Fuji Television v.

Espiritu
Topic: Moral and Exemplary Damages
Facts:
1. The case involves a claim for moral and exemplary damages by an employee whose contract
was not renewed on the basis of disease (lung cancer)
2. The respondent-employee worked as a correspondent of Fuji Television Network. She was
initially engaged for one year but was subsequently renewed on a yearly basis.
3. She was later on diagnosed with lung cancer which caused Fuji TV to not renew her contract.
Due to threats that her salary would be withheld, she signed a “non-renewal” contract
with quitclaim under protest and was paid her separation pay. She filed a case for illegal
dismissal.
4. LA: Not a regular employee but an independent contractor
5. NLRC: Reversed LA. Regular employee with respect to the activities she was employed in.
Both parties appealed to the CA with the employee claiming damages on grounds that the
employer dealt with her in bad faith.

Issue: Whether the withholding of salary constitutes as wanton and oppressive for a grant of damages.

Held: Yes, it would.

Ratio:
1. The Court held that
a. Moral damages are awarded when the dismissal is attended by bad faith, fraud, or
constitutes as an act oppressive to labor, or when done contrary to good morals,
good customs and public policy.
b. Exemplary damages are awarded when the dismissal was effected in a wanton,
oppressive, or malevolent manner.
2. Here, the Court found that the award of damages were proper
a. The manner of her dismissal (which was illegal) was considered oppressive since it
involved the withholding of her salary and benefits.
b. In addition, the order of dismissal was made right after she informed the employer
of her lung cancer. This information caused Arlene mental anguish, serious anxiety,
and wounded feelings that can be gleaned from the tenor of her communications with
her employer.