Case Digest (G.R. No. 169737)
Facts:
In the evening of October 19, 1989, private respondent Clodualdo de Jesus, a practicing lawyer and businessman, hosted a dinner for friends at the Mandarin Villa Seafood Village in Greenhills, Mandaluyong City. After the meal, he was presented with a bill of ₱2,658.50 and offered to settle it using his BANKARD credit card issued by Philippine Commercial Credit Card, Inc. The waiter presented the card to the cashier for electronic verification, but upon return informed respondent that the card had expired. Respondent protested, pointing out the embossed expiry date of September 1990, yet the cashier again refused to honor the card after a second machine check. Amid a quip from Professor Lirag—“Clody, may problema ba? Baka kailangang maghugas na kami ng pinggan?”—respondent retrieved his BPI Express Credit Card from his car, which was accepted and honored. Feeling humiliated by the wrongful dishonor, respondent filed suit for moral and exemplary damages and attorney’s fees. The t
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Case Digest (G.R. No. 169737)
Facts:
- Events Leading to the Dispute
- On October 19, 1989, private respondent Clodualdo de Jesus hosted a dinner at Mandarin Villa Seafoods Village in Greenhills, Mandaluyong City.
- After dinner, he presented his BANKARD credit card to settle a bill of ₱2,658.50; the restaurant’s POS terminal displayed “CARD EXPIRED.”
- Respondent protested, noting the card’s embossed expiration date of September 1990; the restaurant re‐verified and again refused.
- A guest, Professor Lirag, quipped about washing dishes, heightening the embarrassment.
- Respondent then used his BPI Express credit card, which was accepted, and the group left.
- Procedural History
- Respondent sued Mandarin Villa, Inc. and Philippine Commercial Credit Card, Inc. (BANKARD) for moral, exemplary damages, and attorney’s fees.
- The trial court held both defendants jointly liable, awarding ₱250,000 moral, ₱100,000 exemplary damages, and ₱50,000 attorney’s fees.
- The Court of Appeals modified the award:
- Held Mandarin Villa solely liable and exonerated BANKARD.
- Reduced moral damages to ₱25,000 and exemplary to ₱10,000.
- Set aside the attorney’s fees and interest awards.
- Mandarin Villa filed a petition for review to the Supreme Court, raising six assignments of error distilled into three issues.
Issues:
- Acceptance Obligation
- Whether Mandarin Villa is bound to accept payment by BANKARD credit card.
- Negligence
- Whether the petitioner was negligent in dishonoring a valid credit card.
- Proximate Cause
- Whether any negligence by respondent or Professor Lirag’s remark was the proximate cause of respondent’s injury.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)