Title
Supreme Court
De Castro vs. Court of Appeals
Case
G.R. No. 115838
Decision Date
Jul 18, 2002
Broker Artigo sued De Castros for unpaid commission on property sale; SC upheld CA ruling, awarding Artigo P303,606.24, moral damages, and attorney’s fees due to bad faith.

Case Digest (G.R. No. 115838)
Expanded Legal Reasoning Model

Facts:

  • Parties and Background
    • Petitioners Constante and Corazon Amor de Castro were co-owners of four lots at EDSA corner New York & Denver Streets, Cubao, Quezon City.
    • Respondent Francisco Artigo, a real estate broker, was authorized to sell these properties.
  • Agency Contract and Sale
    • On January 24, 1984, Constante (representing all co-owners) executed a handwritten letter authorizing Artigo to sell the properties for ₱23,000,000 at a 5% commission, “first-come, first-serve.”
    • Artigo introduced Times Transit Corporation, which agreed to buy two lots (lots 14 and 15). In May 1985 the sale was consummated, and Artigo received an advance commission of ₱48,893.76.
  • Litigation History
    • Artigo claimed total commission of ₱352,500 (5% of ₱7,050,000) and sued on May 29, 1989 for the balance of ₱303,606.24.
    • The Regional Trial Court (Branch 80, Quezon City) on December 20, 1991 ordered Constante and Corazon jointly and solidarily liable for the balance, plus ₱25,000 moral damages, ₱45,000 attorney’s fees, and costs.
    • The Court of Appeals, in CA-G.R. CV No. 37996, affirmed the trial court decision on May 4, 1994. Petitioners filed this Rule 45 petition for certiorari.

Issues:

  • Should the complaint be dismissed for failure to implead indispensable co-owners?
  • Was Artigo’s claim extinguished by full payment, waiver, or abandonment?
  • Did the courts err in admitting incompetent evidence to determine the selling price?
  • Did the courts improperly credit perjured testimony?
  • Was the award of moral damages and attorney’s fees unwarranted?
  • Should the De Castros have been awarded moral/exemplary damages and attorney’s fees?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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