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ERLINDA FRANCISCO as Cebu Fountainhead Bakeshop and JULIANA  Bad faith does not simply connote bad judgment

simply connote bad judgment or negligence, it

PAMAONG vs RICARDO FERRER , ANJETTE FERRER, ERNESTO LO imports a dishonest purpose or some moral obliquity and conscious
AND REBECCA LO doing of a wrong, a breach of known duty through some motive or
Moral of the Story interest or ill will that partakes of the nature of fraud.
Moral damages are in the category of an award designed to  Moral damages are in the category of an award designed to
compensate the claimant for actual injury suffered and not to impose a compensate the claimant for actual injury suffered and not to impose
penalty on the wrongdoer a penalty on the wrongdoer
 n award of moral damages would require certain conditions to be
Exemplary damages may be awarded to set an example met, to wit:
o (1) first, there must be an injury, whether physical, mental or
Nominal damages are awarded where a right has been violated psychological, clearly sustained by the claimant;
Facts o (2) second, there must be culpable act or omission factually
 Mrs Lo and Annete order a 3 tier wedding cake from the bakeshop to established;
be delivered 5 oclock at the Cebu Country club on Dec 14 1992 o (3) third, the wrongful act or omission of the defendant is the
o Respondent deposited 1k on nov 19 and made full payment proximate cause of the injury sustained by the claimant; and
after 2 weeks (
 The cake did not arrive on the designated time. After calling the first o 4) fourth, the award of damages is predicated on any of the
time they were told it was late because of traffic. But on a follow up cases stated in Article 2219 of the Civil Code
call they were told no cake would be delivered as the order slip got  In the same fashion, to warrant the award of exemplary damages,
lost [t]he wrongful act must be accompanied by bad faith, and an award
 They were forced to buy the available sans rival in the Country Club of damages would be allowed only if the guilty party acted in a
 The cake arrived at 10PM that evening but it was not accepted for wanton, fraudulent, reckless or malevolent manner.
being late and for only being a 2 layered cake  The requirements of an award of exemplary damages are: (
 Later Francisco sent an apology letter with a 5k refund but was also o 1) they may be imposed by way of example in addition to
not accepted for being inadequate compensatory damages, and only after the claimants right to
 Respondents file for breach of contact and damages at the RTC. them has been established;
Which they won: o (2) that they can not be recovered as a matter of right, their
 3175 for the cake determination depending upon the amount of compensatory
 30K moral damages damages that may be awarded to the claimant;
 10k atty fees o (3) the act must be accompanied by bad faith or done in a
 Peitioners appealed to CA wanton, fraudulent, oppressive or malevolent manner.
o CA increases moral damages to 250K  Nominal damages are recoverable where a legal right is technically
 Which leads us to this case violated and must be vindicated against an invasion that has
produced no actual present loss of any kind or where there has been
Issues a breach of contract and no substantial injury or actual damages
 WON CA erred in awarding moral damages in the case at hand whatsoever have been or can be shown.
Ruling  Nominal damages may be awarded to a plaintiff whose right has
 I Yes. To recover moral damages in an action for breach of contract, been violated or invaded by the defendant, for the purpose of
the breach must be palpably wanton, reckless, malicious, in bad vindicating or recognizing that right, not for indemnifying the plaintiff
for any loss suffered.
faith, oppressive or abusive Dispositive
o Acted in bad faith  Court grants the petition
o Gross negligence amounting to bad faith  Reverses CA decision
o Wanton disregard of his contractual obligation  And reduces the costs to
o When act of breach is constitutive of tort resulting in physical o 3175 for the cake
o 10K as nominal damages
injuries o 10 as attys fees
o Costs of litigation