Expertravel & Tours v. The Hon. Court of Appeals

Summary

Expertravel & Tours filed a collection case against Ricardo Lo for unpaid travel services worth P39,677.20. Lo proved payment through checks issued via Expertravel's authorized representative. The trial court and Court of Appeals dismissed the case and awarded Lo moral damages and attorney's fees. The Supreme Court granted Expertravel's petition, deleting the moral damages award while affirming other aspects. The Court established that filing clearly unfounded civil suits, though potentially justifying attorney's fees awards, does not constitute grounds for moral damages. The decision emphasized that litigation anxiety cannot be basis for moral damages, as this would penalize the fundamental right to litigate and require damages in every case favoring defendants.