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Torts and Damages Case Digests

Torts and Damages Case Digests

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Published by lchieS

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Published by: lchieS on Mar 14, 2012
Copyright:Attribution Non-commercial


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Facts:Visayan Integrated Steel Corporation or VISCO was formerlyknown as Sounthern Rolling Mills, Inc. VISCO entered into aprocessing agreement with Petitioner Coastal.The parties agreed that Coastal would deliver 3,000 metric tonsof hot rolled steel coils to VISCO for processing in to block iron sheets.However, VISCO was able to process and deliver to Coastalonly 1, 600 metric tons of the said sheets. Hence , a total of 1,400 metric tons of hot rolled coils remained unclaimed for.Then a year later, Coastal filed with the RTC a Complaint forRecovery of Property and Damages. It alleged that VISCO hadfraudulently misapplied or converted the finished steelentrusted to it.Issue: W/N Coastal is liable for moral damages.Ruling: NO.As a rule, a corporation is not entitled to moral damagesbecause, not being a natural person, it cannot experiencephysical suffering or sentiments like wounded feelings, seriousanxiety, mental anguish and moral shock. The only exception tothis rule is when the corporation has a good reputation that isdebased, resulting in its humiliation in the business realm.In the case at bar, the records did not show any evidence thatthe name or reputation of Coastal was dishonored as a result of the fraudulent acts complained by Coastal.Hence, Coastal is not entitled to moral damages.
Facts:Tanay Recreation leased the property owned by Catalina Faustounder a Contract of Lease. The contract also provided thatshould Fausto decides to sell the property, Tanay shall have thepriority right to purchase same.Thereafter, Fausto;s daughter Respondent Pacunayan informedTanat to remove the improvements built on the property leased.Tanay found out that the property was sold to Pacunayan.Tanay filed a complaint for annulment of Deed, SpecificPerformance with Damages.
The lower Courts dismissed Tanay’s claim for Damages
.Issue: W/N Tanay Recreation is entitled to moral damages andexemplary damages.Ruling: No.The award of moral damages cannot be granted in favor of acorporation because, being an artificial person and havingexistence only in legal contemplation, it has no feelings, noemotions, no senses. It cannot, therefore, experience physicalsuffering and mental anguish, which can be experienced onlyby one having a nervous system.Hence, Tanay being a corporation cannot be entitled to moraldamages.For the claim of exemplary damages, it is a requisite in thegrant that the act of the offender must be accompanied by badfaith or done in wanton, fraudulent or malevolent manner.Moreover, when a party is not entitled to actual or moraldamages an award of exemplary damages cannot also beawarded.In this case, Tanay failed to show that respondent acted in badfaith, or in wanton, fraudulent or malevolent manner.
Facts: Olita was charges with the crime of Robbery withHomicide for feloniously taking, stealing and carrying away thecash money of representing the Meralco collections of IsaganiTongco against his will
and for the killing of latter’s security
escort, Romeo Pacle.Olita entered a plea of not guilty. The trial court convicted him.
Among the trial court’s judgment was that Olita is liable to
indemnify the heirs od Pacle the amount of P30, 000 as moraldamages.Issue: W/N the heirs of victim Pacle are entitled to claim moraldamages.Ruling: No.Moral damages cannot be awarded in the absence of any factualbasis. There must be pleasing and proof of moral suffering,mental anguish, fright, wounded feelings and similar injury.In this case, the SC finds no basis from the record to justify theawards of moral damages in favor of the heirs of Romeo Pacle.Thus, the heirs are not entitled to claim moral damages.
Facts:TEC entered into a Contract of Lease with Ultra for the use of 
Ultra’s DCIM building for a period of 5 years
.Then, a
team Meralco’s inspectors conducted a surprise
inspection of the electric meters installed at the DCIM building
as witnessed by Ultra’s representative. The inspectors found
two meters were tampered with and did not register the actualpower consumption in the building.Meralco informed TEC of the results of the inspection anddemanded for the payment of amount of the unregistered
consumption as a result of the tampering of the meters. TEC’s
management referred the letter to Ultra. Eventually, Meralcodisconnected the electricity supply to the DCIM building forfailure of TEC to pay the amount demanded.TEC denied the tampering. It filed a complaint before the ERBpraying that electric power be restored to the DCIM building.ERB ordered for the reconnection.
Meanwhile, Meralco conducted another inspection in TEC’s
another building, the NS building. It alleged that the meterswere not registering the correct power consumption. Meralco,then, sent TEC another demand letter for the payment of thedifferential billing. TEC paid under protest.TEC, then, filed a complaint for damages against Meralco andUltra before the RTC of Pasig.RTC ruled that Meralco failed to prove that TEC was guilty if tampering the meter installations. That TEC was entitled toclaim moral and exemplary damages from Meralco. The CA
affirmed RTC’s ruling.
 ISSUE: W/N TEC is entitled to moral and exemplary damages.RULING: NO moral damages but YES to exemplary damages.As a rule, a corporation is not entitled to moral damagesbecause, not being a natural person, it cannot experiencephysical suffering or sentiments like wounded feelings, seriousanxiety, mental anguish and moral shock.The only exception to this rules is when the corporation has areputation that is debased, resulting in its humiliation in thebusiness realm, provided, that the claimant must present proof to justidy the award. It is important to prove the existence of the
factual basis of the damage and its causal relation to Meralco’s
acts.In this case, there was no evidence that the name of TEC hasbeen
debased as a result of Meralco’s acts. Further, the trial
court stated no basis for the award of the moral damages.Hence, TEC is not entitled to moral damages.However, TEC is entitled to exemplary damages.Exemplary damages are imposed by way of example of correction for the public good in addition to moral, temperate,liquidated or compensatory damages.In this case, to serve as an example
that before adisconnection of electrical supply can be done, the requisites of the law must first be complied with.Hence again, the award of exemplary damages to TEC wereproper.

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