060 LBC Express, Inc v CA, Adolfo Carloto

G.R. No. 108670

September 21, 1994

Topic: Entitlement of Corporation to moral damages

Facts:
 A. Carloto: President-Manager of Rural Bank of Labason (Cebu)
 AC instructed to proceed to Central Bank Manila before 11/21 to follow-up on RBL’s
plan of payment of rediscounting obligations
o AC purchased plane ticket
o AC asked P1000 pocket money from his sister
 AC sister sent P1000 via LBC express
 LBC Cashpack
o AC received cashpack only on 12/15
o LBC: AC was not around to receive cashpack when it was delivered a day after it
was sent by his sister; then AC failed to claim the cashpack when it was left in
LBC office despite notice left
 AC sued for damages
o AC failed to go to Manila on time to deal with RBL business because of non-
receipt of P1000
o RTC ruled in favor of AC, charged LBC with moral damages as well

Issue:
 W/N LBC, being an artificial person, may be liable for moral damages – NO

Ruling:
 Moral damages are granted in recompense for physical suffering and mental anguish
o A corporation, being an artificial person, and having existence only in legal
contemplation, has no feelings; therefore, it cannot experience physical
suffering and mental anguish
o Mental anguish can only be experienced by one with a nervous system
 Also, LBC cannot be held liable for negligence or for AC’s failure to work on RBL business
on time

Held: RTC decision reversed. LBC not liable.