- Petitioner
- Equitable Banking Corporation
- Respondent
- Intermediate Appellate Court
- Citation
- G.R. No. 66070
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Aquino, J.
- Decided
- October 31, 1984
Summary
Equitable Banking Corporation filed a collection suit for P250 unpaid loan balance against the Villariza spouses and co-maker Fernando Contreras. The suit was filed December 22, 1977, and Contreras paid the amount the following day. The bank dismissed the collection case on February 14, 1978. Contreras and the Villarizas then sued for P80,000 moral damages claiming malicious prosecution. The trial court and Intermediate Appellate Court awarded P40,000 to Contreras only. The Supreme Court reversed, holding there was no malicious prosecution as the collection action was filed in good faith for a legitimately overdue amount. The Court applied the Inhelder Corporation precedent that unsuccessful suits filed in good faith do not warrant moral damages awards.