- Petitioner
- Philippine National Bank
- Respondent
- Court of Appeals (Navarro)
- Citation
- G.R. No. L-45770
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Fernan, J.
- Decided
- March 30, 1988
Whether moral and exemplary damages can be awarded to defendants in a civil case when the plaintiff filed the lawsuit without malice or bad faith
Summary
This case involves Philippine National Bank's lawsuit against employee Napoleon Navarro who defalcated P28,683.77, and the bank's attempt to annul Navarro's sale of property to the Medina spouses as fraudulent. The Medina spouses filed a counterclaim for damages, claiming the lawsuit damaged their reputation. The Supreme Court resolved the inconsistency between the Court of Appeals' finding that PNB acted without malice or bad faith and its award of moral damages to the Medina spouses. Applying Civil Code provisions and established jurisprudence, the Court held that moral damages require a wrongful act, and mere mental anguish from being sued without plaintiff's malice is insufficient. The Court emphasized that litigation is a precious right that cannot be penalized through damage awards absent bad faith, as this would discourage legitimate legal action and open doors to abuse.