SABA V.
CA
G.R. No. 77950 August 24, 1990
FACTS:
Pedro de la Cruz is a grantee of a lease of a portion of land in Laoang, Northern
Samar awarded to him by the Bureau of Lands. The award of lease was not presented in
court but its existence was not disputed by the parties. In 1939 ,wife of Pedro de la Cruz,
died and the estate became the subject of an intestate estate proceeding The leasehold
was included in this special proceeding wherein 50% thereof was adjudicated pro-
indiviso to Pedro de la Cruz while the other 50% was adjudicated pro-indiviso to the
children, namely: Jesus, Alfredo, Lourdes, Amada, Josefa, Genaro, Eufemio and Ramon,
all surnamed de la Cruz.
In 1953, private respondent Jose Ongchuan leased the warehouse from Pedro de
la Cruz. In 1959 or so, the seven children of Pedro de la Cruz, sold their leasehold rights
(7/8 of the 50% of MLA 810) to private respondent Emil Ong, while Lourdes C.
Agbayani sold her leasehold right (118) pro-indiviso to petitioner Isidro V. Saba
Later, Lourdes C. Agbayani sent a letter to private respondents notifying them of
the sale of her 1/8 share in the leasehold to petitioner and requested that payment of
rentals be given to the new owner instead of her. Private respondents did not heed the
request. Petitioner reiterated the demand of Lourdes C. Agbayani several times yet
private respondents ignored said demand. Thus, petitioner was forced to file a case for
collection of rentals against private respondents
On the other hand, private respondents prayed for moral and exemplary
damages as well as attorney's fees. They contended that the complaint is baseless and
intended to harass them. Because of this complaint, private respondent Emil Ong's
reputation as a businessman, CPA, lawyer and a convention delegate of Northern
Samar was tarnished and he was exposed to ridicule. Private respondent Jose
Ongchuan contended that his reputation as a respected businessman in the community
was likewise affected.
the trial court rendered judgment against petitioner, ordering plaintiff to pay to
defendants jointly and severally, P40,000.00 as moral damages; P30,000.00 as exemplary
damages and P15,000.00 as attorney's fees. With costs against plaintiff.
ISSUE:
Whether the award of damages is proper.
RULING:
No. Moral damages may be awarded to compensate one for diverse injuries such
as mental anguish, besmirched reputation, wounded feelings and social humiliation. It
is however not enough that such injuries have arisen; it is essential that they have
sprung from a wrongful act or omission, fraud, malice, or bad faith which was the
proximate cause.
Petitioner was in good faith when he filed the collection suit against private
respondents. He thought that by virtue of the sale of Lourdes C. Agbayani's leasehold
right to him, her right to 1/8 pro-indiviso of the property has already been transferred to
him, which includes the right to collect rentals. Lourdes C. Agbayani even notified the
private respondents that the property being rented by them has been sold to petitioner
The failure by private respondents to pay the rentals prompted petitioner to file a
complaint against them. A person may have erred but error alone is not a ground for
moral damages
ACCORDINGLY, the petition is hereby PARTLY GRANTED. The decision of the
respondent Court of Appeals is MODIFIED insofar as the award of moral damages,
exemplary damages and attorney's fees is concerned, which is DELETED.