Ismael G. Lomarda v. Engr. Elmer T. Fudalan

Summary

Respondent Fudalan applied for electrical service and employed authorized electrician who advised temporary tapping pending BAPA certification from chairperson Raso. Despite good faith efforts, Raso withheld certification and conspired with BOHECO I clerk Lomarda to extort P1,750.00 when only P20.00 was due. When respondent refused, they publicly humiliated him during disconnection. The Supreme Court affirmed liability under Articles 19 and 21 of Civil Code for abuse of rights, ruling that while petitioners' act of exacting compliance was legal, it was performed contrary to morals and good customs with intent to injure. The Court rejected the clean hands doctrine since respondent's technical failure resulted from petitioners' obstructive conduct. Damages were modified to P451.65 actual, P50,000.00 moral, P50,000.00 exemplary, and P25,000.00 attorney's fees, establishing precedent against abuse of authority positions to exploit consumers.