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FACTS: Cargill filed a case for moral damages against San Fernando Trading.

According to Cargill, San


Fernando reneged on its obligation to deliver molasses on scheduled dates.

ISSUE: Can a corporation be awarded with moral damages?

RULING: AS A GENERAL RULE, a corporation cannot be awarded with moral damages.

An exception to this is when a corporation enjoyed good reputation that the offender debased and
besmirched by his actuations.

However in this case, San Fernando failed to prove by sufficient evidence that it fell within this
exception. Besides, moral damages are, as a rule, also not recoverable in culpa contractual except when
bad faith had been proved.

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