G.R. No. L-24837 June 27, 1968
JULIAN C. SINGSON and RAMONA DEL CASTILLO, plaintiffs, vs. BANK OF THE PHILIPPINE ISLANDS and SANTIAGO FREIXAS, in his capacity as President of the said Bank, defendants.

FACTS

Plaintiff Julian C. Singson was a defendant in a civil case where a judgment was rendered against him and others, including Villa-Abrille & Co. Singson appealed, but Villa-Abrille & Co. did not, making the judgment final and executory against the latter. A writ of garnishment was served on the Bank of the Philippine Islands, where the Singsons had an account, but it was intended only for the credits of Villa-Abrille & Co. A bank clerk, upon seeing Singson’s name in the writ’s title and without reading its body to see it was only for Villa-Abrille & Co., prepared letters indicating Singson’s account was garnished. Consequently, the bank dishonored two checks issued by Singson. After being notified, Singson wrote to the bank. The bank president, Santiago Freixas, verified the error, apologized, and promptly rectified the mistake by removing the garnishment notice from Singson’s account. The Singsons then filed an action for damages against the bank and its president.

ISSUE

Whether the plaintiffs can recover damages from the defendants based on a quasi-delict (tort) despite the existence of a contractual relationship between them (as bank and depositor).

RULING

Yes. The Supreme Court reversed the lower court’s dismissal. It held that the existence of a contract does not bar the commission of a tort and the recovery of damages for it. An act that breaches a contract may also constitute a tort. Considering the facts, particularly that the bank promptly rectified its error upon discovery, the Court awarded nominal damages of P1,000 (which need not be proven) and attorney’s fees of P500 to vindicate the plaintiffs’ rights. The defendant Bank of the Philippine Islands was ordered to pay these amounts.