4/9/2020
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there is no perfected employment contract between the parties, it is the RTC and not
the POEA, whose jurisdiction pertains only to claims arising from contracts involving
Filipino seamen, which has jurisdiction over the instant case.
Despite the finding that no contract was perfected between the parties, the Court of
Appeals adjudged C.F. Sharp and Rocha liable for damages, to wit:
WHEREFORE, the Appeal of C.F. Sharp Co Inc. and John J. Rocha is
PARTIALLY GRANTED only insofar as We declare that there is no breach of
contract because no contract of employment was perfected. However, We
find appellants C.F. Sharp Co. Inc. and John J. Rocha liable to plaintiffappellees for damages pursuant to Article 21 of the Civil Code and award
each plaintiff-appellees temperate damages amounting to P100,000.00, and
moral damages in the increased amount of P100,000.00. The award of
exemplary damages and attorney’s fees amounting to P50,000.00,
respectively, is hereby affirmed.[3]
The Court of Appeals limited the liability of Pioneer Insurance to the amount of
P150,000.00 pursuant to the Contract of Suretyship between C.F. Sharp and Pioneer
Insurance.
Rocha filed the instant petition on the submission that there is no basis to hold him
liable for damages under Article 21 of the Civil Code because C.F. Sharp has signified its
intention to return the documents and had in fact informed respondents that they may,
at any time of the business day, withdraw their documents. Further, respondents failed
to establish the basis for which they are entitled to moral damages. Rocha refuted the
award of exemplary damages because the act of requiring respondents to sign a
quitclaim prior to the release of their documents could not be considered bad faith.
Rocha also questions the award of temperate damages on the ground that the act of
withholding respondents’ documents could not be considered “chronic and
continuing.”[4]
Right off, insofar as Pioneer Insurance is concerned, the petition should be dismissed
against it because the ruling of the Court of Appeals limited its liability to P150,000.00
was not assailed by Rocha, hence the same has now attained finality.
Before us, respondents maintain that they are entitled to damages under Article 21 of
the Civil Code for C.F. Sharp’s unjustified refusal to release the documents to them and
for requiring them to sign a quitclaim which would effectively bar them from seeking
redress against petitioners. Respondents justify the award of other damages as they
suffered pecuniary losses attributable to petitioner’s malice and bad faith.
In his Reply, Rocha introduced a new argument, i.e., that he should not be held jointly
liable with C.F. Sharp considering that the company has a separate personality. Rocha
argues that there is no showing in the Complaint that he had participated in the
malicious act complained. He adds that his liability only stems from the Indemnity
Agreement with Pioneer Insurance and does not extend to respondents.
elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/21758
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