5/3/2021
E-Library - Information At Your Fingertips: Printer Friendly
expenses incurred by petitioner Ban Hua Uy Flores consisted not merely of the
attorney's fees and other litigation expenses but also other expenses related to the trial
of this case in Cebu City. Two (2) lawyers always attended the trial of the case. The
lawyers came from Manila. Petitioner Ban Hua Uy Flores had to come from Bacolod
City. The lawyers and petitioner Ban Hua Uy Flores not only incurred expenses for
plane fare but also for hotel accommodations and food, as well as other miscellaneous
expenses.
We find that respondent Johnny Uy acted in gross and evident bad faith in making a
false claim that he owned 100% of the Uy family investment in the Hongfil Shipping
Corporation. Despite the fact he had made a written admission that the investment in
the Hongfil Shipping venture in the amount of US$100,000.00 was for the Uy family,
stockholders of Soon Kee Commercial, he persisted in claiming as his own one hundred
(100%) percent of the investment. He managed to get a favorable judgment from the
lower court. On appeal, the Court of Appeals reversed the judgment and declared that
he was only entitled to 26% of the investment. For such acts, we rule that actual and
moral damages may be assessed against him. Actual or compensatory damages may
be awarded for wrongful acts or omissions.[21] Indeed, actual damages are primarily
intended to simply make good or replace the loss caused by a wrong.[22] However,
these must be duly proved and established with reasonable degree of certainty.[23] As
stated in the testimony of Ban Hua Uy Flores, which is not disputed, she spent
P215,506.00, as expenses of litigation, exclusive of attorney's fees.
On the other hand, "Moral damages are not punitive in nature but are designed to
compensate and alleviate in some way the physical suffering, mental anguish, fright,
serious anxiety, besmirched reputation, wounded feelings, moral shock, social
humiliation, and similar injury unjustly caused to a person. Although incapable of
pecuniary computation, moral damages, nevertheless, must somehow be proportional
to and in approximation of the suffering inflicted. Such damages, to be recoverable,
must be the proximate result of a wrongful act or omission the factual basis for which is
satisfactorily established by the aggrieved party."[24] However, it must be emphasized
that "moral damages are not intended to enrich a plaintiff at the expense of the
defendant. Such damages are awarded only to enable the injured party to obtain
means, diversion or amusement that will serve to obviate the moral suffering he has
undergone, by reason of the defendant's culpable action."[25]
Similarly, reasonable attorney's fees may be awarded to the prevailing parties who had
to endure a long drawn out litigation to establish their right.
IN VIEW WHEREOF, the Court hereby MODIFIES the decision of the Court of Appeals
and renders judgment, as follows:
1) ordering the Hongfil Shipping Corporation and Edward Tan Chona to remit to Johnny
and Magdalena Uy 26% and to Ban Hua Uy Flores, Ban Ha Uy Chua and Soon Kee
Commercial, Inc., 74% of the amount of US$100,000.00, or the peso equivalent
currently deposited with the Rizal Commercial Banking Corporation branch in Cebu City,
under Special Savings Account No. 7-445-00001-3;
https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/52802
8/11