38 Pamintuan v.

CA brother to make him (Pamintuan), his attorney-in-fact so that

94 SCRA 556 he could control the disposal of the goods;
December 14, 1979  (3) Pamintuan, as attorney-in-fact of the warehouseman,
Calaguas endorsed to the customs broker the warehouse receipts
Topic: Kinds of Civil Obligations; with a term or period; As to the presence of an covering the plastic sheetings withheld by him and
accessory undertaking in case of breach; with a penal clause  (4) he overpriced the plastic sheetings which he delivered to
Petitioners: Mariano Pamintuan the company.
Respondents: CA and Yu Ping Kin Co., Inc.  Paminutan appealed to the SC arguing that private respondent is only entitled
Ponente: Aquino, .J. to liquidated damages
o He believes that "in obligations with a penal clause, the penalty shall
Doctrine: Compensatory damage may be awarded in addition to liquidated substitute the indemnity for damages and the payment of interests in
damages when the obligor is guilty of fraud in the fulfillment of the obligation. case of noncompliance, if there is no stipulation to the contrary"

Facts: Issue: Whether Pamintuan may be held liable for liquidated damages on top of
 Pamintuan entered into a contract with private respondent for the former to other compensatory damages in this case? (Yes)
deliver plastic sheetings to the latter
o Their contract provided that any violation of the contract of sale would Held:
entitle the aggrieved party to collect from the offending party Yes, as an exception to the general rule in Art. 1226, damages shall be paid if the
liquidated damages in the sum of P10,000.00 obligor refuses to pay the penalty or is guilty of fraud in the fulfillment of the
 Pamintuan made incomplete deliveries, withholding the delivery of a number obligation
of cases of the plastic sheetings.  In this case, both the Trial Court and the Court of Appeals found that
o He informed private respondent that he was in dire need of cash to Paminutan was guilty of fraud
pay his other obligations o such finding is conclusive upon the Court
 He requested that he be paid immediately  Thus, Pamintuan may be held liable for liquidated damages and also for
o Private respondent agreed to an increased fixed price of the plastic compensatory damages
sheetings, regardless of the kind or quality, or actual invoice value of o As to the amount of the compensatory damages recoverable– it is
the same limited to only to the difference between the proven damages and the
 After Pamintuan made delivery of 224,150/336,360 plastic sheetings (of inferior stipulated penalty
quality), he refused to deliver the remainder of the shipments
o According to him, private respondent failed to comply with the Concurring opinion, Antonio, J.: In sum, Pamintuan is liable for the stipulated
conditions of their contract. penalty + the difference between the proven damages and the stipulated penalty
 Private respondent filed a complaint for damages
o The trial court found Pamintuan guilty of fraud ruled in private
respondent’s favor awarding damages (which included liquidated and
moral damages)
 Paminutan appealed to the CA
o The CA found that Paminutan was guilty of fraud because
 (1) he was able to make the company agree to change the
manner of paying the price by falsely alleging that there was a
delay in obtaining confirmation of the suppliers' acceptance
of the offer to buy;
 (2) he caused the plastic sheetings to be deposited in the
bonded warehouse of his brother and then required his