FIRST DIVISION
G.R. No. 211149, November 28, 2019
OSCAR LL. ARCINUE, PETITIONER, v. ALICE ILALO S. BAUN, RESPONDENT.
D E C I S I O N
LAZARO-JAVIER, J.:
1. Decision1 dated July 17, 2013 affirming the decision of the Regional Trial Court - Branch 57, San Carlos City, Pangasinan finding petitioner liable for damages.
2. Resolution2 dated January 28, 2014 denying petitioner's motion for reconsideration.
21. Franchisee may transfer its right of franchise to another entity or person within the ten-year term; provided that the transferee shall be acceptable to Franchisor and hence subject to prior approval of Franchisor before effecting the transfer, and that the transferee shall continue to have the rights of the franchise only within the unexpired period of the term.4Three (3) years later, Arcinue still had not commenced operation. Not only that. He also sold his franchise to respondent Alice Ilalo S. Baun for P85,000.00 without ACLC's prior approval. After the sale though, Baun immediately took steps to set-up the computer school. She leased a building and hired an architect for renovations to conform with ACLC's specifications.5 Upon ACLC's inspection, however, the proposed school building did not meet its standards since the total floor area was inadequate. More, ACLC found out that Bauri was a director of a school in San Carlos, Pangasinan which likewise offered computer courses.6
WHEREFORE, premises considered, this case is DISMISSED as against defendant AMA.Arcinue appealed to the Court of Appeals but only impleaded Baun as defendant-appellee. Thus, the trial court's decision had become final and executory insofar as ACLC is concerned.
Defendant Arcinue is hereby ordered to pay:
A. To the estate of the late plaintiff Alice Ilalo S. Baun:
1) The sum of P85,000.00 as actual damages, with legal interest at six percent (6%) per annum or a fraction thereof, from the time he unjustly received the said amount from the plaintiff in 1993 until the same is paid in full;
2) The sum of P50,000.00 as exemplary damages; and
3) The sum of P50,000.00 as moral damages.
B. To defendant AMA:
1) The sum of P100,000.00 as temperate damages in lieu of actual damages since while this defendant offered in evidence a list of figures of projected income losses in the seven years that defendant Arcinue failed to open and operate its computer school in Dagupan City, it failed to substantiate the same with sufficient specifics and thus the Court finds the same speculative.
2) The sum of P50,000.00 as exemplary damages; and
3) The sum of P25,000.00 as moral damages.
SO ORDERED.
For the same reason, we would ordinarily disregard the petitioner's allegation as to the propriety of the award of moral damages and attorney's fees in favor of the respondent as it is a question of fact. Thus, questions on whether or not there was a preponderance of evidence to justify the award of damages or whether or not there was a causal connection between the given set of facts and the damage suffered by the private complainant or whether or not the act from which civil liability might arise exists are questions of fact.Here, petitioner is essentially questioning his liability for damages claiming he did not act in bad faith in his dealings with ACLC and respondent Baun. His argument, however, requires a re-examination of the evidence presented by the parties during trial which the Court is precluded from doing so. This is especially true where the trial court's findings are adopted and affirmed by the Court of Appeals as in this case. While it is true that there are recognized exceptions to the general rule that only questions of law may be entertained in a Rule 45 petition, none obtains in this case.21
In Estores v. Spouses Supangan,27 the Court explained the meaning of forbearance of money, viz:xxx xxx xxx
- In the absence of stipulated interest, in a loan or forbearance of money, goods, credits or judgments, the rate of interest on the principal amount shall be the prevailing legal interest prescribed by the Bangko Sentral ng Pilipinas, which shall be computed from default, i.e., from extrajudicial or judicial demand in accordance with Article 1169 of the Civil Code, UNTIL FULL PAYMENT, without compounding any interest unless compounded interest is expressly stipulated by law or regulation. Interest due on the principal amount accruing as of judicial demand shall SEPARATELY earn legal interest at the prevailing rate prescribed by the Bangko Sentral ng Pilipinas, from the time of judicial demand UNTIL FULL PAYMENT.
xxx xxx xxx
Forbearance of money, good or credits should therefore refer to arrangements other than loan agreements, where a person acquiesces to the temporary use of his money, goods or credits pending happening of certain events or fulfillment of certain conditions. In this case, the respondent-spouses parted with their money even before the conditions were fulfilled. They have therefore allowed or granted forbearance to the seller (petitioner) to use their money pending fulfillment of the conditions. They were deprived of the use of their money for the period pending fulfillment of the conditions and when those conditions were reached, they are entitled not only to the return of the principal amount paid, but also to compensation for the use of their money. And the compensation for the use of their money, absent any stipulation, should be the same rate of legal interest applicable to a loan since the use or deprivation of funds is similar to a loan. (emphases supplied)Here, respondent paid petitioner P85,000.00 conditioned upon the supposed transfer of petitioner's franchise rights to operate ACLC's computer school. The transfer, however, never took place albeit petitioner retained respondent's payment. Respondent is thus entitled not only to the return of the principal amount she paid, but also to compensation for the use of her money.
SO ORDERED.
1) P85,000.00 as actual damages, with legal interest at twelve percent (12%) per annum from judicial demand on September 11, 1997 until June 30, 2013 and six percent (6%) per annum from July 1, 2013 until full payment; 2) Legal interest on the interest due in (1) at the rate of twelve percent (12%) per annum from judicial demand on September 11, 1997 up to June 30, 2013, and six percent (6%) per annum from July 1, 2013 until full payment; 3) P50,000.00 as exemplary damages; 4) P50,000.00 as moral damages; and 5) Legal interest of six percent (6%) per annum for (4), and (5) from the finality of this Decision until fully paid.
Endnotes:
* Additional member per Special Order No. 2726, October 25, 2019.
1 Penned by Associate Justice Danton Q. Bueser, with Justices Amelita G. Tolentino and Ramon R. Garcia, concurring, rollo, pp. 31-39.
2Rollo, pp. 41-42.
3Id. at 43-46.
4Id. at 46.
5Id. at 62-63.
6Id. at 63.
7Id. at 64-65.
8Id. at 65-66.
9Id. at 66.
10Id. at 33.
11 Article 19. Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith.
Article 20. Every person who, contrary to law, willfully or negligently causes damage to another, shall indemnify the latter for the same.
Article 21. Any person who willfully causes loss or injury to another in manner that is contrary to morals, good customs or public policy shall compensate the latte for the damage.
12Id. at 31-39.
13 CA Decision dated July 17, 2013, p. 8.
14Rollo, pp. 41-42.
15Id. at 17-19.
16Id. at 23.
17Id. at 107-113.
18Id. at 125-128.
19Gatan v. Vinarao, G.R. No. 205912, October 18, 2017, 842 SCRA 602, 610.
20 681 Phil. 39, 49-50 (2012).
21Clemente v. Court of Appeals, 771 Phil. 113, 121 (2015).
22 Section, Rule 87 of the Rules of Court provides: Actions which may and which may not be brought against executor or administrator. - No action upon a claim for the recovery of money or debt or interest thereon shall be commenced against the executor or administrator; but to recover real or personal property, or an interest therein, from the estate, or to enforce a lien thereon, and actions to recover damages for an injury to person or property, real or personal, may be commenced against him.
23 Article 19. Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith.
Article 20. Every person who, contrary to law, willfully or negligently causes damage to another, shall indemnify the latter for the same.
Article 21. Any person who willfully causes loss or injury to another in manner that is contrary to morals, good customs or public policy shall compensate the latter for the damage.
24 127 Phil. 399, 414 (1967).
25Id.
26 G.R. No. 225433, August 28, 2019. (Emphasis supplied)
27 686 Phil. 86, 96-97 (2012).