in Article 2219 of the Civil
Code. [23]
It is beyond cavil that VILLANUEVA had sufficient funds for the check. Had his account number been correct, the check would not have been dishonored. Hence, we can say that VILLANUEVAs injury
arose from the dishonor of his well-funded check. We have already ruled that the dishonor of the check does not entitle him to compensatory damages. But, could the dishonor result in his alleged
intolerable physical inconvenience and discomfort, extreme humiliation, indignities, etc, which he had borne before his peers, trading partners and officers of Kingly Commodities? True, we find that under
the circumstances of this case, VILLANUEVA might have suffered some form of inconvenience and discomfort as a result of the dishonor of his check. However, the same could not have been so grave or
intolerable as he attempts to portray or impress upon us.
168. Spouses Ong v. CA, G.R. No. 117103 (January 21, 1999)
Facts:
5. According to the trial court, the proximate cause of the accident was the bumping from behind by the Philtranco bus. It was held liable based on culpa aquiliana.
6. The RTC awarded the following:
10,000 for actual damages
50,000 as compensatory damages
48,000 as unrealized income
50,000 as moral damages
and attorneys fees
7. On appeal, however, the liability of Inland for medical and miscellaneous expenses was reduced, as the evidence on record showed that petitioners spent only P3,977. Deemed self-serving was
Francias testimony that the use of her right arm was diminished and that she lost income. Thus, the award for unearned income was disallowed and the amount of moral damages was reduced
to P30,000.
Issue:
Whether the reduction in the amounts of damages awarded was proper.
Held: Protesting the deletion of the award for Francia's unrealized income, petitioners contend that Francia's injuries and her oral testimony adequately support their claim. The Court disagrees. Although
actual damages include indemnification for profits which the injured party failed to obtain, the rule requires that said person produce the "best evidence of which his case is susceptible. The petitioners
failed to do so, as she could have returned to work despite the plaster in her arm.
The fundamental principle of the law on damages is that one injured by a breach of contract or by a wrongful or negligent act or omission shall have a fair and just compensation, commensurate with the
loss sustained as a consequence of the defendant’s acts. Hence, actual pecuniary compensation is the general rule, except where the circumstances warrant the allowance of other kinds of damages.
Actual damages pertain to such injuries or losses that are actually sustained and susceptible of measurement. Except as provided by law or by stipulation, a party is entitled to adequate compensation
only for such pecuniary loss as he has duly proven.
Damages cannot be presumed. The award thereof must be based on the evidence presented, not on the personal knowledge of the court; and certainly not on flimsy, remote, speculative and
nonsubstantial proof. Article 2199 of the Civil Code expressly mandates that except as provided by law or by stipulation, one is entitled to an adequate compensation only for such pecuniary loss suffered
by him as he has duly proved.
The lack of basis for such award was patent as the record show, that petitioners have jointly spent the sum of P3,977.00.
Damages, after all, are not intended to enrich the complainant at the expense of the defendant.
In the case at bar, petitioner failed to present evidence regarding the feasibility or practicability and the cost of a restorative medical operation on her arm. Thus, there is no basis to grant her P48,000 for
such expense.
Article 2217. Moral damages include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury. Though
incapable of pecuniary computation, moral damages may be recovered if they are the proximate result of the defendant's wrongful act for omission.
Article 2218. In the adjudication of moral damages, the sentimental value of property, real or personal, may be considered.
Article 2219. Moral damages may be recovered in the following and analogous cases:
(10) Acts and actions referred to in articles 21, 26, 27, 28, 29, 30, 32, 34, and 35.
The parents of the female seduced, abducted, raped, or abused, referred to in No. 3 of this article, may also recover moral damages.
The spouse, descendants, ascendants, and brothers and sisters may bring the action mentioned in No. 9 of this article, in the order named.
Article 2220. Willful injury to property may be a legal ground for awarding moral damages if the court should find that, under the circumstances, such damages are justly due. The same rule applies to
breaches of contract where the defendant acted fraudulently or in bad faith.
114. It defeats the purpose of the notice, which is to inform the pawner beforehand that a sale is to occur.
2) Moral damages cannot arise from simple negligence. While proof of pecuniary loss is unnecessary to justify an award of moral damages, the amount of indemnity being left to the sound discretion of the
court, it is, nevertheless, essential that the claimant satisfactorily proves the existence of the factual basis of the damages and its causal connection to defendant’s wrongful act or omission. This is so
because moral damages, albeit incapable of pecuniary estimation, are designed to compensate the claimant for actual injury suffered and not to impose a penalty on the wrongdoer. There is thus merit on
petitioners’ assertion that proof of moral suffering must precede a moral damage award.
While there need not be a showing that the defendant acted in a wanton or malevolent manner, as this is a requirement for an award of exemplary damages, there must still be proof of fraudulent action or
bad faith for a claim for moral damages to succeed. Then, too, moral damages are generally not recoverable in culpa contractual except when bad faith supervenes and is proven
Bad faith does not simply connote bad judgment or negligence; it imports a dishonest purpose or some moral obliquity and conscious doing of a wrong, a breach of known duty through some motive or
interest or ill-will that partakes of the nature of the fraud.16 And to the person claiming moral damages rests the onus of proving by convincing evidence the existence of bad faith, for good faith is
presumed
• Morris and Whittier had a series of business meetings with Japanese businessmen in Japan.
• Staats Travel Service booked them as first class passengers.
• When they reached to the counter in the airport, they noticed that their papers were not being processed.
• There they found out that there were no seats available.
• Morris called Staats, Staats then confirmed their booking.
• The petitioners returned to the counter but the persons in-charge only ignored them.
• Petitioners went to the supervisor’s desk to check the flight manifest, they saw their names on top of the list of first class section had been crossed out.
• The supervisor said that he can no longer anything.
• Petitioners checked in at 3:10 and their flight was 3:50
• According to the Airline’s employee that the economy class was overbooked. Then the petitioners arrived 40 minutes before the flight and that the flight manifest was already closed. Since there
was overbooking, some passengers were upgraded to first class.
Issue:
Whether the petitioners are entitled to damages.
Ruling:
In awarding moral damages for breach of contract of carriage, the breach must be wanton and deliberately injurious or the one responsible acted fraudulently or with malice or bad faith. Moral damages
are generally not recoverable in culpa contractual except when bad faith had been proven. However, the same damages may be recovered when breach of contract of carriage results in the death of a
passenger.
The award of exemplary damages has likewise no factual basis. It is a requisite that the act must be accompanied by bad faith or done in wanton, fraudulent or malevolent manner--circumstances which
are absent in this case. In addition, exemplary damages cannot be awarded as the requisite element of compensatory damages was not present.
The rule is that moral damages are recoverable in a damage suit predicated upon a breach of contract of carriage only where (a) the mishap results in the death of a passenger and (b) it is proved that the
carrier was guilty of fraud and bad faith even if death does not result.
The petitioners arrived late, hence, the Airline employees were not in bad faith nor there was fraud.
They were denied to board the plane because they failed to check in on time.
Hence, they are not entitled to damages.
ISSUES:
W/N the CA erred in affirming the TC’s award of MORAL DAMAGES and increasing the amount from P30,000.00 to P250,000.00. W/N the CA was justified in awarding in addition to moral damages,
EXEMPLARY DAMAGES of P100,000.00. Petitioner- CA and TC erred in awarding moral damages because moral damages are recoverable in breach of contract cases only where the breach was
palpably wanton, reckless, malicious, in bad faith, oppressive or abusive.
HOLDING & RATIO DECIDENDI:
YES. CA erred in awarding MORAL DAMAGES.
Article 2219 of the Civil Code provides: “To recover moral damages in an action for breach of contract, the breach must be palpably wanton, reckless, malicious, in bad faith, oppressive or abusive.” • In
culpa contractual or breach of contract, moral damages may be recovered when the defendant acted in bad faith or was guilty of gross negligence (amounting to bad faith) or in wanton disregard of his
contractual obligation and, exceptionally, when the act of breach of contract itself is constitutive of tort resulting in physical injuries.
Bad faith does not simply connote bad judgment or negligence, it imports a dishonest purpose or some moral obliquity and conscious doing of a wrong, a breach of known duty through some motive or
interest or ill will that partakes of the nature of fraud.
Moral damages are in the category of an award designed to compensate the claimant for actual injury suffered and not to impose a penalty on the wrongdoer.
The person claiming moral damages must prove the existence of bad faith by clear and convincing evidence for the law always presumes good faith. It is not enough that one merely suffered sleepless
nights, mental anguish, serious anxiety as the result of the actuations of the other party. Mere allegations of besmirched reputation, embarrassment and sleepless nights are insufficient to warrant an
award for moral damages.
An award of moral damages would require certain conditions to be met, to wit: (1) first, there must be an injury, whether physical, mental or psychological, clearly sustained by the claimant; (2) second,
there must be culpable act or omission factually established; (3) third, the wrongful act or omission of the defendant is the proximate cause of the injury sustained by the claimant; and (4) fourth, the award
of damages is predicated on any of the cases stated in Article 2219” of the Civil Code. • When awarded, moral damages must not be palpably and scandalously excessive as to indicate that it was the
result of passion, prejudice or corruption on the part of the trial court judge or appellate court justices. • In this case, we find no such fraud or bad faith.
CA also erred in awarding EXEMPLARY DAMAGES.
To warrant the award of exemplary damages, [t]he wrongful act must be accompanied by bad faith, and an award of damages would be allowed only if the guilty party acted in a wanton, fraudulent,
reckless or malevolent manner. • The requirements of an award of exemplary damages are: (1) they may be imposed by way of example in addition to compensatory damages, and only after the
claimant’s right to them has been established; (2) that they can not be recovered as a matter of right, their determination depending upon the amount of compensatory damages that may be awarded to
the claimant; (3) the act must be accompanied by bad faith or done in a wanton, fraudulent, oppressive or malevolent manner.
NOMINAL DAMAGES awarded.
The facts show that when confronted with their failure to deliver on the wedding day, petitioners gave the lame excuse that delivery was probably delayed because of the traffic, when in truth, no cake
could be delivered because the order slip got lost. For such prevarication, petitioners must be held liable for nominal damages for insensitivity, inadvertence or inattention to their customer’s anxiety and
need of the hour. • Nominal damages are recoverable where a legal right is technically violated and must be vindicated against an invasion that has produced no actual present loss of any kind or where
there has been a breach of contract and no substantial injury or actual damages whatsoever have been or can be shown.
Nominal damages may be awarded to a plaintiff whose right has been violated or invaded by the defendant, for the purpose of vindicating or recognizing that right, not for indemnifying the plaintiff for any
loss suffered.
Petition granted. CA reversed. Petitioner order to pay the cost of the wedding cake, nominal damages of P10,000.00, attorney’s fees and the costs of litigation.
181. Arco Pulp & Paper v. Lim, GR 206806, June 25, 2014
FACTS:
Dan T. Lim does business of supplying raw materials, under the name Quality Paper and Plastic Products. he delivered scrap papers to Arco Pulp and Paper Company, Inc. The parties agreed that Arco
Pulp and Paper would either pay Dan T. Lim the value of the raw materials or deliver to him their finished products of equivalent value. When he delivered the raw materials, Arco Pulp and Paper issued a
post-dated check that was later dishonored for being drawn against a closed account. On the same day, Arco Pulp and Paper and a certain Eric Sy executed a memorandum of agreement where Arco
Pulp and Paper bound themselves to deliver their finished products to Megapack Container Corporation, owned by Eric Sy, for his account. According to the memorandum, the raw materials would be
supplied by Dan T. Lim, through his company, Quality Paper and Plastic Products. Lim sent a letter to Arco Pulp and Paper demanding payment of the amount, but no payment was made to him. Lim filed
a complaint for collection of sum of money with prayer for attachment with the Regional Trial Court. the Court of Appeals rendered a decision ordering Arco Pulp and Paper to jointly and severally pay Dan
T. Lim the amount he demanded with interest at 12% per annum from the time of demand; moral damages; exemplary damages; and attorney’s fees.
ISSUE:
Whether moral damages can be awarded
RULING:
Yes.
Under Article 2220 of the Civil Code, moral damages may be awarded in case of breach of contract where the breach is due to fraud or bad faith,
Further, the following requisites must be proven for the recovery of moral damages:
An award of moral damages would require certain conditions to be met, to wit: (1)first, there must be an injury, whether physical, mental or psychological, clearly sustained by the claimant; (2) second,
there must be culpable act or omission factually established; (3) third, the wrongful act or omission of the defendant is the proximate cause of the injury sustained by the claimant; and (4) fourth, the award
of damages is predicated on any of the cases stated in Article 2219 of the Civil Code. Here, the injury suffered by respondent is the loss of money from his business. This has remained unpaid since 2007.
This injury undoubtedly was caused by petitioner Arco Pulp and Paper’s act of refusing to pay its obligations. When the obligation became due and demandable, Arco Pulp and Paper not only issued an
unfunded check but also entered into a contract with a third person in an effort to evade its liability. This proves the third requirement. As to the fourth requisite, Article 2219 of the Civil Code provides that
instances where moral damages may be awarded, but Article 2219, is not an exhaustive list of the instances where moral damages may be recovered since it only specifies, among others, Article 21.
When a party reneges on his or her obligations arising from contracts in bad faith, the act is not only contrary to morals, good customs, and public policy; it is also a violation of Article 1159. Breaches of
contract become the basis of moral damages, not only under Article 2220, but also under Articles 19 and 20 in relation to Article 1159. Moral damages, however, are not recoverable on the mere breach of
the contract. Article 2220 requires that the breach be done fraudulently or in bad faith. Since a finding of bad faith is generally premised on the intent of the doer, it requires an examination of the
circumstances in each case. When petitioner Arco Pulp and Paper issued a check in partial payment of its obligation to respondent, it was presumably with the knowledge that it was being drawn against a
closed account. Worse, it attempted to shift their obligations to a third person without the consent of respondent. Petitioner Arco Pulp and Paper’s actions clearly show "a dishonest purpose or some moral
obliquity and conscious doing of a wrong, a breach of known duty through some motive or interest or ill will that partakes of the nature of fraud. Moral damages may, therefore, be awarded.
182. Expertravel & Tours v. CA, G.R. No. 130030 (June 25, 1999).
Facts:
October 7, 1987: Exper travel & Tours, Inc. issued to Ricardo Lo 4 round-trip plane tickets for Hongkong with hotel accommodations and transfers for P39,677.20
Failing to pay the amount due, Expert filed a complaint for recovery plus damages
CA affirmed RTC: Lo remitted the Monte de Piedad Check for P42,175.20 to Expert's chairperson Ms. Ma. Rocio de Vega who in turn issued City Trust Check of P50,000
Issue:
Whether moral damages for negligence or quasi-delict that did not result to physical injury be awarded to Lo
HELD:
NO.
An award of moral damages would necessitate certain conditions to be met; to wit: (1) First, there must be an injury, whether physical, mental or psychological, clearly sustained by the claimant; (2)
second, there must be a culpable act or omission factually established; (3) third, the wrongful act or omission of the defendant is the proximate cause of the injury sustained by the claimant; and (4) fourth,
the award of damages is predicated on any of the cases stated in Article 2219 in culpa contractual or breach of contract:moral damages may be recovered when the defendant acted in bad faith or was
guilty of gross negligence (amounting to bad faith) or in wanton disregard of his contractual obligation and, exceptionally, when the act of breach of contract itself is constitutive of tort resulting in physical
injuries
By special rule in Article 1764, in relation to Article 2206, of the Civil Code
moral damages may also be awarded in case the death of a passenger results from a breach of carriage. In culpa aquiliana, or quasi-delict and contracts when breached by tort
(a) when an act or omission causes physical injuries, or (b) where the defendant is guilty of intentional tort. In culpa criminal moral damages could be lawfully due when the accused is found guilty of
physical injuries, lascivious acts, adultery or concubinage, illegal or arbitrary detention, illegal arrest, illegal search, or defamation Malicious prosecution can also give rise to a claim for moral damages The
term "analogous cases," referred to in Article 2219, following the ejusdem generis rule, must be held similar to those expressly enumerated by the law
Excludes clearly unfounded civil suit
1. Erlinda Ramos was a robust woman and was as normal as any other woman except that she had occasional pains caused by gallstones.
2. She was advised to undergo a surgery to remove the gallstones. Diagnostic tests revealed that she was fit to undergo surgery.
3. They hired Dr. Osaka to conduct the surgery at DLSMC.
4. Upon the request of Rogelio (husband), Dr. Osaka assured them that he would find a good anesthesiologist.
5. During the operation, Dr. Osaka arrived at the hospital late, Dr. Guttierez, the anesthesiologist, started to intubate Erlinda when Herminda (sister in law) heard her say that intubating Erlinda is
complicated and quite difficult.
6. Another anesthesiologist was summoned, Dr. Caldron, who successfully intubated Erlina. The patient’s nails became bluish and the patient was placed in a trendelenburg position.
7. After the operation Erlinda had gone to coma and suffered brain damage.
Issue:
Whether the private respondents were negligent and thereby caused the comatose condition of Ramos.
Held:
Yes. Private respondents were not able to disprove the presumption of negligence on their part in the care of Erlinda and their negligence was the proximate cause of her condition.
Here, the Supreme Court also found that the anesthesiologist only saw Erlinda for the first time on the day of the operation which indicates unfamiliarity with the patient and which is an act of negligence
and irresponsibility.
The head surgeon, Dr. Hosaka was also negligent. He failed to exercise the proper authority as the “captain of the ship” in determining if the anesthesiologist observed the proper protocols. Also, because
he was late, he did not have time to confer with the anesthesiologist regarding the anesthesia delivery.
The hospital failed to adduce evidence showing that it exercised the diligence of a good father of the family in hiring and supervision of its doctors (Art. 2180). The hospital was negligent since they are the
one in control of the hiring and firing of their “consultants”. While these consultants are not employees, hospitals still exert significant controls on the selection and termination of doctors who work there
which is one of the hallmarks of an employer-employee reationship. Thus, the hospital was allocated a share in the liability.
It must be remembered that she was neurologically sound and fit prior to the surgery. Then, after the procedure, she was comatose and brain damaged—res ipsa loquitur!
The Supreme Court recognized that the husband and the children, will have to live with the day to day uncertainty of the patients illness, knowing any hope of recovery is close to nil. They have fashioned
their daily lives around the nursing care of petitioner, altering their long-term goals to take into account their life with a comatose patient. The familys moral injury and suffering in this case is clearly a real
one. For the foregoing reasons, an award of P2,000,000.00 in moral damages would be appropriate.
187. Cocoland Dev’t v. NLRC, GR 98458 (July 17, 1996), 328 Phil. 351.
Facts:
Jeremias Magno was employed by Cocoland as field supervisor. Sometime in 1989 , Cocoland came to know that Magno was rendering professional services to outside parties without its consent and
disclosing the company’s trade secrets to small farm owners. As a result , Magno was terminated for loss of trust and confidence. Magno filed a complaint for illegal dismissal with damages. The Labor
Arbiter ruled in his favor and ordered Cocoland to pay separation pay , backwages , moral and exemplary damages plus attorney’s fees . The NLRC affirmed the decision.
Issue:
WON the grant of moral and exemplary damages is proper.
Ruling:
No. The fact that Magno was wrongfully dismissed by Cocoland without valid cause does not automatically mean Cocoland is liable for moral and exemplary damages. Additional facts must be pleaded
and proven to warrant the grant of moral damages. It must be proved that the act of dismissal was attended by bad faith or fraud or was oppressive to labor or done in a manner contrary to morals , good
customs or public policy and that social humiliation , wounded feelings and grave anxiety resulted therefrom. Magno failed to adduce evidence to show that Cocoland acted in bad faith or in a wanton or
fraudulent manner in dismissing him.
Article 2221. Nominal damages are adjudicated in order that a right of the plaintiff, which has been violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of
indemnifying the plaintiff for any loss suffered by him.
Article 2222. The court may award nominal damages in every obligation arising from any source enumerated in article 1157, or in every case where any property right has been invaded.
Article 2223. The adjudication of nominal damages shall preclude further contest upon the right involved and all accessory questions, as between the parties to the suit, or their respective heirs and
assigns.
188. China Airlines v. CA, GR 129988 (14 July 2003), 406 SCRA 113.
FACTS:
Morelia Travel Agency booked private respondents’ flight with China Airlines Ltd. (CAL). On discovering that Morelia charged higher rates than American Express Travel Service Philippines (Amexco),
private respondents dropped the services of Morelia. Instead, they engaged the services of Amexco. Private respondent Lao gave to Amexco the booking reference number that CAL had previously
issued to Morelia. Amexco used the booking reference number in confirming the reservations of private respondents. CAL confirmed the booking. Amexco then issued to private respondents the confirmed
tickets for the flight. On the same day, CAL called up Morelia to reconfirm the reservations of private respondents. Morelia cancelled the reservations of private respondents.
Private respondents were at the airport to board their flight but a CAL personnel prevented them from boarding the plane because their names were not in the passengers’ manifest. CAL cancelled the
reservations when Morelia revoked the booking it had made for private respondents. Private respondents filed a complaint for damages against CAL and Amexco. The RTC and CA did not award actual
damages.
ISSUE:
Whether actual damages should be awarded
HELD:
No. Private respondents are not entitled to an award of actual damages because they did not shell out any money for their CAL tickets. The Supreme Court, however, awarded nominal damages to each
of the private respondents. When plaintiff suffers some species of injury not enough to warrant an award of actual damages, the court may award nominal damages. The court may award nominal
damages purely to vindicate a right of a plaintiff which defendant has violated and not to indemnify any loss the plaintiff has suffered. The court may award nominal damages in every obligation arising
from any source enumerated in Article 1157 of the Civil Code, or in any case where there is an invasion of any property right.
Undeniably, private respondents suffered some form of injury. CAL confirmed the reservations of private respondents carelessly. Private respondents relied on this confirmation. Private respondents went
through the trouble of going to the airport at the appointed time expecting that they would be able to board the flight. To their consternation, CAL personnel prevented them from boarding because Morelia
cancelled their reservations.
• Enriquita Locsin was the registered owner of a lot at Don Antonio Heights Subdivision.
• She filed an ejectment case against Billy Aceron.
• Aceron was able to comply with his part of the compromise agreement but Locsin was unaware of such when she went to USA.
• Locsin continued to pay the real property taxes of the subject property.
• Locsin lost the copy of the TCT of the subject lot and she was able to obtain a new one.
• When she asked her lawyer to check the status of the lot, she found out that the new TCT was cancelled by Bolos and was able to secure a new one.
• Bolos then sold it to Bernardo, which was titled under Carlos’ name.
• Bernardo then filed a motion for issuance of the Writ of execution for the enforcement of the compromise agreement.
• And that the property was occupied and up for sale.
• Locsin asked Carlos to return the lot since her signature in the deed of sale was a forgery.
• Carlos said that they will come up with a win-win situation, however Carlos has already sold it to his sister and brother-in-law (Spouses Guevara)
• Spouses Guevara then mortgaged it with DCC to obtain a loan.
• Locsin then filed an action for reconveyance and cancellation of the TCT obtained by the Guevaras.
• RTC: Dimissed the case
• CA: Locsin cannot recover the lot.
Issue:
Whether or not Locsin is entitled to the land in dispute.
Ruling:
An innocent purchaser for value is one who buys the property of another without notice that some other person has a right to or interest in it, and who pays a full and fair price atthe time of the purchase or
before receiving any notice of another person’s claim.
According to the Mirror Doctrine Every person dealing with registered land may rely on the correctness of the certificate of title issued and is not obliged to go beyond the certificate to determine the
condition of the property. The following are the exceptions:
1. The party has actual knowledge of facts and circumstances that would impel a reasonably cautious man to make such inquiry or when the purchaser has knowledge of a defect or the lack of title in his
vendor or of sufficient facts to induce a reasonably prudent man to inquire into the status of the title of the property in litigation.
2. The presence of anything which excites or arouses suspicion should then prompt the vendee to look beyond the certificate and investigate the title of the vendor appearing on the face of said certificate.
One who falls within the exception can neither be denominated an innocent purchaser for value nor a purchaser in good faith and, hence, does not merit the protection of the law.
Carlos is not an innocent purchaser for value. Bernardo was Carlos’ agent. Bernardo negotiated with Bolos. Hence, the principal is chargeable and bound by the knowledge of or notice to, his agent.
Bernardo knew about Locsin and the Compromise agreement.
The Spouses Guevara are not innocent purchasers. They were not able to present adequate evidence for such.
Locsin is entitled to nominal danages. nominal damages are "recoverable where a legal right is technically violated and must be vindicated against an invasion that has produced no actual present loss of
any kind or where there has been a breach of contract and no substantial injury or actual damages whatsoever have been or can be shown. that petitioner was unduly deprived of her ownership rights
overthe property, and was compelled to litigate for its recovery, for almost ten (10) years.
The amount of damages to be awarded shall be determined by the court depending upon the relevant circumstances. Considering the length of time that Locsin was deprived of her property she is entitled
to P75,000.00 as nominal damages.
Intel’s violation of Deoferio’s right to statutory procedural due process warrants the payment of indemnity in the form of nominal damages. With respect to Article 284 of the Labor Code, terminations due
to disease do not entail any wrongdoing on the part of the employee. It also does not purely involve the employer’s willful and voluntary exercise of management prerogative – a function associated with
the employer's inherent right to control and effectively manage its enterprise. Rather, terminations due to disease are occasioned by matters generally beyond the worker and the employer's control.
In fixing the amount of nominal damages whose determination is addressed to our sound discretion, the Court should take into account several factors surrounding the case, such as: (1) the employer’s
financial, medical, and/or moral assistance to the sick employee; (2) the flexibility and leeway that the employer allowed the sick employee in performing his duties while attending to his medical needs; (3)
the employer’s grant of other termination benefits in favor of the employee; and (4) whether there was a bona fide attempt on the part of the employer to comply with the twin-notice requirement as
opposed to giving no notice at all.
Intel shall be solely liable to Deoferio for the satisfaction of nominal damages. Wentling, as a corporate officer, cannot be held liable for acts done in his official capacity because a corporation, by legal
fiction, has a personality separate and distinct from its officers, stockholders, and members. There is also no ground for piercing the veil of corporate fiction because Wentling acted in good faith and
merely relied on Dr. Lee’s psychiatric report in carrying out the dismissal.
Deoferio's claim for salary differential is already barred by prescription. Under Article 291 of the Labor Code, all money claims arising from employer-employee relations shall be filed within three years
from the time the cause of action accrued. In the current case, more than four years have elapsed from the pre-termination of his assignment to the United States until the filing of his complaint against the
respondents.
Article 2224. Temperate or moderate damages, which are more than nominal but less than compensatory damages, may be recovered when the court finds that some pecuniary loss has been suffered
but its amount can not, from the nature of the case, be provided with certainty.
1.) Whether Bautista exercised due diligence in driving when the truck hit the electricity post
2.) Whether Josefa is vicariously liable for Bautista's negligence under paragraph 5, Article 2180 of the Civil Code
Held:
1.) No. Bautista's negligence was the proximate cause of the property damage caused to Meralco. Bautista is presumed to be negligent in driving the truck under the doctrine of res ipsa loquitur. Whoever
by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. This fault or negligence, if there is no pre-existing contractual relation between the
parties, is called quasi-delict.
2.) Yes. Paragraph 5, Article 2180 of the Civil Code which holds the employer vicariously liable for damages caused by his employees within the scope of their assigned tasks shall be applied. In quasi-
delict cases, the registered owner of a motor vehicle is the employer of its driver in contemplation of law. The registered owner of any vehicle, even if not used for public service, would primarily be
responsible to the public or to third persons for injuries caused while the vehicle was being driven on highways or streets. Also, Josefa failed to show that he exercised the diligence of a good father of a
family in the selection and supervision of Bautista.
Article 2226. Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof.
Article 2227. Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable.
Article 2228. When the breach of the contract committed by the defendant is not the one contemplated by the parties in agreeing upon the liquidated damages, the law shall determine the measure of
damages, and not the stipulation.
Article 2229. Exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages.
Article 2230. In criminal offenses, exemplary damages as a part of the civil liability may be imposed when the crime was committed with one or more aggravating circumstances. Such damages are
Article 2230. In criminal offenses, exemplary damages as a part of the civil liability may be imposed when the crime was committed with one or more aggravating circumstances. Such damages are
separate and distinct from fines and shall be paid to the offended party.
Article 2231. In quasi-delicts, exemplary damages may be granted if the defendant acted with gross negligence.
Article 2232. In contracts and quasi-contracts, the court may award exemplary damages if the defendant acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner.
Article 2233. Exemplary damages cannot be recovered as a matter of right; the court will decide whether or not they should be adjudicated.
Article 2234. While the amount of the exemplary damages need not be proved, the plaintiff must show that he is entitled to moral, temperate or compensatory damages before the court may consider
the question of whether or not exemplary damages should be awarded. In case liquidated damages have been agreed upon, although no proof of loss is necessary in order that such liquidated damages
may be recovered, nevertheless, before the court may consider the question of granting exemplary in addition to the liquidated damages, the plaintiff must show that he would be entitled to moral,
temperate or compensatory damages were it not for the stipulation for liquidated damages.
Article 2235. A stipulation whereby exemplary damages are renounced in advance shall be null and void.
1. Makabali, the petitioner, had just graduated from Med School was given a trip to Hongkong as a graduation gift.
2. The petitioners met with the private respondent Baron Travel Corporation to inquire about their Hongkong Package offering.
3. petitioners were assured that they would be going with a group of thirteen [13] other travelers to be led by a tour guide and a representative of private respondent, Mr. Arsenio Rosal would see
them off at the Manila International Airport to give them final instructions. Petitioners were also promised that they would be lodged at the President Hotel in Hongkong
4. These promises and representations convinced the petitioners to purchase the Hongkong package tour offered by private respondent.
5. On departure, however, they met neither the respondent nor the representative.
6. Inside the plane, they met Mr. Arsenio Rosal who, to their embarrassment, protested that he was not a tour guide but a business executive and who was going to Hongkong as a paying
passenger.
7. In Hongkong nobody met petitioners at the airport. And they had also learned from Presidential Hotel that it had no accomodations for them. Much to their embarrassment, they had to join
another tour group and had to pay for all expenses.
8. They claimed they had restless and sleepless nights caused by great worry that their limited budget may not be enough for hotel bills, this coupled with public humiliation and mental anguish.
9. They filed action for moral and exemplary damages, amounting to 30,000 and 6,000 respectively.
10. CFI rendered judgment in their favor but awarded 500 for moral and exemplary damages.
11. On appeal, CA increased the award to 5,000 as moral and exemplary damages.
12. Unsatisfied, hence this petition.
Issue:
Whether the CA erred in awarding the petitioners the pitiful sum of 5,000 as moral and exemplary damages.
Held:
To begin with, there is no hard and fast rule in the determination of what would be a fair amount of moral damages, since each case must be governed by its own peculiar circumstances. Article 2217 of
the Civil Code recognizes that moral damages are incapable of pecuniary estimation.
As to exemplary damages, Article 2229 of the Civil Code provides that such damages may be imposed by way of example or correction for the public good. While exemplary damages cannot be
5
recovered as a matter of right, they need not be proved, although plaintiff must show that he is entitled to moral, temperate or compensatory damages before the court may consider the question of
whether or not exemplary damages should be awarded
According to the Court of Appeals, private respondent acted in wanton disregard of the rights of petitioners. These pronouncements lay the basis and justification for this Court to award petitioners moral
and exemplary damages.
The amount of P5,000.00 is minimal compared to the sufferings and embarrassment of petitioners who left Manila with high spirits and excitement hoping to enjoy their first trip to a foreign land only to be
met with uncertainties and humiliations.
SC increased the amount of moral and exemplary damages to 35,000.
Article 1192. In case both parties have committed a breach of the obligation, the liability of the first infractor shall be equitably tempered by the courts. If it cannot be determined which of the parties first
violated the contract, the same shall be deemed extinguished, and each shall bear his own damages. (n)
Article 2203. The party suffering loss or injury must exercise the diligence of a good father of a family to minimize the damages resulting from the act or omission in question.
Article 2204. In crimes, the damages to be adjudicated may be respectively increased or lessened according to the aggravating or mitigating circumstances.
Article 2214. In quasi-delicts, the contributory negligence of the plaintiff shall reduce the damages that he may recover.
Article 2215. In contracts, quasi-contracts, and quasi-delicts, the court may equitably mitigate the damages under circumstances
other than the case referred to in the preceding article, as in the following instances:
(1) That the plaintiff himself has contravened the terms of the contract;
(2) That the plaintiff has derived some benefit as a result of the contract;
(3) In cases where exemplary damages are to be awarded, that the defendant acted upon the advice of counsel;
(4) That the loss would have resulted in any event;
(5) That since the filing of the action, the defendant has done his best to lessen the plaintiff's loss or injury.
• Bricktown represented by its president Velarde, executed 2 contracts to sell in favour of Amor Tierra Develpment Corporation.
• It pertains to 96 residential lots sold to Amor Tierra.
• However, Amor Tierra was not able to pay its obligations on the agreed dates.
• It only paid more than one million pesos compared to the total selling price of more than 21 million.
• Bricktown then sent Amor Tierra a notice of cancellation of contract for the latter continuous failure to pay.
• Several months later, Amor Tierra demanded the refund of its payments to Bricktown plus interest.
• RTC: Declared the contract to have been rescinded and ordered Bricktown to refund the payments made by Amor Tierra plus interest.
• CA: Affirmed
Issue:
Whether the amounts already remitted by Amor Tierra were rightly forfeited by Bricktown.
Ruling:
It will be unconscionable to sanction Bricktown. It is not equitable to impose interest from the time of the judicial demand, for, Amor Tierra should not be allowed to totally free itself from its own breach.
The contract was validly rescinded and Bricktown must refund the amount of P1,334,443.21 plus 12% interest per annum to commence only upon the finality of the decision.
In awarding damages for tortuous injury, it becomes the sole design of the courts to provide for adequate compensation by putting the plaintiff in the same financial position he was in prior to the tort. It is a
fundamental principle in the law on damages that a defendant cannot be held liable in damages for more than the actual loss which he has inflicted and that a plaintiff is entitled to no more than the just
and adequate compensation for the injury suffered. His recovery is, in the absence of circumstances giving rise to an allowance of punitive damages, limited to a fair compensation for the harm done. The
law will not put him in a position better than where he should be in had not the wrong happened.
Petitioners are at best reminded that indemnification for damages comprehends not only the value of the loss suffered but also that of the profits which the obligee failed to obtain. In other words,
indemnification for damages is not limited to damnum emergens or actual loss but extends to lucrum cessans or the amount of profit lost.
One last word. We have observed that private respondent left his passenger jeepney by the roadside at the mercy of the elements. Article 2203 of the Civil Code exhorts parties suffering from loss or
injury to exercise the diligence of a good father of a family to minimize the damages resulting from the act or omission in question. However, in the case at hand Petitioner did not provide evidence as to
how much would have been saved if the respondent took care of the vehicle.
3
= 22.6 x 5,500
= P124,300.00
In addition, the heirs of Dalmacio Salunoy should be paid P50,000.00 as death indemnity.
The decision of the CA was MODIFIED by SC in the sense that the award of P100,000.00 denominated for moral damages and unearned income was deleted, and in lieu thereof the amount of
P124,300.00 for loss of earning capacity and the further amount of P50,000.00 for death indemnity are awarded to the heirs of Dalmacio Salunoy.