Petitioner cable company failed to deliver to respondent-spouses, both physicians, a cablegram from Mercy Hospital of Buffalo, New York, admitting respondent-wife for a rotating internship in said hospital, as a consequence of which, she was not able to signify her acceptance and the position was given to someone else. Such failure caused respondents financial difficulties in New York, due to loss of earnings for approximately six (6) months, serious anxiety and sleepless nights. Consequently, they sued petitioner for damages. The Trial Court found petitioner guilty of gross negligence’ and awarded respondents $5,417.00 as actual damages, P50,000.00 as moral damages, P50,000.00 as exemplary damages, and P10,000 as attorney’s fees. The Court of Appeals affirmed the decision. Hence, the instant petition. The issue of negligence involved being basically factual, the Supreme Court resolved to give partial due course in so far as the award of damages is concerned.

The Supreme Court held that while the petitioner has been grossly negligent in having failed to deliver the cablegram, and respondent-spouses are entitled to damages, the damages awarded by the trial court were excessive considering that petitioner is a quasi-public corporation affected with public interest; that respondents would have had to incur living and sundry expenses thereby reducing the net earnings which they would have received; and that respondent-wife succeeded in securing another better paying job six months afterwards.

Judgment modified by reducing the award of: (a) actual damages to the equivalent of $2,703.00 in Philippine currency at the prevailing exchange rate as of July 31, 1973; (b) moral damages, to P5,000.00; (c) exemplary damages, to P5,000.00; and (d) attorney’s fees, to P8,000.00.

CIVIL LAW; DAMAGES; MAY BE REDUCED IF FOUND EXCESSIVE, AS IN THE CASE AT BAR. — Where, as in the case at bar, the damages awarded by the trial court and affirmed by the Court of Appeals are found to be excessive considering that petitioner is a quasi- public corporation affected with public interest (Flynn v. Western U. Teleg. Co., 225 NW 242; Western U. Teleg. Co. v. Cowin, 20 F 2d 103, 74 Am. Jur. 2d, p. 301), that respondents would have had to incur living and sundry expenses, thereby reducing the net earnings which they would have received (see Villa Rey Transit, Inc. v. Court of Appeals, Et Al., 31 SCRA 551 [1970]), and that respondent-wife succeeded in securing another better-paying job approximately six months afterwards, the judgment should be modified by reducing the amounts granted.

R E S O L U T I O N

Ordinarily, the Petition for Review in this case would not merit being given due course because a close scrutiny of its allegations, the Comment of respondents thereon, and the Reply to said Comment shows that the issue of negligence involved is basically factual. However, we resolved to give partial due course in so far as the award of damages is concerned.

We agree that petitioner cable company should be faulted for having failed to deliver to respondent-spouses, both physicians, a cablegram from Mercy Hospital, Buffalo, New York, admitting respondent-wife for a rotating internship in said hospital, as a consequence of which, she was unable to signify her acceptance and the position was given to someone else. We agree with the finding of both the Trial Court and the Appellate Court that petitioner was grossly negligent in having admittedly failed to deliver the cablegram, particularly considering that respondents had received another telegram, identically addressed, delivered to them by Eastern Extension, another cable company. We also agree with the finding that such failure caused respondents financial difficulties in New York, due to loss of earnings for approximately six months serious anxiety and sleepless nights, for which petitioner should be held liable, and which should be corrected for the public good. A telegraph company is a public service corporation owing duties to the general public and is liable to a member of the public to whom it owes a duty for damages proximately flowing from a violation of that duty (Western U. Tel. Co. v. Ramsey, 88 SW 2d 675; Western Union Tel. Co. v. Caldwell, 102 SW 840, 74 Am. Jur., p. 444).

We find, however the award of damages made by the Trial Court and affirmed by the Court of Appeals to be excessive. The damages granted were as follows:jgc:chanrobles.com.ph

"x       x       x

"1. An amount in Philippine currency equivalent to 5,417 dollars computed at the prevailing exchange rate on July 31, 1973 the date when the complaint in the instant case was filed, as actual damages;

2. The amount of P50,000.00 as moral damages;

3. The amount of P50,000.00 as exemplary damages;

4. The amount of P10,000.00 for and as attorney’s fees.

x       x       x"

Taking into account the facts and circumstances, that petitioner is a quasi-public corporation affected with public interest (Flynn v. Western U. Teleg. Co. 225 NW 242; Western U. Teleg. Co. v. Cowin, 20 F 2d 103, 74 Am. Jur. 2d, p. 301), that respondents would have had to incur living and sundry expenses, thereby reducing the net earnings which they would have received (see Villa Rey Transit, Inc. v. Court of Appeals, Et Al., 31 SCRA 551 [1970]), and that respondent wife succeeded in securing another better-paying job approximately six months afterwards, the judgment should be modified by reducing the amounts granted.

ACCORDINGLY, the Decision appealed from is hereby modified by reducing the award of: a) actual damages, to the equivalent of $2,703.00 in Philippine currency at the prevailing exchange rate as of July 31, 1973; b) moral damages, to P5,000.00; c) exemplary damages, to P5,000.00; and d) attorney’s fees, to P8,000.00. In all other respects, the judgment is affirmed.

No costs.

SO ORDERED.

Teehankee (Chairman), Plana, Vasquez, Relova and Gutierrez, Jr., JJ., concur.