METROHEIGHTS V. CMS CONSTRUCTION amounting to P190,000.
00, inclusive of labor, materials, and MWSS'
Human Rights Relations; Abuse of Rights | October 17, 218 fees and charges; and o that since then, there was already sufficient and strong water pressure twenty-four (24) hours a day in the Metroheights’ subdivision. SUMMARY: Metroheights sought the help of MWSS to address the insufficient However, sometime in April 1992, CMS Construction made diggings and supply of water in its subdivision. As a response, MWSS effected the laying down excavations, and started to lay water pipes along Fisheries Street and Morning of water pipes to supply sufficient water to Metroheights. About two years later, Star Drive in Sanville Subdivision, Quezon City, Metroheights’ neighboring CMS Construction made diggings and excavations to lay down water pipes in the subdivision; neighboring subdivision; they cut off and disconnected Metroheights’ water lines o that in the process, CMS Construction, with the knowledge and consent without the latter’s knowledge and consent. Metroheights filed a complaint for of MWSS but without Metroheights’ knowledge and consent, damages. The Court ruled in their favor on the basis of Art. 19. unilaterally cut-off and disconnected the latter's new and separate water service connection on Visayas Avenue; DOCTRINE: Under the principle of damnum absque injuria, the legitimate o that on May 28, 1992, Metroheights’ members were waterless, which exercise of a person's right, even if it causes loss to another, does not automatically lasted for three (3) days, and that Metroheights’ polyvinyl chloride result in an actionable injury and the law does not prescribe a remedy for the loss. (PVC) pipes and radius elbow, valued at around P30,000.00, were However, this principle admits of exception as when there is an abuse of a person's stolen by CMS Construction's workers; right. The exercise of one's right should be clone in a manner that will not cause o that when Metroheights’ officers discovered the illegal cutting of the injustice to another. water connection on May 3 0, 1992, they immediately complained to the respondents and demanded for the restoration of their water line; The elements of an abuse of rights under Article 19 are: (1) there is a legal right or o that CMS Construction only made a temporary reconnection with the duty; (2) which is exercised in bad faith; (3) for the sole intent of prejudicing or use of a 2-inch rubber hose to the new water line it constructed at injuring another. Sanville Subdivision; and o that despite Metroheights’ verbal and written demands, respondents have failed to restore Metroheights’ water line connection in its original Act/omission: CMS Construction’s unilateral cutting-off of the water pipes state and to return the missing PVC pipes and radius elbow. Negligence: CMS Construction’s failure to notify Metroheights RTC held respondents liable for damages. CA reversed, holding there was no Injury: Lack of sufficient water supply in Metroheights abuse of rights since the project was not undertaken without notice to Cusation: cutting-off lack of sufficient water supply Metroheights.
FACTS: ISSUE/S & RATIO:
On June 29, 1992, Metroheights Subdivision Homeowners Association, Inc. filed 1. WoN CMS should be liable for cutting off Metroheights’ water connections with RTC of Quezon City a complaint for damages with prayer for a temporary without giving prior notice - YES, except for the Cruzes. restraining order and/or writ of preliminary injunction and writ of preliminary As affirmed by the Court, the R TC found that respondents' claim of damnum mandatory injunction against CMS Construction and Development Corporation absque injuria was not tenable. Under the principle of damnum absque (CMS Construction), Tomasito Cruz, Tita Cruz, Simonette Cruz, Angel Cruz, injuria, the legitimate exercise of a person's right, even if it causes loss to Ernesto Cruz (the Cruzes who comprise the stockholders of CMS), and another, does not automatically result in an actionable injury and the law Metropolitan Waterworks and Sewerage System (MWSS). does not prescribe a remedy for the loss. However, this principle admits of Metroheights alleged, among others: o that it sought the assistance of MWSS to address the insufficient supply exception as when there is an abuse of a person's right. The exercise of one's of water in its subdivision to which the latter advised the improvement right should be clone in a manner that will not cause injustice to another. and upgrading of its private internal water distribution lines, foremost o Since water is a basic necessity, the lack thereof not only caused of which was the transfer or change in the location of its tapping source inconvenience but posed health concerns as well. Notice to petitioner and the change in size of its water service line from the old line tapped of the interruption of the water supply should have been made prior at Sanville Subdivision to a new tapping source on Visayas Avenue, to the implementation of the project. Quezon City; The alleged meetings, claimed by Tomasito Cruz to have taken place to show o that on November 16, 1990, Metroheights entered into a contract with that Metroheights had already been notified of the rehabilitation project, were MWSS for the new water service connection, and MWSS awarded the not substantiated at all. Even MWSS Engr. Cariaga's assertion that it is an project to a contractor which implemented the same, the cost of which operating procedure to give letters to the homeowners, as well as the was solely shouldered by contribution from Metroheights’ members barangays affected, regarding the objective of the project and calling for meetings was not also established by any documentary evidence. It is, therefore, established that there was no notice, not even a generalized notice, given by respondents to Metroheights regarding the rehabilitation project. In fact, it was only after Metroheights’ officer investigated the reason behind the loss of water supply in their subdivision that it was learned that their existing line was cut-off and transferred by respondents. Also, it was only when Metroheights’ officer went to the office of CMS Construction and complained about the loss of water supply in their subdivision that Metroheights’ homeowners' water line was temporarily reconnected with a 2-inch rubber hose. The testimony of CMS Construction's President revealed this matter on cross-examination. In MWSS v. Act Theater, Inc., we held that Metroheights’ act of cutting off respondents' water service connection without prior notice was arbitrary, injurious and prejudicial to the latter, justifying the award of damages under Article 19 of the New Civil Code. We find that respondents MWSS and CMS Construction should be held liable for damages to Metroheights but not the Cruzes who are the directors and stockholders of CMS Construction. Section 31 of the Corporation Code is the governing law on personal liability of officers for the debts of the corporation, to wit: o Sec. 31. Liability of directors, trustees or officers. - Directors or trustees who willfully and knowingly vote for or assent to patently unlawful acts of the corporation or who are guilty of gross negligence or bad faith in directing the affairs of the corporation or acquire any personal or pecuniary interest in conflict with their duty as such directors or trustees shall be liable jointly and severally for all damages resulting therefrom suffered by the corporation, its stockholders or members and other persons. We find that Metroheights failed to show that the Cruzes committed any of those above-quoted acts to make them personally liable.
RULING: Decision of CA REVERSED, RTC decision AFFIRMED WITH