8/8/15, 6:24 AM PHILIPPINE REPORTS ANNOTATED VOLUME 037Page 1 of
9
http://www.central.com.ph/sfsreader/session/0000014f0a42db44da74051c000a0094004f00ee/p/ALV543/?username=Guest1.2.3.[No.
12219. March 15,
1918.]AMADOPICART,plaintiffandappellant,vs.FRANKSMITH, jr.,
defendant and
appellee.NEGLIGENCE;CRITERIONFORDETERMININGEXISTENCEOFNEGLI-GENCE.Thetestfordeterminingwhetherapersonisnegligentindoinganactwhereby
injury or damage results to the person or
propertyofanotheristhis:Wouldaprudentman,inthepositionofthepersontowhomnegligenceisattributed,foreseeharmtothepersoninjuredasareasonableconsequenceofthecourse
about to be pursued. If so, the law imposes a duty
ontheactortorefrainfromthatcourseortotakeprecautionagainst its
mischievous results, and the failure to do so con810810 PHILIPPINE
REPORTS ANNOTATEDPicart vs.
Smith.stitutesnegligence.Reasonableforesightofharm,followedbytheignoringoftheadmonitionbornofthisprevision,isthe
constitutive f act in
negligence.ID.;CONTRIBUTORYNEGLIGENCE;SUCCESSIVENEGLIGENTACTS.Wherebothpartiesareguiltyofnegligence,
but the negligent act of one succeeds that of
theotherbyanappreciableintervaloftime,theonewhohasthelastreasonableopportunitytoavoidtheimpendingharm
and fails to do so is chargeable with the consequences,without
reference to the prior negligence of the other
party.ID.;ID.;ID.;CASEATBAR.Theplaintiffwasridinga8/8/15, 6:24 AM
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http://www.central.com.ph/sfsreader/session/0000014f0a42db44da74051c000a0094004f00ee/p/ALV543/?username=Guestponyonabridge,Seeinganautomobileaheadheimproperly
pulled his horse over to the railing on the
right.Thedriveroftheautomobile,however,guidedhiscartowardtheplaintiffwithoutdiminutionofspeeduntilhewasonlyafewfeetaway.Hethenturnedtotherightbutpassedsocloselytothehorsethatthelatterbeingfrightened,jumpedaroundandwaskilledbythepassingcar.Held:Thatalthoughtheplaintiffwasguiltyofnegligenceinbeingonthewrongsideofthebridge,thedefendantwasneverthelesscivillyliableforthelegaldamagesresultingfromthecollision,ashehadafairopportunitytoavoidtheaccidentafterherealizedthesituation
created by the negligence of the plaintiff and failedto avail
himself of that opportunity; while the plaintiff
couldbynomeansthenplacehimselfinapositionofgreatersafety.APPEAL
from a judgment of the Court of First Instance ofLa Union. Camus,
J.The facts are stated in the opinion of the court.Alejo Mabanag
for appellant.G. E. Campbell for appellee.STREET,
J.:Inthisactiontheplaintiff,AmadoPicart,seekstorecoverofthedefendant,FrankSmith,jr.,thesumofP31,100,asdamagesallegedtohavebeencausedbyanautomobiledrivenbythedefendant.FromajudgmentoftheCourtofFirstInstanceoftheProvinceofLaUnionabsolvingthedefendant
from liability the plaintiff has appealed.The occurrence which gave
rise to the institution of
thisactiontookplaceonDecember12,1912,ontheCarlatanBridge, at San
Fernando, La Union. It appears that upon811VOL. 37, MARCH 15, 1918.
811Picart vs. Smith.the occasion in question the plaintiff was
riding on his ponyover said bridge. Before he had gotten half way
across, the8/8/15, 6:24 AM PHILIPPINE REPORTS ANNOTATED VOLUME
037Page 3 of 9
http://www.central.com.ph/sfsreader/session/0000014f0a42db44da74051c000a0094004f00ee/p/ALV543/?username=Guestdefendantapproachedfromtheoppositedirectioninanautomobile,goingattherateofabouttenortwelvemilesperhour.Asthedefendantnearedthebridgehesawahorsemanonitandblewhishorntogivewarningofhisapproach.Hecontinuedhiscourseandafterhehadtakenthebridgehegavetwomoresuccessiveblasts,asitappeared
to him that the man on horseback before him wasnot observing the
rule of the road.The plaintiff, it appears, saw the automobile
coming
andheardthewarningsignals.However,beingperturbedbythenoveltyoftheapparitionortherapidityoftheapproach,
he pulled the pony closely up against the
railingontherightsideofthebridgeinsteadofgoingtotheleft.He says
that the reason he did this was that he thought
hedidnothavesufficienttimetogetovertotheotherside.Thebridgeisshowntohavealengthofabout75metersand
a width of 4.80 meters. As the automobile
approached,thedefendantguidedittowardhisleft,thatbeingthepropersideoftheroadforthemachine.Insodoingthedefendantassumedthatthehorsemanwouldmovetotheotherside.Theponyhadnotasyetexhibitedfright,andtheriderhadmadenosignfortheautomobiletostop.Seeingthattheponywasapparentlyquiet,thedefendant,insteadofveeringtotherightwhileyetsomedistanceawayorslowingdown,continuedtoapproachdirectlytowardthehorsewithoutdiminutionofspeed.Whenhehad
gotten quite near, there being then no possibility of
thehorsegettingacrosstotheotherside,thedefendantquicklyturnedhiscarsufficientlytotherighttoescapehitting
the horse alongside of the railing where it was
thenstanding;butinsodoingtheautomobilepassedinsuchclose proximity
to the animal that it became frightened andturned its body across
the bridge with its head toward
therailing.Insodoing,itwasstruckonthehockofthelefthind leg by the
flange of the car and the limb was broken.The horse fell and its
rider was thrown off with some812812 PHILIPPINE REPORTS
ANNOTATEDPicart vs. Smith.8/8/15, 6:24 AM PHILIPPINE REPORTS
ANNOTATED VOLUME 037Page 4 of 9
http://www.central.com.ph/sfsreader/session/0000014f0a42db44da74051c000a0094004f00ee/p/ALV543/?username=Guestviolence.
From the evidence adduced in the case we
believethatwhentheaccidentoccurredthefreespacewheretheponystoodbetweentheautomobileandtherailingofthebridge
was probably less than one and one half meters. Asa result of its
injuries the horse died. The plaintiff
receivedcontusionswhichcausedtemporaryunconsciousnessandrequired
medical attention for several
days.Thequestionpresentedfordecisioniswhetherornotthe defendant in
maneuvering his car in the manner
abovedescribedwasguiltyofnegligencesuchasgivesrisetoacivilobligationtorepairthedamagedone;andweareoftheopinionthatheissoliable.Asthedefendantstartedacross
the bridge, he had the right to assume that the
horseandriderwouldpassovertotheproperside;butashemoved toward the
center of the bridge it was
demonstratedtohiseyesthatthiswouldnotbedone;andhemustinamoment have
perceived that it was too late for the horse
tocrosswithsafetyinfrontofthemovingvehicle.Inthenature of things
this change of situation occurred while
theautomobilewasyetsomedistanceaway;andfromthismoment it was not
longer within the power of the
plaintifftoescapebeingrundownbygoingtoaplaceofgreatersafety. The
control of the situation had then passed entirelyto the defendant;
and it was his duty either to bring his
cartoanimmediatestopor,seeingthattherewerenootherpersonsonthebridge,totaketheothersideandpasssufficiently
far away from the horse to avoid the danger
ofcollision.Insteadofdoingthis,thedefendantranstraightonuntilhewasalmostuponthehorse.Hewas,wethink,deceivedintodoingthisbythefactthatthehorsehadnotyetexhibitedfright.Butinviewoftheknownnatureofhorses,
there was an appreciable risk that, if the animal inquestion was
unacquainted with automobiles, he might
getexcitedandjumpundertheconditionswhichhereconfronted him. When
the defendant exposed the horse andrider to this danger he was, in
our opinion, negligent in theeye of the law.813VOL. 37, MARCH 15,
1918. 813Picart vs. Smith.8/8/15, 6:24 AM PHILIPPINE REPORTS
ANNOTATED VOLUME 037Page 5 of 9
http://www.central.com.ph/sfsreader/session/0000014f0a42db44da74051c000a0094004f00ee/p/ALV543/?username=GuestThe
test by which to determine the existence of
negligenceinaparticularcasemaybestatedasfollows:Didthedefendantindoingtheallegednegligentactusethatreasonablecareandcautionwhichanordinarilyprudentperson
would have used in the same situation? If not, thenhe is guilty of
negligence. The law here in effect adopts thestandard supposed to
be supplied by the imaginary
conductofthediscreetpaterfamiliasoftheRomanlaw.Theexistence of
negligence in a given case is not determined
byreferencetothepersonaljudgmentoftheactorinthesituationbeforehim.Thelawconsiderswhatwouldbereckless,
blameworthy, or negligent in the man of ordinaryintelligence and
prudence and determines liability by that.The question as to what
would constitute the conduct
ofaprudentmaninagivensituationmustofcoursebealways determined in
the light of human experience and inview of the f facts involved in
the particular case.
Abstractspeculationcannotherebeofmuchvaluebutthismuchcanbeprofitablysaid:Reasonablemengoverntheirconductbythecircumstanceswhicharebeforethemorknowntothem.Theyarenot,andarenotsupposedtobe,omniscientofthefuture.Hencetheycanbeexpectedtotakecareonlywhenthereissomethingbefforethemtosuggestorwarnofdanger.Couldaprudentman,inthecaseunderconsideration,foreseeharmasaresultofthecourse
actually pursued? If so, it was the duty of the actorto take
precautions to guard against that harm.
Reasonableforesightofharm,followedbytheignoringofthesuggestionbornofthisprevision,isalwaysnecessarybeforenegligencecanbeheldtoexist.Statedintheseterms,
the proper criterion for determining the existence
ofnegligenceinagivencaseisthis:Conductissaidtobenegligentwhenaprudentmaninthepositionofthetortfeasorwouldhaveforeseenthataneffectharmfultoanotherwassufficientlyprobabletowarranthisforegoingthe
conduct or guarding against its consequences.Applying this test to
the conduct of the defendant in
thepresentcasewethinkthatnegligenceisclearlyestablished.8148/8/15,
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http://www.central.com.ph/sfsreader/session/0000014f0a42db44da74051c000a0094004f00ee/p/ALV543/?username=Guest814
PHILIPPINE REPORTS ANNOTATEDPicart vs.
Smith.Aprudentman,placedinthepositionofthedefendant,would,inouropinion,haverecognizedthatthecoursewhichhewaspursuingwasfraughtwithrisk,andwouldthereforehaveforeseenharmtothehorseandriderasareasonableconsequenceofthatcourse.Underthesecircumstancesthelawimposedonthedefendantthedutyto
guard against the threatened harm.It goes without saying that the
plaintiff himself was
notfreefromfault,forhewasguiltyofantecedentnegligenceinplantinghimselfonthewrongsideoftheroad.Butaswehavealreadystated,thedefendantwasalsonegligent;andinsuchcasetheproblemalwaysistodiscoverwhichagentisimmediatelyanddirectlyresponsible.Itwillbenotedthatthenegligentactsofthetwopartieswerenotcontemporaneous,sincethenegligenceofthedefendantsucceededthenegligenceoftheplaintiffbyanappreciableinterval.Underthesecircumstancesthelawisthattheperson
who has the last fair chance to avoid the
impendingharmandfailstodosoischargeablewiththeconsequences,withoutreferencetothepriornegligenceofthe
other party.ThedecisioninthecaseofRakes vs.Atlantic,GulfandPacific
Co. (7 Phil. Rep., 359) should perhaps be
mentionedinthisconnection.ThisCourtthereheldthatwhilecontributorynegligenceonthepartofthepersoninjureddidnotconstituteabartorecovery,itcouldbereceivedinevidencetoreducethedamageswhichwouldotherwisehavebeenassessedwhollyagainsttheotherparty.Thedefendantcompanyhadthereemployedtheplaintiff,alaborer,
to assist in transporting iron rails from a barge inManila harbor
to the company's yards located not far
away.Therailswereconveyeduponcarswhichwerehauledalonganarrowtrack.Atacertainspotnearthewater'sedge
the track gave way by reason of the combined effect
oftheweightofthecarandtheinsecurityoftheroadbed.The car was in
consequence upset; the rails slid off; and
theplaintiff'slegwascaughtandbroken.Itappearedinevidencethattheaccidentwasduetotheeffectsofatyphoon8/8/15,
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http://www.central.com.ph/sfsreader/session/0000014f0a42db44da74051c000a0094004f00ee/p/ALV543/?username=Guest815VOL.
37, MARCH 15, 1918. 815Picart vs.
Smith.whichhaddislodgedoneofthesupportsofthetrack.Thecourtfoundthatthedefendantcompanywasnegligentinhavingfailedtorepairthebedofthetrackandalsothattheplaintiffwas,atthemomentoftheaccident,guiltyofcontributorynegligenceinwalkingatthesideofthecarinstead'ofbeinginfrontorbehind.Itwasheldthatwhilethedefendantwasliabletotheplaintiffbyreasonofitsnegligenceinhavingfailedtokeepthetrackinproperrepair,neverthelesstheamountofthedamagesshouldbereducedonaccountofthecontributorynegligenceoftheplaintiff.
As will be seen the defendant's negligence in
thatcaseconsistedinanomissiononly.Theliabilityofthecompanyarosefromitsresponsibilityforthedangerouscondition
of its track. In a case like the one now before
us,wherethedefendantwasactuallypresentandoperatingtheautomobilewhichcausedthedamage,wedonotffeelconstrainedtoattempttoweighthenegligenceoftherespectivepartiesinordertoapportionthedamageaccordingtothedegreeoftheirrelativefault.Itisenoughtosaythatthenegligenceofthedeffendantwasinthiscasetheimmediateanddeterminingcauseoftheaccidentandthattheantecedentnegligenceoftheplaintiffwasamore
remote factor in the
case.Apointofminorimportanceinthecaseisindicatedinthespecialdefensepleadedinthedefendant'sanswer,totheeffectthatthesubjectmatteroftheactionhadbeenpreviously
adjudicated in the court of a justice of the peace.In this
connection it appears that soon after the accident inquestion
occurred, the plaintiff caused criminal
proceedingstobeinstitutedbeforeajusticeofthepeacechargingthedefendantwiththeinflictionofseriousinjuries(lesionesgraves).
At the preliminary investigation the defendant
wasdischargedbythemagistrateandtheproceedingsweredismissed.Concedingthattheacquittalofthedeffendantat
a trial upon the merits in a criminal prosecution for
theoffensementionedwouldberesadjudicatauponthe8/8/15, 6:24 AM
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http://www.central.com.ph/sfsreader/session/0000014f0a42db44da74051c000a0094004f00ee/p/ALV543/?username=Guestquestionofhiscivilliabilityarisingfromnegligenceapoint
upon which it is unnecessary to express an opinionthe action
of816816 PHILIPPINE REPORTS ANNOTATEDPicart vs.
Smith.thejusticeofthepeaceindismissingthecriminalproceeding upon
the preliminary hearing can have no sucheffect. (See U. S. vs.
Banzuela and Banzuela, 31 Phil. Rep.,564.)From what has been said
it results that the judgment
ofthelowercourtmustbereversed,andjudgmentishererenderedthattheplaintiffrecoverofthedefendantthesumoftwohundredpesos(P200),withcostsofbothinstances.Thesumhereawardedisestimatedtoincludethe
value of the horse, medical expenses of the plaintiff,
thelossordamageoccasionedtoarticlesof-hisapparel,andlawfulinterestonthewholetothedateofthisrecovery.Theotherdamagesclaimedbytheplaintiffareremoteorotherwiseofsuchcharacterasnottoberecoverable.Soordered.Arellano,
C. J., Torres, Carson, Araullo, Avancea, andFisher, JJ.,
concur.Johnson, J., reserves his vote.MALCOLM, J.,
concurring:Aftermaturedeliberation,Ihavefinallydecidedtoconcurwiththejudgmentinthiscase.Idosobecauseofmyunderstandingofthe"lastclearchance"ruleofthelawofnegligenceasparticularlyappliedtoautomobileaccidents.Thisrulecannotbeinvokedwherethenegligenceoftheplaintiff
is concurrent with that of the defendant. Again,
ifatravellerwhenhereachesthepointofcollisionisinasituationtoextricatehimselfandavoidinjury,hisnegligence
at that point will prevent a recovery. But
JusticeStreetfindsasafactthatthenegligentactofthedefendant
succeeded that of the plaintiff by an appreciable8/8/15, 6:24 AM
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of time, and that at that moment the plaintiff
hadnoopportunitytoavoidtheaccident.Consequently,the"last clear
chance" rule is applicable. In other words,
whenatravellerhasreachedapointwherehecannotextricatehimselfandvigilanceonhispartwillnotaverttheinjury,hisnegligenceinreachingthatpositionbecomestheconditionandnottheproximatecauseoftheinjuryandwillnotprecludearecovery.(NoteespeciallyAikenvs.Metcalf
[1917], 102 Atl., 330.)Judgment reversed.817VOL. 37, MARCH 15,
1918. 817Lim vs. Singian and Soler Copyright 2015 Central Book
Supply, Inc. All rights reserved.8/8/15, 6:25 AM PHILIPPINE REPORTS
ANNOTATED VOLUME 039Page 1 of 22
http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guest1.2.3.VOL.
39, FEBRUARY 4, 1919. 587Daywalt vs. Corporacin de PP. Agustinos
Recoletos.[No. 13505. February 4,
1919.]GEO.W.DAYWALT,plaintiffandappellant,vs.LACORPORACI!NDELOSPADRESAGUSTINOSRECOLETOS
ET AL., defendants and
appellees.CONTRACTS;DAMAGESFORBREACH;LIABILITYOFTHIRDPARTY.Whatevermaybethecharacteroftheliability,
if any, which a stranger to a contract may incur
byadvisingorassistingoneofthepartiestoevadeperformance,hecannotbecomemoreextensivelyliableindamagesforthenonperformanceofthecontractthantheparty
in whose behalf he
intermeddles.ID.;ID.;MEASUREOFDAMAGESFORBREACHOFCONTRACT.Thedamagesrecoverableuponbreachofcontract
are, primarily, the ordinary, natural and in a
sensethenecessarydamageresultingfromthebreach.Otherdamages, known
as special damages, are recoverable
whereitappearsthattheparticularconditionswhichmadesuchdamages a
probable consequence of the breach were
knowntothedelinquentpartyatthetimethecontractwasmade.Thispropositionmustbeunderstoodwiththequalificationthat,ifthedamagesareinthelegalsenseremoteorspeculative,knowledgeofthespecialconditionswhichrendersuchdamagespossiblewillnotmakethemrecoverable.Specialdamagesofthischaractercannotberecovered
unless made the subject of special stipulation.ID. ; ID. ; ID. ;
DAMAGESFORBREACHOFCONTRACTFORSALEOFLAND.Thedamagesordinarilyrecoverable
against a vendor8/8/15, 6:25 AM PHILIPPINE REPORTS ANNOTATED VOLUME
039Page 2 of 22
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PHILIPPINE REPORTS ANNOTATEDDaywalt vs. Corporacin de PP. Agustinos
Recoletos.for failure to deliver land which he has contracted to
deliveristhevalueoftheuseandoccupationofthelandforthetime during
which it is wrongfully withheld.APPEAL from a judgment of the Court
of First Instance ofManila. Ostrand, J.The facts are stated in the
opinion of the court.C. C. Cohn and Thos. D. Aitken for
appellant.Crossfield & O'Brien for appellee.STREET,
J.:Intheyear1902,TeodoricaEndencia,anunmarriedwoman,residentintheProvinceofMindoro,executedacontract
whereby she obligated herself to convey to Geo.
W.Daywalt,.atractoflandsituatedinthebarrioofMangarin, municipality
of Bulalacao, now San Jose, in
saidprovince.ItwasagreedthatadeedshouldbeexecutedassoonasthetitletothelandshouldbeperfectedbyproceedingsintheCourtofLandRegistrationandaTorrens
certificate should be procured therefor in the
nameofTeodoricaEndencia.Adecreerecognizingtheright,ofTeodoricaasownerwasenteredinsaidcourtinAugust1906,
but the Torrens certificate was not issued until
later.Theparties,however,metimmediatelyupontheenteringofthisdecreeandmadeanewcontractwithaviewtocarryingtheiroriginalagreementintoeffect.ThisnewcontractwasexecutedintheformofadeedofconveyanceandbearsdateofAugust16,1906.ThestipulatedpricewasfixedatP4,000,andtheareaofthelandenclosedinthe
boundaries defined in the contract was stated to be 452hectares and
a fraction.Thesecondcontractwasnotimmediatelycarriedintoeffect for
the reason that the Torrens certificate was not
yetobtainableandinfactsaidcertificatewasnotissueduntilthe period of
performance contemplated in the contract had8/8/15, 6:25 AM
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guestexpired.Accordingly,uponOctober3,1908,thepartiesenteredintostillanotheragreement,supersedingtheold,by
which Teodorica Endencia agreed, upon589VOL. 39, FEBRUARY 4, 1919.
589Daywalt vs. Corporacin de PP. Agustinos Recoletos.receiving the
Torrens title to the land in question, to
deliverthesametotheHongkongandShanghaiBankinManila,tobeforwardedtotheCrockerNationalBankinSanFrancisco,
where it was to be delivered to the plaintiff uponpayment of a
balance of
P3,100.TheTorrenscertificatewasintimeissuedtoTeodoricaEndencia,butinthecourseoftheproceedingsrelativetothe
registration of the land, it was f ound by official surveythat the
area of the tract inclosed in the boundaries
statedinthecontractwasabout1,248hectaresinsteadof452hectaresasstatedinthecontract.InviewofthisdevelopmentTeodoricaEndenciabecamereluctanttotransferthewholetracttothepurchaser,assertingthatsheneverintendedtosellsolargeanamountoflandandthat
she had been misinformed as to its
area.ThisattitudeofhersledtolitigationinwhichDaywaltfinallysucceeded,uponappealtotheSupremeCourt,inobtainingadecreeforspecificperformance;andTeodoricaEndenciawasorderedtoconveytheentiretractoflandtoDaywalt
pursuant to the contract of October 3, 1908,
whichcontractwasdeclaredtobeinfullforceandeffect.Thisdecree appears
to have become finally effective in the earlypart of the year
1914.1Thedefendant,LaCorporacindelosPadresRecoletos,isareligiouscorporation,withitsdomicileinthecityofManila.
Said corporation was formerly the owner of a
largetractofland,knownastheSanJoseEstate,ontheislandofMindoro,whichwassoldtotheGovernmentofthePhilippineIslandsintheyear1909.ThesamecorporationwasatthistimealsotheownerofanotherestateonthesameislandimmediatelyadjacenttothelandwhichTeodericaEndenciahadsoldtoGeo.W.Daywalt;andformanyyearstheRecoletosFathershadmaintainedlarge8/8/15,
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guestherdsofcattleonthefarmsreferredto.Theirrepresentative,chargedwiththemanagementofthesefarms,
was____________1 Daywalt vs. Endencia,
R.G.No.7331,decidedNovember16,1912,not published.590590 PHILIPPINE
REPORTS ANNOTATEDDaywalt vs. Corporacin de PP. Agustinos
Recoletos.father Isidoro Sanz, himself a member of the order.
FatherSanzhadlongbeenwellacquaintedwithTeodoricaEndenciaandexertedoverheraninfluenceandascendencyduetohisreligiouscharacteraswellastothepersonal
friendship which existed between them.
Teodoricaappearstobeawomanoflittlepersonalforce,easilysubject to
influence, and upon all the important matters ofbusiness was
accustomed to seek, and was given, the adviceof Father Sanz and
other members of his order with whomshe came in
contact.FatherSanzwasfullyawareoftheexistenceofthecontract of 1902
by which Teodorica Endencia agreed to
sellherlandtotheplaintiffaswellasofthelaterimportantdevelopmentsconnectedwiththehistoryofthatcontractandthecontract-substitutedsuccessivelyforit;andinparticularFatherSanz,aswellasothermembersofthedefendant
corporation, knew of the existence of the contractof October 3,
1908, which, as we have already seen,
finallyfixedtherightsofthepartiestothepropertyinquestion.WhentheTorrenscertificatewasfinallyissuedin1909infavorofTeodoricaEndencia,shedelivereditforsafekeepingtothedefendantcorporation,anditwasthentakentoManilawhereitremainedinthecustodyandunderthecontrolofP.JuanLabargatheprocuradorandchief
official of the defendant corporation, until the
deliverythereoftotheplaintiffwasmadecompulsorybyreasonofthe decree
of the Supreme Court in
1914.WhenthedefendantcorporationsoldtheSanJose8/8/15, 6:25 AM
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=GuestEstate,itwasnecessarytobringthecattleoffofthatproperty;and,inthefirsthalfof1909,some2,368headwere
removed to the estate of the corporation immediatelyadjacent to the
property which the plaintiff had
purchasedfromTeodoricaEndencia.AsTeodoricastillretainedpossessionofsaidpropertyFatherSanzenteredintoanarrangementwithherwherebylargenumbersofcattlebelongingtothedefendantcorporationwerepastureduponsaidlandduringaperiodextendingfromJune1,1909,
to May 1, 1914.591VOL. 39, FEBRUARY 4, 1919. 591Daywalt vs.
Corporacin de PP. Agustinos Recoletos.Under the first cause stated
in the complaint in the
presentactiontheplaintiffseekstorecoverfromthedefendantcorporation
the sum of P24,000, as damages for the use
andoccupationofthelandinquestionbyreasonofthepasturingofcattlethereonduringtheperiodstated.Thetrialcourtcametotheconclusionthatthedefendantcorporation
was liable for damages by reason of the use andoccupation of the
premises in the manner stated; and
fixedtheamounttoberecoveredatP2,497.Theplaintiffappealedandhasassignederrortothispartofthejudgment
of the court below, insisting that damages
shouldhavebeenawardedinamuchlargersumandatleasttothefullextentofP24,000,theamountclaimedinthecomplaint.Asthedefendantdidnotappeal,theproprietyofallowing
damages f or the use and occupation of the land
totheextentofP2,497,themountawarded,isnotnowinquestion;andtheonlythingheretobeconsidered,inconnectionwiththisbranchofthecase,iswhetherthedamages
allowed under this head should be increased.
ThetrialcourtrightlyignoredthefactthatthedefendantcorporationhadpaidTeodoricaEndenciaforuseandoccupationofthesamelandduringtheperiodinquestionattherateofP425perannum,inasmuchasthefinaldecree
of this court in the action for specific performance
isconclusiveagainstherright,andasthedefendant8/8/15, 6:25 AM
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guestcorporationhadnoticeoftherightsoftheplaintiffunderhiscontractofpurchase,itcannotbepermittedthatthecorporation
should escape liability in this action by provingpayment of rent to
a person other than, the true
owner.Withreferencetotherateatwhichcompensationshouldbeestimatedthetrialcourtcametothefollowingconclusion:"As
to the rate of the compensation, the plaintiff contends that
thedefendantcorporationmaintainedatleastonethousandheadofcattleonthelandandthatthepasturagewasofthevalueoffortycentavos
per head monthly, or P4,800 annually, for the whole
tract.Thecourtcannotacceptthisview.Itisratherimprobablethat1,248
hec-592592 PHILIPPINE REPORTS ANNOTATEDDaywalt vs. Corporacin de
PP. Agustinos
Recoletos.taresofwildMindorolandwouldfurnishsufficientpasturageforone
thousand head of cattle during the entire year, and,
consideringthelocality,therateoffortycentavosperheadmonthlyseemstoohigh.
The evidence shows that after having recovered possession ofthe
land the plaintiff rented it to the defendant corporation for
fiftycentavosperhectareannually,thetenanttopaythetaxesontheland,
and this appears to be a reasonable rent. There is ,no
reasontosupposethatthelandwasworthmoreforgrazingpurposesduringtheperiod-from1909to1913,thanitwasatthelaterperiod.Uponthisbasistheplaintiffisentitledtodamagesin.thesumofP2,497,andisundernoobligationtoreimbursethedefendantsforthelandtaxespaidbyeitherfthemduringtheperiodthelandwasoccupiedbythedefendantcorporation.Itmaybe
mentioned in this connection that the Lontok tract adjoining
thelandinquestionandcontainingoverthreethousandhectaresappears to
have been leased for only P1,000 a year, plus the taxes."From this
it will be seen that the trial court estimated therental value of
the land for grazing purposes at 50
centavosperhectareperannum,androughlyadoptedtheperiodoffour years
as the time for which compensation at that
rateshouldbemade.Asthe.courthadalreadyfoundthatthe8/8/15, 6:25 AM
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was liable for these damages from June, 1,
1909,toMay1,1914,oraperiodoffouryearsandelevenmonths, there seems
some ground for the contention madein the appellant's first
assignment of error that the
court'scomputationwaserroneous,evenacceptingtheruleuponwhich the
damages were assessed, as it is manifest that
attherateof50centavosperhectareperannum,thedamagesforfouryearsandelevenmonthswouldbeP3,090.Notwithstandingthiscircumstance,weareoftheopinionthatthedamagesassessedaresufficienttocompensatetheplaintifffortheuseandoccupationofthelandduringthewholetimeitwasused.Thereisevidenceintherecordstronglytendingtoshowthatthewrongfuluse
of the593VOL. 39, FEBRUARY 4, 1919. 593Daywalt vs. Corporacin de
PP. Agustinos
Recoletos.landbythedefendantwasnotcontinuousthroughouttheyearbutwasconfinedmostlytotheseasonwhentheforageobtainableonthelandofthedefendantcorporationwas
not sufficient to maintain its cattle, for which reason
itbecamenecessarytoallowthemtogoovertopastureonthelandinquestion;anditisnotclearthatthewholeofthelandwasusedforpasturageatanytime.Considerations
of this character probably led the trial
courttoadoptfouryearsasroughlybeingtheperiodduringwhichcompensationshouldbeallowed.Butwhetherthiswas
advertently done or not, we see no sufficient reason, inthe
uncertainty of the record with reference to the numberof the cattle
grazed and the period when the land was
used,forsubstitutingourguessfortheestimatemadebythetrialcourt.InthesecondcauseofactionstatedinthecomplainttheplaintiffseekstorecoverfromthedefendantcorporationthesumofP500,000,asdamages,onthegroundthatsaidcorporation,foritsownselfishpurposes,unlawfully
induced Teodorica Endencia to refrain from
theperformanceofhercontractforthesaleofthelandin8/8/15, 6:25 AM
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=GuestquestionandtowithholddeliverytotheplaintiffoftheTorrenstitle,andfurther,maliciouslyandwithoutreasonablecause,maintainedherinherdefensetotheaction
of specific performance which was finally decided infavor of the
plaintiff in this court. The cause of action
herestatedisbasedonaliabilityderivedfromthewrongfulinterferenceofthedefendantintheperformanceofthecontract
between the plaintiff and Teodorica Endencia; andthe large damages
laid in the complaint were, according tothe proof submitted by the
plaintiff, incurred as a result
ofacombinationofcircumstancesofthefollowingnature:In1911,itappears,theplaintiff,astheownerofthelandwhich
he had bought from Teodorica Endencia entered
intoacontract(ExhibitC)withS.B.Wakefield,ofSanFrancisco, for the
sale and disposal of said lands to a sugargrowing and milling
enterprise, the successful launching ofwhich depended on the
ability of594594 PHILIPPINE REPORTS ANNOTATEDDaywalt vs. Corporacin
de PP. Agustinos
Recoletos.DaywalttogetpossessionofthelandandtheTorrenscertificateoftitle.Inordertoaccomplishthisend,theplaintiffreturnedtothePhilippineIslands,communicatedhisarrangementtothedefendant,andmaderepeatedeffortstosecuretheregisteredtitlefordeliveryincompliance
with said agreement with Wakefield.
TeodoricaEndenciaseemstohaveyieldedherconsenttotheconsummationofhercontract,buttheTorrenstitlewastheninthepossessionofPadreJuanLabargainManila,who
refused to deliver the document. Teodorica also was
intheendprevailedupontostandoutagainsttheperformanceofhercontractwiththeplaintiffwiththeresultthattheplaintiffwaskeptoutofpossessionuntiltheWakefieldprojectfortheestablishmentofalargesugargrowing
and milling enterprise fell through. In the light
ofwhathashappenedinrecentyearsinthesugarindustry,we feel justified
in saying that the project above referred
to,ifcarriedintoeffect,mustinevitablyhaveprovedagreatsuccess.8/8/15,
6:25 AM PHILIPPINE REPORTS ANNOTATED VOLUME 039Page 9 of 22
http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=GuestThedeterminationoftheissuepresentedinthissecondcauseofactionrequiresaconsiderationoftwopoints.Thefirst
is whether a person who is not a party to a contract
forthesaleoflandmakeshimselfliablefordamages,tothevendee,beyondthevalueoftheuseandoccupation,bycolludingwiththevendorandmaintaininghimintheefforttoresistanactionforspecificperformance.Thesecond
is whether the damages which the plaintiff seeks
torecoverunderthisheadaretooremoteandspeculativetobe the subject of
recovery.Aspreliminarytoaconsiderationofthefirstofthesequestions,
we deem it well to dispose of the contention thatthe members of the
defendant corporation, in advising
andpromptingTeodoricaEndencianottocomplywiththecontractofsale,wereactuatedbyimproperandmaliciousmotives.
The trial court found that this contention was
notsustained,observingthatwhileitwastruethatthecircumstances
pointed to an entire sympathy on the part595VOL. 39, FEBRUARY 4,
1919. 595Daywalt vs. Corporacin de PP. Agustinos
Recoletos.ofthedefendantcorporationwiththeeffortsofTeodoricaEndencia
to defeat the plaintiff's claim to the land, the
factthatitsofficialsmayhaveadvisedhernottocarrythecontractintoeffectwouldnotconstituteactionableinterference
with such contract. It may be added that
whenoneconsidersthehardshipthattheultimateperformanceofthatcontractentailedonthevendor,andthedoubtinwhichtheissuewasinvolvedtotheextentthatthedecision
of the Court of the First Instance was unfavorableto the plaintiff
and the Supreme Court itself was
dividedtheattitudeofthedefendantcorporation,asexhibitedintheconductofitsprocurador,JuanLabarga,andothermembersoftheorderoftheRecollectFathers,isnotdifficulttounderstand.Toourmindafairconclusiononthis
feature of the case is that father Juan Labarga and hisassociates
believed in good faith that the contract could
notbeenforcedandthatTeodoricawouldbewrongedifitshouldbecarriedintoeffect.Anyadviceorassistance8/8/15,
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guestwhich
they may have given was, therefore, prompted by
nomeanorimpropermotive.Itisnot,inouropinion,tobedeniedthatTeodoricawouldhavesurrenderedthedocuments
of title and given possession of the land but forthe influence and
promptings of members of the defendantcorporation. But we do not
credit the idea that they were
inanydegreeinfluencedtothegivingofsuchadvicebythedesiretosecuretothemselvesthepaltryprivilegeofgrazingtheircattleuponthelandinquestiontotheprejudice
of the just rights of the
plaintiff.Theattorneyfortheplaintiffmaintainsthat,byinterferingintheperformanceofthecontractinquestionandobstructingtheplaintiffinhiseffortstosecurethecertificateoftitletotheland,thedefendantcorporationmade
itself a co-participant with Teodorica Endencia in
thebreachofsaidcontract;andinasmuchasfatherJuanLabarga, at the time
of said unlawful intervention betweenthe contracting parties, was
fully aware of the existence ofthe contract (Exhibit C) which the
plaintiff had made with596596 PHILIPPINE REPORTS ANNOTATEDDaywalt
vs. Corporacin de PP. Agustinos
Recoletos.S.B.Wakefield,ofSanFrancisco,itisinsistedthatthedefendant
corporation is liable for the loss consequent uponthe failure of
the project outlined in said contract.In this connection reliance
is placed by the plaintiff uponcertain American and English
decisions in which it is
heldthatapersonwhoisastrangertoacontractmay,byanunjustifiableinterferenceintheperformancethereof,renderhimselfliableforthedamagesconsequentuponnon-performance.
It is said that the doctrine of these
caseswasrecognizedbythiscourtinGilchristvs.Cuddy(29Phil.Rep.,542);andwehavebeenearnestlypressedtoextendtherulethereenunciatedtothesituationherepresented.SomewhatmorethanhalfacenturyagotheEnglishCourtoftheQueen'sBenchsawitswaycleartopermitanactionfordamagestobemaintainedagainstastrangertoacontractwrongfullyinterferinginitsperformance.
The leading case on this subject is Lumley vs.8/8/15, 6:25 AM
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=GuestGye([1853],2El.&Bl.,216).Itthereappearedthattheplaintiff,asmanagerofatheatre,hadenteredintoacontractwithMissJohannaWagner,anoperasinger,wherebysheboundherselfforaperiodtosingintheplaintiff'stheatreandnowhereelse.Thedefendant,knowingoftheexistenceofthiscontract,and,asthedeclarationalleged,"maliciouslyintendingtoinjuretheplaintiff,"enticedandprocuredMissWagnertoleavetheplaintiff'semployment.Itwasheldthattheplaintiffwasentitledtorecoverdamages.Therightwhichwashererecognizedhaditsorigininarule,longfamiliartothecourts
of the common law, to the effect that any person whoentices a
servant from his employment is liable in damagesto the master. The
master's interest in the service
renderedbyhisemployeeishereconsideredasadistinctsubjectofjuridicalright.Itbeingthusacceptedthatitisalegalwrongtobreakuparelationofpersonalservice,thequestionnowarosewhetheritisillegalforonepersontointerferewithanycontractrelationsubsistingbetweenothers.PriortothedecisionofLumleyvs.Gye[supra]ithad
been supposed that the liability here597VOL. 39, FEBRUARY 4, 1919.
597Daywalt vs. Corporacin de PP. Agustinos
Recoletos.underconsiderationwaslimitedtothecasesoftheenticementofmenialservants,apprentices,andotherstowhomtheEnglishStatutesofLaborerswereapplicable.Butinthecasecitedthemajorityofthejudgesconcurredintheopinionthattheprincipleextendedtoallcasesofhiring.ThisdoctrinewasfollowedbytheCourtofAppealinBowenvs.Hall([1881],6Q.B.,Div.,333);andinTempertonvs.Russell([1893],1Q.B.,715),itwasheldthattherightofactionformaliciouslyprocuringabreachofcontractisnotconfinedtocontractsforpersonalservices,butextendstocontractsingeneral.Inthatcasethecontractwhichthedefendanthadprocuredtobebreached
was a contract for the supply of building
material.Maliceinsomeformisgenerallysupposedtobeanessentialingredientincasesofinterferencewithcontract8/8/15,
6:25 AM PHILIPPINE REPORTS ANNOTATED VOLUME 039Page 12 of 22
http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guestrelations.Butupontheauthoritiesitisenoughifthewrongdoer,havingknowledgeoftheexistenceofthecontractrelation,inbadfaithsetsabouttobreakit.up.Whether
his motive is to benefit himself or gratify his
spitebyworkingmischieftotheemployerisimmaterial.Malicein the sense
of ill-will or spite is not
essential.Uponthequestionastowhatconstituteslegaljustification,agoodillustrationwasputintheleadingcase.
If a party enters into contract to go for another upon
ajourneytoaremoteandunhealthfulclimate,andathirdperson, with a bona
fide purpose of benefiting the one
whoisundercontracttogo,dissuadeshimfromthestep,noactionwilllie..Butiftheadviceisnotdisinterestedandthepersuasionisusedfor"theindirectpurposeofbenefitingthedefendantattheexpenseoftheplaintiff,"theintermedlerisliableifhisadviceistakenandthecontract
broken.Thedoctrineembodiedinthecasesjustcitedhassometimesbeenfounduseful,inthecomplicatedrelationsof
modern industry, as a means of restraining the
activitiesoflaborunionsandindustrialsocietieswhenimproperlyengagedinthepromotionofstrikes.Anillustrationoftheapplication
of the doctrine in question in a case of this kind598598 PHILIPPINE
REPORTS ANNOTATEDDaywalt vs. Corporacin de PP. Agustinos
Recoletos.is found inSouthWalesMinersFederationvs.GlamorganCoal Co.
([1905], A. C., 239). It there appeared that
certainminersemployedintheplaintiff'scollieries,actingundertheorderoftheexecutivecouncilofthedefendantfederation,violatedtheircontractwiththeplaintiffbyabstainingfromworkoncertaindays.Thefederationandcouncilactedwithoutanyactualmaliceorill-willtowardstheplaintiff,andtheonlyobjectoftheorderinquestionwas
that the price of coal might thereby be kept up, a
factorwhichaffectedtheminer'swagescale.Itwasheldthatnosufficientjustificationwasshownandthatthefederationwas
liable.In the United States, the rule established in England
by8/8/15, 6:25 AM PHILIPPINE REPORTS ANNOTATED VOLUME 039Page 13 of
22
http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=GuestLumley
vs. Gye [supra] and subsequent cases is commonlyaccepted, though in
a few of the States the broad idea
thatastrangertoacontractcanbeheldliableUponitisrejected, and in
these jurisdictions the doctrine, if
acceptedatall,islimitedtothesituationwherethecontractisstrictlyforpersonalservice.(Boysonvs.Thorn,98Cal.,578;Chambers&Marshallvs.Baldwin91Ky.,121;Bourlier
vs. Macauley, 91 Ky., 135; Glencoe Land & GravelCo. vs. Hudson
Bros. Com. Co., 138 Mo.;
439.)Itshouldbeobservedinthisconnectionthat,accordingtotheEnglishandAmericanauthorities,noquestioncanbemadeastotheliabilityofonewhointerfereswithacontractexistingbetweenothersbymeanswhich,underknownlegalcanons,canbedenominatedanunlawfulmeans.Thus,ifperformanceispreventedbyforce,intimidation,
coercion, or threats, or by false or
defamatorystatements,orbynuisanceorriot,thepersonusingsuchunlawful
means is, under all the authorities, liable for
thedamagewhichensues.AndinjurisdictionswherethedoctrineofLumleyvs.Gye[supra]isrejected,noliabilitycanarisefromameddlesomeandmaliciousinterferencewithacontractrelationunlesssomesuchunlawfulmeansasthosejustindicatedareused.(Seecaseslastabovecited.)This
brings us to the decision made by this court in599VOL. 39, FEBRUARY
4, 1919. 599Daywalt vs. Corporacin de PP. Agustinos
Recoletos.Gilchrist vs. Cuddy(29Phil.Rep.,542).Itthereappearedthat
one Cuddy, the owner of a cinematographic film, let
itunderarentalcontracttotheplaintiffGilchristforaspecifiedperiodoftime.Inviolationofthetermsofthisagreement,Cuddyproceededtoturnoverthefilmalsounderarentalcontract,tothedefendantsEspejoandZaldarriaga.GilchristthereuponrestoredtotheCourtofFirst.Instanceandprocuredaninjunctionrestrainingthedefendantsfromexhibitingthefilminquestionintheirtheater
during the period specified in the contract of
CuddywithGilchrist.Uponappealtothiscourtitwasineffect8/8/15, 6:25
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guestheldthattheinjunctionwasnotimproperlygranted,although
the defendants did not, at the time their
contractwasmade,knowtheidentityoftheplaintiffasthepersonholding the
prior contract but did know of the existence of
acontractinfavorofsomeone.Itwasalsosaidarguendo,thatthedefendantswouldhavebeenliableindamagesunder
article 1902 of the Civil Code, if the action had
beenbroughtbytheplaintifftorecoverdamages.Theforceoftheopinionis,wethink,somewhatweakenedbythecriticism
contained in the concurring opinion, wherein it issaid that the
question of breach of contract by
inducementwasnotreallyinvolvedinthecase.Takingthedecisionupon the
point which was really decided, it is authority
forthepropositionthatonewhobuyssomethingwhichheknows has been sold
to some other person can be restrainedfrom using that thing to the
prejudice of the person havingthe prior and better
right.Translatedintotermsapplicabletothecaseatbar,thedecisioninGilchristvs.Cuddy(29Phil.Rep.,542),indicatesthatthedefendantcorporation,havingnoticeofthesaleofthelandinquestiontoDaywalt,mighthavebeenenjoinedbythelatterfromusingthepropertyforgrazingitscattlethereon.Thatthedefendantcorporationis
also liable in this action for the damage resulting to
theplaintifffromthewrongfuluseandoccupationofthepropertyhasalsobeenalreadydetermined.Butitwillbeobserved600600
PHILIPPINE REPORTS ANNOTATEDDaywalt vs. Corporacin de PP. Agustinos
Recoletos.thatinordertosustainthisliabilityitisnotnecessarytoresorttoanysubtleexegesisrelativetotheliabilityofastrangertoacontractforunlawfulinterferenceintheperformancethereof.Itisenoughthatdefendantusedthepropertywithnoticethattheplaintiffhadapriorandbetter
right.Article1902oftheCivilCodedeclaresthatanypersonwhobyanactoromission,characterizedbyfaultornegligence,
causes damage to another shall be liable for the8/8/15, 6:25 AM
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so done. Ignoring so much of this article as
relatestoliabilityfornegligence,wetaketheruletobethataperson is
liable for damage done to another by any
culpableact;andby"culpableact"wemeananyactwhichisblameworthy when
judged by accepted legal standards. Theidea thus expressed is
undoubtedly broad enough to
includeanyrationalconceptionofliabilityforthetortiousactslikelytobedevelopedinanysociety.Thusconsidered,itcannot
be said that the doctrine of Lumley vs. Gye[supra]and related cases
is repugnant to the principles of the
civillaw.Nevertheless,itmustbeadmittedthatthecodesandjurisprudenceofthecivillawfurnishasomewhatuncongenialfieldinwhichtopropagatetheideathatastrangertoacontractmaybesuedforthebreachthereof.Article1257oftheCivilCodedeclaresthatcontractsarebindingonlybetweenthepartiesandtheirprivies.Inconformitywiththisithasbeenheldthatastrangertoacontract
has no right of action for the nonfulfillment of
thecontractexceptinthecaseespeciallycontemplatedinthesecond
paragraph of the same article. (Uy Tam and Uy Yetvs. Leonard,
30Phil.Rep.,471.)AsobservedbythiscourtinManilaRailroadCo.vs.CompaaTrasatlntica,R.G.No.
11318 (38 Phil. Rep., 875), a contract, when
effectuallyenteredintobetweencertainparties,determinesnotonlythecharacterandextentoftheliabilityofthecontractingpartiesbutalsothepersonorentitybywhomtheobligation
is exigible. The same idea should. apparently beap-601VOL. 39,
FEBRUARY 4, 1919. 601Daywalt vs. Corporacin de PP. Agustinos
Recoletos.plicablewithrespecttothepersonagainstwhomtheobligation of
the contract may be enforced; for it is
evidentthattheremustbeacertainmutualityintheobligation,and if the
stranger to a contract is not permitted to sue toenforce it, he
cannot consistently be held liable upon it.If the two antagonistic
ideas which we have just broughtinto juxtaposition are capable of
reconciliation, the process8/8/15, 6:25 AM PHILIPPINE REPORTS
ANNOTATED VOLUME 039Page 16 of 22
http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guestmustbeaccomplishedbydistinguishingclearlybetweentherightofactionarisingfromtheimproperinterferencewiththecontractbyastrangerthereto,consideredasanindependent
act generative of civil liability, and the right ofaction ex
contractu against a party to the contract
resultingfromthebreachthereof.However,wedonotproposeheretopursuethematterfurther,inasmuchas,forreasonspresentlytobestated,weareoftheopinionthatneitherthe
doctrine ofLumley vs.
Gye[supra]northeapplicationmadeofitbythiscourtinGilchristvs.Cuddy(29Phil.Rep.,542),affordsanybasisfortherecoveryofthedamages
which the plaintiff is supposed to have suffered
byreasonofhisinabilitytocomplywiththetermsoftheWakefield
contract.Whatevermaybethecharacteroftheliabilitywhichastrangertoacontractmayincurbyadvisingorassistingoneofthepartiestoevadeperformance,thereisonepropositionuponwhichallmustagree.Thisis,thatthestranger
cannot become more extensively liable in
damagesforthenonperformanceofthecontractthanthepartyinwhosebehalfheintermeddles.Toholdthestrangerliablefordamagesinexcessofthosethatcouldberecoveredagainsttheimmediatepartytothecontractwouldleadtoresults
at once grotesque and unjust. In the case at bar,
asTeodoricaEndenciawasthepartydirectlyboundbythecontract,itisobviousthattheliabilityofthedefendantcorporation,evenadmittingthatithasmadeitselfcoparticipant
in the breach of the contract, can in no
eventexceedhers.Thisleadsustoconsideratthispointtheextent of the
liability of Teodorica Endencia to the plaintiffby reason of her
failure602602 PHILIPPINE REPORTS ANNOTATEDDaywalt vs. Corporacin de
PP. Agustinos Recoletos.to surrender the certificate of title and
to place the plaintiffin
possession.ItshouldinthefirstplacebenotedthattheliabilityofTeodorica
Endencia for damages resulting from the
breachofhercontractwithDaywaltwasapropersubjectfor8/8/15, 6:25 AM
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=GuestadjudicationintheactionforspecificperformancewhichDaywaltinstitutedagainstherin1909andwhichwaslitigated
by him to a successful conclusion in this court, butwithout
obtaining any special adjudication with
referrencetodamages.Indemnificationfordamagesresultingfromthebreachofacontractisarightinseparablyannexedtoeveryactionforthefulfilmentoftheobligation(art.1124,CivilCode);anditisclearthatifdamagesarenotsoughtorrecoveredintheactiontoenforceperformancetheycannotberecoveredinanindependentaction.AstoTeodorica
Endencia, therefore, it should be considered thatthe right of
action to recover damages for the breach of
thecontractinquestionwasexhaustedinthepriorsuit.However,herattorneyshavenotseenfittointerposethedefense
of res
judicatainherbehalf;andasthedefendantcorporationwasnotapartytothataction,andsuchdefensecouldnotinanyeventbeofanyavailtoit,weproceed
to consider the question of the liability of TeodoricaEndencia for
damages without reference to this point.The most that can be said
with reference to the
conductofTeodoricaEndenciaisthatsherefusedtocarryoutacontract for
the sale of certain land and resisted to the lastan action for
specific performance in court. The result wasthat the plaintiff was
prevented during a period of severalyears from exerting that
control over the property which hewas entitled to exert and was
meanwhile unable to
disposeofthepropertyadvantageously.Now,whatisthemeasureofdamagesforthewrongfuldetentionofrealpropertybythevenderafterthetimehascomeforhimtoplacethepurchaser
in
possession?Thedamagesordinarilyandnormallyrecoverableagainstavendorforfailuretodeliverlandwhichhehascontracted603VOL.
39, FEBRUARY 4, 1919. 603Daywalt vs. Corporacin de PP. Agustinos
Recoletos.to deliver is the value of the use and occupation of the
landfor the time during which it is wrongfully withheld. And
ofcoursewherethepurchaserhasnotpaidthepurchase8/8/15, 6:25 AM
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guestmoney,
a deduction may be made in respect to the
interestonthemoneywhichconstitutesthepurchaseprice.Substantiallythesameruleholdswithrespecttotheliabilityofalandlordwhofailstoputhistenantinpossession
pursuant to a contract of lease. The measure
ofdamagesisthevalueoftheleaseholdinterest,oruseandoccupation,lessthestipulatedrent,wherethishasnotbeenpaid.Therulethatthemeasureofdamagesforthewrongfuldetentionoflandisnormallytobefoundinthevalue
of use and occupation is, we believe, one of the thingsthat may be
considered certain in the law (39 Cyc., 1630;
24Cyc.,1052;SedgewickonDamages,Ninthed.,sec.185.)almost as
wellsettled, indeed, as the rule that the
measureofdamagesforthewrongfuldetentionofmoneyistobefound in the
interest.Werecognizethepossibilitythatmoreextensivedamagesmayberecoveredwhere,atthetimeofthecreation
of the contractual obligation, the vendor, or lessor,is aware of
the use to which the purchaser or lessee desiresto put the property
which is the subject of the contract,
andthecontractismadewiththeeyesofthevendororlessoropentothepossibilityofthedamagewhichmayresulttothe
other party from his own failure to give possession.
Thecasebeforeusisnotofthischaracter,inasmuchasatthetime when the
rights of the parties under the contract
weredetermined,nothingwasknowntoanyofthemabouttheSanFranciscocapitalistwhowouldbewillingtobacktheproject
portrayed in Exhibit
C.Theextentoftheliabilityforthebreachofacontractmustbedeterminedinthelightofthesituationinexistenceatthetimethecontractismade;andthedamages
ordinarily recoverable are in all events limited
tosuchasmightbereasonablyforeseeninthelightofthefactsthenknowntothecontractingparties.Wherethepurchaser
desires604604 PHILIPPINE REPORTS ANNOTATEDDaywalt vs. Corporacin de
PP. Agustinos
Recoletos.toprotecthimself,inthecontingencyofthefailureofthe8/8/15,
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http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guestvendorpromptlytogivepossession,fromthepossibilityofincurringotherdamagesthansuchasareincidenttothenormal
value of the use and occupation, he should cause
tobeinsertedinthecontractaclauseprovidingforstipulatedamounttobepaiduponfailureofthevendortogivepossession;andnocasehasbeencalledtoourattentionwhere,intheabsenceofsuchastipulation,damages
have been held to be recoverable by the purchaserin excess of the
normal value of use and occupation. On
thecontrary,themostfundamentalconceptionsofthelawrelative to the
assessment of damages are inconsistent withsuch
idea.TheprinciplesgoverningthisbranchofthelawwereprofoundlyconsideredinthecaseofHadleyvs.Baxendale(9Exch.,341),decidedintheEnglishCourtofExchequerin1854;andafewwordsrelativetotheprinciplesgoverningtherecoveryofdamages,asexpoundedinthatdecision,willherebefoundinstructive.Thedecisioninthatcaseisconsideredaleadingauthorityinthejurisprudenceofthecommonlaw.TheplaintiffsinthatcasewereproprietorsofamillinGloucester,whichwaspropelledbysteam,andwhichwasengagedingrindingand
supplying meal and flour to customers. The shaft of theengine got
broken, and it became necessary that the brokenshaft be sent to an
engineer or foundry man at
Greenwich,toserveasamodelforcastingormanufacturinganotherthatwouldfitintothemachinery.ThebrokenshaftcouldbedeliveredatGreenwichontheseconddayafteritsreceiptbythecarrierItwasdeliveredtothedefendants,whowerecommoncarriersengagedinthatbusinessbetweenthesepoints,andwhohadtoldplaintiffsitwouldbedeliveredatGreenwichontheseconddayafteritsdeliverytothem,ifdeliveredatagivenhour.Thecarrierswereinformedthatthemillwasstopped,butwerenotinformed
of the special purpose for which the broken
shaftwasdesiredtobeforwarded.Theywerenottoldthemillwouldremainidleuntilthenewshaftwouldbereturned,or
that the new shaft could not605VOL. 39, FEBRUARY 4, 1919.
6058/8/15, 6:25 AM PHILIPPINE REPORTS ANNOTATED VOLUME 039Page 20
of 22
http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=GuestDaywalt
vs. Corporacin de PP. Agustinos
Recoletos.bemanufacturedatGreenwichuntilthebrokenonearrivedtoserveasamodel.Therewasdelaybeyondthetwo
days in delivering the broken shaft at Greenwich,
andacorrespondingdelayinstartingthemill.Noexplanationofthedelaywasofferedbythecarriers.Thesuitwasbroughttorecoverdamagesforthelostprofitsofthemill,causedbythedelayindeliveringthebrokenshaft.Itwasheld
that the plaintiff could not
recover.Thediscusioncontainedintheopinionofthecourtinthatcaseleadstotheconclusionthatthedamagesrecoverable
in case of the breach of a contract are two sorts,namely, (1) the
ordinary, natural, and in a sense necessarydamage; and (2) special
damages.Ordinarydamagesisfoundinallbreachesofcontractwhere there
are no special circumstances to distinguish thecase specially from
other contracts. The consideration
paidforanunperformedpromiseisaninstanceofthissortofdamage.Inallsuchcasesthedamagesrecoverablearesuch-asnaturallyandgenerallywouldresultfromsuchabreach,"accordingtotheusualcourseofthings."Incasesinvolvingonlyordinarydamagenodiscussioniseverindulgedastowhetherthatdamagewascontemplatedornot.
This is conclusively presumed from the immediatenessand
inevitableness of the damage, and the recovery of
suchdamagefollowsasanecessarylegalconsequenceofthebreach. Ordinary
damage is assumed as a matter of law tobe within the contemplation
of the
parties.Specialdamage,ontheotherhand,issuchasfollowslessdirectlyfromthebreachthanordinarydamage.Itisonlyfoundincasewheresomeexternalcondition,apartfromtheactualtermstothecontractexistsorintervenes,as
it were, to give a turn to affairs and to increase
damageinawaythatthepromisor,withoutactualnoticeofthatexternalcondition,couldnotreasonablybeexpectedtoforesee.Concerningthissortofdamage,Hadleyvs.Baxendale(1854)[supra]laysdownthedefiniteandjustrule
that before such damage can be recovered the
plaintiffmust6068/8/15, 6:25 AM PHILIPPINE REPORTS ANNOTATED VOLUME
039Page 21 of 22
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PHILIPPINE REPORTS ANNOTATEDDaywalt vs. Corporacin de PP. Agustinos
Recoletos.show that the particular condition which made the damagea
possible and likely consequence of the breach was knownto the
defendant at the time the contract was
made.Thestatementthatspecialdamagesmayberecoveredwherethelikelihoodofsuchdamagesflowingfromthebreach
of the contract is contemplated and foreseen by
thepartiesneedstobesupplementedbyapropositionwhich,thoughnotenunciatedinHadleyvs.Baxendale,isyetclearlytobedrawnfromsubsequentcases.Thisisthatwherethedamagewhichaplaintiffseekstorecoverasspecialdamageissofarspeculativeastobeincontemplationoflawremote,notificationofthespecialconditions
which make that damage possible cannot
renderthedefendantliabletherefor.Tobringdamageswhichwouldordinarilybetreatedasremotewithinthecategoryofrecoverablespecialdamages,itisnecessarythattheconditionshouldbemadethesubjectofcontractinsuchsenseastobecomeanexpressorimpliedtermoftheengagement.
Horne vs. Midland R. Co. (L. R., 8 C. P.,
131)isacasewherethedamagewhichwassoughttoberecoveredasspecialdamagewasreallyremote,andsomeof
the judges rightly placed the disallowance of the
damageonthegroundthattomakesuchdamagerecoverable,itmustsofarhavebeenwithinthecontemplationoftheparties
as to form at least an implied term of the
contract.Butothersproceededontheideathatthenoticegiventothedefendantwasnotsufficientlyfullanddefinite.Theresultwasthesameineitherview.Thefactsinthatcasewereasfollows:Theplaintiffs,shoemanufacturersatK,wereundercontracttosupplybyacertaindayshoestoafirm
in London for the French government. They
deliveredtheshoestoacarrierinsufficienttimeforthegoodstoreachLondonatthetimestipulatedinthecontractandinformed
the railroad agent that the shoes would be thrownback upon their
hands if they did not reach the
destinationintime.Thedefendantsnegligentlyfailedtoforwardthegoodindueseason.Thesalewasthereforelost,andthemarket
having fallen, the plaintiffs had to sell at a loss.8/8/15, 6:25 AM
PHILIPPINE REPORTS ANNOTATED VOLUME 039Page 22 of 22
http://www.central.com.ph/sfsreader/session/0000014f0a43fe8855b953e4000a0094004f00ee/p/ALV629/?username=Guest607VOL.
39, FEBRUARY 6, 1919. 607Ahern vs.
Julian.Intheprecedingdiscussionwehaveconsideredtheplaintiff'srightchieflyasagainstTeodoricaEndencia;andwhathasbeensaidsufficesinouropiniontodemonstratethatthedamageslaidunderthesecondcauseofactioninthecomplaintcouldnotberecoveredfromher,first,becausethedamagesinquestionarespecialdamageswhichwerenotwithincontemplationofthepartieswhenthe
contract was made, and secondly, because said damagesare too remote
to be the subject of recovery. This
conclusionisalsonecessarilyfataltotherightoftheplaintifftorecoversuchdamagesfromthedefendantcorporation,for,as
already suggested, by advising Teodorica not to
performthecontract,saidcorporationcouldinnoeventrenderitselfmoreextensivelyliablethantheprincipalinthecontract.Ourconclusionisthatthejudgmentofthetrialcourtshould
be affirmed, and it is so ordered, with costs againstthe
appellant.Arellano,C.J.,Torres,Carson,Araullo,Malcolm,Avancea, and
Moir, JJ., concur.Judgment affirmed.____________ Copyright 2015
Central Book Supply, Inc. All rights reserved.8/8/15, 6:26 AM
SUPREME COURT REPORTS ANNOTATED VOLUME 018Page 1 of 21
http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=GuestVOL.
18, SEPTEMBER 28, 1966 155Air France vs. CarrascosoNo. L-21438.
September 28, 1966.AIR FRANCE, petitioner, vs.. RAFAEL CARRASCOSO
andthe HONORABLE COURT OF APPEALS,
respondents.Commoncarriers;Contracts;Firstclasstickets.Awrittendocumentspeaksauniformlanguage;thespokenwordcouldbenotoriouslyunreliable.Ifonlytoachievestabilityintherelationsbetweenpassengerandaircarrier,adherencetothetermsofaticket
is desirable.Same; Damages; Moral damages; Trial;
Badfaithinbreachofcontractofcarriage.Whereatthestartofthetrial,respondent'scounselplacedpetitioneronguardthatheintendedtoprovethat,whilesittingintheplaneinBangkok,therespondentwasousted.bypetitioner'smanager,whogavehisseattoawhiteman,andevidenceofbadfaithinthefulfillmentofthecontractwaspresentedwithoutobjectiononthepartofthepetitioner,itisthereforeunnecessarytoinquireastowhetherornotthereissufficientavermentinthecomplainttojustifyanawardformoraldamages.Deficiencyinthecomplaint,ifany,wascuredbytheevidence.Same;Exemplarydamages.TheNewCivilCodegivesthecourtamplepowertograntexemplarydamagesincontractsandquasi-contracts.Theonlyconditionisthatdefendantshouldhaveactedinawanton,fraudulent,reckless,oppressive,ormalevolentmanner.ThemannerofejectmentofrespondentCarrascosofromhis
first class seat fits into this legal
precept.Same;Attorney'sfees.Therighttoattorney'sfeesisfullyestablished.Thegrantofexemplarydamagesjustifiesasimilarjudgmentforattorney'sfees.Theleastthatcanbesaidisthatthecourts
below felt that it is but just and equitable that attorneys
fees8/8/15, 6:26 AM SUPREME COURT REPORTS ANNOTATED VOLUME 018Page
2 of 21
http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Guestbegiven.Wedonotintendtobreaktraditionthatdiscretionwellexercisedas
it was hereshould not be disturbed.156156 SUPREME COURT REPORTS
ANNOTATEDAir France vs.
CarrascosoPETITIONforreviewbycertiorariofadecisionoftheCourt of
Appeals.The facts are stated in the opinion of the Court. Lichauco,
Picazo & Agcaoili for
petitioner.Bengzon,Villegas&ZarragaforrespondentR.Carrascoso.SANCHEZ,
J.:The Court of First Instance of Manila1 sentenced petitionerto'
pay respondent Rafael Carrascoso P25,000.00 by way
ofmoraldamages;P10,000.00asexemplarydamages;P393.20representingthedifferenceinfarebetweenfirstclassandtouristclassfortheportionofthetripBangkok-Rome,thesevariousamountswithinterestatthelegalrate,
from the date of the filing of the complaint until paid;plus
P3,000.00 for attorneys' fees; and the costs of
suit.Onappeal,2theCourtofAppealsslightlyreducedtheamountofrefundonCarrascoso'splaneticketfromP393.20toP383.10,andvotedtoaffirmtheappealeddecision"inallotherrespects'',withcostsagainstpetitioner.The
case is now before us for review on
certiorari.ThefactsdeclaredbytheCourtofAppealsas"fullysupported by
the evidence of record",
are:"Plaintiff,acivilengineer,wasamemberofagroupof48Filipinopilgrims
that left Manila for Lourdes on March 30,
1958:OnMarch28,1958,thedefendant,AirFrance,throughitsauthorizedagent,PhilippineAirLines,Inc.,issuedtoplaintiffa'firstclass'roundtripairplaneticketfromManilatoRome.FromManilatoBangkok,plaintifftravelledin'firstclass',butatBangkok,theManagerofthedefendantairlineforcedplaintifftovacatethe'firstclass'seatthathewasoccupyingbecause,inthe8/8/15,
6:26 AM SUPREME COURT REPORTS ANNOTATED VOLUME 018Page 3 of 21
http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=GuestwordsofthewitnessErnestoG.Cuento,therewasa'whiteman',who,theManageralleged,hada'betterright'totheseat.Whenaskedtovacatehis'firstclass'seat,theplaintiff,aswastobeexpected,
refused,
and_______________1CivilCaseNo.38810,"RafaelCarrascoso,plaintiff,vs.AirFrance,defendant,"
R.A., pp.
79-80.2C.A.-G.R.No.26522-R,"RafaelCarrascoso,plaintiff-appellee,vs.AirFrance,
defendant-appellant."157VOL. 18, SEPTEMBER 28, 1966 157Air France
vs.
Carrascosotolddefendant'sManagerthathisseatwouldbetakenoverhisdeadbody;acommotionensued,and,accordingtosaidErnestoG,Cuento,
'many of the Filipino passengers got nervous in the
touristclass;whentheyfoundoutthatMr.Carrascosowashavingahotdiscussionwiththewhiteman[manager],theycameallacrosstoMr.CarrascosoandpacifiedMr.Carrascosotogivehisseattothewhiteman'(Transcript,p.12,HearingofMay26,1959);andplaintiff
reluctantly gave his 'first class' seat. in the
plane."31.Thetrustofthereliefpetitionernowseeksisthatwereview"allthefindings"4ofrespondentCourtofAppeals.Petitionerchargesthatrespondentcourtfailedtomakecompletefindingsoffactonalltheissuesproperlylaidbeforeit.Weareaskedtoconsider-factsfavorabletopetitioner,andthen,tooverturntheappellatecourt'sdecision.Comingintofocusistheconstitutionalmandatethat"Nodecisionshallberenderedbyanycourtofrecordwithoutexpressingthereinclearlyanddistinctlythefactsandthelawonwhichitisbased".5Thisisechoedinthestatutory
demand that a judgment determining the
meritsofthecaseshallstate"clearlyanddistinctlythefactsandthe law on
which it is based" ;6 and that "Every decision ofthe Court of
Appeals shall contain complete findings of facton all issues
properly raised before
it".7Adecisionwithabsolutelynothingtosupportitisa8/8/15, 6:26 AM
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http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Guestnullity.
It is open to direct attack.8 The law, however,
solelyinsiststhatadecisionstatethe"essentialultimatefacts"uponwhichthecourt'sconclusionisdrawn,9Acourtofjusticeisnothideboundtowriteinitsdecisioneverybitand
piece of evidence10 presented by one party________________3
Appendix A, petitioner's brief, pp. 146-147. See also R.A., pp.
66-67.4 Petitioner's brief, p. 142.5 Section 12, Article VIII,
Constitution.6Section1,Rule36,RulesofCourt.SeealsoSection2,Rule120,inreference
to judgments in criminal cases.7 Sec. 4, Rule 51; Sec. 33(2),
Judiciary Act of 1948, as
amended.8Edwardsvs.McCoy,22Phil.598,601;Yangcovs.CourtofFirstInstance
of Manila, et al., 29 Phil. 183, 191.9 Braga vs. Millora, 3) Phil.
458, 465.10 Id.158158 SUPREME COURT REPORTS ANNOTATEDAir France vs.
Carrascosoandtheotherupontheissuesraised.Neitherisittobeburdened
with the obligation "to specify in the sentence thefacts"
whichaparty"consideredasproved".11 This is but apart of the mental
process from which the Court draws
theessentialultimatefacts.Adecisionisnottobesocloggedwithdetailssuchthatprolixity,ifnotconfusion,mayresult.SolongasthedecisionoftheCourtofAppealscontains
the necessary facts to warrant its conclusions, it isno error for
said court to withhold therefrom "any specific
-findingoffactswithrespecttotheevidenceforthedefense". Because, as
this Court well observed, "There is nolaw that so requires".12
Indeed, "the mere failure to
specify(inthedecision)thecontentionsoftheappellantandthereasons for
refusing to believe them is not sufficient to holdthe same contrary
to the requirements of the provisions
oflawandtheConstitution".Itisinthissetting.thatinManigque, it was
held that the mere fact that the findings8/8/15, 6:26 AM SUPREME
COURT REPORTS ANNOTATED VOLUME 018Page 5 of 21
http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Guest"werebasedentirelyontheevidencefortheprosecutionwithouttakingintoconsiderationorevenmentioningtheappellant'ssideinthecontroversyasshownbyhisowntestimony",wouldnotvitiatethejudgment.13Ifthecourtdid
not recite in the decision the testimony of each
witnessfor,oreachitemofevidencepresentedby,thedefeatedparty, it
does not mean that the court has overlooked suchtestimony or such
item of evidence.14 At any rate, the
legalpresumptionsarethatofficialdutyhasbeenregularlyperformed,andthatallthematterswithinanissueinacase
were laid before the court and passed upon by it.15Findings of
fact, which the Court of Appeals is
requiredtomake,maybe*definedas"thewrittenstatementoftheultimate
facts as found by the court 'x 'x 'x and essential tosupport the
decision and judgment rendered_______________11 Aringo vs. Arena,
14 Phil. 263, 266; emphasis supplied.12 Reyes vs. People, 71 Phil.
598, 600.13 People vs. Manigque, 35 O.G., No. 94, pp. 1682, 1683,
citing
Section133oftheCodeofCivilProcedureandSection12,Art.VIII,Constitution,
supra.14 Badger, et al. vs. Boyd, 65 S.W. (2d), pp. 601, 610.15
Section 5, (m) and (o), Rule 131, Rules of Court*Editor's Note:
Should read may be.159VOL. 18, SEPTEMBER 28, 1966 159Air France vs.
Carrascosothereon".16Theyconsistofthecourt's"conclusions"withrespecttothedeterminativefactsinissue".17Aquestionoflaw,
upon the other hand. has been declared as "one
whichdoesnotcallforanexaminationoftheprobativevalueofthe evidence
presented by the
parties."182.Bystatute,"onlyquestionsoflawmayberaised"inanappealbycertiorarifromajudgmentoftheCourtofAppeals.19
That judgment is conclusive as to the facts. It
isnotappropriatelythebusinessofthisCourttoalterthefacts or to
review the questions of fact.208/8/15, 6:26 AM SUPREME COURT
REPORTS ANNOTATED VOLUME 018Page 6 of 21
http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=GuestWiththeseguideposts,wenowfacetheproblemofwhether
the findings of fact of the Court of Appeals supportits
judgment.3.WasCarrascosoentitledtothefirstclassseatheclaims?It is
conceded in all quarters that on March 28, 1958 hepaid to and
received from petitioner a first class ticket.
Butpetitionerassertsthatsaidticketdidnotrepresentthetrue and
complete intent and agreement of the parties;
thatsaidrespondentknewthathedidnothaveconfirmedreservationsforfirstclassonanyspecificflight,althoughhehadtouristclassprotection;that,accordingly,theissuanceofafirstclassticketwasnoguaranteethathewouldhaveafirstclassride,butthatsuchwoulddependupon
the availability of first class
seats.ThesearematterswhichpetitionerhasthoroughlypresentedanddiscussedinitsbriefbeforetheCourtofAppealsunderitsthirdassignmentoferror,whichreads:"Thetrialcourterredinfindingthatplaintiffhadconfirmedreservationsfor,andarightto,firstclassseatson
the 'definite' segments of his journey,
particularly_______________16 In re Good's Estate, 266 P. (2d), pp.
719, 729.17 Badger, et al. vs. Boyd, supra.18 Goduco vs. Court of
Appeals, et al., L-17647, February 28, 1964,19 Section 2, Rule 45,
Rules of Court, formerly Section 2, Rule 46 of theRules of
Court.20Medel,etal.vs.Calasanz,etal.,L-14835,August31,1960;Astraquillo,
et al. vs. Javier, et al., L-20034, January 30, 1965.160160 SUPREME
COURT REPORTS ANNOTATEDAir France vs. Carrascosothat from Saigon to
Beirut".21And,theCourtofAppealsdisposedofthiscontentionthus:"Defendant
seems to capitalize on the argument that the issuance of8/8/15,
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http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Guestafirst-classticketwasnoguaranteethatthepassengertowhomthe
same had been issued, would be accommodated in the
first-classcompartment,forasinthecaseofplaintiffhehadyettomakearrangementsuponarrivalateverystationforthenecessaryfirst-classreservation.Wearenotimpressedbysuchareasoning.Wecannotunderstandhowareputablefirmlikedefendantairplanecompanycouldhavetheindiscretiontogiveoutticketsitnevermeanttohonoratall.Itreceivedthecorrespondingamountinpayment
of first-class tickets and yet it allowed the passenger to
beatthemercyofitsemployees.Itismoreinkeepingwiththeordinary course
of business that the company should know whetheror not the tickets
it issues are to be honored or
not."22NotthattheCourtofAppealsisalone.Thetrialcourtsimilarly
disposed of petitioner's contention,
thus:"Onthefactthatplaintiffpaidfor,andwasissueda'First class'
ticket, there can be no question. Apart from
histestimony,seeplaintiff'sExhibits'A,'A-1','B','B-1','B-2','C' and
'C-1', and defendant's own witness. Rafael Altonaga,confirmed
plaintiff's testimony and testified as follows:Q. In these tickets
there are marks 'O.K.' From what youknow, what does this O.K.
mean?A. That the space is confirmed.Q. Confirmed for first class?A,
Yes, 'first class'. (Transcript, p. 169)xxxx"Defendant tried to
prove by the testimony of its
witnessesLuisZaldariagaandRafaelAltonagathatalthoughplaintiffpaidfor,andwasissueda'firstclass'airplaneticket,
the ticket was subject to confirmation in
Hongkong.Thecourtcannotgivecredittothetestimonyofsaidwitnesses.Oralevidencecannotprevailoverwrittenevidence.andplaintiffsExhibits'A','A-1','B','B-1''C'and'C-1'
belie the testimony of said witnesses, and clearly
showthattheplaintiffwasissued,andpaidfor,afirstclassticket without
any reservation
whatever.Furthermore,ashereinaboveshown,defendant'sownwit-8/8/15,
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http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Guest_______________21
Petitioner's brief in the Court of Appeals, pp, 82-98.22 Decision
of the Court of Appeals, Appendix A, petitioner's brief,
pp.148-149,161VOL. 18, SEPTEMBER 28, 1966 161Air France vs.
CarrascosonessRafaelAltonagatestifiedthatthereservationfora'firstclass'accommodationfortheplaintiffwasconfirmed.Thecourtcannotbelievethataftersuchconfirmationdefendanthadaverbalunderstandingwithplaintiffthatthe
'first class' ticket issued to him by defendant wouild besubject to
confirmation in Hongkong."23We have heretofore adverted to the fact
that except for
aslightdifferenceofafewpesosintheamountrefundedonCarrascoso'sticket,thedecisionoftheCourtofFirstInstance
was affirmed by the Court of Appeals in all
otherrespects.Weholdtheviewthatsuchajudgmentofaffirmancehasmergedthejudgmentofthelowercourt.24Implicit
in that affirmance is a determination by the
CourtofAppealsthattheproceedingintheCourtofFirtsInstance was free
from prejudicial error and "all
questionsraisedbytheassignmentsoferrorandallquestionsthatmighthavebeenraisedaretoberegardedasfinallyadjudicatedagainsttheappellant".Soalso,thejudgmentaffirmed"mustberegardedasfreefromallerror".25Wereachedthispolicyconstructionbecausenothinginthedecision
of the Court of Appeals on this point would suggestthat its
findings of fact are in any way at war with those
ofthetrialcourt.NorwassaidaffirmancebytheCourtofAppealsuponagroundorgroundsdifferentfromthosewhichweremadethebasisoftheconclusionsofthetrialcourt.26If,
as petitioner underscores, a first-class-ticket holder
isnotentitledtoafirstclassset,nothwithstandingthefactthatseatavailabilityinapecificflightsisthereinconfirmed,
then an air passenger is placed in the hollow ofthe hands of an
airline. What security then can a passenger8/8/15, 6:26 AM SUPREME
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it will always be an easy matter for an airline
aidedbyitsemployees,tostrikeouttheverystipulationsintheticket,andsaythattherewasaverbalagreementtothecontrary.
What if the passenger hada a_______________23 R.A., pp. 67, 7324 5
B C.J.S., p. 295 ; 3 Am. Jur. 678.25 3 Am. Jur., pp. 677-678.26 See
Garcia Valdez vs. Seteraa Tuason, 40 Phil. 943, 951.162162 SUPREME
COURT REPORTS ANNOTATEDAir France vs.
Carrascososcheduletofulfill?Wehavelonglearnedthat,asarule,awrittendocumentspeaksauniformlanguage;thatspokenwordcouldbenotoriouslyunreliable.Ifonlytoachievestability
in the relations between passenger and air
carrier,adherencetotheticketsoissuedisdesirable.Suchisthecasehere.Thelowercourtsrefusedtobelievetheoralevidence
intended to defeat the covenants in the
ticket.TheforegoingaretheconsiderationswhichpointtotheconclusionthattherearefactsuponwhichtheCourtofAppeals
predicated the finding that respondent Carrascosohad a first class
ticket and was entitled to a first class seatat Bangkok, which is a
stopover in the Saigon to Beirut
legoftheflight.27Weperceiveno"welterofdistortionsbytheCourtofAppealsofpetitioner'sstatementofItsposition",aschargedbypetitioner.28Nordowesubscribetopetitioner'saccusationthatrespondentCarrascoso"surreptitiouslytookafirstclassseattoprovokeanissue".29Andthisbecause,aspetitionerstates,CarrascosowenttoseetheManagerathisofficeinBangkok"toconfirm
my seat and because from Saigon I) was told againto see the
Manager".30 Why, then, was he allowed to take afirst class seat in
the plane at Bangkok, if he had no seat?Or, if another had a better
right to the
seat?4.Petitionerassailsrespondentcourt'sawardofmoraldamages.Petitioner'strenchantclaimisthatCarrascoso's8/8/15,
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http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Guest"3.4.action
is planted upon breach of contract; that to authorizean award for
moral damages there must be______________27 Carrascosos ticket,
according to petitioner (brief, pp. 7-8), shows: Segment or leg
Carrier Flight No. Date of Departure1. Manila to Hongkong PAL 300A
March 302. Hongkong to Saigon VN(Air Vietnam) 693 March 313. Saigon
to Beirut AF (Air France) 245 March 3128 Petitioner's brief, p. 50;
see also id., pp. 37 and 46.29 Id., p. 103.30 Ibid., p. 102.163VOL.
18, SEPTEMBER 28, 1966 163Air France vs. Carrascosoan averment of
fraud or bad 'f aith ;31 and that the decisionof the Court of
Appeals fails to make a finding of bad
faith.Thepivotalallegationsinthecomplaintbearingonthisissue
are:ThatxxxplaintiffenteredintoacontractofaircarriagewiththePhilippineAirLinesforavaluableconsideration,thelatteractingasgeneralagentsforandinbehalfofthedefendant,underwhichsaidcontract,plaintiffwasentitledto,asdefendantagreedtofurnishplaintiff,FirstClasspassageondefendant'splaneduringtheentiredurationofplaintiff'stourofEuropewithHongkongasstartingpointuptoanduntilplaintiffs
return trip to Manila, x x
x.That,duringthefirsttwolegsofthetripfromHongkongtoSaigonandfromSaigontoBangkok,defendantfurnishedtotheplaintiffFirstClassaccommodationbutonlyafterprotestations,argumentsand/orinsistenceweremadebytheplaintiff
with defendant's employees.8/8/15, 6:26 AM SUPREME COURT REPORTS
ANNOTATED VOLUME 018Page 11 of 21
http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Guest5.6.2.That
finally, defendant failed to provide First Classpassage, but
instead furnished plaintiff only
TouristClassaccommodationsfromBangkoktoTeheranand/orCasablanca,xxxtheplaintiffhasbeencompelledbydefendant'semployeestoleavetheFirst
Class accommodation berths at Bangkok afterhe was already
seated.Thatconsequently,theplaintiff,desiringnorepetitionoftheinconvenienceandembarrassmentsbroughtbydefendant'sbreachofcontractwasforcedtotakeaPanAmericanWorldAirwaysplaneonhisreturntripfromMadridtoManila.32
xxxxxxxxxThatlikewise,asaresultofdefendant'sfailuretofurnishFirstClassaccommodationsaforesaid.plaintiffsufferedinconveniences,embarrassments,andhumiliations,therebycausingplaintiffmentalanguish,seriousanxiety,woundedfeelings,socialhumiliation,andthelikeinjury,resultinginmoraldamages
in the amount of
P30,000.00."33xxxxTheforegoing,inouropinion,substantiallyaver:First,That
there was a contract to furnish plaintiff a first_______________31
Article 2220, Civil Code reads: "Willful injury to property may be
alegalgroundforawardingmoraldamagesifthecourtshouldfindthat,underthecircumstances,suchdamagesarejustlydue.Thesameruleappliestobreachesofcontractwherethedefendantacted'fraudulentlyor
in bad faith."32 R.A., p. 2-4; italics supplied.33 R.A., p. 5;
second cause of action.164164 SUPREME COURT REPORTS ANNOTATEDAir
France vs. Carrascoso8/8/15, 6:26 AM SUPREME COURT REPORTS
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http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Guestclasspassagecovering,amongstothers,theBangkokTeheranleg;Second,Thatsaidcontractwasbreachedwhenpetitionerfailedtofurnishfirstclasstransportation
at Bangkok; and Third, That there was
badfaithwhenpetitioner'semployeecompelledCarrascosotoleavehisfirstclassaccommodationberth"afterhewasalreadyseated"andtotakeaseatinthetouristclass,byreasonofwhichhesufferedinconvenience,embarrassmentsandhumiliations,therebycausinghimmentalanguish,seriousanxiety,woundedfeelingsandsocialhumiliation,resultinginmoraldamages.Itistruethatthereisnospecificmentionofthetermbadfaithinthecomplaint.But,theinferenceofbadfaithisthere,itmaybedrawnfromthefactsandcircumstancessetforththerein.34
The contract was averred to establish the
relationbetweentheparties.Butthestressoftheactionisputonwrongf ul
expulsion.Quiteapartfromtheforegoingisthat(a)rightatthestart of the
trial, respondent's counsel placed petitioner
onguardonwhatCarrascosointendedtoprove:ThatwhilesittingintheplaneinBangkok,Carrascosowasousted
bypetitioner'smanagerwhogavehisseattoawhiteman;
35and(b)evidenceofbadfaith'inthefulfillmentofthecontract was
presented without objection on the part of
thepetitioner.Itis,therefore,unnecessarytoinquireastowhetherornotthereissufficientavermentinthecomplainttojustifyanawardformoraldamages.Deficiencyinthecomplaint,ifany,wascuredbytheevidence.
An amendment thereof to conform to the evidenceis not even
required.36 On the question of bad_______________34 Copeland vs,
Dunehoo, et al., 138 S.E., 267, 270. See also 25 C.J.S.,pp.
758-759; 15 Am. Jur., pp.
766-767.35StatementofAttorneyVillegasforrespondentCarrascosoinopencourt,
Respondent's brief, p.
33.36Section5,Rule10,RulesofCourt,inpartreads:''SEC.5.Amendmenttoconformtoorauthorizepresentationofevidence.Whenissues
not raised by the pleadings are tried by express or implied
consentoftheparties,theyshallbetreatedinallrespects,asiftheyhadbeenraisedinthepleadings.Suchamendmentofthepleadingsasmaybe8/8/15,
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http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Guestnecessarytocausethemtoconformtotheevidenceandtoraisetheseissuesmaybemadeuponmotionofanypartyatanytime,evenafterjudgment;
but failure so to amend does not affect165VOL. 18, SEPTEMBER 28,
1966 165Air France vs. Carrascosofaith, the Court of Appeals
declared:"ThattheplaintiffwasforcedoutofhisseatinthefirstclasscompartmentoftheplanebelongingtothedefendantAirFrancewhile
at Bangkok, and was transferred to the tourist class not
onlywithouthisconsentbutagainsthiswill,hasbeensufficientlyestablishedbyplaintiffinhistestimonybeforethecourt,corroboratedbythecorrespondingentrymadebythepurseroftheplane
in his notebook which notation reads as
follows:'First-classpassengerwasforcedtogotothetouristclassagainsthiswill,
and that the captain refused to intervene',and by the testimony of
an eye-witness, Ernesto G. Cuento, whowas a co-passenger. The
captain of the plane who was asked by
themanagerofdefendantcompanyatBangkoktointerveneevenrefused to do
so. It is noteworthy that no one on behalf of
defendantevercontradictedordeniedthisevidencefortheplaintiff.Itcouldhave
been easy for defendant to present its manager at Bangkok
totestifyatthetrialofthecase,oryettosecurehisdisposition;butdefendant
did neither.37The Court of Appeals further
stated"Neitheristhereevidenceastowhetherornotapriorreservationwasmadebythewhiteman.Hence,iftheemployeesofthedefendantatBangkoksoldafirst-classtickettohimwhenalltheseatshadalreadybeentaken,surelytheplaintiffshouldnothavebeenpickedoutastheonetosuffertheconsequencesandtobesubjected
to the humiliation and indignity of being ejected from
hisseatinthepresenceofothers.Insteadofexplainingtothewhitemantheimprovidencecommittedbydefendant'semployees,themanager
adopted the more drastic step of ousting the plaintiff
whowasthensafelyensconscedinhisrightfulseat.Weare8/8/15, 6:26 AM
SUPREME COURT REPORTS ANNOTATED VOLUME 018Page 14 of 21
http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Gueststrengthenedinourbeliefthatthisprobablywaswhathappenedthere,
by the testimony of defendant's witness Rafael Altonaga
who,whenaskedtoexplainthemeaningoftheletters'O.K.'appearingon the
tickets of plaintiff, said 'that the space is confirmed' for
firstclass.Likewise,ZenaidaFaustino,anotherwitnessfordefendant,whowasthechiefoftheReservationOfficeofdefendant,testifiedas
follows:'Q. How does the person in the ticket-issuing
office_______________the result of the trial of these issues. 'x x
x"; Co Tiamco vs. Diaz, etc., et al.,75 Phil. 672, 679; J.M. Tuason
,& Co., Inc., etc. vs. Bolaos, 95 Phil. 106, 110.37 Decision,
Court of Appeals, Appendix A of petitioner's brief, pp,
147-148.166166 SUPREME COURT REPORTS ANNOTATEDAir France vs.
Carrascosoknow what reservation the passenger has arranged with you
?A.Theycallusupbyphoneandaskfortheconfirmation.'(t.s.n.,p.247, June
19, 1959)Inthisconnection,wequotewithapprovalwhatthetrialJudge has
said on this point:'Why did the, using the .words of witness
Ernesto G. Cuento,
'whiteman'havea'betterright'totheseatoccupiedbyMr.Carrascoso?The
record is silent. The defendant airline did not prove 'any
better',nay, any right on the part of the 'white man' to the 'First
class'
seatthattheplaintiffwasoccupyingandforwhichhepaidandwasissued a
corresponding 'first class'
ticket.'lftherewasajustifiedreasonfortheactionofthedefendant'sManagerinBangkok,thedefendantcouldhaveeasilyprovenitbyhaving
taken the testimony of the said Manager by deposition,
butdefendantdidnotdoso;thepresumptionisthatevidencewillfullysuppressedwouldbeadverseifproduced[Sec.69,par(e),RulesofCourt];and,underthecircumstances,theCourtisconstrainedtofind,asitdoesfind.thattheManagerofthedefendantairlineinBangkok
not merely asked but threatened the plaintiff to throw himout of
the plane if he did not give up his 'first class seat because
the8/8/15, 6:26 AM SUPREME COURT REPORTS ANNOTATED VOLUME 018Page
15 of 21
http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=GuestsaidManagerwantedtoaccommodate,usingthewordsofthewitness
Ernesto G. Cuento, the 'white
man'."38ItisreallycorrecttosaythattheCourtofAppealsinthequotedportionfirsttranscribeddidnotusetheterm"badfaith".
But can it be doubted that the recital of facts
thereinpointstobadfaith?ThemanagernotonlypreventedCarrascosofromenjoyinghisrighttoafirstclassseat;worse,
he imposed his arbitrary will; he forcibly ejected himfrom his
seat, made him suffer the humiliation of having
togotothetouristclasscompartmentjusttogivewaytoanotherpassengerwhoserighttheretohasnotbeenestablished.Certainly,thisisbadfaith.Unless,ofcourse,badfaithhasassumedameaningdifferentfromwhatisunderstood
in law. For, "bad faith" contemplates a "state
ofmindaffirmativelyoperatingwithfurtivedesignorwithsome motive of
self-_______________38DecisionoftheCourtofAppeals,AppendixAofpetitioner'sbrief,pp.
147-151.167VOL. 18, SEPTEMBER 28, 1966 167Air France vs.
Carrascosointerest or ill will or for ulterior purpose, "39And if
the foregoing were not yet sufficient, there is theexpress finding
of bad faith in the judgment of the Court ofFirst Instance,
thus:"Theevidenceshowsthatdefendantviolateditscontractoftransportationwithplaintiffinbadfaith,withtheaggravatingcircumstancesthatdefendant'sManagerinBangkokwenttotheextentofthreateningtheplaintiffinthepresenceofmanypassengers
to have him thrown out of the airplane to give the
'firstclass'seatthathewasoccupyingto,againusingthewordsofthewitnessErnestoG.Cuento,a'whiteman'whomhe(defendant'sManager)wishedtoaccommodate,andthedefendanthasnotproventhatthis'whiteman'hadany'betterright'tooccupythe8/8/15,
6:26 AM SUPREME COURT REPORTS ANNOTATED VOLUME 018Page 16 of 21
http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=Guest'first
class' seat that the plaintiff was occupying, duly paid for,
andforwhichthecorresponding'firstclass'ticketwasissuedbythedefendant
to him."405.Theresponsibilityofanemployerforthetortiousactofits
employees need not be essayed. It is well settled in
law.41Forthewillfulmalevolentactofpetitioner'smanager,petitioner,hisemployer,mustanswer.Article21oftheCivil
Code
says:"ART.21.Anypersonwhowilfullycauseslossorinjurytoanotherinamannerthatiscontrarytomorals,goodcustomsorpublicpolicy
shall compensate the latter for the
damage."Inparallelcircumstances,weappliedtheforegoinglegalprecept;and,weheldthatupontheprovisionsofArticle2219
(10), Civil Code, moral damages are recoverable.426. A contract to
transport passengers is quite different inkind and degree from any
other contractual relation.43
Andthis,becauseoftherelationwhichanair-carriersustainswiththepublic.Itsbusinessismainlywiththetravellingpublic.Itinvitespeopletoavailofthecomfortsandadvantages
it offers. The contract of air carriage, therefore,generates a
relation attended with_______________39 Words ,& Phrases, Perm.
Ed., Vol. 5, p. 13, citing Warfield NaturalGas Co. vs. Allen, 59
S.W. (2d) 534, 538.40 R.A., p. 74; italics supplied.41 Article
2180, Civil
Code.42PhilippineRefiningCo.vs.Garcia,etal.,L-21871andL-21962,September
27, 1966.43 See Section 4, Chapter 3, Title VIII, Civil Code.168168
SUPREME COURT REPORTS ANNOTATEDAir France vs.
Carrascosoapublicduty.Neglectormalfeasanceofthecarrier'semployees,naturally,couldgivegroundforanactionfordamages.8/8/15,
6:26 AM SUPREME COURT REPORTS ANNOTATED VOLUME 018Page 17 of 21
http://www.central.com.ph/sfsreader/session/0000014f0a44fefb80927b04000a0094004f00ee/p/AMG863/?username=GuestPassengersdonotcontractmerelyfortransportation.Theyhavearighttobetreatedbythecarriersemployeeswithkindness,respect,courtesyanddueconsideration.Theyareentitledtobeprotectedagainstpersonalmisconduct,injuriouslanguage,indignitiesandabusesfrom
such employees. So it is, that any rule or discourteousconduct on
the part of employees towards a passenger givesthe latter an action
for damages against the
carrier.44Thus,"Whereasteamshipcompany45hadacceptedapassenger'scheck,itwasabreachofcontractandatort,giving
a right of action for its agent in the presence of
thirdpersonstofalselynotifyherthatthecheckwasworthlessanddemandpaymentunderthreatofejection,thoughthelanguage
used was not insulting and she was not
ejected."46Andthis,because,althotherelationofpassengerandcarrieris"contractualbothinoriginandnature"nevertheless
"the act that breaks the contract may be
alsoatort".47Andinanothercase,"Whereapassengeronarailroadtrain,whentheconductorcametocollecthisfaretenderedhimthecashfaretoapointwherethetrainwasschedulednottostop,andtoldhimthatassoonasthetrainreachedsuchpointhewouldpaythecashfarefromthat
point to destination, there was nothing in the
conductofthepassengerwhichjustifiedtheconductorinusinginsultinglanguagetohim,asbycallinghimalunatic."48andtheSupremeCourtofSouthCarolinathereheldthecarrier
liable for the mental suffering of said passenger.Petitioner's
contract with Carrascoso is one attended_______________44 4.
R.C.L., pp. 1174-1175.45 An air carrier is a common carrier; and
air transportation is
similaroranalogoustolandandwatertransportation.Mendozavs.PhilippineAir
Lines, Inc., 90 Phil. 836, 841-842.46 Austro-American S.S. Co. vs.
Thomas, 248 F. 231.47 Id., p. 233.48 Lipman vs. Atlantic Coast Line
R. Co., 93 S.E. 714, 716.169VOL. 18, SEPTEMBER 28, 1966 1698/8/15,
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France vs.
Carrascosowithpublicduty.ThestressofCarrascoso'sactionaswehav