G.R. No. L-56545 January 28, 1983 BERT OSMEÑA ASSO!"ATES, petitioners, vs.
T#E !O$RT O% A&&EALS an' S&O$SES &E(RO )$"MBO an' LEONA("*A )$"MBO, respondents. Siguion Reyna, Montecillo & Ongsiako for petitioners. Hilario Davide, Jr., for private respondents. RESOLUTION Facts: Petitioner Company and Sigen!a e"ected a #Contract o$ Sa%e# over parce%s o$ %and &as &as e"ected in $avor o$ t'e (im)o sposes. *e%ena proposed to e"c'ange anot'er %ot &it' t'e same area $or t'e %ots prc'ased )y t'e sposes to &'ic' t'e %atter 'esitating agreed. Unti% +-, 'o&ever, no tit%e co%d )e given t'e (im)o sposes. It trned ot prior to t'e sa%e in t'e sposes/ $avor, said %ots &ere so%d to 0r. Francisco 1aningo. (im)o sposes institted sit $or damages against petitioner company a nd t'e Sigen!as. T'e cort 'e%d t'e petitioner and Sigen!as 2oint%y and severa%%y %ia)%e to (im)o sposes. Petitioner contends t'at t'ey cannot )e 'e%d %ia)%e as t'ey are mere%y agents o$ Sigen!a. Isse: 3'et'er Petitioner is an agent or co4se%%er. *e%d: T'e contract o$ sa%e descri)es petitioner as se%%er toget'er &it' t'e Sigen!as. In $act, petitioner &as t'e %one signatory $or t'e se%%ers in said contract. 5ppe%%ant never asserted in its ans&er t'at it is a mere agent age nt o$ its co4de$endant *e%ena.
MELEN!"O-#ERRERA,
J.:
Sog't to )e reversed in t'is Petition $or Revie& on certiorari is t'e 0ecision o$ respondent Cort o$ 5ppea%s in C546.R. No. 7879+4R, entit%ed #Pedro (im)o and Leonadi!a (im)o vs. Carmen Sigen!a and *e%ena Sigen!a, ert Osme;a < 5ssociates, 5ssociates, Inc.# sentencing
de$endants, 2oint%y and severa%%y, to pay damages to t'e p%ainti$$s, &'o are t'e private respondents 'erein. Upon a revie& o$ t'e evidence, &e $ind as esta)%is'ed: =+> t'at on ?ne , +-+ , a +!onra o Sa/0+ over Lots + and 8, %oc@ I, P'ase II o$ t'e C%arita S)division, Ce) City, $or t'e tota% price o$ P+A,899.99, a 00u0' n aor o 0 )u7o ou0. T0 0//0r 0r0 0on0r o7any, deve%oper o$ t'e s)division, and Carmen and *e%ena Sigen!a, o &ners o$ t'e property, represented )y petitioner . Anono :. O70;a
a n0 a on0 !. S T'e sposes 'ad intended to constrct a 'ose t'ereon inasmc' as t'eir rented a)ode, $or &'ic' t'ey &ere paying P+-9.99 mont'%y, 'ad )ecome inconvenient $or t'eir $ami%y. P%ans $or t'e 'ose &ere dra&n. T0 ou0 0r0 r0a'y o ay 0 ura0
r0 n u// 00n 0or0 0 'u0 'a0 o 0 r na//70n an' a'0' #0/0na SLo 4?9@ 0 a70 ar0a or 0 /o ura0' y 0 ou0 o 0 /a0r 0an< a " urn0' ou a on (0070r 15, 1969, or aro7a0/y a y0ar an' a a/ ror
o 0 a/0 n 0 ou0 aor, Lo No. 1 an' 2 a' a/r0a'y 00n o/' o (r. %rano MannE. +G + an' +G-1 +@, an' a Tran0r !0ra0 o T/0 No. 48546 an' 4854 0r0 u0' n aor o "r0n0a MannE. +#+ an' +#-1 +@, or aou nn0 7on 0or0. 0 a/0 . 5nnotated on said tit%es &ere mortgages in $avor o$ petitioner. =B> 0iscovering t'is $act on%y in +-, respondent sposes institted t'is sit $or 0amages against petitioner company and t'e Sigen!as on 1arc' 8A, +-B. In its 2dgment, t'e %o&er Cort ordered petitioner company and t'e Sigen!as to pay damages to respondent sposes as $o%%o&s: 3*EREFORE, )ased on a%% t'e $oregoing considerations, 2dgment is 'ere)y rendered in $avor o$ t'e p%ainti$$s and against t'e de$endants ordering t'e %atter: To pay, 2oint%y and severa%%y, t'e p%ainti$$s P,9B9.99, &it' interest at t'e %ega% rate $rom ?ne 8, +-+ nti% t'e same s'a%% 'ave )een $%%y paid P+99,999.99 as compensation $or t'e pecniary %oss p%ainti$$s s$$ered $or $ai%re to constrct t'eir residentia% 'ose PA,7+9.99 as reim)rsement $or t'e renta%s
p%ainti$$s paid $rom ?anary +-8 to Septem)er 7, +-B PA9,999.99 as mora% damages, P8A,999.99 as e"emp%ary damages, PA,999.99 as attorney/s $ees and t'e cost. 1 T'e 5ppe%%ate Cort a$$irmed t'e 2dgment o$ t'e Tria% Cort in toto. *ence, t'is recorse )y petitioner company, advancing ti%e $o%%o&ing argments: +> T'e *onora)%e Cort o$ 5ppea%s serios%y erred in not 'aving considered t'e contract as 'aving )een novated )y virte o$ t'e c'ange in t'e s)2ect matter or o)2ect o$ t'e contract 8> T'e corts )e%o& serios%y erred $or 'aving $ond petitioner to 'ave acted $rad%ent%y &'ere t'ere is no evidence to spport sc' a $inding > T'e Cort o$ 5ppea%s committed serios error in %a& &'en it 'e%d petitioner 2oint%y and severa%%y %ia)%e to pay P+99,999.99 as compensation $or t'e pecniary %oss s$$ered )y 1rs. (im)o B> T'e Cort serios%y erred in 'o%ding petitioner 2oint%y and severa%%y %ia)%e &it' t'e Sigen!as to pay mora% damages to (im)o, t'ere )eing no evidence s'o&ing $rad or )ad $ait' perpetrated )y petitioner A> T'e %o&er cort serios%y erred in 'o%ding petitioner %ia)%e to pay t'e sm o$ PA,7+9.99 as reim)rsement $or renta%s )ecase (im)o &as no %onger interested in t'e %ots on &'ic' 'er 'ose &as spposed to 'ave )een constrcted )t sog't on%y $or reim)rsement o$ t'e do&npayment 7> T'e Cort )e%o& erred in 'o%ding petitioner %ia)%e 2oint%y and severa%%y $or e"emp%ary damages, attorneys $ees and costs -> T'e cort serios%y erred in $act and in %a& in 'o%ding petitioner 2oint%y and severa%%y &it' t'e Sigen!as to retrn t'e do&npa yment. E"cept $or some items o$ damages a&arded, &e a$$irm. +> Petitioner/s contention t'at in. as mc' as respondent sposes 'ad agreed to e"c'ange Lot B9 $or Lots + and 8, t'e contract o$ sa%e 'ad )een novated and its %ia)i%ity e"tingis'ed, in ntena)%e. No ne& contract &as ever e"ected )et&een. petitioner and respondent sposes, not&it'standing *e%ena Sigen!a/s assrances to t'at e$$ect. 5s 'e%d )y respondent Cort: T'is stand ta@en )y appe%%ant on%y revea%s its misconception o$ novation. Novation is a contract containing t&o stip%ations: one to e"tingis' an
e"isting o)%igation, t'e ot'er to s)stitte a ne& one in its p%ace. It reDires t'e creation o$ a ne& contracta% re%ation as &e%% as t'e e"tingis'ment o$ t'e o%d. T'ere mst )e a consent o$ a%% t'e parties to t'e s)stittion, res%ting in t'e e"tinction o$ t'e o%d o)%igation and t'e creation o$ a ne& va%id one =Ti Sico vs. *a)ana, BA P'i%. -9->. 2 8> Frad 'as )een esta)%is'ed. 5s t'e tria% Cort 'ad conc%ded: T'ere is no Destion t'at t'e de$endants 'ave conveyed and disposed o$ Lots + and 8, %oc@ I, P'ase II o$ t'e C%arita i%%age S)division to t'e p%ainti$$s at a time &'en t'ey &ere no %onger t'e o&ners t'ereo$. 5t t'e time o$ t'e e"ection o$ t'e contract o$ sa%e, t'eir on%y interest t'ereon &as a mortgage %ien in t'e amont o$ P+,BB9.99. 5s mortgagee t'ey did not 'ave t'e rig't to se%% t'e same. *e%ena and Carmen Sigen!a did not revea% t'is $act to t'e p%ainti$$s and t'e %atter re%ied on t'eir assrances t'at t'e same )e%ong to t'em. ert Osme;a and 5ssociates, Inc. as deve%oper and at t'e same time attorney4in4$act $or Carmen and *e%ena Sigen!a simi%ar%y concea%ed t'is $act. T'eir e$$orts to cover p t'is $rad ma@e t'e acts more detesta)%e and o)no"ios. 0e$endants demonstrated pa%pa)%e ma%ice, )ad $ait', &antonness and incra)%e dis'onesty. 3 1äp!"1.#$t
T'e $inding o$ $rad in t'is case &as a $inding o$ $act and t'ere are no $actors &'ic' can 2sti$y a reversa% t'ereo$. > T'e a&ard in t'e amont o$ P+99,999.99 representing pecniary %oss $or not 'aving ) een a)%e to )i%d a P+99,999.99 'ose s'o%d )e e%iminated. Respondent sposes did not %ose t'at amont. It &as on%y t'e estimated cost o$ t'e 'ose t'ey &ere na)%e to constrct. It &as an e"pense item, not e"pected income. B> T'e amont o$ PA,7+9.99 a&arded repre senting renta%s t'e sposes co%d 'ave saved, $rom t'e time &'en t'e 'ose &as to )e $inis'ed to t'e date &'en respondent Leonadi!a testi$ied in Cort =?anary +-8 to Septem)er 7 , +-B>, s'o%d a%so )e e%iminated $or )eing spec%ative. I$ t'ey 'ad )i%t t'eir P+99,999.99 'ose, t's avoiding t'e payment o$ renta%s, t'ey &o%d, on t'e ot'er 'and, )e %osing interest or income $rom t'at amont. Evidence t'at t'e p%ainti$$ co%d 'ave )ettered 'is position 'ad it not )ee n $or t'e de$endant/s &rong$% act cannot serve as )asis $or an a&ard o$ damages. 4 A> Frad and )ad $ait' )y petitioner company and t'e Sigen!as 'aving )een esta)%is'ed, t'e a&ard o$ mora% damages is in order. 1ora% damages s'o%d )e redced, 'o&ever, $rom PA9,999.99 to P+9,999.99. 7> 1ora% damages 'aving )een a&arded, e"emp%ary damages &ere a%so proper%y a&arded. 5 T'ey s'o%d )e redced, 'o &ever, $rom P8A,999.99 to PA,999.99.
-> T'e a&ard o$ PA,999.99 as attorney/s $ees is a$$irmed inasmc' as respondent sposes &ere compe%%ed to %itigate $or t'e protection o$ t'eir interests. 6 > T'e portion o$ t'e 0ecision reDiring petitioners and t'e Sigen!as to retrn t'e do&npayment o$ P,9B9.99 is a%so 2sti$ied. T'e (im)o sposes are entit%ed to t'e retrn o$ t'eir do&npayment, &it' interest at t'e %ega% ra te $rom 1arc' 8A, +-B &'en t'e instant, sit &as commenced. > Petitioner/s p%ea $or e"ception $rom %ia)i%ity $or damages on t'e grond t'at it &as a mere agent o$ t'e Sigen!as is ntena)%e. T'e contract o$ sa%e descri)es petitioner as se%%er toget'er &it' t'e Sigen!as. In $act, petitioner &as t'e %one signatory $or t'e se%%ers in said contract. 5s 'e%d )y respondent Cort:
T0 onra ... /0ar a a0//an on0 o 0 S0//0r-o 0 /o n Cu0on. 3e &i%% not a%%o& a variation o$ t'e terms o$ t'e &ritten contract )y paro%e evidence, $or t'ere is never an a%%egation in t'e appe%%ant/s ans&er t'at E"'i)it 74Osme;a does not e"press t'e tre intent o$ t'e parties or t'at it is s$$ering $rom a vice or mista@e or imper$ection. Frt'er, appe%%ant never asserted in its ans&er t'at it is a mere agent o$ its co4de$endant *e%ena. Indeed, t'e tenor o$ its 5ns&er is one &'ic' s'o&s its admission t'at it is a co4se%%er o$ a%% %ots in s)division &'ic' it is deve%oping. 3e ta@e partic%ar attention to appe%%ant/s admission in its ans&er to t'e a%%egations in par. B, and o$ appe%%ees/ comp%aint, &'ic' s'o& t'at appe%%ant &as not an agent )t a co4se%%er o$ t'e %ots. 8 5CCOR0IN6LG, t'e 2dgment appea%ed $rom is 'ere)y modi$ied in t'at petitioner is 'ere)y ordered to pay private respondents t'e $o%%o&ing sms: P,9B9.99 &it' interest at t'e %ega% rate $rom 1arc' 8A, +-B nti% $%%y paid P+9,999.99 as mora% damages PA,999.99 as e"emp%ary damages and PA,999.99 as attorney/s $ees. Costs against petitioner company. SO OR0ERE0. %asue', Relova
