RAMON TAN, vs. THE HONORABLE COURT OF APPEALS and RIZAL COMMERCIAL BANKING CORPORATION.
- G.R. Number: G.R. No. 108555
- Promulgated: 1994-05-27
- Ponente: Kapunan, J.
Doctrine
Moral damages may be recovered for mental anguish and humiliation caused by negligent acts even if such negligence was not accompanied by malice or bad faith.
Exemplary damages require malice, bad faith or gross negligence; absent these, exemplary damages are unjustified.
Reasonable attorney's fees may be awarded when a party is compelled to litigate to protect his interest.
Facts
Petitioner Ramon Tan sought review of the Court of Appeals decision that reversed the Regional Trial Court's 28 December 1990 judgment ordering RCBC, Binondo Branch, to pay damages and attorney's fees totaling P1,035,000.00.
The RTC rendered judgment for plaintiff awarding P700,000.00 moral damages, P200,000.00 exemplary damages, and P135,000.00 (15%) as attorney's fees, and costs, but denied actual damages for lack of supporting receipt or writing.
RCBC appealed to the Court of Appeals arguing it was not negligent and challenging the awards of moral and exemplary damages and attorney's fees.
The Court of Appeals concluded the incident resulted from the plaintiff's having filled out the wrong deposit slip, which caused the check to be sent to the Central Bank instead of the proper clearing venue, and it reversed and dismissed the complaint.
Issues
Whether petitioner may recover moral damages from RCBC for the bank's negligence even if the negligence was not attended by malice or bad faith.
Whether the award of exemplary damages is justified in the absence of malice, bad faith or gross negligence.
Whether petitioner is entitled to reasonable attorney's fees for having been compelled to litigate to protect his interest.
Whether the Court of Appeals' dismissal of the complaint should be reversed.
Ruling
The Supreme Court held petitioner may recover moral damages for mental anguish caused by the bank's negligence and reduced the RTC award from P700,000.00 to P100,000.00.
The Court found the exemplary damages award of P200,000.00 unjustified in the absence of malice, bad faith or gross negligence and eliminated it.
The Court affirmed an award of reasonable attorney's fees, reducing the amount to P50,000.00; costs were also awarded.
Accordingly, the Supreme Court reversed the Court of Appeals decision and ordered RCBC, Binondo Branch, to pay petitioner P100,000.00 as moral damages and P50,000.00 as attorney's fees, plus costs.
Keywords
G.R. No. 108555, petition, damages, attorney's fees, cashier's check, clearing, missent, misrouted, debit memo, insufficiency of funds, negligence, proximate cause, Monetary Board Resolution No. 2202, drawing against uncollected deposits (DAUDS), bills purchase (BP) line, collecting agent, creditor-debtor relationship, moral damages, check, cashier