GR L 66123; (August, 1984) (Digest)
G.R. No. L-66123 August 22, 1984
THE MANILA BANKING CORPORATION, petitioner, vs. INTERMEDIATE APPELLATE COURT AND WILFREDO J. RIVERA, respondents.
FACTS
On July 10, 1975, private respondent Wilfredo J. Rivera deposited P80,189.19 with petitioner Manila Banking Corporation. That same afternoon, he issued a check for P80,000.00 from his account payable to Collins Philippines. The check was dishonored upon presentation because the bank erroneously credited his deposit to a different account. Rivera received a demand letter from Collins Philippines expressing surprise and threatening to sever business relations and institute legal action.
Rivera complained to the bank, which rectified the error, and the check was subsequently honored. Nevertheless, Rivera filed a complaint for damages, claiming humiliation and embarrassment due to the bank’s gross negligence. The trial court awarded him actual, moral, exemplary damages, and attorney’s fees. The Intermediate Appellate Court modified this by eliminating the actual damages for lack of proof, awarding temperate damages instead, and reducing the attorney’s fees, but it affirmed the awards for moral and exemplary damages.
ISSUE
Whether the awards for temperate, moral, and exemplary damages, as well as attorney’s fees, were proper under the circumstances.
RULING
The Supreme Court modified the appellate court’s decision, further reducing the awards. The Court held that private respondent was not entitled to moral damages. Citing Singson vs. Bank of Philippine Islands, the Court ruled that since the bank’s error was rectified promptly—the check was honored upon re-presentation—any injury was sufficiently mitigated. The wrong done was remedied as soon as the mistake was realized.
However, temperate or moderate damages remained proper, not for indemnification of a proven loss, but for the vindication of a right that was violated or invaded by the bank’s negligence. Given the facts, a reduced sum was deemed sufficient for this purpose. Similarly, attorney’s fees were warranted but at a lower amount. The Court sentenced the petitioner bank to pay P5,000.00 as temperate damages and P5,000.00 as attorney’s fees, plus costs. The awards for moral and exemplary damages were deleted.