OROSAVCAFCPCREDITCORP

GRNo.111080.April5,2000
YnaresSantiago,J.
FACTS:
FCPfiledacomplaintforreplevinanddamagesbeforetheRTCofManilaagainst
petitionerOrosatorecoverthepossessionofa1983FordLaser1.5Sedan.
FCPallegedthatpetitionerpurchasedthemotorvehicleoninstallmentfrom
FiestaMotorSalesCorp(FMS)onSeptember28,1983.Petitionerissueda
promissorynoteinthesumofPhp133,824andsecuredachattelmortgageover
themotorvehicleinfavorofFMS.FMSlaterassignedthepromissorynoteand
chattelmortgagetoFCPonJuly28,1984.
Petitionerfailedtopayfour(4)consecutiveinstallments(fromJuly1984
November1984),henceFCPdemandedtheformerpaytheentireoutstanding
balanceoftheobligationwithaccruedinterestandtosurrenderthevehiclewhich
thepetitionerwasallegedlydetaining.
RTCdismissedthecomplaint,declaringthatFCPwasnotentitledtotheWritof
Replevin,sincepetitionerhadalreadypaidtheinstallmentsforthemonthsofJuly
toNovember1984,whicharethesolebasisofthecomplaintandheldthatFCPis
liableforactualdamagesunderthereplevinbonditfiled.
FCPfiledanappealbeforetheCAwhereinthelatteraffirmedtheRTCdecision
butdeletedtheawardofmoraldamages,exemplarydamagesandattorneysfees.
ISSUE:
WONCAerredinholdingFCPnotliableforactualdamagesunderthereplevin
bonditfiled
HELD:
Wemustdenytheclaim.Thelawclearlystatesthatonemayonlyrecovermoral
damagesiftheyaretheproximateresultoftheotherparty'swrongfulactor
omission.Twoelementsarerequired.First,theactoromissionmustbethe
proximateresultofthephysicalsuffering,mentalanguish,fright,seriousanxiety,
besmirchedreputation,woundedfeelings,moralshock,socialhumiliationand
similarinjury.Second,theactmustbewrongful.
Petitionermaintainsthatembarrassmentresultedwhenhehadtoexplainthesuit
tohisdaughter'sinlaws.However,thatcouldhavebeenavoidedhadhenot
assignedthecartohisdaughterandhadhebeenfaithfulandpromptinpayingthe

installmentsrequired.Petitionerbroughtthesituationuponhimselfandcannot
nowcomplainthatprivaterespondentisliableforthementalanguishand
humiliationhesuffered.
Furthermore,weagreewiththeappellatecourtthatwhenprivaterespondent
broughtthecomplaint,itdidsoonlytoexercisealegalright,believingthatithad
ameritoriouscauseofactionclearlyborneoutbyamereperusalofthe
promissorynoteandchattelmortgage.Toconstitutemaliciousprosecution,there
mustbeproofthattheprosecutionwaspromptedbyasinisterdesigntovexand
humiliateaperson,andthatitwasinitiateddeliberately,knowingthatthecharges
werefalseandgroundless.Suchwasnotthecasewhentheinstantcomplaintwas
filed.Therulehasalwaysbeenthatmoraldamagescannotberecoveredfroma
personwhohasfiledacomplaintagainstanotheringoodfaith.Thelawalways
presumesgoodfaithsuchthatanypersonwhoseekstobeawardeddamagesdue
toactsofanotherhastheburdenofprovingthatthelatteractedinbadfaithor
withillmotive.
Anenttheawardofexemplarydamages,jurisprudenceprovidesthatwhereaparty
isnotentitledtoactualormoraldamages,anawardofexemplarydamagesis
likewisebaseless.
Inthematterofattorney'sfees,petitioneraversthattoprosecuteanddefendthis
caseinthelowercourtandintheappellatecourt,heincurredexpensesamounting
toP50,000.00,andassuch,attorney'sfeesshouldbegranted.Wedenytheclaim.
Nopremiumshouldbeplacedontherighttolitigateandnoteverywinningparty
isentitledtoanautomaticgrantofattorney'sfees.Thepartymustshowthathe
fallsunderoneoftheinstancesenumeratedinArticle2208oftheCivil
Code.This,petitionerfailedtodo.Furthermore,wheretheawardofmoraland
exemplarydamagesiseliminated,somusttheawardforattorney'sfeesbe
deleted.
WealsoagreewiththeCourtofAppealsthatthetrialcourterredwhenitordered
privaterespondenttoreturnthesubjectcaroritsequivalentconsideringthat
petitionerhadnotyetfullypaidthepurchaseprice.Verily,tosustainthetrial
court'sdecisionwouldamounttounjustenrichment.TheCourtofAppealswas
correctwhenitinsteadorderedprivaterespondenttoreturn,notthecaritself,but
onlytheamountequivalenttothefourteeninstallmentsactuallypaidwithinterest.