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PHILIPPINE TELEGRAPH v. CA

FACTS:

Lolita Sipe Escara filed a complaint for damages against the Philippine Telegraph & Telephone Corporation (PT&T) and Louie Cabalit. She received two telegraphic money orders from her sister-in-law, Felicitas Sipe, through PT&T in July 1990. The money orders, amounting to P2,000.00 and P1,000.00, were intended for Lolita's tuition fee, transportation expenses, and medical consultation for her son. Despite inquiries, PT&T informed Lolita that no money was transmitted in her favor. Lolita even sent telegrams to her husband and returned to the PT&T office to inquire, but only received the checks representing the remittance on September 14, 1990. Feeling aggrieved by the delay, Lolita filed for damages. The RTC ruled in her favor and awarded actual/compensatory damages, moral damages, exemplary damages, and costs. The Court of Appeals affirmed the decision but deleted the award of actual damages due to inadequate evidence. The appellate court found PT&T negligent in performing its obligations and liable for moral and exemplary damages.

ISSUES:

  1. Whether or not the Philippine Telegraph & Telephone Corporation (PT&T) and Louie Cabalit are liable for damages for the delay in the delivery of the remittance.

  2. Whether or not the award of actual damages is proper.

RULING:

  1. The Court of Appeals held that PT&T and Cabalit are liable for damages for the delay in the delivery of the remittance. They were found to have been negligent in ensuring the prompt delivery of the money to the plaintiff. The court noted that PT&T did not act with a sense of urgency and was indifferent towards the plaintiff's case. Thus, they were held liable under Article 1170 of the Civil Code.

  2. The Court of Appeals deleted the award of actual damages since the evidence presented by the plaintiff to prove pecuniary loss was found to be inadequate. However, the award of moral and exemplary damages was sustained.

PRINCIPLES:

  • Those who are guilty of fraud, negligence, or delay in the performance of their obligations are liable for damages under Article 1170 of the Civil Code.

  • To be awarded actual damages, the plaintiff must present sufficient evidence to prove pecuniary loss.

  • In the absence of adequate evidence for actual damages, an award of moral and exemplary damages may still be granted.