Laws Applicable:
FACTS:
- Spouses Editha Mijares and Glicerio T.Mijares under the business name Aklan Drug purchased various products of P32,034.42 from Metro Drug, Inc.
- Editha Mijares, aside from being the operator of Aklan Drug, was also an officer of the Ospital Ng Maynila Consumers Cooperative, Inc. The Cooperative was subsequently dissolved and operations stopped.
- Solomon Silverio was the new lessee of the store at Ospital ng Maynila who and received delivery through Luz Espares and Hilda Rodrigona totalling P32,034.42 from Metro through Dioscoro Lamenta
- Solomon Silverio, Jr. draw a check for Metro but it was dishonored for insufficient fund
- Metro demanded payment from Aklan Drug but Editha referred Lamenta to Silverio who manages the store at Ospital ng Maynila. Lamenta never checked the owner of the store he was delivering to and always perceived Editha as the owner.
- Metro Drug, Inc. filed with the RTC for P32,034.42, 25% attorney's fees and cost of suit
- RTC: dismissed Metro Drug, Inc. to pay P30,000 for moral damages, P10,000 as attorney's fees and cost of suit since not delivered to Mijares
- CA: reversed.
ISSUE: W/N RTC made an error in awarding moral damages to Mijares
HELD: YES. RTC REINSTATED but only insofar as it dismisses Metro Drug's complaint
- failed to show motivated by bad faith when it instituted the action for collection
- Malicious prosecution, both in criminal and civil cases, requires the presence of two elements, to wit: a) malice; and b) absence of probable cause.Moreover, there must be proof that the prosecution was prompted by a sinister design to vex and humiliate a person, and that it was initiated deliberately knowing that the charge was false and baseless
- For the same reasons, the award for attorney's fees and expenses of litigation must likewise be deleted