Case Digest (G.R. No. 108164)
Facts:
Far East Bank and Trust Company v. The Honorable Court of Appeals, Luis A. Luna and Clarita S. Luna, G.R. No. 108164, February 23, 1995, Supreme Court En Banc, Vitug, J., writing for the Court.In October 1986 petitioner Far East Bank and Trust Company (FEBTC) issued a FAREASTCARD to private respondent Luis A. Luna, and, at his request, a supplemental card to private respondent Clarita S. Luna. In August 1988 Clarita lost her supplemental card and submitted an affidavit of loss to FEBTC; pursuant to its internal security procedures the bank hotlisted or cancelled the lost card in its master file. FEBTC apparently did not inform Luis personally that his principal card had been cancelled.
On October 6, 1988, Luis presented his FAREASTCARD to pay a despedida lunch at the Bahia Rooftop Restaurant of the Intercontinental Manila; the waiter verified the card with FEBTC’s Credit Card Department, the card was not honored, and Luis paid P588.13 in cash and felt embarrassed. On October 11, 1988, Luis (through counsel) demanded damages from FEBTC. On November 3, 1988, Adrian V. Festejo, a FEBTC vice-president, apologized in writing, explained the bank’s practice of hotlisting reported lost cards, acknowledged that the bank failed to personally inform Luis of the cancellation, and blamed an overzealous employee for not considering that the cardholder might be the presentor.
When amicable resolution failed, private respondents filed on December 5, 1988 a complaint for damages in the Regional Trial Court (RTC), Pasig. On March 30, 1990 the RTC awarded private respondents P300,000.00 moral damages, P50,000.00 exemplary damages, and P20,000.00 attorney’s fees. The...(Subscriber-Only)
Issues:
- In a breach of contract by a credit card issuer, were awards of moral damages justified by proof of bad faith or malice?
- Were the exemplary damages awarded supported by the evidence that FEBTC acted wantonly, fraudulently, reckless, oppressive, or malevolently?
- Were the awards of nominal damages and...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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