FIRST DIVISION
G.R. No. 186421*, April 17, 2017
ROBERTO P. FUENTES, Petitioner, v. PEOPLE OF THE PHILIPPINES, Respondent.
D E C I S I O N
PERLAS-BERNABE, J.:
Assailed in this petition for review on certiorari1 are the Decision2 dated September 30, 2008 and the Resolution3 dated February 16, 2009 of the Sandiganbayan in Crim. Case No. 28342, which found petitioner Roberto P. Fuentes4 (Fuentes) guilty beyond reasonable doubt of violation of Article 3 (e) of Republic Act No. (RA) 3019, entitled the "Anti-Graft and Corrupt Practices Act."5
That on January 8, 2002 and for sometime prior or subsequent thereto at the Municipality of Isabel, Province of Leyte, Philippines, and within the jurisdiction of this Honorable Court, above-named accused ROBERTO P. FUENTES, a high-ranking public officer, being the Municipal Mayor of Isabel, Leyte, in such capacity and committing the offense in relation to office, with evident bad faith and manifest partiality, did then and there, willfully, unlawfully and criminally cause undue injury to private complainant Fe N. Valenzuela by then and there refusing for unreasonable length of time, to renew the latter's Business Permit to engage in Ship Chandling Services in the Port of Isabel without any legal basis or reason despite the fact that Fe N. Valenzuela has complied with all the requirements and has been operating the Ship Chandling Services in the Port of Isabel since 1993, which act caused damage to the perishable ship provisions of Fe N. Valenzuela for M/V Ace Dragon and a denial of her right to engage in a legitimate business thereby causing damage and prejudice to Fe N. Valenzuela.On September 15, 2006, Fuentes pleaded "not guilty" to the aforesaid charge.7
CONTRARY TO LAW.6
Section 3. Corrupt practices of public officers. - In addition to acts or omissions of public officers already penalized by existing law, the following shall constitute corrupt practices of any public officer and are hereby declared to be unlawful:As may be gleaned above, the elements of violation of Section 3 (e) of RA 3019 are as follows: (a) that the accused must be a public officer discharging administrative, judicial, or official functions (or a private individual acting in conspiracy with such public officers); (b) that he acted with manifest partiality, evident bad faith, or inexcusable negligence; and (c) that his action caused any undue injury to any party, including the government, or giving any private party unwarranted benefits, advantage, or preference in the discharge of his functions.19
x x x x
(e) Causing any undue injury to any party, including the Government, or giving any private party any unwarranted benefit, advantage or preference in the discharge of his official administrative or judicial functions through manifest partiality, evident bad faith or gross inexcusable negligence. This provision shall apply to officers and employees of offices or government corporations charged with the grant of licenses or permits or other concessions.
"Partiality" is synonymous with "bias" which "excites a disposition to see and report matters as they are wished for rather than as they are." "Bad faith does not simply connote bad judgment or negligence; it imputes a dishonest purpose or some moral obliquity and conscious doing of a wrong; a breach of sworn duty through some motive or intent or ill will; it partakes of the nature of fraud." "Gross negligence has been so defined as negligence characterized by the want of even slight care, acting or omitting to act in a situation where there is a duty to act, not inadvertently but wilfully and intentionally with a conscious indifference to consequences in so far as other persons may be affected. It is the omission of that care which even inattentive and thoughtless men never fail to take on their own property."21 (Emphasis and underscoring supplied)In other words, there is "manifest partiality" when there is a clear, notorious, or plain inclination or predilection to favor one side or person rather than another. On the other hand, "evident bad faith" connotes not only bad judgment but also palpably and patently fraudulent and dishonest purpose to do moral obliquity or conscious wrongdoing for some perverse motive or ill will. It contemplates a state of mind affirmatively operating with furtive design or with some motive or self-interest or ill will or for ulterior purposes.22
In contrast, under Article 2224 [of the Civil Code], temperate or moderate damages may be recovered when the court finds that some pecuniary loss has been suffered but its amount cannot, from the nature of the case, be provided with certainty. This principle was thoroughly explained in Araneta v. Bank of America [148-B Phil. 124 (1971)], which cited the Code Commission, to wit:Under these circumstances, the Court holds that the award of temperate damages in the amount of P300,000.00 is proper, considering that Valenzuela's net income from the previous year, 2001, was P750,000.00. Further, such amount shall earn legal interest of six percent (6%) per annum from finality of this Decision until fully paid, in light of prevailing jurisprudence.32The Code Commission, in explaining the concept of temperate damages under Article 2224, makes the following comment:Thus, in Tan v. OMC Carriers, Inc. [654 Phil. 443 (2011)], temperate damages were rightly awarded because plaintiff suffered a loss, although definitive proof of its amount cannot be presented as the photographs produced as evidence were deemed insufficient. Established in that case, however, was the fact that respondent's truck was responsible for the damage to petitioner's property and that petitioner suffered some form of pecuniary loss. In Canada v. All Commodities Marketing Corporation [590 Phil. 342 (2008)], temperate damages were also awarded wherein respondent's goods did not reach the Pepsi Cola Plant at Muntinlupa City as a result of the negligence of petitioner in conducting its trucking and hauling services, even if the amount of the pecuniary loss had not been proven. In Philtranco Service Enterprises, Inc. v. Paras [686 Phil. 736 (2012)], the respondent was likewise awarded temperate damages in an action for breach of contract of carriage, even if his medical expenses had not been established with certainty. In People v. Briones [398 Phil. 31 (2000)], in which the accused was found guilty of murder, temperate damages were given even if the funeral expenses for the victim had not been sufficiently proven.In some States of the American Union, temperate damages are allowed. There are cases where from the nature of the case, definite proof of pecuniary loss cannot be offered, although the court is convinced that there has been such loss. For instance, injury to one's commercial credit or to the goodwill of a business firm is often hard to show with certainty in terms of money. Should damages be denied for that reason? The judge should be empowered to calculate moderate damages in such cases, rather than that the plaintiff should suffer, without redress from the defendant's wrongful act.
Given these findings, we are of the belief that temperate and not nominal damages should have been awarded, considering that it has been established that respondent herein suffered a loss, even if the amount thereof cannot be proven with certainty.
x x x x
Consequently, in computing the amount of temperate or moderate damages, it is usually left to the discretion of the courts, but the amount must be reasonable, bearing in mind that temperate damages should be more than nominal but less than compensatory.
Here, we are convinced that respondent sustained damages to its conveyor facility due to petitioner's negligence. Nonetheless, for failure of respondent to establish by competent evidence the exact amount of damages it suffered, we are constrained to award temperate damages. Considering that the lower courts have factually established that the conveyor facility had a remaining life of only five of its estimated total life of ten years during the time of the collision, then the replacement cost of P7,046,351.84 should rightly be reduced to 50% or P3,523,175.92. This is a fair and reasonable valuation, having taking into account the remaining useful life of the facility.31 (Emphases and underscoring supplied)
Endnotes:
* Part of the Court's Case Decongestion Program.
** Designated additional member per raffle dated June 8, 2009.
1Rollo, pp. 8-64.
2 Id. at 66-104. Penned by Associate Justice Alexander G. Gesmundo with Presiding Justice Diosdado M. Peralta (now a member of this Court) and Associate Justice Rodolfo A. Ponferrada concurring.
3 Id. at 105-129. Penned by Associate Justice Alexander G. Gesmundo with Associate Justices Norberto Y. Geraldez and Rodolfo A. Ponferrada concurring.
4 "Roberto P. Fuentes, Jr." in some parts of the records. See rollo pp. 174 and 180.
5 Approved on August 17, 1960.
6Rollo, pp. 66-67.
7 Id. at 67.
8 Not attached to the rollo.
9 Not attached to the rollo.
10 Not attached to the rollo.
11 See rollo, pp. 194 and 351.
12 See id. at 11.
13 Id. at 69-75.
14 Id. at 75-83.
15 Id. at 66-104.
16 Id. at 103.
17 Id. at 85-102.
18 Id. at 105-129.
19 See Cambe v. Ombudsman, G.R. Nos. 212014-15, December 6, 2016, citing Presidential Commission on Good Government v. Navarro-Gutierrez, G.R. No. 194159, October 21, 2015, 773 SCRA 434, 446.
20 744 Phil. 214 (2014).
21 Id. at 229, citing Fonacier v. Sandiganbayan, 308 Phil. 660, 693-694 (1994).
22Uriarte v. People, 540 Phil. 474, 494 (2006); citations omitted.
23 Section 16 of the Local Government Code reads:Section 16. General Welfare. - Every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental of its efficient and effective governance, and those which are essential to the promotion of the general welfare. Within their respective territorial jurisdictions, local government units shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of the inhabitants.24 Section 444 (b) (3) (iv) of the Local Government Code reads:
Section 444. The Chief Executive: Powers, Duties, Functions and Compensation. - x x x
(b) For efficient, effective and economical governance the purpose of which is the general welfare of the municipality and its inhabitants pursuant to Section 16 of this Code, the municipal mayor shall:
x x x x
(3) Initiate and maximize the generation of resources and revenues, and apply the same to the implementation of development plans, program objectives and priorities as provided for under Section 18 of this Code, particularly those resources and revenues programmed for agro-industrial development and country-wide growth and progress and relative thereto, shall:
x x x x
(iv) Issue licenses and permits and suspend or revoke the same for any violation of the conditions upon which said licenses or permits had been issued, pursuant to law or ordinance.
25 See Lim v. Court of Appeals, 435 Phil. 857, 867 (2002).
26Garcia v. Sandiganbayan, 730 Phil. 521, 542 (2014), citing Reyes v. People of the Philippines, 641 Phil. 91, 107 (2010).
27 Section 9 (a) of RA 3019 reads:Section 9. Penalties for violations. - (a) Any public officer or private person committing any of the unlawful acts or omissions enumerated in Sections 3, 4, 5 and 6 of this Act shall be punished with imprisonment for not less than six years and one month nor more than fifteen years, perpetual disqualification from public office, and confiscation or forfeiture in favor of the Government of any prohibited interest and unexplained wealth manifestly out of proportion to his salary and other lawful income.28 Article 2221 of the Civil Code reads:Article 2221. Nominal damages are adjudicated in order that a right of the plaintiff, which has been violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff for any loss suffered by him.29Seven Brothers Shipping Corporation v. DMC-Construction Resources, Inc., G.R. No. 193914, November 26, 2014, 743 SCRA 33, 43, citing Francisco v. Ferrer, 405 Phil. 741, 751 (2001).
30 See G.R. No. 221770, November 16, 2016.
31 See id., citing Seven Brothers Shipping Corporation v. DMC-Construction Resources, Inc., G.R. No. 193914, November 26, 2014, 743 SCRA 33, 44-46; citations omitted.
32 See Nacar v. Gallery Frames, 716 Phil. 267, 274-283 (2013).