G.R. No. 160959 - Diaz vs. Davao Light and Power Co., Inc.

Antonio G. Diaz was president of Diaz and Co., Inc. and vice-president of Diaz Realty Inc., owner of the DoAa Segunda Hotel (formerly Davao Imperial Hotel), located in Davao City.
Davao Light and Power Co., Inc. (DLPC) is a public utility providing electricity in Davao City and parts of Davao del Norte. Manuel M. Orig was the resident manager/vice-president for Administration of DLPC, and Eliseo R. Braganza was its in-house lawyer.

DLPC supplied the hotel building with electricity under Account No. 087-10669 and Meter No. 36510.
On July 25, 1983, DLPC notified Diaz and Co., Inc. of an unpaid electric bill of P190,111.02 as of June 13, 1983, warning of possible disconnection.
Ignoring the notice, the meter was disconnected on July 29, 1983. DLPC filed a collection complaint before the RTC in Cebu City (Civil Case No. CEB-1049).

In 1984, NFA established a KADIWA store leasing part of the Imperial Hotel building from Diaz and Co., Inc.
NFA/KADIWA applied for and received electricity service from DLPC under a new account (No. 091-12643) with Meter No. 84738.
NFA/KADIWA vacated in August 1986; informed DLPC that its connection rights would transfer to Diaz and claimed refund of P1,020 deposit from Diaz.

Diaz requested a new electrical connection in his own name separate from NFA’s account, but DLPC denied the request citing suspicion of simulated lease due to family ties in Diaz and Co., Inc.
DLPC clarified it would grant service if arrears were paid. Diaz and Co., Inc. declared it assumed NFA/KADIWA's electrical bills. DLPC rejected this and was unaware of any refund of deposit.

Diaz filed a mandamus petition before RTC-Davao City (Civil Case No. 18,288) to compel DLPC to provide electricity service.
The portion of the building formerly leased to NFA was leased to Matias Mendiola, who upgraded electrical service to three-phase with DLPC's approval and contract.
Diaz sought a preliminary injunction to enjoin DLPC from disconnecting Meter No. 84738. The court denied the injunction.
DLPC removed the single-phase meter (No. 84738) on November 20, 1987, cutting power to much of the building. Diaz reacted by damaging DLPC property and unilaterally installing his own electric meter (No. 86673509), which was calibrated by the Board of Energy.

Diaz filed a complaint for damages and injunctions against DLPC, alleging illegal removal of meter and threats to remove the new meter.
DLPC counter-applied for a mandatory injunction to remove Diaz’s unauthorized meter. RTC granted DLPC's counter-application and ordered removal of Diaz's meter.
Diaz’s motion for reconsideration was denied; enforcement resulted in removal of Meter No. 86673509 by sheriff and DLPC personnel in 1998.

Diaz appealed via petition for certiorari before the CA; CA granted the petition and ordered restoration of status quo or acceptable meter connection subject to payment of bills.
DLPC’s collection case was compromised in 1988, reducing claims to P385,000 and agreeing to supply electricity after payment; mandamus case dismissed as moot. Supreme Court declined to review CA decision as moot and academic.
Various other cases ensued including criminal complaints filed by DLPC against Diaz for theft of electricity and violation of PD 401 (electricity-related offenses), both dismissed for lack of probable cause. DLPC officers sued Diaz for malicious prosecution, which was dismissed by RTC and affirmed by CA and Supreme Court.

DLPC filed a suit for damages for libelous statements made by Diaz against DLPC, resulting in RTC award of moral, exemplary damages, and attorney's fees amounting to over P1.5 million; the case was on appeal.
Diaz filed a damages and injunction suit against DLPC for alleged bad faith and malicious prosecution related to criminal cases, which was dismissed by RTC and CA, affirming DLPC's good faith in filing complaints.

Whether the compromise agreement between DLPC and Diaz barred DLPC from instituting further actions involving electric meters No. 84738 or 86673509.
Whether DLPC acted in bad faith or malice in instituting criminal complaints against Diaz for theft of electricity and violation of PD 401.
Whether Diaz is entitled to damages for alleged malicious prosecution and abuse of rights committed by DLPC.