Development Bank of the Philippines vs. Traverse Development Corporation G.R. No. 169293, !

to"er #, 2$11 Ponente% &' N(RD )D' C(*TR , J.% +(CT*% The Development of the Philippines (DBP)-Tarlac Branch granted a Real Estate Loan of 9 !"!!!#!! to Traverse Development $orporation (Traverse) for the constr%ction of its threestore& commercial '%ilding at Ta(edo )t#" Tarlac $it&# To sec%re the pa&ment of this loan" Traverse constit%ted a mortgage on the land on *hich the '%ilding *as to 'e '%ilt on +%l& , " 9-!#.mong the conditions imposed '& DBP in the mortgage contract *as Traverse/s ac0%isition of an ins%rance coverage for an amo%nt not less than the loan" to 'e endorsed in DBP/s favor# 1rom 9-! to 9- " Traverse s%'mitted to DBP three policies in accordance *ith the ins%rance condition in the mortgage contract# 2riginall&" the fire ins%rance *as %nder the 134 5ns%rance for one ( ) million" '%t the DBP transferred the '%ilding ins%rance to $entral )%ret& 6 5ns%rance $ompan& ($entral) for the same terms# 2n .%g%st 9" 9-," a fire of %ndetermined origin ra7ed and g%tted Traverse/s '%ilding# The follo*ing da&" Traverse informed $entral of the mishap and re0%ested it to immediatel& cond%ct the necessar& inspection" eval%ation" and investigation ho*ever $entral denied the proposal of one ( ) million claim of Traverse# 8ence" Traverse instit%ted a case in the co%rt# Traverse averred that it *as o'vio%s from the 'eginning that $entral *as %na'le or %n*illing to f%lfill its lia'ilit&# Traverse impleaded DBP as a co-defendant 'eca%se of its alleged fail%re or ref%sal to convince $entral to pa& Traverse/s claims" considering that it transferred Traverse/s ins%rance to $entral *itho%t Traverse/s 9no*ledge# The RT$ ad:%dged DBP to 'e solidaril& lia'le *ith $entral for damages" attorne&/s fees" and costs of s%it in vie* of its ref%sal or fail%re to p%rs%e the claim against $entral# The RT$ said that as 'eneficiar&-assignee of the Polic&" DBP sho%ld not have stopped at follo*ing-%p its claim thro%gh letters and telegrams '%t sho%ld have either filed its o*n case against $entral or :oined Traverse as a co-plaintiff# ,**-'% ;hether or not DBP can 'e held solidaril& lia'le *ith $entral for the pa&ment of attorne&/s fees and cost of litigation hence ans*erale to damages" attorne&/s fees and cost of s%it< .'&D% N . Even if it *ere tr%e that DBP had a hand in the transfer of Traverse/s ins%rance coverage to $entral" s%ch act is not s%fficient to hold it solidaril& lia'le *ith $entral for the pa&ment of attorne&/s fees and cost of litigation %nder paragraph (,) of .rticle ,,!-# This $o%rt also cannot s%stain the insin%ation that DBP/s la= attit%de in p%rs%ing its claim against $entral *as tantamo%nt to 'ad faith as to ma9e it lia'le for attorne&/s fees and costs of s%it# Even a resort to the principle of e0%it& *ill not :%stif& ma9ing DBP lia'le# The a/ar0 of attorne12s fees is the e3!eption rather than the r4le an0 the !o4rt m4st state e3pli!itl1 the le5al reason for s4!h a/ar0 # The general r%le is that attorne&/s fees cannot 'e recovered as part of damages 'eca%se of the polic& that no premi%m sho%ld 'e placed on the right to litigate# The& are not to 'e a*arded ever& time a part& *ins a s%it# The po/er of the !o4rt to a/ar0 attorne12s fees 4n0er (rti!le 22$6 0eman0s fa!t4al, le5al, an0 e74ita"le 84stifi!ation. Even *hen a claimant is compelled to litigate *ith third persons or to inc%r e=penses to protect his rights" still attorne&/s fees ma& not 'e a*arded *here no s%fficient sho*ing of 'ad faith co%ld 'e reflected in a part&/s persistence in a case other than an erroneo%s conviction of the righteo%sness of his ca%se#

T,T-* B. 9,&&(N-'9( vs# '::( :. R *;-'T( G.R. No. 16$<6= , >an4ar1 19, 2$1$ Ponente> (B(D, J.: +(CT*% This case is a'o%t the right to recover damages for alleged a'%se of right committed '& a s%perior p%'lic officer in preventing a s%'ordinate from doing her assigned tas9 and 'eing officiall& recogni7ed for it# Respondent Emma ?# Ros0%eta (Ros0%eta)" formerl& Dep%t& $ommissioner of the Reven%e $ollection and ?onitoring 3ro%p of the B%rea% of $%stoms (the B%rea%)" tendered her co%rtes& resignation from that post on +an%ar& ,@" ,!! " shortl& after President 3loria ?acapagal.rro&o ass%med office# B%t five months later on +%ne A" ,!! " she *ithdre* her resignation" claiming that she en:o&ed sec%rit& of ten%re and that she had resigned against her *ill on orders of her s%perior# ?eantime" on +%l& @" ,!! President .rro&o appointed 3il Balera (Balera) to respondent Ros0%eta/s position# 8ence" the position is %nder litigation initiated '& Ros0%eta *here the co%rt approved a *rit of preliminar& in:%nction en:oining Billan%eva from implementing Balera/s appointment# D%ring the B%rea%/s cele'ration of its centennial anniversar&" its special Panorama maga7ine edition feat%red all the c%stoms dep%t& commissioners" e=cept respondent Ros0%eta# The so%venir program" a%thori7ed '& the B%rea%/s )teering $ommittee headed '& petitioner Billan%eva to 'e iss%ed on the occasion" had a space *here Ros0%eta/s pict%re *as s%pposed to 'e '%t it instead stated that her position *as C%nder litigation#C ?ean*hile" the commemorative 'ill'oard displa&ed at the B%rea%/s main gate incl%ded Balera/s pict%re '%t not Ros0%eta/s# ;ith this" Ros0%eta filed a complaint for damages alleging that Billan%eva malicio%sl& e=cl%ded her from the centennial anniversar& memora'ilia# 1%rther" she claimed that he prevented her from performing her d%ties as Dep%t& $ommissioner" *ithheld her salaries" and ref%sed to act on her leave applications# ,**-'% ;hether or not Billan%eva is lia'le for damages %nder the principle of a'%se of right< .'&D% DE)# 4nder the a'%se of right principle fo%nd in .rticle 9 of the $ivil $ode"a person m%st" in the e=ercise of his legal right or d%t&" act in good faith# 8e *o%ld 'e lia'le if he instead acts in 'ad faith" *ith intent to pre:%dice another# $omplementing this principle are .rticles ,! and , of the $ivil $ode *hich grant the latter indemnit& for the in:%r& he s%ffers 'eca%se of s%ch a'%se of right or d%t&# Petitioner Billan%eva ignored the in:%nction sho*s 'ad faith and intent to spite Ros0%eta *ho remained in the e&es of the la* the Dep%t& $ommissioner# 8is e=cl%sion of her from the centennial anniversar& memora'ilia *as not an honest mista9e '& an& rec9oning# 5ndeed" he *ithheld her salar& and prevented her from ass%ming the d%ties of the position# .s the $o%rt said in .mono& v# )po%ses 3%tierre7" a part&/s ref%sal to a'ide '& a co%rt order en:oining him from doing an act" other*ise la*f%l" constit%tes an a'%se and an %nla*f%l e=ercise of right#