- Petitioner
- Petrophil Corporation
- Respondent
- Court of Appeals
- Citation
- G.R. No. 122796
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Quisumbing, J.
- Decided
- December 10, 2001
Summary
This case involves a commercial hauling contract dispute between Petrophil Corporation and Dr. Amanda Ternida-Cruz for petroleum product transportation services. While the contract allowed termination without cause with 30-day notice, Petrophil terminated Dr. Cruz's contract following her appearance at a picket line during a company strike. The Supreme Court found that although Petrophil had contractual right to terminate, the termination was done in bad faith as retaliation, constituting abuse of rights under Civil Code Article 19. The Court awarded damages to Dr. Cruz for unearned hauling charges and to her drivers for consequential loss of employment, applying tort liability principles. The decision establishes that even when contractual termination rights exist, they cannot be exercised in bad faith to prejudice the other party without legal consequences.