5th Set Case Digests for Torts 2015-2016 (Atty.

Rucel Cayetano) by: Angit, Masiga, Respicio & Solis ®

APPLICABILITY OF RESPONDEAT SUPERIOR DOCTRINE 1. Responsibility of the Surgeon

(Note: this case is reiterated in res ipsa loquitor topic. So As the so-called "captain of the ship," it is the surgeon's
dalawa ang issues ☺) responsibility to see to it that those under him perform their task
in the proper manner. Respondent Dr. Hosaka's negligence can
1. ROGELIO E. RAMOS and ERLINDA RAMOS vs.CA be found in his failure to exercise the proper authority in not
determining if his anesthesiologist observed proper anesthesia
FACTS: The Hippocratic Oath mandates physicians to give protocols. In fact, no evidence on record exists to show that
primordial consideration to the health and welfare of their respondent Dr. Hosaka verified if respondent Dra. Gutierrez
patients. If a doctor fails to live up to this precept, he is made properly intubated the patient. Furthermore, it does not escape
accountable for his acts. A mistake, through gross negligence or us that respondent Dr. Hosaka had scheduled another
incompetence or plain human error, may spell the difference procedure in a different hospital at the same time as Erlinda's
between life and death. In this sense, the doctor plays God on cholecystectomy, and was in fact over three hours late for the
his patient's fate. In the case at bar, the Court is called upon to latter's operation. Because of this, he had little or no time to
rule whether a surgeon, an anesthesiologist and a hospital confer with his anesthesiologist regarding the anesthesia
should be made liable for the unfortunate comatose condition of delivery. This indicates that he was remiss in his professional
a patient scheduled for cholecystectomy.1 duties towards his patient. Thus, he shares equal responsibility
for the events which resulted in Erlinda's condition.
Erlinda Ramos, a 47-year old robust woman, was normal except
for her experiencing occasional pain due to the presence of Responsibility of the Hospital
stone in her gall bladder. She was advised to undergo an
operation for its removal. The results in the examinations she Hospitals hire, fire and exercise real control over their attending
underwent indicate that she was fit for the operation. She and and visiting "consultant" staff. While "consultants" are not,
her husband Rogelio met Dr. Hosaka, one of the defendants, technically employees, a point which respondent hospital
who advised that she should undergo cholecystectomy. Dr. asserts in denying all responsibility for the patient's condition,
Hosaka assured them that he will get a good anaesthesiologist. the control exercised, the hiring, and the right to terminate
At 7:30 a.m. on the day of the operation at Delos Santos consultants all fulfill the important hallmarks of an employer-
Medical Center, Herminda Cruz, Erlinda’s sister-in-law and the employee relationship, with the exception of the payment of
dean of the College of Nursing in Capitol Medical Center, was wages. In assessing whether such a relationship in fact exists,
there to provide moral support. Dr. Perfecta Gutierrez was to the control test is determining. Accordingly, on the basis of the
administer the anaesthesia. Dr. Hosaka arrived only at 12:15 p. foregoing, we rule that for the purpose of allocating
m. Herminda saw Dr. Gutierrez intubating the patient, and heard responsibility in medical negligence cases, an employer-
the latter say “Ang hirap ma-intubate nito, mali yata ang employee relationship in effect exists between hospitals and
pagkakapasok. O, lumalaki ang tiyan.” Herminda saw bluish their attending and visiting physicians.
discoloration of the nailbeds of the patient. She heard Dr.
Hosaka issue an order for someone to call Dr. Calderon. The
The basis for holding an employer solidarily responsible for the
doctor arrived and placed the patient in trendelenburg position,
negligence of its employee is found in Article 2180 of the Civil
wherein the head of the patient is positioned lower than the feet,
Code which considers a person accountable not only for his
which indicates a decrease of blood supply in the brain.
own acts but also for those of others based on the former's
Herminda knew and told Rogelio that something wrong was
responsibility under a relationship of patria potestas. Such
happening. Dr. Calderon was able to intubate the patient.
responsibility ceases when the persons or entity concerned
Erlinda was taken to the ICU and became comatose.
prove that they have observed the diligence of a good father of
the family to prevent damage. In the instant case, respondent
Rogelio filed a civil case for damages. The trial court ruled in his
hospital, apart from a general denial of its responsibility over
favor, finding Dr. Gutierrez, Dr. Hosaka, and the hospital, guilty
respondent physicians, failed to adduce evidence showing that
of negligence, but the Court of Appeals reversed the decision.
it exercised the diligence of a good father of a family in the
Hence, petitioner filed a Motion for Reconsideration, which the
hiring and supervision of the latter. It failed to adduce evidence
Court of Appeals denied for having been filed beyond the
with regard to the degree of supervision which it exercised over
reglementary period. However, it was found that the notice of
its physicians. In neglecting to offer such proof, or proof of a
the decision was never sent to the petitioner’s counsel. Rather,
similar nature, respondent hospital thereby failed to discharge
it was sent to the petitioner, addressing him as Atty. Rogelio
its burden under the last paragraph of Article 2180. Having
Ramos, as if he was the legal counsel. The petitioner filed the
failed to do this, respondent hospital is consequently solidarily
instant petition for certiorari. On the procedural issue, the
responsible with its physicians for Erlinda's condition.
Supreme Court rules that since the notice did not reach the
petitioner’s then legal counsel, the motion was filed on time.
Responsibility of the Anaesthesiologist

ISSUE: 1. WON a surgeon, an anaesthesiologist, and a The pre-operative evaluation of a patient prior to the
hospital, should be made liable for the unfortunate comatose administration of anesthesia is universally observed to lessen
condition of a patient scheduled for cholecystectomy; 2. WON the possibility of anesthetic accidents. Respondent Dra.
the doctrine of res ipsa loquitor apply. Gutierrez' act of seeing her patient for the first time only an hour
before the scheduled operative procedure was, therefore, an act
of exceptional negligence and professional irresponsibility. Her
1 failure to follow this medical procedure is, therefore, a
Cholecystectomy is a surgical procedure to remove your gallbladder
— a pear-shaped organ that sits just below your liver on the upper right
clear indicia of her negligence. Erlinda's case was elective and
side of your abdomen. Your gallbladder collects and stores bile — a this was known to respondent Dra. Gutierrez. Thus, she had all
digestive fluid produced in your liver. the time to make a thorough evaluation of Erlinda's case prior to
“A GRATEFUL HEART IS A MAGNET OF MIRACLES” 1
5th Set Case Digests for Torts 2015-2016 (Atty. Rucel Cayetano) by: Angit, Masiga, Respicio & Solis ®

the operation and prepare her for anesthesia. However, she loquitur is allowed because there is no other way, under usual
never saw the patient at the bedside. She herself admitted that and ordinary conditions, by which the patient can obtain redress
she had seen petitioner only in the operating room, and only on for injury suffered by him.
the actual date of the cholecystectomy. She negligently failed to
take advantage of this important opportunity. As such, her Res ipsa loquitur is not a rigid or ordinary doctrine to be
attempt to exculpate herself must fail. perfunctorily used but a rule to be cautiously applied, depending
upon the circumstances of each case. A distinction must be
made between the failure to secure results, and the occurrence
2. Res Ipsa Loquitor of something more unusual and not ordinarily found if the
service or treatment rendered followed the usual procedure of
Res ipsa loquitur is a Latin phrase which literally means "the those skilled in that particular practice. The real question,
thing or the transaction speaks for itself." The phrase "res ipsa therefore, is whether or not in the process of the operation any
loquitur'' is a maxim for the rule that the fact of the occurrence of extraordinary incident or unusual event outside of the routine
an injury, taken with the surrounding circumstances, may permit performance occurred which is beyond the regular scope of
an inference or raise a presumption of negligence, or make out customary professional activity in such operations, which, if
a plaintiff's prima facie case, and present a question of fact for unexplained would themselves reasonably speak to the average
defendant to meet with an explanation. Where the thing which man as the negligent cause or causes of the untoward
caused the injury complained of is shown to be under the consequence.
management of the defendant or his servants and the accident
is such as in ordinary course of things does not happen if those We find the doctrine of res ipsa loquitur appropriate in the case
who have its management or control use proper care, it affords at bar. Erlinda submitted herself for cholecystectomy and
reasonable evidence, in the absence of explanation by the expected a routine general surgery to be performed on her gall
defendant, that the accident arose from or was caused by the bladder. On that fateful day she delivered her person over to the
defendant's want of care. It is grounded in the superior logic of care, custody and control of private respondents who exercised
ordinary human experience and on the basis of such experience complete and exclusive control over her. At the time of
or common knowledge, negligence may be deduced from the submission, Erlinda was neurologically sound and, except for a
mere occurrence of the accident itself. However, much has few minor discomforts, was likewise physically fit in mind and
been said that res ipsa loquitur is not a rule of substantive law body. However, during the administration of anesthesia and
and, as such, does not create or constitute an independent or prior to the performance of cholecystectomy she suffered
separate ground of liability. Mere invocation and application of irreparable damage to her brain. Thus, without undergoing
the doctrine does not dispense with the requirement of proof of surgery, she went out of the operating room already
negligence. It is simply a step in the process of such proof, decerebrate and totally incapacitated. Obviously, brain damage,
permitting the plaintiff to present along with the proof of the which Erlinda sustained, is an injury which does not normally
accident, enough of the attending circumstances to invoke the occur in the process of a gall bladder operation. In fact, this kind
doctrine, creating an inference or presumption of negligence, of situation does not in the absence of negligence of someone
and to thereby place on the defendant the burden of going in the administration of anesthesia and in the use of
forward with the proof. Still, before resort to the doctrine may be endotracheal tube.
allowed, the following requisites must be satisfactorily shown.
Furthermore, the instruments used in the administration of
(1) The accident is of a kind which ordinarily does not occur in anesthesia, including the endotracheal tube, were all under the
the absence of someone's negligence; exclusive control of private respondents, who are the
physicians-in-charge. Likewise, petitioner Erlinda could not have
(2) It is caused by an instrumentality within the exclusive control been guilty of contributory negligence because she was under
of the defendant or defendants; and the influence of anesthetics which rendered her unconscious.
(3) The possibility of contributing conduct which would make the
plaintiff responsible is eliminated. 2. G.R. No. 118231 July 5, 1996
ALLAN BATIQUIN, petitioners, vs.
Medical malpractice cases do not escape the application of this
COURT OF APPEALS, respondents
doctrine. Thus, res ipsa loquitur has been applied when the
circumstances attendant upon the harm are themselves of such
a character as to justify an inference of negligence as the cause FACTS
of that harm. Although generally, expert medical testimony is
relied upon in malpractice suits to prove that a physician has
done a negligent act or that he has deviated from the standard Dr. Batiquin was a Resident Physician at the Negros Oriental
medical procedure, when the doctrine of res ipsa loquitur is Provincial Hospital, Dumaguete City from 1978 to 1989. She
availed by the plaintiff, the need for expert medical testimony is was also the Actg. Head of the Department of Obstetrics and
dispensed with because the injury itself provides the proof of Gynecology at the said Hospital.
negligence. Hence, in cases where the res ipsa loquitur is
applicable, the court is permitted to find a physician negligent In the morning of September 21, 1988 Dr. Batiquin, performed a
upon proper proof of injury to the patient, without the aid of simple caesarean section on Mrs. Villegas and after 45 minutes
expert testimony, where the court from its fund of common Mrs. Villegas delivered her first child, Rachel Acogido, at about
knowledge can determine the proper standard of care. When 11:45 that morning. Thereafter, Plaintiff remained confined at
the doctrine is appropriate, all that the patient must do is prove a the Hospital. During which period of confinement she was
nexus between the particular act or omission complained of and regularly visited by Dr. Batiquin.
the injury sustained while under the custody and management
of the defendant without need to produce expert medical
testimony to establish the standard of care. Resort to res ipsa
“A GRATEFUL HEART IS A MAGNET OF MIRACLES” 2
5th Set Case Digests for Torts 2015-2016 (Atty. Rucel Cayetano) by: Angit, Masiga, Respicio & Solis ®

Soon after leaving the Hospital Mrs. Villegas began to suffer defendant's exclusive control, and that the accident was one
abdominal pains and complained of being feverish. She also which ordinary does not happen in absence of negligence. Res
gradually lost her appetite, so she consulted Dr. Batiquin at the ipsa loquitur is [a] rule of evidence whereby negligence of [the]
latter's polyclinic who prescribed for her certain medicines which alleged wrongdoer may be inferred from [the] mere fact that
she had been taking up to December, 1988. [the] accident happened provided [the] character of [the]
accident and circumstances attending it lead reasonably to
In the meantime, Mrs. Villegas was given a Medical Certificate belief that in [the] absence of negligence it would not have
by Dr. Batiquin on October 31, 1988 certifying to her physical occurred and that thing which caused injury is shown to have
fitness to return to her work on November 7, 1988. So, on the been under [the] management and control of [the] alleged
second week of November, 1988 Mrs. Villegas returned to her wrongdoer. . . . Under [this] doctrine
work at the bank. . . . the happening of an injury permits an inference of
negligence where plaintiff produces substantial evidence that
[the] injury was caused by an agency or instrumentality under
The abdominal pains and fever kept on recurring and bothered [the] exclusive control and management of defendant, and that
Mrs. Villegas no end despite the medications administered by the occurrence [sic] was such that in the ordinary course of
Dr. Batiquin. When the pains became unbearable and she was things would not happen if reasonable care had been used.
rapidly losing weight she consulted another doctor, Dr. Kho.
Upon examination she felt an abdominal mass one finger below
the umbilicus which she suspected to be either a tumor of the The doctrine of [r]es ipsa loquitur as a rule of evidence is
uterus or an ovarian cyst, either of which could be cancerous. A peculiar to the law of negligence which recognizes that prima
blood count showed that Mrs. Villegas had [an] infection inside facie negligence may be established without direct proof and
her abdominal cavity. The results of all those examinations furnishes a substitute for specific proof of negligence. The
impelled Dr. Kho to suggest that Mrs. Villegas submit to another doctrine is not a rule of substantive law, but merely a mode of
surgery to which the latter agreed. proof or a mere procedural convenience. The rule, when
applicable to the facts and circumstances of a particular case, is
not intended to and does not dispense with the requirement of
When Dr. Kho opened the abdomen of Mrs. Villegas she found proof of culpable negligence on the party charged. It merely
whitish-yellow discharge inside, an ovarian cyst on each of the determines and regulates what shall be prima facie evidence
left and right ovaries which gave out pus, dirt and pus behind thereof and facilitates the burden of plaintiff of proving a breach
the uterus, and a piece of rubber material on the right side of the of the duty of due care. The doctrine can be invoked when and
uterus embedded on the ovarian cyst, 2 inches by 3/4 inch in only when, under the circumstances involved, direct evidence is
size. This piece of rubber material which Dr. Kho described as a absent and not readily available.
"foreign body" looked like a piece of a "rubber glove". . . and
which is [sic] also "rubber-drain like". It could have been a torn
section of a surgeon's gloves or could have come from other In the instant case, all the requisites for recourse to the doctrine
sources. And this foreign body was the cause of the infection of are present. First, the entire proceedings of the caesarean
the ovaries and consequently of all the discomfort suffered by section were under the exclusive control of Dr. Batiquin. In this
Mrs. Villegas after her delivery on September 21, 1988. light, the private respondents were bereft of direct evidence as
to the actual culprit or the exact cause of the foreign object
finding its way into private respondent Villegas's body, which,
The piece of rubber allegedly found near private respondent needless to say, does not occur unless through the intersection
Flotilde Villegas's uterus was not presented in court, and of negligence. Second, since aside from the caesarean section,
although Dr. Ma. Salud Kho Testified that she sent it to a private respondent Villegas underwent no other operation which
pathologist in Cebu City for examination, it was not mentioned in could have caused the offending piece of rubber to appear in
the pathologist's Surgical Pathology Report. her uterus, it stands to reason that such could only have been a
by-product of the caesarean section performed by Dr. Batiquin.
ISSUE: Whether or not the doctrine of res ipsa loquitor applies The petitioners, in this regard, failed to overcome the
presumption of negligence arising from resort to the doctrine of
RULING:YES res ipsa loquitur. Dr. Batiquin is therefore liable for negligently
leaving behind a piece of rubber in private respondent Villegas's
abdomen and for all the adverse effects thereof.
As such, the rule of res ipsa loquitur comes to fore. This Court
has had occasion to delve into the nature and operation of this
doctrine: As a final word, this Court reiterates its recognition of the vital
role the medical profession plays in the lives of the people, and
the State's compelling interest to enact measures to protect the
This doctrine [res ipsa loquitur] is stated thus: "Where the thing public from "the potentially deadly effects of incompetence and
which causes injury is shown to be under the management of ignorance in those who would undertake to treat our bodies and
the defendant, and the accident is such as in the ordinary minds for disease or trauma." Indeed, a physician is bound to
course of things does not happen in those who have the serve the interest of his patients "with the greatest of solicitude,
management use proper care, it affords reasonable evidence, in giving them always his best talent and skill." Through her
the absence of an explanation by the defendant, that the tortious conduct, the petitioner endangered the life of Flotilde
accident arose from want of care." Or as Black's Law Dictionary Villegas, in violation of her profession's rigid ethical code and in
puts it: contravention of the legal standards set forth for professionals,
in general, and members of the medical profession, in
Res ipsa loquitur. The thing speaks for itself. Rebuctable particular.
presumption or inference that defendant was negligent, which
arises upon proof that [the] instrumentality causing injury was in

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5th Set Case Digests for Torts 2015-2016 (Atty. Rucel Cayetano) by: Angit, Masiga, Respicio & Solis ®

a patient die of typhoid fever within five days from the onset of
the disease.
MEDICAL MALPRACTICE:
APPLICABILITY OF RES IPSA LOQUITOR For their part, respondents offered the testimonies of Dr.
Gotiong and Dr. Panopio. According to Dr. Gotiong, the patient’s
3. LEAH ALESNA REYES et. al. vs. SISTERS OF MERCY history and positive Widal Test results ratio of 1:320 would
HOSPITAL make him suspect that the patient had typhoid fever. As to Dr.
Vacalares observation regarding the absence of ulceration in
FACTS: Petitioner Leah Reyes is the wife of the late Jorge Jorge’s gastro-intestinal tract, Dr. Gotiong said that such
Reyes.  Five days before his death on January 8, 1987, Jorge hyperplasia in the intestines of a typhoid victim may be
had been suffering from a recurring fever with chills. After he microscopic. He noted that since the toxic effect of typhoid fever
failed to get relief from some home medication he was taking, may lead to meningitis, Dr. Vacalares autopsy should have
he decided to see the doctor in Mercy Community Clinic. He included an examination of the brain. [10] Dr. Panopio stated that
was attended to by respondent Dr. Rico, who gave Jorge a although he was partial to the use of the culture test for its
physical examination and took his medical history. She noted greater reliability in the diagnosis of typhoid fever, the Widal
that at the time of his admission, Jorge was conscious, Test may also be used. Like Dr. Gotiong, he agreed that the
ambulatory, oriented, coherent, and with respiratory distress. 1:320 ratio in Jorge’s case was already the maximum by which
[2]
 Typhoid fever was then prevalent in the locality, as the clinic a conclusion of typhoid fever may be made. No additional
had been getting from 15 to 20 cases of typhoid per month. information may be deduced from a higher dilution.[11] He said
[3]
 Suspecting that Jorge could be suffering from this disease, that Dr. Vacalares autopsy on Jorge was incomplete and thus
Dr. Rico ordered a Widal Test, a standard test for typhoid fever, inconclusive.
to be performed on Jorge.  After about an hour, the medical
technician submitted the results of the test from which Dr. Rico Petitioners assert that the doctrine of res ipsa loquitur applies to
concluded that Jorge was positive for typhoid fever. As her shift the present case because Jorge Reyes was merely
was only up to 5:00 p.m., Dr. Rico indorsed Jorge to experiencing fever and chills for five days and was fully
respondent Dr. Blanes. conscious, coherent, and ambulant when he went to the
hospital. Yet, he died after only ten hours from the time of his
Dr. Blanes attended to Jorge at around six in the evening. admission.
She also took Jorges history and gave him a physical
examination. Like Dr. Rico, her impression was that Jorge had ISSUE: Whether or not res ipsa loquitor is applicable in the case
typhoid fever. Antibiotics being the accepted treatment for at bar.
typhoid fever, she ordered that a compatibility test with the RULING: NO. There is a case when expert testimony may be
antibiotic chloromycetin be done on Jorge. Said test was dispensed with, and that is under the doctrine of res ipsa
administered by nurse Pagente who also gave the patient a loquitur. As held in Ramos v. Court of Appeals:[16]
dose of triglobe. As she did not observe any adverse reaction by
the patient to chloromycetin, Dr. Blanes ordered the first five
hundred milligrams of said antibiotic to be administered on Although generally, expert medical testimony is relied upon in
Jorge at around 9:00 p.m. A second dose was administered on malpractice suits to prove that a physician has done a negligent
Jorge about three hours later just before midnight. act or that he has deviated from the standard medical
procedure, when the doctrine of res ipsa loquitor is availed by
At around 1:00 a.m. of January 9, 1987, Dr. Blanes was the plaintiff, the need for expert medical testimony is dispensed
called as Jorge’s temperature rose to 41C. The patient also with because the injury itself provides the proof of
experienced chills and exhibited respiratory distress, nausea, negligence. The reason is that the general rule on the necessity
vomiting, and convulsions. Dr. Blanes put him under oxygen, of expert testimony applies only to such matters clearly within
used a suction machine, and administered hydrocortisone, the domain of medical science, and not to matters that are
temporarily easing the patient’s convulsions. When he regained within the common knowledge of mankind which may be
consciousness, the patient was asked by Dr. Blanes whether he testified to by anyone familiar with the facts. Ordinarily, only
had a previous heart ailment or had suffered from chest pains in physicians and surgeons of skill and experience are competent
the past. Jorge replied he did not. [5] After about 15 minutes, to testify as to whether a patient has been treated or operated
however, Jorge again started to vomit, showed restlessness, upon with a reasonable degree of skill and care. However,
and his convulsions returned. Dr. Blanes re-applied the testimony as to the statements and acts of physicians and
emergency measures taken before and, in addition, valium was surgeons, external appearances, and manifest conditions which
administered. Jorge, however, did not respond to the treatment are observable by any one may be given by non-expert
and slipped into cyanosis, a bluish or purplish discoloration of witnesses. Hence, in cases where the res ipsa loquitur is
the skin or mucous membrane due to deficient oxygenation of applicable, the court is permitted to find a physician negligent
the blood. At around 2:00 a.m., Jorge died. He was forty years upon proper proof of injury to the patient, without the aid of
old. The cause of his death was Ventricular Arrythemia expert testimony, where the court from its fund of common
Secondary to Hyperpyrexia and typhoid fever. knowledge can determine the proper standard of care. Where
common knowledge and experience teach that a resulting injury
Petitioners offered the testimony of Dr. Vacalares, Chief would not have occurred to the patient if due care had been
Pathologist at the Northern Mindanao Training Hospital, exercised, an inference of negligence may be drawn giving rise
Cagayan de Oro City who performed an autopsy on Jorge to an application of the doctrine of  res ipsa loquitur without
Reyes to determine the cause of his death. However, he did not medical evidence, which is ordinarily required to show not only
open the skull to examine the brain. His findings[9] showed that what occurred but how and why it occurred.  When the doctrine
the gastro-intestinal tract was normal and without any ulceration is appropriate, all that the patient must do is prove a nexus
or enlargement of the nodules. Dr. Vacalares testified that Jorge between the particular act or omission complained of and the
did not die of typhoid fever. He also stated that he had not seen injury sustained while under the custody and management of

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5th Set Case Digests for Torts 2015-2016 (Atty. Rucel Cayetano) by: Angit, Masiga, Respicio & Solis ®

the defendant without need to produce expert medical testimony On April 11, 1984, Dr. Ampil, assisted by the medical staff of the
to establish the standard of care. Resort to res ipsa loquitor is Medical City Hospital, performed an anterior resection surgery
allowed because there is no other way, under usual and on Natividad. He found that the malignancy in her sigmoid area
ordinary conditions, by which the patient can obtain redress for had spread on her left ovary, necessitating the removal of
injury suffered by him. certain portions of it. Thus, Dr. Ampil obtained the consent of
Natividad’s husband, Enrique Agana, to permit Dr. Juan
In the Ramos case, the question was whether a surgeon, an Fuentesto perform hysterectomy on her.
anesthesiologist, and a hospital should be made liable for the
comatose condition of a patient scheduled for cholecystectomy. After Dr. Fuentes had completed the hysterectomy, Dr. Ampil
[19] 
In that case, the patient was given anesthesia prior to her took over, completed the operation and closed the incision.
operation. Noting that the patient was neurologically sound at However, the operation appeared to be flawed.
the time of her operation, the Court applied the doctrine of res
ipsa loquitur as mental brain damage does not normally occur in In the corresponding Record of Operation, the attending nurses
a gallblader operation in the absence of negligence of the observed that two (2) sponge(s) used in the procedure were
anesthesiologist. Taking judicial notice that anesthesia lacking. They announced to the surgeon to perform a search but
procedures had become so common that even an ordinary to no avail. Hence, they went on for closure.
person could tell if it was administered properly, we allowed the
testimony of a witness who was not an expert. In this case,
while it is true that the patient died just a few hours after After a couple of days, Natividad complained of excruciating
professional medical assistance was rendered, there is pain in her anal region. She consulted both Dr. Ampil and Dr.
really nothing unusual or extraordinary about his Fuentes about it. They told her that the pain was the natural
death. Prior to his admission, the patient already had consequence of the surgery. Dr. Ampil then recommended that
recurring fevers and chills for five days unrelieved by the she consult an oncologist to examine the cancerous nodes
analgesic, antipyretic, and antibiotics given him by his which were not removed during the operation.
wife. This shows that he had been suffering from a serious
illness and professional medical help came too late for him. On May 9, 1984, Natividad, accompanied by her husband, went
to the United States to seek further treatment. After four months
Respondents alleged failure to observe due care was not of consultations and laboratory examinations, Natividad was told
immediately apparent to a layman so as to justify application she was free of cancer. Hence, she was advised to return to the
of res ipsa loquitur. The question required expert opinion on the Philippines.
alleged breach by respondents of the standard of care required
by the circumstances. Furthermore, on the issue of the
correctness of her diagnosis, no presumption of negligence can On August 31, 1984, Natividad flew back to the Philippines, still
be applied to Dr. Marlyn Rico. As held in Ramos: suffering from pains. Two weeks thereafter, her daughter found
a piece of gauze protruding from her vagina. Upon being
informed about it, Dr. Ampil proceeded to her house where he
. . . . Res ipsa loquitur is not a rigid or ordinary doctrine to be managed to extract by hand a piece of gauze measuring 1.5
perfunctorily used but a rule to be cautiously applied, depending inches in width. He then assured her that the pains would soon
upon the circumstances of each case. It is generally restricted to vanish.
situations in malpractice cases where a layman is able to say,
as a matter of common knowledge and observation, that the
consequences of professional care were not as such as would Dr. Ampil’s assurance did not come true. Instead, the pains
ordinarily have followed if due care had been exercised. A intensified, prompting Natividad to seek treatment at the
distinction must be made between the failure to secure results, Polymedic General Hospital. While confined there, Dr. Ramon
and the occurrence of something more unusual and not Gutierrez detected the presence of another foreign object in her
ordinarily found if the service or treatment rendered followed the vagina -- a foul-smelling gauze measuring 1.5 inches in width
usual procedure of those skilled in that particular practice. It which badly infected her vaginal vault. A recto-vaginal fistula
must be conceded that the doctrine of res ipsa loquitur can have had formed in her reproductive organs which forced stool to
no application in a suit against a physician or a surgeon which excrete through the vagina. Another surgical operation was
involves the merits of a diagnosis or of a scientific needed to remedy the damage. Thus, in October 1984,
treatment. The physician or surgeon is not required at his peril Natividad underwent another surgery.
to explain why any particular diagnosis was not correct, or why
any particular scientific treatment did not produce the desired On November 12, 1984, Natividad and her husband filed a
result.[20] complaint for damages against the Professional Services, Inc.
(PSI), owner of the Medical City Hospital, Dr. Ampil, and Dr.
RES IPSA LOQUITOR DOCTRINE Fuentes. They alleged that the latter are liable for negligence for
leaving two pieces of gauze inside Natividad’s body and
4. PSI vs. Agana malpractice for concealing their acts of negligence.

FACTS: On April 4, 1984, Natividad Agana was rushed to the Dr. Ampil, in an attempt to absolve himself, gears the Court’s
Medical City General Hospital (Medical City Hospital) because attention to other possible causes of Natividad’s detriment. He
of difficulty of bowel movement and bloody anal discharge. After argues that the Court should not discount either of the following
a series of medical examinations, Dr. Miguel Ampil diagnosed possibilities: first, Dr. Fuentes left the gauzes in Natividad’s
her to be suffering from "cancer of the sigmoid." body after performing hysterectomy; second, the attending
nurses erred in counting the gauzes; and third, the American

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5th Set Case Digests for Torts 2015-2016 (Atty. Rucel Cayetano) by: Angit, Masiga, Respicio & Solis ®

doctors were the ones who placed the gauzes in Natividad’s This is a clear case of medical malpractice or more
body. appropriately, medical negligence. To successfully pursue this
kind of case, a patient must only prove that a health care
ISSUE: WON there was medical malpractice. provider either failed to do something which a reasonably
prudent health care provider would have done, or that he did
something that a reasonably prudent provider would not have
HELD: Yes. done; and that failure or action caused injury to the patient.
Simply put, the elements are duty, breach, injury and
Dr. Ampil’s arguments are purely conjectural and without basis. proximate causation. Dr, Ampil, as the lead surgeon, had the
Records show that he did not present any evidence to prove duty to remove all foreign objects, such as gauzes, from
that the American doctors were the ones who put or left the Natividad’s body before closure of the incision.
gauzes in Natividad’s body. Neither did he submit evidence to
rebut the correctness of the record of operation, particularly the When he failed to do so, it was his duty to inform Natividad
number of gauzes used. As to the alleged negligence of Dr. about it. Dr. Ampil breached both duties. Such breach caused
Fuentes, we are mindful that Dr. Ampil examined his (Dr. injury to Natividad, necessitating her further examination by
Fuentes’) work and found it in order. American doctors and another surgery.

The glaring truth is that all the major circumstances, taken That Dr. Ampil’s negligence is the proximate cause of
together, as specified by the Court of Appeals, directly point to Natividad’s injury could be traced from his act of closing the
Dr. Ampil as the negligent party, thus: incision despite the information given by the attending nurses
that two pieces of gauze were still missing. That they were later
First, it is not disputed that the surgeons used gauzes on extracted from Natividad’s vagina established the causal link
as sponges to control the bleeding of the patient during between Dr. Ampil’s negligence and the injury. And what further
the surgical operation. aggravated such injury was his deliberate concealment of the
missing gauzes from the knowledge of Natividad and her family.
Second, immediately after the operation, the nurses
who assisted in the surgery noted in their report that ABUSE OF RIGHTS
the ‘sponge count (was) lacking 2’; that such anomaly
was ‘announced to surgeon’ and that a ‘search was 5. SOLEDAD CARPIO vs. LEONORA A. VALMONTE
done but to no avail’ prompting Dr. Ampil to ‘continue
for closure’ x x x.
FACTS: Respondent Leonora Valmonte is a wedding
coordinator. Michelle del Rosario and Jon Sierra engaged her
Third, after the operation, two (2) gauzes were services for their church wedding on October 10, 1996. At about
extracted from the same spot of the body of Mrs. 4:30 pm on that day, Valmonte went to the Manila Hotel and
Agana where the surgery was performed. when she arrived at Suite 326-A, several persons were already
there including Soledad Carpio, the aunt of the bride.
An operation requiring the placing of sponges in the incision is
not complete until the sponges are properly removed, and it is After reporting to the bride, Valmonte went out of the suite to go
settled that the leaving of sponges or other foreign substances to the reception hall to give the meal allowance to the band and
in the wound after the incision has been closed is at least prima to pay the suppliers. Upon entering the suite, Valmonte noticed
facie negligence by the operating surgeon. To put it simply, the people staring at her and it was at this juncture that Soledad
such act is considered so inconsistent with due care as to raise Carpio allegedly uttered the following words to Valmonte: " Ikaw
an inference of negligence. There are even legions of lang ang lumabas ng kwarto, nasaan ang dala mong bag? Saan
authorities to the effect that such act is negligence per se. ka pumunta? Ikaw lang ang lumabas ng kwarto, ikaw ang
kumuha." It turned out that after Valmonte left the room to
attend to her duties, petitioner discovered that the pieces of
The removal of all sponges used is part of a surgical operation, jewelry which she placed inside the comfort room in a paper bag
and when a physician or surgeon fails to remove a sponge he were lost and these include diamond rings, earrings, bracelet
has placed in his patient’s body that should be removed as part and diamong necklace with a total value of about 1M pesos.
of the operation, he thereby leaves his operation uncompleted Valmonte was allegedly bodily searched, interrogated and
and creates a new condition which imposes upon him the legal trailed by the police officers, but the pe titioner kept on saying
duty of calling the new condition to his patient’s attention, and the words " Siya lang ang lumabas ng kwarto ". Valmonte's car
endeavouring with the means he has at hand to minimize and was also searched but the search yielded nothing.
avoid untoward results likely to ensue therefrom.
Few days after the incident, petitioner received a letter from
Here, Dr. Ampil did not inform Natividad about the missing two Valmonte demanding a formal letter of apology which she
pieces of gauze. Worse, he even misled her that the pain she wanted to be circulated to the newlyweds' relatives and guests
was experiencing was the ordinary consequence of her to redeem her smeared reputation but the petitioner did not
operation. Had he been more candid, Natividad could have respond. Valmonte filed a suit for damages.
taken the immediate and appropriate medical remedy to remove
The trial court dismissed the complaint and ruled that when
the gauzes from her body. To our mind, what was initially an act
sought investigation for the loss of her jewelry, she was merely
of negligence by Dr. Ampil has ripened into a deliberate
exercising her right and if damage results from a person
wrongful act of deceiving his patient.
exercising his legal right, it is damnum absque injuria. It added
that no proof was presented by Valmonte to show that petitioner

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acted maliciously and in bad faith in pointing to her as the to sell in 1977 twenty-four (24) units of Mitsubishi power tillers to
culprit. a group of farmers to be financed by said corporation, which fact
JII allegedly made known to petitioner, but the latter taking
The CA ruled out differently and opined that Valmonte has advantage of said information and in bad faith, went directly to
clearly established that she was singled out by the petitioner as FSDC and dealt with it and sold twenty one (21) units of said
the one responsible for the loss of her jewelry. However, the tractors, thereby depriving JII of unrealized profit of eighty-five
court find no sufficient evidence to justify the award of actual thousand four hundred fifteen and 61/100 pesos (P85,415.61)
damages. Hence, this petition.

ISSUE: Whether or not the respondent is entitled to the award ISSUE: The core issue is whether SEACOM acted in bad faith
of damages. when it competed with its own dealer as regards the sale of
farm machineries to FSDC.
HELD: The Court ruled that the respondent in entitled to moral
damages but not to actual damages. RULING:
In the sphere of our law on human relations, one of the
fundamental precepts is the principle known as " abuse of rights The court finds no reason to overturn the factual findings of the
" under Article 19 of the Civil Code. To find existence of an two courts. Both the trial court and the Court of Appeals held
abuse of right, the following elements must be present: 1) there affirmatively; the trial court found that JII was an agent of
is lega l right or duty; 2) which is exercised in bad faith; 3) for SEACOM and the act of SEACOM in dealing directly with FSDC
the sole intent or prejudicing or injuring another. Thus, a person was unfair and unjust to its agent, and that there was fraud in
should be protected only when he acts in the legitimate exercise the transaction between FSDC and SEACOM to the prejudice of
of his right, that is when he acts with prudence and good faith; JII. On the other hand, the Court of Appeals ruled that there was
but not when he acts with negligence or abuse. no agency relationship between the parties but SEACOM is
nevertheless liable in damages for having acted in bad faith
The Court said that petitioner's verbal reproach against when it competed with its own dealer in the sale of the farm
respondent was certainly uncalled for considering that by her machineries to FSDC. Both courts invoke as basis for the award
own account nobody knew that she brought such kind and Article 19 of the Civil Code which reads as follows:
amount of jewelry inside the paper bag. This being the case,
she had no right to attack respondent with her innuendos which
Art. 19. Every person must, in the exercise of his rights and in
were not merely inquisitve but outrightly accusatory. By openly
the performance of his duties, act with justice, give everyone his
accusing respondent as the only person who went out of the
due and observe honesty and good faith.
room before the loss of the jewelry in the presence of all the
guests therein, and ordering that she be immediately bodily
searched, petitioner virtually branded respondent as the thief. The principle of abuse of rights stated in the above article,
Petitioner had willfully caused injury to respondent in a manner departs from the classical theory that "he who uses a right
which is contrary to morals and good customs. Certainly, injures no one". The modern tendency is to depart from the
petitioner transgressed the provisions of Article 19 in relation to classical and traditional theory, and to grant indemnity for
Article 20 for which she should be held accountable. damages in cases where there is an abuse of rights, even when
the act is not illicit.
6. G.R. No. 122823 November 25, 1999
Art. 19 was intended to expand the concept of torts by granting
adequate legal remedy for the untold number of moral wrongs
SEA COMMERCIAL COMPANY, INC., petitioner, vs.
which is impossible for human foresight to provide specifically in
COURT OF APPEALS, respondents
statutory law. If mere fault or negligence in one's acts can make
him liable for damages for injury caused thereby, with more
FACTS: reason should abuse or bad faith make him liable. The absence
of good faith is essential to abuse of right. Good faith is an
SEACOM is a corporation engaged in the business of selling honest intention to abstain from taking any unconscientious
and distributing agricultural machinery, products and equipment. advantage of another, even through the forms or technicalities
On September 20, 1966, SEACOM and JII entered into a of the law, together with an absence of all information or belief
dealership agreement whereby SEACOM appointed JII as its of fact which would render the transaction unconscientious. In
exclusive dealer in the City and Province of Iloilo. Tirso business relations, it means good faith as understood by men of
Jamandre executed a suretyship agreement binding himself affairs.
jointly and severally with JII to pay for all obligations of JII to
SEACOM. The agreement was subsequently amended to While Article 19 may have been intended as a mere declaration
include Capiz in the territorial coverage and to make the of
dealership agreement on a non-exclusive basis. In the course of principle, the "cardinal law on human conduct" expressed in
the dealership agreement, JII allegedly incurred a balance of said article has given rise to certain rules, e.g. that where a
P18,843.85 for unpaid deliveries, and SEACOM brought action person exercises his rights but does so arbitrarily or unjustly or
to recover said amount plus interest and attorney's fees. performs his duties in a manner that is not in keeping with
honesty and good faith, he opens himself to liability. The
JII filed an Answer denying the obligation and interposing a elements of an abuse of rights under Article 19 are: (1) there is
counterclaim for damages representing unrealized profits when a legal right or duty; (2) which is exercised in bad faith; (3) for
JII sold to the Farm System Development Corporation (FSDC) the sole intent of prejudicing or injuring
twenty one (21) units of Mitsubishi power tillers. In the another.
counterclaim, JII alleged that as a dealer in Capiz, JII contracted
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SPECIAL TORTS IN HUMAN RELATIONS: ABUSE OF number assigned to his new checkbook was the account
RIGHTS number of another depositor also named "Isagani Villanueva"
but with a different middle initial.7
7. CITYTRUST BANKING CORPORATION (now Bank of the
Philippine Islands) vs. ISAGANI C. VILLANUEVA To resolve the matter, Genuino promised to send to Kingly
Commodities a manager’s check for P50,000 before 5:30 p.m.,
FACTS: Sometime in February 1984, respondent VILLANUEVA the deadline given to VILLANUEVA. She also personally called
opened a savings account and a current account with Citytrust Kingly Commodities and explained the reason for the dishonor
Banking Corporation, which were assigned account numbers 1- of the check.8
033-02337-1 and 33-00977-5, respectively, with an automatic
transfer arrangement. On 30 June 1986, VILLANUEVA sent a letter 9 to the BANK
addressed to the President, Jose Facundo, demanding
On 21 May 1986, VILLANUEVA deposited some money in his indemnification for alleged losses and damages suffered by him
savings account with the BANK’s Legaspi Village Branch in as a result of the dishonor of his well-funded check. He
Makati. Realizing that he had run out of blank checks, demanded the amount of P70,000 as indemnification for actual
VILLANUEVA requested a new checkbook from one of the damages in the form of lost profits and P2 Million for moral and
BANK’s customer service representatives. He then filled up a other damages.
checkbook requisition slip with the obligatory particulars, except
for his current account number which he could not remember. VILLANUEVA asserts that had his fully-funded check not been
He expressed his predicament to a lady customer service dishonored twice, his four trading orders with Kingly
representative of the BANK, who in turn assured him that she Commodities consisting of two (2) open sell positions on 17 and
could supply the information from the BANK’s account records. 18 of June 1986 and two (2) settle buy orders on 26 June 1986
After signing the requisition slip, he gave it to her. would have earned him profits in the amount he claimed.

Pia Rempillo, another customer service representative of the ISSUE: Whether or not Villanueva is entitled to damages.
BANK, took VILLANUEVA’s checkbook requisition slip and
proceeded to check the BANK’s checkbook register which RULING: NO. The issue of whether VILLANUEVA suffered
contained all the names and account numbers of the BANK’s actual or compensatory damages in the form of loss of profits is
clients who were issued checkbooks. Upon seeing the name factual. Both the Court of Appeals and the trial court have
"Isagani Villanueva -- Account No. 33-00446-3" in the ascertained that VILLANUEVA was unable to prove his demand
checkbook register, Rempillo copied the aforesaid account for compensatory damages arising from loss. Basic is the
number on the space intended for it in VILLANUEVA’s jurisprudential principle that in determining actual damages, the
requisition slip.2 court cannot rely on mere assertions, speculations, conjectures
or guesswork but must depend on competent proof and on the
On 17 June 1986, upon receipt of his checkbook, VILLANUEVA best obtainable evidence of the actual amount of the
immediately signed Check No. 396701 bearing the amount of loss.18 Actual damages cannot be presumed but must be duly
P50,000 payable to the order of Kingly Commodities Traders proved with reasonable certainty.19
Inc. VILLANUEVA thereafter delivered the check to Helen Chu,
his investment consultant at Kingly Commodities, with his Nonetheless, is VILLANUEVA entitled to the moral damages
express instruction to use said check in placing a trading order and attorney’s fees granted by the Court of Appeals?
at Kingly Commodities’ future trading business as soon as a
favorable opportunity presented itself.3
Moral damages include physical suffering, mental anguish,
fright, serious anxiety, besmirched reputation, wounded
However, on 23 June 1986, VILLANUEVA’s Check No. 396701 feelings, moral shock, social humiliation, and similar
was dishonored due to insufficiency of funds and disparity in the injury.21 Although incapable of pecuniary computation, moral
signature. On the same day, VILLANUEVA called up the damages may be recovered if they are the proximate result of
BANK’s Branch Operations Manager Gamboa, and inquired the defendant’s wrongful act or omission.22 Thus, case law
about the dishonor of his well-funded check. Gamboa promised establishes the requisites for the award of moral damages, viz:
to look into the matter and instructed VILLANUEVA to advise his (1) there must be an injury, whether physical, mental or
payee, Kingly Commodities, to re-deposit the check. psychological, clearly sustained by the claimant; (2) there must
be a culpable act or omission factually established; (3) the
Two days thereafter, VILLANUEVA learned that his check was wrongful act or omission of the defendant is the proximate
again dishonored due to insufficiency of funds. VILLANUEVA cause of the injury sustained by the claimant; and (4) the award
called up the BANK and inquired from Gamboa the reason for of damages is predicated on any of the cases stated in Article
the dishonor of his well-funded check. Gamboa promised to 2219 of the Civil Code.23
investigate the matter and to call VILLANUEVA in 15
minutes.6 In the meantime, she advised VILLANUEVA to re- It is beyond cavil that VILLANUEVA had sufficient funds for the
deposit the check. VILLANUEVA then requested Lawrence Chin check. Had his account number been correct, the check would
of Kingly Commodities to give him until 5:30 p.m. that same day not have been dishonored. Hence, we can say that
to make good his P50,000 check. He then proceeded to the VILLANUEVA’s injury arose from the dishonor of his well-funded
BANK’s Legaspi Village Branch Office, and were met by check. We have already ruled that the dishonor of the check
Genuino, the BANK’s Branch Manager. After making the does not entitle him to compensatory damages. But, could the
necessary investigation, Genuino related to VILLANUEVA that dishonor result in his alleged "intolerable physical inconvenience
the reason for the dishonor of the check was that the account
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and discomfort, extreme humiliation, indignities, etc, which he Reyes then sued Lim and Nikko Hotel Manila Garden for
had borne before his peers, trading partners and officers of damages. In his version, he said that he was invited by another
Kingly Commodities?" True, we find that under the party guest, Dr. Violeta Filart. He said that while he was queuing
circumstances of this case, VILLANUEVA might have suffered to get his food, Lim approached him and ordered him in a loud
some form of inconvenience and discomfort as a result of the voice to leave the party immediately. He told Lim he was invited
dishonor of his check. However, the same could not have been by Dr. Filart however when he was calling for Dr. Filart the latter
so grave or intolerable as he attempts to portray or impress ignored him. Later, he was escorted out of the party like a
upon us. common criminal.

Further, it is clear from the records that the BANK was able to The trial court ruled in favor of Lim and Nikko Hotel. However,
remedy the caveat of Kingly Commodities to VILLANUEVA that the Court of Appeals ruled in favor of Reyes as it ruled that Lim
his trading account would be closed at 5:30 p.m. on 26 June abused her right and that Reyes deserved to be treated
1986. The BANK was able to issue a manager’s check in favor humanely and fairly. It is true that Lim had the right to ask
of Kingly Commodities before the deadline. It was able to Reyes to leave the party but she should have done it
likewise explain to Kingly Commodities the circumstances respectfully.
surrounding the unfortunate situation. Verily, the alleged
embarrassment or inconvenience caused to VILLANUEVA as a ISSUE: Whether or not Lim acted with abuse of rights.
result of the incident was timely and adequately contained,
corrected, mitigated, if not entirely eradicated. VILLANUEVA, HELD: No.
thus, failed to support his claim for moral damages. In short,
none of the circumstances mentioned in Article 2219 of the Civil The Supreme Court found the version of Lim more credible. She
Code exists to sanction the award for moral damages. has been employed by the hotel for more than 20 years at that
time. Her job requires her to be polite at all times. It is very
unlikely for her to make a scene in the party she was managing.
The award of attorney’s fees should likewise be deleted. The Reyes based his complaint on Articles 19 and 21 of the Civil
general rule is that attorney’s fees cannot be recovered as part Code. Art. 19 which provides:
of damages because of the policy that no premium should be
placed on the right to litigate. They are not to be awarded every Every person must, in the exercise of his rights and in the
time a party wins a suit. The power of the court to award performance of his duties, act with justice, give everyone
attorney’s fees under Article 2208 of the Civil Code demands his due, and observe honesty and good faith.
factual, legal and equitable justification. Even when a claimant is was not violated by Lim as it appears that even Reyes testified
compelled to litigate with third persons or to incur expenses to in court that when Lim told him to leave, Lim did so very close to
protect his rights, still attorney’s fees may not be awarded where him – so close that they could almost kiss. This only proves that
there is no sufficient showing of bad faith in the parties’ Lim intended that only Reyes shall hear whatever is it that she’s
persistence of a case other than an erroneous conviction of the going to tell Reyes and exclude other guests from hearing.
righteousness of his cause.24
Article 21 on the other hand is commonly known as contra
In view of the foregoing discussion, we need not deliberate on bonus mores: Any person who willfully causes loss or injury to
the dispute as to whether it was the BANK’s or VILLANUEVA’s another in a manner that is contrary to morals, good customs or
negligence which was the proximate cause of the latter’s injury public policy shall compensate the latter for the damage.
because, in the first place, he did not sustain any compensable
injury. If any damage had been suffered at all, it could be This article is likewise not violated. Lim, as proven by evidence
equivalent to damnum absque injuria, i.e., damage without on record, did not demean Reyes. They do not know each other
injury or damage or injury inflicted without injustice, or loss or personally. She has no reason to treat him wrongfully especially
damage without violation of a legal right, or a wrong done to a so that Reyes himself is a prominent person.
man for which the law provides no remedy.25
On the other hand, Reyes brought whatever damage he
ABUSE OF RIGHTS incurred upon himself. Under the doctrine of volenti non fit
injuria, by coming to the party uninvited, Reyes opens himself
8. NIKKO HOTEL VS. REYES to the risk of being turned away, and thus being embarrassed.
The injury he incurred is thus self-inflicted. Evidence even
FACTS: One evening in October 1994, an exclusive party was shows that Dr. Filart herself denied inviting Reyes into the party
being held at the Nikko Hotel Manila Garden. The party was and that Reyes simply gate-crashed. Reyes did not even
being held for a Japanese national who was the hotel manager. present any supporting evidence to support any of his claims.
The person in charge at the party was Ruby Lim who was also Since he brought injury upon himself, neither Lim nor Nikko
the executive secretary of the hotel. Later during the party, she Hotel can be held liable for damages.
noticed Robert Reyes (popularly known as Amay Bisaya).
Reyes was not on the list of exclusive guests. Lim first tried to
find out who invited Reyes to the party. When she ascertained ACTS AND OMISSIONS CONTRARY TO MORALS (ART.20-
that the host celebrant did not invite Reyes, Lim approached 21,NCC)
Reyes and told the latter, in a discreet voice, to finish his food
and leave the party. Reyes however made a scene and began 9. ENRIQUE J. L. RUIZ and JOSE V. HERRERA vs. THE
shouting at Lim. Later, a policeman was called to escort Reyes SECRETARY OF NATIONAL DEFENSE
out of the party.

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5th Set Case Digests for Torts 2015-2016 (Atty. Rucel Cayetano) by: Angit, Masiga, Respicio & Solis ®

FACTS: On September 11, 1950, a contract was executed culmination of a previous love affair and was duly registered
between the defendant Allied Technologists, Inc. (corporation, with the local civil register.
for short), and the Republic of the Philippines, for the
construction of the Veterans Memorial Hospital. Ruiz and Mamerto and Mena Escaño were surprised, and were disgusted
Herrera were stockholders and officers of the corporation. The because of the great scandal that the clandestine marriage
construction of the hospital was terminated in 1955. would provoke. The following morning, the Escaño spouses
sought priestly advice. Father Reynes suggested a
Ruiz and Herrera, together with Panlillo, were the architects recelebration to validate what he believed to be an invalid
of the building but only Panlillo was recognized. Feeling marriage, from the standpoint of the Church, due to the lack of
aggrieved, Ruiz and Herrera citing Article 21 of the Civil Code, authority from the Archbishop or the parish priest for the
sued to be recognized as the architects of the hospital in order officiating chaplain to celebrate the marriage. The recelebration
to enforce their claim regarding the non-payment by the did not take place, because of a letter purportedly coming from
government of a portion of the architectural fees. San Carlos college students and disclosing an amorous
relationship between Pastor Tenchavez and Pacita Noel;
Vicenta translated the letter to her father, and thereafter would
not agree to a new marriage. Thereafter, Vicenta continued
ISSUE: WON Article 21 is applicable in the case at bar. NO living with her parents while Pastor returned to his job in Manila.

without informing her husband, she applied for a passport,

indicating in her application that she was single, that her
HELD: Ruiz and Herrera invoked Article 21 of the Civil Code, purpose was to study, and she was domiciled in Cebu City, and
which states — that she intended to return after two years. The application was
approved, and she left for the United States. On 22 August
Any person who willfully causes loss or injury to 1950, she filed a verified complaint for divorce against the
another in a manner that is contrary to morals, good herein plaintiff in the Second Judicial District Court of the State
customs or public policy shall compensate the latter for of Nevada in and for the County of Washoe, on the ground of
the damages. "extreme cruelty, entirely mental in character." On 21 October
1950, a decree of divorce, "final and absolute", was issued in
Article 21 envisions a situation where a person has a legal right, open court by the said tribunal.
and such right is violated by another in a manner contrary to
morals, good customs or public policy; it presupposes losses or Vicenta married an American, Russell Leo Moran, in Nevada.
injuries, material or otherwise, which one may suffer as a result She now lives with him in California, and, by him, has begotten
of said violation. The pleadings do not show that damages were children. She acquired American citizenship.
ever asked or alleged, in connection with this case, predicated
upon the article aforecited. And under the facts, one cannot Tenchavez had initiated the proceedings at bar by a complaint
plausibly sustain the contention that the failure or refusal to against Vicenta F. Escaño, her parents, Mamerto and Mena
extend the recognition was an act contrary to morals, good Escaño, whom he charged with having dissuaded and
customs or public policy. A judicial declaration of professional discouraged Vicenta from joining her husband, and alienating
prestige is unnecessary because a brilliant her affections, and against the Roman Catholic Church, for
professional is respected even without a court declaration. having, through its Diocesan Tribunal, decreed the annulment of
the marriage, and asked for legal separation and one million
pesos in damages.

10. Defendant Vicenta Escaño argues that when she contracted the
marriage she was under the undue influence of Pacita Noel,
whom she charges to have been in conspiracy with appellant
PASTOR B. TENCHAVEZ, plaintiff-appellant,
Tenchavez. Even granting, for argument's sake, the truth of that
vs.
contention, and assuming that Vicenta's consent was vitiated by
VICENTA F. ESCAÑO, ET AL., defendants-appellee
fraud and undue influence, such vices did not render her
marriage ab initio void, but merely voidable, and the marriage
This is an appeal from the order of the lower court denying the remained valid until annulled by a competent civil court.
claim of the plaintiff-appellant, Pastor B. Tenchavez, for legal
separation and one million pesos in damages against his wife
RULING:
and parents-in-law, Vicente, Mamerto and Mena Escaño.

It is equally clear from the record that the valid marriage

FACTS:
between Pastor Tenchavez and Vicenta Escaño remained
subsisting and undissolved under Philippine law,
Vicenta Escaño, 27 years of age (scion of a well-to-do and notwithstanding the decree of absolute divorce that the wife
socially prominent Filipino family of Spanish ancestry and a sought and obtained on 21 October 1950 from the Second
"sheltered colegiala"), exchanged marriage vows with Pastor Judicial District Court of Washoe County, State of Nevada, on
Tenchavez, 32 years of age, an engineer, ex-army officer and of grounds of "extreme cruelty, entirely mental in character." At the
undistinguished stock, without the knowledge of her parents, time the divorce decree was issued, Vicenta Escaño, like her
before a Catholic chaplain, Lt. Moises Lavares, in the house of husband, was still a Filipino citizen. 4 She was then subject to
one Juan Alburo in the said city. The marriage was the Philippine law, and Article 15 of the Civil Code of the Philippines
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(Rep. Act No. 386), already in force at the time, expressly to teach him how to pray the rosary. The two eventually fell in
provided: love with each other and conducted clandestine trysts not only
in the town of Gasan but also in Boac where Lolita used to
Laws relating to family rights and duties or to the teach in a barrio school. They exchanged love notes with each
status, condition and legal capacity of persons are other the contents of which reveal not only their infatuation for
binding upon the citizens of the Philippines, even each other but also the extent to which they had carried their
though living abroad. relationship. The rumors about their love affairs reached the
ears of Lolita's parents sometime, in 1955, and since then
defendant was forbidden from going to their house and from
For the Philippine courts to recognize and give recognition or further seeing Lolita. The plaintiffs even filed deportation
effect to a foreign decree of absolute divorce betiveen Filipino proceedings against defendant who is a Chinese national. The
citizens could be a patent violation of the declared public policy affair between defendant and Lolita continued nonetheless.
of the state, specially in view of the third paragraph of Article 17
of the Civil Code that prescribes the following:
Sometime in April, 1957, Lolita was staying with her brothers
and sisters at their residence at 54-B España Extension,
Prohibitive laws concerning persons, their acts or Quezon City. On April 14, 1957, Lolita disappeared from said
property, and those which have for their object public house. After she left, her brothers and sisters checked up her
order, policy and good customs, shall not be rendered thing and found that Lolita's clothes were gone. However,
ineffective by laws or judgments promulgated, or by plaintiffs found a note in English which reads:
determinations or conventions agreed upon in a foreign
country.
Honey, suppose I leave here on Sunday night, and
that's 13th of this month and we will have a date on the
Even more, the grant of effectivity in this jurisdiction to such 14th, that's Monday morning at 10 a.m.
foreign divorce decrees would, in effect, give rise to an irritating
and scandalous discrimination in favor of wealthy citizens, to the
detriment of those members of our polity whose means do not Reply
permit them to sojourn abroad and obtain absolute divorces
outside the Philippines. Love

From the preceding facts and considerations, there flows as a Plaintiffs claim for damages is based on the fact that defendant,
necessary consequence that in this jurisdiction Vicenta being a married man, carried on a love affair with Lolita Pe
Escaño's divorce and second marriage are not entitled to thereby causing plaintiffs injury in a manner contrary to morals,
recognition as valid; for her previous union to plaintiff good customs and public policy. The trial court considered their
Tenchavez must be declared to be existent and undissolved. It complaint not actionable for the reason that they failed to prove
follows, likewise, that her refusal to perform her wifely duties, that defendant deliberately and in bad faith tried to win Lolita's
and her denial of consortium and her desertion of her husband affection
constitute in law a wrong caused through her fault, for which the
husband is entitled to the corresponding indemnity (Civil Code, ISSUE: Whether or not plaintiffs are entitled to damages.
Art. 2176). Neither an unsubstantiated charge of deceit nor an
anonymous letter charging immorality against the husband
constitute, contrary to her claim, adequate excuse. Wherefore, RULING: YES. The circumstances under which defendant tried
her marriage and cohabitation with Russell Leo Moran is to win Lolita's affection cannot lead, to any other conclusion
technically "intercourse with a person not her husband" from the than that it was he who, thru an ingenious scheme or trickery,
standpoint of Philippine Law, and entitles plaintiff-appellant seduced the latter to the extent of making her fall in love with
Tenchavez to a decree of "legal separation under our law, on him. This is shown by the fact that defendant frequented the
the basis of adultery" house of Lolita on the pretext that he wanted her to teach him
how to pray the rosary. Because of the frequency of his visits to
the latter's family who was allowed free access because he was
SPECIAL TORTS IN HUMAN RELATIONS: ACTS & a collateral relative and was considered as a member of her
OMISSIONS CONTRARY TO MORALS family, the two eventually fell in love with each other. When the
rumors about their illicit affairs reached the knowledge of her
11. CECILIO PE, ET AL. vs. ALFONSO PE parents, defendant was forbidden from going to their house and
even from seeing Lolita. Plaintiffs even filed deportation
FACTS: Plaintiffs are the parents, brothers and sisters of one proceedings against defendant who is a Chinese national.
Lolita Pe. At the time of her disappearance on April 14, 1957, Nevertheless, defendant continued his love affairs with Lolita
Lolita was 24 years old and unmarried. Defendant is a married until she disappeared from the parental home. Indeed, no other
man and works as agent of the La Perla Cigar and Cigarette conclusion can be drawn from this chain of events than that
Factory. He used to stay in the town of Gasan, Marinduque, in defendant not only deliberately, but through a clever strategy,
connection with his aforesaid occupation. Lolita was staying with succeeded in winning the affection and love of Lolita to the
her parents in the same town. Defendant was an adopted son of extent of having illicit relations with her. The wrong he has
a Chinaman named Pe Beco, a collateral relative of Lolita's caused her and her family is indeed immeasurable considering
father. Because of such fact and the similarity in their family the fact that he is a married man. Verily, he has committed an
name, defendant became close to the plaintiffs who regarded injury to Lolita's family in a manner contrary to morals, good
him as a member of their family. Sometime in 1952, defendant customs and public policy as contemplated in Article 21 of the
frequented the house of Lolita on the pretext that he wanted her new Civil Code.

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Defendant is sentenced to pay the plaintiffs the sum of 13. PEREZ VS POMAR
P5,000.00 as damages and P2,000.00 as attorney's fees and
expenses of litigations. FACTS: The petitioner Don Vicente Perez filed before the Court
of First Instance of Laguna a complaint asking the court to
ACTS AND OMISSIONS CONTRARY TO MORALS determine the amount due to him for the services he rendered in
12. WASSMER VS. VELEZ the Tabacalera Company and that the defendant Eugenio
Pomar be condemned to the payment of damages amounting to
$3,200, gold, together with the costs of suit. Prior to this event,
FACTS: Francisco X. Velez and Beatriz P. Wassmer, following
the petitioner was asked to be an English interpreter between
their mutual promise of love, decided to get married and set
September 4, 1954 as the big day. On September 2, 1954 Velez the defendant and the military authorities and that after that
left this note for his bride-to-be: incident, the petitioner continued to render his services to the
respondent and that he obtained passes and accompanied
Pomar upon his journeys to some of the towns in Province of
Dear Bet —
Laguna( e.g conferences between the respondent and the
colonel commanding the local garrison, conferences with
Will have to postpone wedding — My mother Captain Lemen in the town of Pilar, major in command in
opposes it. Am leaving on the Convair today. Pagsanjan about the shipment of goods from Manila) and that
the plaintiff was assured by the respondent that in every
Please do not ask too many people about the rendered service to the said company, there would be such
reason why — That would only create a payment. Thus, caused him to abandon his soap business and
scandal. suffered damages in the sum of $3,200. The defendant filed for
dismissal of the complaint denying the allegations stated by the
Paquing petitioner. He also stated that Perez borrowed from time to time
money amounting to $175 for his soap business, that Perez
But the next day, September 3, he sent her the following purposes in accompanying him is to extend his business and
telegram: mercantile relations,  free transportation, and that Perez had
acted as interpreter of his own free will without any offer of
NOTHING CHANGED REST ASSURED payment and therefore no legal relation between them existed.
RETURNING VERY SOON APOLOGIZE
MAMA PAPA LOVE .
ISSUE: Whether or not  the respondent is oblige to pay the
PAKING continued service rendered by the petitioner.

Thereafter Velez did not appear nor was he heard from again. HELD: Yes. The Court decision is that the judgement should be
rendered against Don Eugenio Pomar for the payment to the
The breach of promise to marry made by Velez prompted plaintiff of the sum of 200 Mexican pesos.
Wassmer to file a civil suit against the former. Velez never filed
an answer, thus, awarding moral and exemplary damages to
Wassmer. The Court ruled out that  if there is a tacit and mutual consent as
            Velez appealed on the court and stated that he failed to to the rendition of the services, the defendant is still obliged to
attend the wedding day because of fortuitous events.  He also pay such compensation to the petitioner even if there is no
insisted that he cannot be civilly liable for there is no law that written contract entered between the two parties on the basis of
acts upon the breach of promise to marry. He also contested the quasi-contract. When one party knowingly receives something
award of moral and exemplary damages. for nothing, the courts may impose a quasi contract. Under a
quasi contract, neither party is originally intended to create an
ISSUE: Whether or not moral or exemplary damages may be agreement. Instead, an arrangement is imposed by a judge to
awarded in a breach of promise to marry suit. rectify an occurrence of unjust enrichment. On the services
rendered by the petitioner  in the province of Laguna, it follows
that there was a bilateral obligation on the part of both parties
HELD: Yes.
because the  defendant accepted the benefit of the service
 A mere breach of promise to marry is not an actionable wrong.  rendered by the petitioner and that in turn the petitioner
Howver, Wassmer has already made preparations for the expected him to pay his rendition of service. 
wedding. Velez’s failure to appear on the wedding day is
contrary to morals, good customs and public policy which is
embodied on Article 21 of the Civil Code. Under the law, the Provided in Article 22 of the Civil Code, Every person who
injured party is entitled to moral damages as well as to
through an act of performance by another, or any other means,
exemplary damages because Velez’s acted in wanton, reckless
acquires or comes into possession of something at the expense
and oppressive manner (Article 2232) in breaching his promise
to marry Wassmer. of the latter without just or legal ground, shall return the same to
him. The fact that the defendant consented to accept an
interpreter's services on various occasions, rendered in his
UNJUST ENRICHMENT behalf and not considered as free, it is  just that he should pay

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the reasonable payment because it is well-known principle of It should be observed that the law allows the affixture of
law that no one should be permitted to enrich himself to the documentary stamps' to such other paper as may be indicated
damage of another. by law or regulations as the proper recipient of the stamp.' It
appears from this provision that respondent has authority to
allow documentary stamps to be affixed to papers other than the
documents or instruments taxed. Although the practice adopted
14. CIR VS FIREMANS FUND INSURANCE COMPANY by petitioner in affixing the documentary stamps to the business
statements and policy register was without specific permission
from respondent but only on the strength of his ruling given to
FACTS: Wise & Company (see Petitioner's Memorandum, p. 176, CTA
rec.; p. 24, t.s.n.), one of the general agents of petitioner,
Private respondent is a resident foreign insurance corporation however, considering that petitioner actually purchased the
organized under the laws of the United States, authorized and documentary stamps, affixed them to the business statements
duly licensed to do business in the Philippines. It is a member of and policy register and cancelled the stamps by perforating
the American Foreign Insurance Association, through which its them, we hold that petitioner cannot be held liable to pay again
business is cleared. the same tax.

From January, 1952 to December, 1958, herein private With respect to the 'compromise penalties' in the total sum of P
respondent Fireman's Fund Insurance Company entered into 1,600.00, suffice it to say that penalties cannot be imposed in
various insurance contracts involving casualty, fire and marine the absence of a showing that petitioner consented thereto. A
risks, for which the corresponding insurance policies were compromise implies agreement. If the offer is rejected by the
issued. From January, 1952 to 1956, documentary stamps were taxpayer, as in this case, respondent cannot enforce it except
bought and affixed to the monthly statements of policies issues; through a criminal action.
and from 1957 to 1958 documentary stamps were bought and
affixed to the corresponding pages of the policy register, instead ISSUE: The principal issue in this case is whether or not
of on the insurance policies issued. On July 3, 1959, respondent respondent company may be required to pay again the
company discovered that its monthly statements of business
documentary stamps it has actually purchased, affixed and
and policy register were lost. The loss was reported to the
cancelled.
Building Administration of Ayala Building and the National
Bureau of Investigation on July 6, 1959. Herein petitioner was
also informed of such loss by respondent company, through the
latter's auditors. After conducting an investigation of said loss, RULING:
petitioner's examiner ascertained that respondent company
failed to affix the required documentary stamps to the insurance
policies issued by it and failed to preserve its accounting As correctly pointed out by respondent Court of Tax Appeals,
records. As a consequence of these findings, petitioner, in a under the above-quoted provisions of law, documentary tax is
letter dated December 7, 1962, assessed and demanded from deemed paid by: (a) the purchase of documentary stamps; (b)
petitioner the payment of documentary stamp taxes for the affixture of documentary stamps to the document or instrument
years 1952 to 1958 in the total amount of P 79,806.87 and plus taxed or to such other paper as may be indicated by law or
compromise penalties, a total of P 81,406.87. regulations; and (c) cancellation of the stamps as required by
law (Rollo, p. 18).
The compromise penalties consisted of the sum of P1,000.00 as
penalty for the alleged failure to affix documentary stamps and It will be observed however, that the over-riding purpose of
the further sum of P 600.00 as penalty for an alleged violation of these provisions of law is the collection of taxes. The three
Revenue Regulations No. V-1 otherwise known as the steps above-mentioned are but the means to that end. Thus, the
Bookkeeping Regulations. purchase of the stamps is the form of payment made; the
affixture thereof on the document or instrument taxed is to
insure that the corresponding tax has been paid for such
Respondent company contested the assessment . court document while the cancellation of the stamps is to obviate the
rendered its decision reversing the decision of the possibility that said stamps will be reused for similar documents
Commissioner of Internal Revenue. The assailed decision reads for similar purposes.
in part:
In the case at bar, there appears to be no dispute on the fact
The affixture of documentary stamps to papers other than those that the documentary stamps corresponding to the various
authorized by law is not tantamount to failure to pay the same. It policies were purchased and paid for by the respondent
is true that the mode of affixing the stamps as prescribed by law Company. Neither is there any argument that the same were
was not followed, but the fact remains that the documentary cancelled as required by law.
stamps corresponding to the various insurance policies were
purchased and paid by petitioner. There is no legal justification
for respondent to require petitioner to pay again the It is a general rule in the interpretation of statutes levying taxes
documentary stamp tax which it had already paid. To sustain or duties, that in case of doubt, such statutes are to be
respondent's stand would require petitioner to pay the same tax construed most strongly against the government and in favor of
twice. If at all, the petitioner should be proceeded against for the subjects or citizens, because burdens are not to be
failure to comply with the requirement of affixing the imposed, nor presumed to be imposed beyond what statutes
documentary stamps to the taxable insurance policies and not expressly and clearly import (Manila Railroad Co. v. Collector of
for failure to pay the tax. (See Sec. 239 and 332, Rev. Code). Customs, 52 Phil. 950 [1929]).

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There appears to be no question that the purpose of imposing could very well meet said liabilities and were not included to
documentary stamp taxes is to raise revenue and the take charge of the sale of CALI’s said Douglas C-54 plane to
corresponding amount has already been paid by respondent collect its credit.
and has actually become part of the revenue of the government.
In the same manner, it is evident that the affixture of the stamps On August 6, 1948, the management of CALI informally
on documents not authorized by law is not attended by bad faith convened its principal creditors who were invited to a luncheon
as the practice was adopted from the authority granted to Wise that was held between 12:00 and 2: 00 o’clock in the afternoon
& Company, one of respondent's general agents (CTA Decision, of that day in the Trade and Commerce Building at 123 Juan
Rollo, p. 20). Indeed, petitioner argued that such authority was Luna St., Manila . Mr. Alexander Sycip, Secretary of the Board
not given to respondent company specifically, but under the of Directors of the CALI, informed the creditors present that this
general principle of agency, where the acts of the agents bind corporation was insolvent and had to stop operations. He
the principal, the conclusion is inescapable that the justification explained the memorandum agreement executed by the CALI
for the acts of the agents may also be claimed for the acts of the with the Philippine Air Lines, Inc., on August 4, 1948, regarding
principal itself (Brief for the Respondents, pp. 12-13). the proposed sale to the latter of the aviation equipments of the
former. There was a general understanding among all the
creditors present on the desirability of consummating the sale in
Be that as it may, there is no justification for the government favor of the Philippine Air Lines Inc.
which has already realized the revenue which is the object of
the imposition of subject stamp tax, to require the payment of The Memo of the Meeting contained that: “5.  The creditors
the same tax for the same documents. Enshrined in our basic present agreed to the formation of the working committee to
legal principles is the time honored doctrine that no person shall supervise the preservation of the properties of the corporation
unjustly enrich himself at the expense of another. It goes without and agreed further that Mr. Fitzgerald shall represent the
saying that the government is not exempted from the application creditors as a whole in this committee. It was understood,
of this doctrine however, that all questions relating to preference of claims can
be decided only by the creditors assembled.
After the creditors present knew the balance sheet and heard
the explanations of the officers of the CALI, it was their
SPECIAL TORTS IN HUMAN RELATIONS: UNJUST unanimous opinion that it would be advantageous not to present
ENRICHMENT suits against this corporation but to strive for a fair pro-rata
division of its assets, although the management of the CALI
15. ALFREDO M. VELAYO vs. SHELL COMPANY OF THE
announced that in case of non-agreement of the creditors on a
PHILIPPINE ISLANDS, LTD.
pro-rata division of the assets, it would file insolvency
FACTS: Commercial Air Lines, Inc., which will be hereinafter proceedings.
referred to as CALI, is a corporation duly organized and existing
On August 9, 1948, Defendant effected a telegraphic transfer of
in accordance with the Philippines laws, with offices in the City
its credit against the CALI to the American corporation Shell Oil
of Manila and previously engaged in air transportation business.
Company, Inc., assigning its credit, amounting to $79,440.00,
The Shell Company of the P. I., Ltd., which will be designated
which was subsequently followed by a deed of assignment of
as the Defendant, is on the other hand, a corporation organized
credit dated August 10, 1948, the credit amounting this time to
under the laws of England and duly licensed to do business in
the sum of $85,081.29. The American Corporation Shell Oil
the Philippines, with principal offices at the Hongkong and
Company, Inc., filed a complaint against the CALI in the
Shanghai Bank building in the City of Manila.
Superior Court of the State of California, U.S.A. in and for the
Since the start of CALI’s operations, its fuel needs were all County of San Bernardino, for the collection of an assigned
supplied by the Defendant. Mr. Desmond Fitzgerald, its Credit credit of $79,440.00.
Manager who extended credit to CALI, was in charge of the
Unaware of Defendant’s assignments of credit and attachment
collection thereof. However, all matters referring to extensions
suit, the stockholders of CALI resolved in a special meeting of
of the term of payment had to be decided first by Mr. Stephen
August 12, 1948, to approve the memorandum agreement of
Crawford and later by Mr. Wildred Wooding, who represented in
sale to the Philippine Air Lines, Inc, and noted “that the Board
this country Defendant’s Board of Directors, the residence of
had been trying to reach an agreement with the creditors of the
which is in London, England.
corporation to prevent insolvency proceedings, but so far no
As of August, 1948, the books of the Defendant showed a definite agreement had been reached”.
balance of P170,162.58 in its favor for goods it sold and
CALI, prompted by Defendant’s action in getting the alleged
delivered to CALI. Even before August 6, 1948, Defendant had
undue preference over the other creditors by attaching the C-54
reasons to believe that the financial condition of the CALI was
plane in the United States, beyond the jurisdiction of the
far from being satisfactory. As a matter of fact, according to Mr.
Philippines, filed on October 7, 1948, a petition for voluntary
Fitzgerald, CALI’s Douglas C-54 plane, then in California, was
insolvency. On this date, an order of insolvency was issued by
offered to him by Mr. Alfonso Sycip, CALI’s President of the
the court which necessarily stayed the National Airports
Board of Directors, in partial settlement of their accounts, which
Corporation’s action against the CALI and dissolved its
offer was, however, declined by Mr. Crawford, probably
attachment, thus compelling the National Airports Corporation to
because upon inquiries made by Mr. Fitzgerald sometime
file its claims with the insolvency court
before August 6, 1948, for the purpose of preparing the report
for its London office regarding CALI’s indebtedness, Col. By order of October 28, 1948, the Court confirmed the
Lambert, CALI’s Vice President and General Manager, appointment of Mr. Velayo, who was unanimously elected by
answered that the total outstanding liabilities of his corporation the creditors as Assignee in the proceedings. After properly
was only P550,000, and the management qualifying as Assignee, Alfredo M. Velayo instituted this case for
of Defendant probably assumed that the assets of the CALI the purpose of securing from the Court a writ of injunction

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restraining Defendant, its agents, servants, attorneys and may recover from the insolvent estate and when they do, they
solicitors from prosecuting in and for the County of San will suffer to the diminution of CALI’s asset resulting from the
Bernardino in the Superior Court of the State of California, attachment of the plane by Appellee Shell.”
U.S.A. a civil case against the insolvent Commercial Air Lines,
Inc. Had Appellee not assigned its credit in 1948, the insolvent CALI
would have realized from the sale of the plane (which was
ISSUE: Whether or not the assignment of credit made by Mr. attached by Appellee) P330,000 representing the fair market
Fitzgerald constitutes unjust enrichment. value of the plane at the time of the attachment. Therefore, if
this amount of P330,000 is added to the distributable amount of
RULING: YES. On the very day its Credit Manager attended the P529,- 885.59, the share of each of the ordinary creditos would
meeting of the Working Committee on August 9, 1948, it hastily certainly amount to approximately 1 1/2 times the dividend each
made a telegraphic assignment of its credit against the CALI to of them has received; chan roblesvirtualawlibraryin other words,
its sister American Corporation, the Shell Oil Company, Inc., each ordinary creditors would received not 30% but
which had damaging effects on the right of other creditors to approximately 45% of his claim, and Appelleewould recover
participate in the proceeds of CALI’s plane C-54. approximately only 45% and not 70% of its credit.”
In accordance with the spirit of the Insolvency Law and with the And even if the sale of CALI’s plane would not have obtained
provisions of Chapter V thereof which deals with the powers and the sum of P330,000.00, the proceeds thereof that might be
duties of a receiver, the assignee represents the insolvent as diminished though affecting, no doubt, the calculated dividend of
well as the creditors in voluntary and involuntary proceedings. each of the ordinary creditors, estimated at 45% by reducing it
There is no doubt that the Defendant — taking advantage of his proportionately, such diminution would at the same time
knowledge that insolvency proceedings were to be instituted by increase the difference between the dividend paid CALI’s
CALI if the creditors did not come to an understanding as to the ordinary creditors in November, 1956, and the dividend of 70%
manner of distribution of the insolvent asset among them, and secured by Defendant Shell in 1948.
believing it most probable that they would not arrive at such The writer of the decision was then and still is of the opinion that
understanding as it was really the case — schemed and the provisions of this section were applicable to the case, and
effected the transfer of its sister corporation in the United accordingly, that Defendant Shell was liable in this action
States. instituted by the Assignee for double the value of the property
Article 22 of the PRELIMINARY TITLE of the Civil Code, dealing disposed of, to be received for the benefit of the Insolvent
on Human Relations compels the return of a thing acquired estate. However, some of the members of this Court, for the
‘without just or legal grounds’. This provision embodies the reasons already stated in the decision, entertained some doubt
doctrine that no person should unjustly enrich himself at the as to the applicability of said Section 37, and yielding to their
expense of another, which has been one of the mainstays of objections the writer of the decision turned his eyes to the
every legal system for centuries. It is most needful that this provisions of the new Civil Code, inasmuch as the same result
ancient principles be clearly and specifically consecrated in the could be achieved.
proposed Civil Code to the end that in cases not foreseen by the
lawmaker, no one may unjustly benefit himself to the prejudice
of another.” RIGHT TO PRIVACY
We hold Defendant liable to pay to the Plaintiff, for the benefit of 16. ST. LOUIS REALTY VS. CA
the insolvent CALI and its creditors, as compensatory damages
a sum equivalent to the value of the plane at the time FACTS: This case is about the recovery of damages for a
aforementioned and another equal sum as exemplary damages. wrongful advertisement in the Sunday Times where Saint Louis
Shell Company of the Philippine Islands, Ltd., is hereby Realty Corporation misrepresented that the house of Doctor
sentenced to pay to Plaintiff-Appellant, damages in a sum Conrado J. Aramil belonged to Arcadio S. Arcadio.
double the amount of the value of the insolvent’s airplane C-54
at the time Defendant’s credit against the CALI was assigned to St. Louis Realty caused to be published with the permission of
its sister corporation in the United States, which value shall be Arcadio S. Arcadio (but without permission of Doctor Aramil) in
determined in the corresponding incident in the lower court after the issue of the Sunday Times of December 15, 1968 an
this decision becomes final. advertisement with the heading "WHERE THE HEART IS".
Below that heading was the photograph of the residence of
RESOLUTION
Doctor Aramil and the Arcadio family.
July 30, 1957
 As pointed out by counsel for Plaintiff, Defendant choses to he same advertisement appeared in the Sunday Times dated
ignore that besides the claims of intervenors Alfonso Z. Sycip January 5, 1969. Doctor Aramil a neuropsychiatrist and a
and Yek Hua Trading Corporation, which counsel for the Shell member of the faculty of the U. E. Ramon Magsaysay Memorial
says to constitute 10/11 of the approved ordinary claims, there Hospital, noticed the mistake. On that same date, he wrote St.
is still 1/11 of the other creditors whose claims have been also Louis Realty a letter of protest.
approved by the insolvency Court, in addition to the ordinary
creditors whose claims are yet unapproved by the insolvency The letter was received by Ernesto Magtoto, an officer of St.
Court, amounting to P560,296,32, and “no good reason Louis Realty in charge of advertising. He stopped publication of
suggests itself why these unapproved but pending claims the advertisement. He contacted Doctor Aramil and offered his
should be taken into account in considering the prejudice apologies. However, no rectification or apology was published.
caused all the creditors of the insolvent CALI. As long as these
claims are pending, the contingency exist, that these creditors

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On February 20, 1969, Aramil's counsel demanded from St. but imposed "non-appealable" conditions such as excluding
Louis Realty actual, moral and exemplary damages. The letter Justin Albert from participating in the graduation ceremonies.
was received by Ernesto Magtoto, an officer of St. Louis Realty
in charge of advertising. He stopped publication of the Aggrieved, Tan filed a complaint in the Dep-Ed for violation of
advertisement. He contacted Doctor Aramil and offered his the Manual of Regulation of Private Schools, Education Act of
apologies. However, no rectification or apology was published. 1982 and Article 19 of the Civil Code against RIS. He alleged
On February 20, 1969, Aramil's counsel demanded from St. that the dismissal of his son was undertaken with malice, bad
Louis Realty actual, moral and exemplary damages. faith and evident premeditation. After investigation, the Dep-Ed
found that RIS’ code violation point system allowed the
It published in the issue of the Manila Times of March 18, 1969 summary imposition of unreasonable sanctions. The system
a new advertisement with the Arcadio family and their real therefore violated due process. Hence, the Dep-Ed nullified it. 
house. But it did not publish any apology to Doctor Aramil and
an explanation of the error. Meanwhile, on November 20, 2002, the Dep-Ed ordered RIS to
readmit Justin Albert without any condition. Thus, he was able
ISSUE: WON Dr. Aramil is entitled to damages. to graduate from RIS and participate in the commencement
ceremonies held on March 30, 2003.
HELD: Yes.
After the graduation ceremonies, Tan met a fellow parent at
St. Louis Realty committed an actionable quasi-delict under RIS. In the course of their conversation, Tan intimated that he
articles 21 and 26 of the Civil Code because the questioned was contemplating a suit against the officers of RIS in their
advertisements pictured a beautiful house which did not belong personal capacities, including petitioner who was the assistant
to Arcadio but to Doctor Aramil who, naturally, was annoyed by headmaster.
that contretemps.
Said Parent telephoned petitioner sometime the first week of
St. Louis Realty also contends that the decision is contrary to April and told him that Tan was planning to sue the officers of
law and that the case was decided in a way not in conformity RIS in their personal capacities. Before they hung up, petitioner
with the rulings of this Court. It argues that the case is not told said: “Okay, you too, take care and be careful talking to
covered by article 26 which provides that "every person shall [Tan], that’s dangerous.”
respect the dignity, personality, privacy and peace of mind of his
neighbors and other persons". "Prying into the privacy of Said parent then called Tan and informed him that petitioner
another's residence" and "meddling with or disturbing the private said "talking to him was dangerous. Insulted, Tan filed a
life or family relations of another" and "similar acts", "though complaint for grave oral defamation against petitioner.
they may not constitute a criminal offense, shall produce a
cause of action for damages, prevention and other relief". ISSUE: WON, the petitioner can be held liable under Art 26 of
the NCC. YES.
The damages fixed by Judge Leuterio are sanctioned by Articles
2200, 2208 and 2219 of the Civil Code. Article 2219 allows HELD: Petitioner harbored personal resentment, aversion and
moral damages for acts and actions mentioned in Article 26. As ill-will against Tan since the Dep-Ed compelled RIS to readmit
lengthily explained by Justice Gatmaitan, the acts and his son. Thus, the Court is convinced that he is guilty of slight
omissions of the firm fan under Article 26. oral defamation.

St. Louis Realty's employee was grossly negligent in mixing up Under Article 26 of the Civil Cod: Every person shall respect the
the Aramil and Arcadio residences in a widely circulated dignity, personality, privacy and peace of mind of his neighbors
publication like the Sunday Times. To suit its purpose, it never and other persons. The following and similar acts, though they
made any written apology and explanation of the mix-up. It just may not constitute a criminal offense, shall produce a cause of
contented itself with a cavalier "rectification ". action for damages, prevention and other relief:

x x x           x x x          x x x
Persons, who know the residence of Doctor Aramil, were (3) Intriguing to cause another to be alienated from his
confused by the distorted, lingering impression that he was friends;
renting his residence from Arcadio or that Arcadio had leased it x x x           x x x          x x x
from him. Either way, his private life was mistakenly and
unnecessarily exposed. He suffered diminution of income and Petitioner is reminded that, as an educator, he is supposed to
mental anguish. be a role model for the youth. As such, he should always act
with justice, give everyone his due and observe honesty and
RIGHT TO PRIVACY good faith.

17. JEROME CASTRO vs. PEOPLE OF THE PHILIPPINES DERELICTION OF DUTY

FACTS: On November 11, 2002, Reedley International School 18. PILAr vs SB

(RIS) dismissed Tan’s son, Justin Albert (then a Grade 12
student), for violating the terms of his disciplinary
probation. Upon Tan’s request, RIS reconsidered its decision FACTS:

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Petitioner was elected vice mayor of Dasol, Pangasinan in 1980

local elections. n March 4, 1980, the Sanguniang Bayan Petitioner is likewise entitled to actual damages and costs of
adopted Resolution No. 1 which increased the salaries of the litigation which We reduce from P13,643.50 to P5,000.00 and
mayor and municipal treasurer to P18,636.00 and P16,044.00 for mental anguish, serious anxiety, wounded feelings, moral
per annum respectively. The said resolution did not provide for shock, social humiliation and similar injury, We hold that
an increase in salary of the vice mayor despite the fact that such petitioner is entitled to P5,000.00 as moral damages.
position is entitled to an annual salary of P16,044.00.
All the above sums as damages including attorney’s fees in the
Petitioner questioned the failure of the Sanguniang Bayan to amount of P5,000.00 shall be paid personally by respondent
appropriate an amount for the payment of his salary. He wrote Mayor Lodovico Espinosa from his private funds.
letters to the proper authorities complaining about the matter
and asking that something should be done to correct it. The
proper provincial 2 and national officials 3 endorsed compliance
with Circular 9-A of the Joint Commission on Local Government SPECIAL TORTS IN HUMAN RELATIONS: DERELICTION OF
and Personnel Administration in giving the revised rate of salary DUTY
for petitioner. In fact, the mayor was sent a letter by the
Executive Secretary of the Commission advising him that the 19. PHILIPPINE MATCH CO., LTD. vs. THE CITY OF CEBU
Municipality should pay the Vice-Mayor the salary due him and JESUS E. ZABATE, Acting City Treasurer
equivalent to that of the Municipal Treasurer per Circular No. 15.
FACTS: Ordinance No. 279 of Cebu City as approved by the
On December 12, 1980, the Sanguniang Bayan enacted a mayor on March 10, 1960 and by the provincial board imposes
resolution appropriating the amount of P500.00 per month as a sales tax of 1% on the gross sales, receipts or value of
the salary of the petitioner. This amount was increased to commodities sold, bartered, exchanged or manufactured in the
P774.00 per month in December, 1981. city in excess of P2,000 a quarter.

On October 26, 1982, the Sangquniang Bayan enacted a

resolution appropriating the amount of P15,144.00 as payment Section 9 of the ordinance provides that, for purposes of the tax,
of the unpaid salaries of the petitioner from January 1, 1981 to "all deliveries of goods or commodities stored in the City of
December 31, 1982. The resolution was vetoed by the Cebu, or if not stored are sold" in that city, "shall be considered
respondent mayor resulting into the filing by the petitioner of this as sales" in the city and shall be taxable. It would seem that
petition. under the tax ordinance sales of matches consummated outside
of the city are taxable as long as the matches sold are taken
from the company's stock stored in Cebu City.
ISSUE: The only factual issue involved in this case is the
ascertainment of damages inflicted to the petitioner due to the
failure of the respondents to pay him his lawful salary. The Philippine Match Co., Ltd., is engaged in the manufacture
of matches and has a factory located at Sta. Ana, Manila. It
ships cases or cartons of matches from Manila to its branch
RULING: office in Cebu City for storage, sale and distribution within the
territories and districts under its Cebu branch or the whole
Nevertheless, We find and rule that petitioner is entitled to Visayas-Mindanao region..
damages and attorney’s fees because the facts show that
petitioner was forced to litigate in order to claim his lawful salary
The company assails the legality of the tax which the city
which was unduly denied him for three (3) years and that the
treasurer collected on out-of- town deliveries of matches. The
Mayor acted in gross and evident bad faith in refusing to satisfy
company paid under protest to the city the sum of P12,844.61
petitioner’s plainly valid, just and demandable claim. (Article as 1% sales tax.
2208, (2) and (5), New Civil Code).
The company in its letter of April 15, 1961 to the city treasurer
That respondent Hon. Mayor Lodovico Espinosa alone should
sought the refund of the sales tax paid for out-of-town deliveries
be held liable and responsible for the miserable plight of the
of matches. The city treasurer denied the request. On August
petitioner is clear. Respondent Mayor vetoed without just cause 12, 1963 the company filed the complaint herein, praying that
on October 26, 1982 the Resolution of the Sanguniang Bayan the ordinance be d void insofar as it taxed the deliveries of
appropriating the salary of the petitioner. 7 While "to veto or not matches outside of Cebu City, that the city be ordered to refund
to veto involves the exercise of discretion" as contended by to the company the said sum of P12,844.61 as excess sales tax
respondents, respondent Mayor, however, exceeded his paid, and that the city treasurer be ordered to pay damages.
authority in an arbitrary manner when he vetoed the resolution
since there exists sufficient municipal funds from which the ISSUE: Whether or not the city treasurer is liable to pay
salary of the petitioner could be paid. 8 Respondent Mayor’s damages.
refusal, neglect or omission in complying with the directives of
the Provincial Budget Officer and the Director of the Bureau of
RULING: NO. The claim for damages is predicated on articles
Local Government that the salary of the petitioner be provided
19, 20, 21, 27 and 2229 of the Civil Code. It is argued that the
for and paid the prescribed salary rate, is reckless and city treasurer refused and neglected without just cause to
oppressive, hence, by way of example or correction for the perform his duty and to act with justice and good faith. The
public good, respondent Mayor is liable personally to the company faults the city treasurer for not following the opinion of
petitioner for exemplary or corrective damages. the city fiscals, as legal adviser of the city, that all out-of-town

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5th Set Case Digests for Torts 2015-2016 (Atty. Rucel Cayetano) by: Angit, Masiga, Respicio & Solis ®

deliveries of matches are not subject to sales tax because such That salutary in addition to moral temperate, liquidated or
transactions were effected outside of the city's territorial limits. compensatory damages (Art. 2229, Civil Code). Attorney's fees
are being claimed herein as actual damages. We find that it
In reply, it is argued for defendant city treasurer that in enforcing would not be just and equitable to award attorney's fees in this
the tax ordinance in question he was simply complying with his case against the City of Cebu.
duty as collector of taxes (Sec. 50, Revised Charter of Cebu
City). Moreover, he had no choice but to enforce the ordinance UNFAIR COMPETITION
because according to section 357 of the Revised Manual of
Instruction to Treasurer's "a tax ordinance win be enforced in 20. US VS. MANUEL
accordance with its provisions" until declared illegal or void by a
competent court, or otherwise revoked by the council or board
from which it originated. FACTS: The accused in this case is charged with "unfair
competition," as defined and penalized in Act No. 666 of the
Philippine Commission. 
Furthermore, the Secretary of Finance had reminded the city
treasurer that a tax ordinance approved by the provincial board For many years, A. S. Watson, and Co., limited, a corporation
is operative and must be enforced without prejudice to the right duly organized under the laws of Great Britain and registered in
of any affected taxpayer to assail its legality in the judicial forum. the Mercantile Register of the Philippine Islands, was
The fiscal’s opinion on the legality of an ordinance is merely extensively engaged in the city of Manila and the Philippine
advisory and has no binding effect. Islands in the business of manufacturing and selling soda water,
lemonade, ginger ale, and other aerated waters. 
Article 27 of the Civil Code provides that "any person suffering
material or moral lose because a public servant or employee On August 14, 1903, the said A. S. Watson and Co., Limited,
refuses or neglects, without just cause, to perform his official registered with the Bureau of Patents, Copyrights, and Trade
duty may file an action for damages and other relief against the marks of the Philippine Islands a trade mark consisting of the
latter, without prejudice to any disciplinary administrative action words "A. S. Watson and Company, Limited," together with the
that may be taken." figure of a unicorn and dragon on either side of a Chinese
pagoda, which had been adopted and appropriated by said A.
Article 27 presupposes that the refuse or omission of a public S. Watson and Co., Limited. as their trade mark for many years
official is attributable to malice or inexcusable negligence. In this prior to its registry. 
case, it cannot be said that the city treasurer acted wilfully or
was grossly t in not refunding to the plaintiff the taxes which it The soda water, lemonade, and other aerated waters
paid under protest on out-of-town sales of matches. manufactured by A. S. Watson and Co., Limited were sold in
bottles, specially made for the purpose, with their trade mark
The record clearly reveals that the city treasurer honestly blown on the side in large raised letters and figures, these
believed that he was justified under section 9 of the tax letters and figures being so strikingly and prominently displayed
ordinance in collecting the sales tax on out-of-town deliveries, that they forcibly attract the attention of the eye and arouse the
considering that the company's branch office was located in sense of touch on the most superficial examination. On these
Cebu City and that all out-of-town purchase order for matches bottles labels were pasted also bearing the said trade mark, and
were filled up by the branch office and the sales were duly in addition the name of the particular variety of aerated water
reported to it. contained therein. 

The city treasurer acted within the scope of his authority and in In September, 1903, the defendant, Vicente Manuel,
consonance with his bona fide interpretation of the tax manufactured and sold a number of bottles of aerated waters in
ordinance. The fact that his action was not completely sustained bottles identical in form and appearance with those used by A.
by the courts would not him liable for We have upheld his act of S. Watson and Co., Limited, with the trade mark of that firm
taxing sales of matches booked and paid for in the city. blown on the side in the same manner in which it is blown on
their bottles, there being no reasonable doubt that the bottles
used by the defendant were bottles which had been formerly
"As a rule, a public officer, whether judicial, quasi-judicial or used by A. S. Watson and Co., Limited in their business as
executive, is not y liable to one injured in consequence of an act manufacturers and vendors of aerated waters. On the bottles
performed within the scope of his official authority, and in the sold by the defendant there were pasted labels with his name
line of his official duty." "Where an officer is invested with and the kind of aerated water contained therein, the printed
discretion and is empowered to exercise his judgment in matters matter contained in these labels being different from that
brought before him. He is sometimes called a quasi-judicial contained in the bottles sold by A. S. Watson and Co., Limited,
officer, and when so acting he is usually given immunity from and the general appearance of the respective labels not being
liability to persons who may be injured as the result or an strikingly similar or dissimilar, though a comparative
erroneous or mistaken decision, however erroneous his examination develops a number of points of difference in size,
judgment may be. Provided the acts complained of are done shape, and color. It does not expressly appear on either label
within the scope of the officer's authority and without malice, or whether the name printed thereon is that of the manufacturer of
corruption." the aerated water contained therein or that of a dealer engaged
in the business of buying and selling such waters. 
It has been held that an erroneous interpretation of an
ordinance does not constitute nor does it amount to bad faith The evidence tended to prove that the aerated waters sold by S.
that would entitle an aggrieved party to an award for damages. Watson and Co., Limited, have a wide reputation for excellence

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5th Set Case Digests for Torts 2015-2016 (Atty. Rucel Cayetano) by: Angit, Masiga, Respicio & Solis ®

of the Philippine Islands, and that great care and attention to

detail are exercised in their manufacture, with a view to the
production of a wholesome and pleasant beverage, and that to
this end distilled water is used exclusively in their preparation;
and there is evidence in the record which tends to prove that the
aerated waters sold by the defendant were unwholesome and of
inferior quality, and that distilled water had been used in their
manufacture. 

On this evidence the trial court convicted the accused of "unfair

competition," and sentenced him to pay a fine of $50, gold, and
the costs of the trial, and to subsidiary imprisonment in case of
insolvency and nonpayment of the fine.

ISSUE: WON there was unfair competition.

HELD: Yes.

Counsel for defendant insist that the use of different labels

pasted on the bottles forbids the inference of an intent to device
the public or defraud A. S. Watson and Co., Limited, but an
ocular examination of the labels and the device blown on the
bottles does not sustain his contention; for while it is true that a
cautious purchaser who was acquainted with the English
language need not have been deceived if he took the pains to
read the printed matter on the label, nevertheless the difference
in the general appearance of the labels is not sufficient to
protect from mistake the ordinary purchaser who is
unacquainted with the English language, unless he took the
extraordinary precaution of having with him a sample of the
label of A. S. Watson and Co., Limited, with which to make a
direct comparison, on each occasion when he bought a bottle of
aerated water; by far the most striking and noticeable
characteristics of the bottles of aerated waters sold by A. S.
Watson and Co., Limited, is the evidence blown on the side,
upon seeing which the ordinary purchaser might well be
excused from a too careful scrutiny of the wording of the much
less noticeable and less easily remembered label, printed in a
language known to but a small percentage of the residents in
Manila and the Philippine Islands.

The true test of unfair competition is whether certain goods

have been clothed with an appearance which is likely to
deceive the ordinary purchaser exercising ordinary care,
and not whether a certain limited class of purchasers with
special knowledge not possess by the ordinary purchaser
could avoid mistake by the exercise of this special
knowledge. 

It being proven that the accused had acquired bottles, with the
mark incrusted in the glass, a long time before Watson & Co.
had registered the said mark in accordance with the said act,
and taking into consideration the fact that the registration
provided for the use of the mark for carbonated waters, and not
for the use of marked bottles, and the fact that the accused was
accustomed to put his own labels on the bottles containing the
various classes of waters sold by him, it cannot be said that he
has violated the law and committed the alleged offense.

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