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Republic of the PhilippinesSUPREME COURTManila THIRD DIVISION G.R. No. 88694 January 11, 1993 ALBENSON ENTERPRISES CORP., JESSE YAP, AND BENJAMIN MENDIONA, petitioners, vs.THE COURT OF APPEALS AND EUGENIO S. BALTAO, respondents. Puruganan, Chato, Chato & Tan for petitioners. Lino M. Patajo, Francisco Ma. Chanco, Ananiano Desierto and Segundo Mangohig for private respondent. BIDIN, J.: This petition assails the decision of respondent Court of Appeals inCA-GR CV No. 14948 entitled "Eugenio S. Baltao, plaintiff-appellee vs. Albenson Enterprises Corporation, et al, defendants-appellants", which modified the judgment of the Regional Trial Court of Quezon City, Branch XCVIII in Civil Case No. Q-40920 and ordered petitioner to pay private respondent, among others, the sum of P500,000.00 as moral damages and attorney's fees in the amount of P50,000.00. The facts are not disputed. In September, October, and November 1980, petitioner Albenson Enterprises Corporation (Albenson for short) delivered to Guaranteed Industries, Inc. (Guaranteed for short) located at 3267 V. Mapa Street, Sta. Mesa, Manila, the mild steel plates which the latter ordered. As part payment thereof, Albenson was given Pacific Banking Corporation Check No. 136361 in the amount of P2,575.00 and drawn against the account of E.L. Woodworks (Rollo, p. 148). When presented for payment, the check was dishonored for the reason "Account Closed." Thereafter, petitioner Albenson, through counsel, traced the origin of the dishonored check. From the records of the Securities and Exchange Commission (SEC), Albenson discovered that the president of Guaranteed, the recipient of the unpaid mild steel plates, was one "Eugenio S. Baltao." Upon further inquiry, Albenson was informed by the Ministry of Trade and Industry that E.L. Woodworks, a single proprietorship business, was registered in the name of one "Eugenio Baltao". In addition, upon verification with the drawee bank, Pacific Banking Corporation, Albenson was advised that the signature appearing on the subject check belonged to one "Eugenio Baltao." After obtaining the foregoing information, Albenson, through counsel, made an extrajudicial demand upon private respondent Eugenio S. Baltao, president of Guaranteed, to replace and/or make good the dishonored check. Respondent Baltao, through counsel, denied that he issued the check, or that the signature appearing thereon is his. He further alleged that Guaranteed was a defunct entity and hence, could not have transacted business with Albenson. On February 14, 1983, Albenson filed with the Office of the Provincial Fiscal of Rizal a complaint against Eugenio S. Baltao for violation of Batas Pambansa Bilang 22. Submitted to support said charges was an affidavit of petitioner Benjamin Mendiona, an employee of Albenson. In said affidavit, the above- mentioned circumstances were stated. It appears, however, that private respondent has a namesake, his son Eugenio Baltao III, who manages a business establishment, E.L. Woodworks, on the ground floor of the Baltao Building, 3267 V. Mapa Street, Sta. Mesa, Manila, the very same business address of Guaranteed. On September 5, 1983, Assistant Fiscal Ricardo Sumaway filed an information against Eugenio S. Baltao for Violation of Batas Pambansa Bilang 22. In filing said information, Fiscal Sumaway claimed that he had given Eugenio S. Baltao
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Republic of the PhilippinesSUPREME COURTManilaTHIRD DIVISION G.R. No. 88694 January 11, 1993ALBENSON ENTERPRISES CORP., JESSE AP, AN! BENJAMIN MEN!IONA, petitioners, vs.T"E COURTO# APPEALS AN! EUGENIO S. BALTAO, respondents.Puruganan, Chato, Chato & Tan for petitioners.Lino M. Patajo, Francisco Ma. Chanco, Ananiano Desierto and Segundo Mangohig for private respondent. BI!IN, J.:This petition assails the decision of respondent ourt of !ppeals in!"#R V No. $%&%' entitled ()u*enio S.+altao, plaintiff"appellee vs. !lbenson )nterprises orporation, et al, defendants"appellants(, ,hich -odifiedthe .ud*-ent of the Re*ional Trial ourt of /ue0on it1, +ranch 2VIII in ivil ase No. /"%3&43 and orderedpetitioner to pa1 private respondent, a-on* others, the su- of P533,333.33 as -oral da-a*es and attorne16sfees in the a-ount of P53,333.33.The facts are not disputed.In Septe-ber, October, and Nove-ber $&'3, petitioner !lbenson )nterprises orporation 7!lbenson for short8delivered to #uaranteed Industries, Inc. 7#uaranteed for short8 located at 94:; V. Mapa Street, Sta. Mesa,Manila, the -ild steelplates ,hich the latter ordered. !s part pa1-ent thereof, !lbenson ,as *iven Pacific+anood,orH)R)?OR), .ud*-ent is hereb1 rendered in favor of plaintiff and a*ainst defendants orderin* the latter topa1 plaintiff .ointl1 and severall1F$. actual or co-pensator1 da-a*es of P$99,953.33G4. -oral da-a*es of P$,333,333.33 7$ -illion pesos8G9. e@e-plar1 da-a*es of P433,333.33G%. attorne16s fees of P$33,333.33G5 costs.Defendants6 counterclai- a*ainst plaintiff and clai- for da-a*es a*ainst Mercantile Insurance o. on the bondfor the issuance of the ,rit of attach-ent at the instance of plaintiff are hereb1 dis-issed for lac< of -erit.7Roo, pp. 9'"9&8.On appeal, respondent court -odified the trial court6s decision as follo,sF>H)R)?OR),thedecisionappealedfro-isMODI?I)Db1reducin* the-oral da-a*esa,arded thereinfro- P$,333,333.33 to P533,333.33 and the attorne16s fees fro- P$33,333.33 to P53,333.33, said decisionbein* hereb1 affir-ed in all its other aspects. >ith costs a*ainst appellants. 7Roo, pp. 53"5$8Dissatisfied ,ith the above rulin*, petitioners !lbenson )nterprises orp., Desse Eap, and +en.a-in Mendionafiled the instant Petition, alle*in* that the appellate court erred inF$. oncludin* that private respondent6s cause of action is not one based on -alicious prosecution but one forabuse of ri*hts under !rticle 4$ of the ivil ode not,ithstandin* the fact that the basis of a civil action for-alicious prosecution is !rticle 44$& in relation to !rticle 4$ or !rticle 4$;: of the ivil ode . . . .4. oncludin* that (hittin* at and in effect -ali*nin* 7private respondent8 ,ith an un.ust cri-inalcase ,as,,ithout -ore, a plain case of abuse of ri*hts b1 -isdirection( and (,as therefore, actionable b1 itself,( and,hich (beca-e inordinatel1 blatant and *rossl1 a**ravated ,hen . . . 7private respondent8 ,as deprived of hisbasic ri*ht to notice and a fair hearin* in the so"called preli-inar1 investi*ation . . . . (9. oncludin*that petitioner6s(actuationsinthiscase,erecoldl1deliberateandcalculated(, noevidencehavin* been adduced to support such a s,eepin* state-ent.%. Holdin* the petitioner corporation, petitioner Eap and petitioner Mendiona .ointl1 and severall1 liable ,ithoutsufficient basis in la, and in fact.5. !,ardin* respondents H5.$. P$99,953.33 as actual or co-pensator1 da-a*es, even in the absence of sufficient evidence to sho, thatsuch ,as actuall1 suffered.5.4. P533,333.33 as -oral da-a*es considerin* that the evidence in this connection -erel1 involved privaterespondent6s alle*ed celebrated status as a business-an, there bein* no sho,in* that the act co-plained ofadversel1 affected private respondent6s reputation or that it resulted to -aterial loss.5.9. P433,333.33 as e@e-plar1 da-a*es despite the fact that petitioners ,ere dul1 advised b1 counsel of theirle*al recourse.5.%. P53,333.33 as attorne16s fees, no evidence havin* been adduced to .ustif1 such an a,ard 7Roo, pp. %":8.Petitioners contend that the civil case filed in the lo,er court ,as one for -alicious prosecution. itin* the caseofMadera vs. Lope!7$34 SR! ;33 I$&'$J8, the1 assert that the absence of -alice on their part absolvesthe-fro-an1 liabilit1 for -alicious prosecution. Privaterespondent, ontheother hand, anchoredhisco-plaint for Da-a*es on !rticles $&, 43, and 4$ $$ of the ivil ode.!rticle$&, hen a ri*ht ise@ercised in a -anner ,hich does not confor- ,ith the nor-s enshrined in !rticle $& and results in da-a*e toanother, a le*al ,ron* is thereb1 co--itted for ,hich the ,ron*doer -ust be held responsible. !lthou*h thereBuire-ents of each provision is different, these three 798 articles are all related to each other. !s the e-inentivilist Senator !rturo Tolentino puts itF (>ith this article 7!rticle 4$8, co-bined ,ith articles $& and 43, thescope ofour la, on civil,ron*shas been ver1 *reatl1 broadenedGithas beco-e-uch -ore supple andadaptable than the !n*lo"!-erican la, on torts. It is no, difficult to conceive of an1 -alevolent e@ercise of ari*ht ,hich could not be chec