Title
Marsman and Co. vs. Ligo
Case
G.R. No. 198643
Decision Date
Aug 19, 2015
Marsman & Iledan accused Ligo of illegal drug sales; NBI investigation led to arrest, acquittal, and wrongful termination. Ligo sued for malicious prosecution; court awarded damages, citing lack of evidence, malice, and environmental violations.
A

Case Digest (G.R. No. 198643)

Facts:

Background of the Case
Petitioner Marsman & Company, Inc. (Marsman) is a domestic corporation engaged in distributing pharmaceutical products. Petitioner Quirino R. Iledan (Iledan) was Marsman’s Warehouse Manager, while Respondent Artemio M. Ligo (Ligo) was the Warehouse Supervisor responsible for the destruction of expired and bad-order drugs.

Incident Leading to the Case
In February 1993, Iledan received a tip from Isabelito Miguel that some expired and bad-order drugs intended for destruction were being sold illegally. Marsman’s President, Dr. Eligio Santos, instructed Assistant Vice-President Manolette Pilapil to seek the assistance of the National Bureau of Investigation (NBI) to investigate the matter. The NBI conducted surveillance and, on May 7, 1993, arrested several individuals allegedly involved in the illegal sale of these drugs. However, Ligo was not among them.

Arrest and Detention of Ligo
On May 8, 1993, Iledan asked Ligo to accompany him to the NBI office under the pretext of visiting one of the arrested suspects, Francisco Mercado. Upon arrival, Ligo was arrested, detained for 10 days, and presented to the media at a press conference where his photographs were published in major newspapers.

Criminal Case Against Ligo
Ligo was charged with violating Republic Act No. 3720 (RA 3720), which prohibits the sale or delivery of expired or rejected pharmaceutical products. However, on October 12, 1994, the Metropolitan Trial Court acquitted Ligo, citing lack of evidence and jurisdiction.

Termination from Employment
Marsman terminated Ligo’s employment for “negligence and breach of trust” but not for committing a crime.

Civil Case for Damages
In October 1995, Ligo filed a complaint for damages against Marsman and Iledan, alleging malicious prosecution, illegal arrest, public humiliation, and wrongful termination. He sought P5 million in moral damages, P1 million in exemplary damages, P50,000 in actual damages, and attorney’s fees.

Issues:

  • Whether petitioners Marsman and Iledan are liable for malicious prosecution.
  • Whether petitioners acted with probable cause and legal malice in initiating the criminal case against Ligo.
  • Whether the awards for damages, including moral, exemplary, and attorney’s fees, are justified.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Conclusion:

The Court found petitioners liable for malicious prosecution and affirmed the award of damages to Ligo. The decision also highlighted the need for stricter enforcement of environmental laws in the disposal of pharmaceutical waste.

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