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VOL. 158, FEBRUARY 29, 1988 445

Telefast Communications /Philippine Wireless, Inc. vs.
Castro, Sr.
*

No. L-73867. February 29, 1988.

TELEFAST COMMUNICATIONS/PHILIPPINE
WIRELESS, INC., petitioner, vs. IGNACIO CASTRO, SR.,
SOFIA C. CROUCH, IGNACIO CASTRO JR., AURORA
CASTRO, SALVADOR CASTRO, MARIO CASTRO,
CONRADO CASTRO, ESMERALDA C. FLORO, AGERICO
CASTRO, ROLANDO CASTRO, VIRGILIO CASTRO AND
GLORIA CASTRO, and HONORABLE INTERMEDIATE
APPELLATE COURT, respondents.

Civil Law; Damages; Obligations; Telegrams; Failure of

telegram company to send the sender's telegram overseas despite
payment of the required charges, makes it guilty of contravening
its obligation and is liable for damages.—In the case at bar,
petitioner and private respondent Sofia C. Crouch entered into a
contract whereby, for a fee, petitioner undertook to send said
private respondent's message overseas by telegram. This,
petitioner did not do, despite performance by said private
respondent of her obligation by paying the required charges.
Petitioner was therefore guilty of contravening its obligation to
said private respondent and is thus liable for damages.
Same; Same; Same; Same; Liability of telegram company is
not limited to actual or quantified damages.—This liability is not
limited to actual or quantified damages. To sustain petitioner's
contrary position in this regard would result in an inequitous
situation where petitioner will only be held liable for the actual
cost of a telegram fixed thirty (30) years ago.
Same; Same; Same; Same; Moral damages, concept of, under
Art. 2217 of the Civil Code; Moral damages, recoverable in case at
bar.—We find Art. 2217 of the Civil Code applicable to the case at
bar. It states: "Moral damages include physical suffering, mental
anguish, fright, serious anxiety, besmirched reputation, wounded
feelings, moral shock, social humiliation, and similar injury.
Though incapable of pecuniary computation, moral damages may

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be recovered if they are the proximate results of the defendant's

wrongful act or omission."
Same; Same; Same; Same; Petitioners act or omission
amounted to gross negligence.—Here, petitioner's act or omission,
which amounted

____________

* SECOND DIVISION.

446

446 SUPREME COURT REPORTS ANNOTATED

Telefast Communications Philippine Wireless, Inc. vs. Castro, Sr.

to gross negligence, was precisely the cause of the suffering

private respondents had to undergo.
Same; Same; Same; Same; Compensatory damages, award of,
proper, as petitioner was remiss in performing its obligations.—We
also sustain the trial court's award of P1 6,000.00 as
compensatory damages to Sofia C. Crouch representing the
expenses she incurred when she came to the Philippines from the
United States to testify before the trial court. Had petitioner not
been remiss in performing its obligation, there would have been
no need for this suit or for Mrs. Crouch's testimony.
Same; Same; Same; Same; Exemplary damages, award of,
justified to serve as a warning to all telegram companies to observe
due diligence in transmitting their customers' messages.—The
award of exemplary damages by the trial court is likewise
justified and, therefore, sustained in the amount of P1,000.00 for
each of the private respondents, as a warning to all telegram
companies to observe due diligence in transmitting the messages
of their customers.

HERRERA, J., concurring;

Civil Law; Obligations; Damages; In addition to

compensatory and exemplary damages, moral damages are
recoverable in actions for breach of contract where the breach has
been wanton and reckless.—I concur. In addition to compensatory
and exemplary damages, moral damages are recoverable in
actions for breach of contract, as in this case, where the breach
has been wanton and reckless, tantamount to bad faith.

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PETITION for certiorari to review the decision of the

Intermediate Appellate Court
The facts are stated in the opinion of the Court

PADILLA, J.:
**

Petition for review on certiorari of the decision of the

Intermediate Appellate Court, dated 11 February 1986, in
AC-G.R. No. CV-70245, entitled "Ignacio Castro, Sr., et al.,
Plaintiffs-Appellees, versus Telefast
Communications/Philippine Wireless, Inc., Defendant-
Appellant."

____________

** Penned by Justice Serafin E. Camilon, with the concurrence of

Justices Crisolito Pascual, Jose C. Campos, Jr. and Desiderio P. Jurado.

447

VOL. 158, FEBRUARY 29, 1988 447

Telefast Communications Philippine Wireless, Inc. vs.
Castro, Sr.

The facts of the case are as follows:

On 2 November 1956, Consolacion Bravo-Castro, wife of
plaintiff Ignacio Castro, Sr. and mother of the other
plaintiffs, passed away in Lingayen, Pangasinan. On the
same day, her daughter Sofia C. Crouch, who was then
vacationing in the Philippines, addressed a telegram to
plaintiff Ignacio Castro, Sr. at 685 Wanda, Scottsburg,
Indiana, U.S.A., 47170 announcing Consolacion's death.
The telegram w as accepted by the defendant in its
Dagupan office, for transmission, after payment of the
required fees or charges.
The telegram never reached its addressee. Consolacion
was interred with only her daughter Sofia in attendance.
Neither the husband nor any of the other children of the
deceased, then all residing in the United States, returned
for the burial.
When Sofia returned to the United States, she
discovered that the wire she had caused the defendant to
send, had not been received. She and the other plaintiffs
thereupon brought action for damages arising from
defendant's breach of contract. The case was filed in the
Court of First Instance of Pangasinan and docketed therein
as Civil Case No. 15356. The only defense of the defendant
was that it was unable to transmit the telegram because of
1

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"technical and atmospheric factors beyond its control." No

evidence appears on record that defendant ever made any
attempt to advise the plaintiff Sofia C. Crouch as to why it
could not transmit the telegram.
The Court of First Instance of Pangasinan, after trial,
ordered the defendant (now petitioner) to pay the plaintiffs
(now private respondents) damages, as follows, with
interest at 6% per annum:

"1. Sofia C. Crouch, P31.92 and P16,000.00 as

compensatory damages and P20,000.00 as moral
damages.
2. Ignacio Castro Sr., P20,000.00 as moral damages.
3. Ignacio Castro Jr., P20,000.00 as moral damages.
4. Aurora Castro, P10,000.00 moral damages.
5. Salvador Castro, P10,000.00 moral damages.

___________

1 Rollo at 8.

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448 SUPREME COURT REPORTS ANNOTATED

Telefast Communications Philippine Wireless, Inc. vs.
Castro, Sr.

6. Mario Castro, P10,000.00 moral damages.

7. Conrado Castro, P1 0,000 moral damages.
8. Esmeralda C. Floro, P20,000.00 moral damages.
9. Agerico Castro, P10,000.00 moral damages.
10. Rolando Castro, P10,000.00 moral damages.
11. Virgilio Castro, P10,000.00 moral damages.
12. Gloria Castro, P10,000.00 moral damages.

Defendant is also ordered to pay P5,000.00 attorney's fees,

exemplary damages in the 2 amount of P1,000.00 to each of
the plaintiffs and costs."
On appeal by petitioner, the Intermediate Appellate
Court affirmed the trial court's decision but eliminated the
award of P1 6.000.00 as compensatory damages to Sofia C.
Crouch and the award of P1,000.00 to each of the private
respondents as exem plary damages. The award of
P20,000.00 as moral damages to each of Sofia C. Crouch,
Ignacio Castro, Jr. and Esmeralda3 C. Floro was also
reduced to P1 0,000.00 for each.
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Petitioner appeals from the judgment of the appellate

court, contending that the award of moral damages should
be eliminated as defendant's negligent act was not
motivated by "fraud, malice or recklessness."
In other words, under petitioner's theory, it can only be
held liable for P31.92, the fee or charges paid by Sofia C.
Crouch for the telegram that was never sent to the
addressee thereof.
Petitioner's contention is without merit.
Art. 1170 of the Civil Code provides that "those who in
the performance of their obligations are guilty of fraud,
negligence or delay, and those who in any manner
contravene the tenor thereof, are liable for damages." Art.
2176 also provides that "whoever by act or omission causes
damage to another, there being fault or negligence, is
obliged to pay for the damage done."
In the case at bar, petitioner and private respondent
Sofia C. Crouch entered into a contract whereby, for a fee,
petitioner undertook to send said private respondent's
message overseas

____________

2 Rollo at 9-10.
3 Rollo at 14.

449

VOL. 158, FEBRUARY 29, 1988 449

Telefast Communications / Philippine Wireless, Inc. vs.
Castro, Sr.

by telegram. This, petitioner did not do, despite

performance by said private respondent of her obligation by
paying the required charges. Petitioner was therefore
guilty of contravening its obligation to said private
respondent and is thus liable for damages.
This liability is not limited to actual or quantified
damages. To sustain petitioner's contrary position in this
regard would result in an inequitous situation where
petitioner will only be held liable for the actual cost of a
telegram fixed thirty (30) years ago.
We find Art. 2217 of the Civil Code applicable to the case
at bar. It states: "Moral damages include physical
suffering, mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings, moral shock,
social humiliation, and similar injury. Though incapable of
pecuniary computation, moral damages may be recovered if
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they are the proximate results of the defendant's wrongful

act or omission." (Italics supplied).
Here, petitioner's act or omission, which amounted to
gross negligence, was precisely the cause of the suffering
private respondents had to undergo.
As the appellate court properly observed:

"[Who] can seriously dispute the shock, the mental anguish and
the sorrow that the overseas children must have suffered upon
learning of the death of their mother after she had already been
interred, without being given the opportunity to even make a
choice on whether they wanted to pay her their last respects?
There is no doubt that these emotional sufferings were
proximately caused by appellant's omission and substantive 4 law
provides for the justification for the award of moral damages."

We also sustain the trial court's award of P16,000.00 as

compensatory damages to Sofia C. Crouch representing the
expenses she incurred when she came to the Philippines
from the United States to testify before the trial court. Had
petitioner not been remiss in performing its obligation,
there would have been no need for this suit or for Mrs.
Crouch's testimony.
The award of exemplary damages by the trial court is
likewise justified and, therefore, sustained in the amount of
P1 ,000.00 for each of the private respondents, as a
warning to all telegram

____________

4 Rollo at 13.

450

450 SUPREME COURT REPORTS ANNOTATED

Telefast Communications /Philippine Wireless, Inc. vs.
Castro, Sr.

companies to observe due diligence in transmitting the

messages of their customers.
WHEREFORE, the petition is DENIED. The decision
appealed from is modified so that petitioner is held liable to
private respondents in the following amounts:

(1) P10,000.00 as moral damages, to each of private

respondents;
(2) P1,000.00 as exemplary damages, to each of private
respondents;

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(3) P1 6,000.00 as compensatory damages, to private

respondent Sofia C. Crouch;
(4) P5,000.00 as attorney's fees; and
(5) Costs of suit.

SO ORDERED.

     Yap (Chairman), Paras and Sarmiento, JJ., concur.

          Melencio-Herrera, J., I concur. In addition to
compensatory and exemplary damages, moral damages are
recoverable in actions for breach of contract, as in this case,
where the breach has been wanton and reckless,
tantamount to bad faith.

Petition denied. Decision modified.

Notes.—Telegraph corporation, as employer is liable

directly for the acts of its employees. Action for damages
must be based on Articles 19 and 20 of the Civil Code, not
on subsidiary liability of corporation under Article 1161,
New Civil Code. (Radio Com munications of the Phil. vs.
Court of Appeals, 143 SCRA 657.)
Since negligence may be hard to substantiate in some
cases, the application of the doctrine of res ipsa loquitur is
proper. (Radio Communications of the Phil. vs. Court of
Appeals, 143 SCRA 657.)

——o0o——

451

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