Monday, September 23, 2013

UYPITCHING V. QUIAMCO 510 SCRA 172 (2007)

Honeste vivere, non alterum laedere et jus suum cuique tribuere.
To live virtuously, not to injure others and to give everyone his due. These supreme norms of justice are the underlying principles of law and order in society.
FACTS:
·          In 1982, respondent Quiamco was approached by Davalan, Gabutero and Generoso to settle the civil aspect of a criminal case for robbery filed by Quiamco against them.
·          They surrendered to him a red Honda motorcycle and a photocopy of its certificate of registration. Respondent asked for the original certificate of registration but the three accused never came to see him again. 
·          Meanwhile, the motorcycle was parked in an open space inside respondent‘s business establishment, where it was visible and accessible to the public.
·          It turned out that, in October 1981, the motorcycle had been sold on installment basis to Gabutero by Uypitching Sons, Inc. And to secure its payment, the motorcycle was mortgaged to petitioner corporation.
·          When Gabutero could no longer pay the installments, Davalan assumed the obligation and continued the payments.
·          In September 1982, however, Davalan stopped paying the remaining installments.
·          Nine years later, petitioner Uypitching, accompanied by policemen, went to Avesco-AVNE Enterprises to recover the motorcycle.
·          The leader of the police team talked to the clerk in charge and asked for respondent. While P/Lt. Vendiola and the clerk were talking, petitioner Uypitching paced back and forth inside the establishment uttering "Quiamco is a thief of a motorcycle."
·          Unable to find respondent, the policemen on petitioner Uypitching‘s  instructionand over the clerk‘s objection, took the motorcycle.
·          Petitioner Uypitching filed a criminal complaint for qualified theft and/or violation of the Anti-Fencing Law against respondent but was dismissed.
·          Respondent filed an action for damages against petitioners in the RTC
·          The trial court rendered a decision finding that petitioner Uypitching was motivated with malice and ill will when he called respondent a thief, took the motorcycle in an abusive manner and filed a baseless complaint for qualified theft and/or violation of the Anti-Fencing Law
·          Petitioners appealed the RTC decision but the CA affirmed the trial court‘s decision.

ISSUE:
WON the filing of a complaint for qualified theft and/or violation of the Anti-Fencing Law warranted the award of moral damages, exemplary damages, attorney‘s  fees and costs in favor of respondent.

HELD: YES. 
They were held liable for damages not only for instituting a groundless complaint against respondent but also for making a slanderous remark and for taking the motorcycle from respondent’s establishment in an abusive manner .Petitioners Abused Their Right of Recovery as Mortgagee(s)
  A mortgagee may take steps to recover the mortgaged property to enable it to enforce or protect its foreclosure right there on. There is, however, a well-defined procedure for the recovery of possession of mortgaged property: if a mortgagee is unable to obtain possession of a mortgaged property for its sale on foreclosure, he must bring a civil action either to recover such possession as a preliminary step to the sale, or to obtain judicial foreclosure  .Petitioner corporation failed to bring the proper civil action necessary to acquire legal possession of the motorcycle. Instead, petitioner Uypitching descended on respondent‘s establishment with his policemen and ordered the seizure of the motorcycle without a search warrant or court order. Worse, in the course of the illegal seizure of the motorcycle, petitioner Uypitching even mouthed a slanderous statement.
Petitioners‘ acts violated the law as well as public morals, and transgressed the proper  norms of human relations.
The basic principle of human relations, embodied in Article 19 of the Civil Code .Article 19, also known as the "principle of abuse of right," prescribes that a person should not use his right unjustly or contrary to honesty and good faith ,otherwise he opens himself to liability. There is an abuse of right when it is exercised solely to prejudice or injure another.
The exercise of a right must be in accordance with the purpose for which it was established and must not be excessive or unduly harsh;
there must be nointention to harm another.
In this case, the manner by which the motorcycle was taken at petitioners‘ instance was not only attended by bad faith but also contrary to the procedure laid down by law. Considered in conjunction with the defamatory statement, petitioners’ exercise of the right to recover the mortgaged vehicle was utterly prejudicial and injurious to respondent.

Petitioners acted in an excessively harsh fashion to the prejudice of respondent.

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