Petitioner
Snow Mountain Dairy Corporation
Respondent
Gma Veterans Force
Citation
G.R. No. 192446
Court
Supreme Court
Division
Third Division
Ponente
Peralta, J.
Decided
November 19, 2014

Summary

Snow Mountain Dairy Corporation entered a one-year security service agreement with GMA Veterans Force, Inc. but terminated it early without just cause or proper notice. The RTC and CA awarded actual damages based on the full contracted amount for the remaining period. However, the Supreme Court found insufficient evidence to establish actual loss since the contracted amount included security guards' wages, not just the agency's profit. The Court deleted the actual damages award and granted temperate damages of P200,000.00 instead, recognizing that while respondent suffered pecuniary loss from the breach, the exact amount could not be proven with certainty. This case clarifies the distinction between actual and temperate damages in contract breach situations.

Statutes applied

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By the Intellegal Editorial Board · November 19, 2014

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