Title
Metropolitan Waterworks and Sewerage System vs. Act Theater, Inc.
Case
G.R. No. 147076
Decision Date
Jun 17, 2004
MWSS disconnected water service without notice; Act Theater sued for damages. Courts ruled disconnection arbitrary, awarded damages, and upheld due process rights.

Case Digest (G.R. No. 146754)

Facts:

  • Incident and Parties
    • On September 22, 1988, four employees of Act Theater, Inc. (Rodolfo Tabian, Armando Aguilar, Arnel Concha, Modesto Ruales) were apprehended by Quezon City Police for allegedly tampering with the theater’s water meter in violation of Presidential Decree No. 401, as amended by Batas Pambansa Blg. 876.
    • As a consequence of the alleged tampering, the Metropolitan Waterworks and Sewerage System (MWSS) disconnected Act Theater’s water service without prior adequate notice.
  • Consolidated Proceedings
    • Criminal Case No. Q-89-2412 (People v. Tabian, et al.) – charged the four employees with meter tampering under PD 401, as amended.
    • Civil Case No. Q-88-768 (Act Theater, Inc. v. MWSS) – sought injunction with damages against MWSS for cutting off water service arbitrarily, injuriously, and without prior notice, resulting in health, sanitation, and financial harm to the theater and surrounding premises.
  • Regional Trial Court Decision (Branch 77, Quezon City, May 5, 1997)
    • Criminal Case Q-89-2412 – acquitted all four accused for failure of the prosecution to prove guilt beyond reasonable doubt.
    • Civil Case Q-88-768 – ordered MWSS to:
      • Pay Act Theater actual/compensatory damages of ₱25,000.00;
      • Return the ₱200,000.00 deposit made by Act Theater for restoration of water service;
      • Pay costs of suit;
      • Pay attorney’s fees of ₱5,000.00;
      • Render permanent the previously issued mandatory injunction;
      • Dismiss MWSS’s counterclaim for undercollection of ₱530,759.96.
  • Court of Appeals Decision (CA-G.R. CV No. 58581, January 31, 2001)
    • Affirmed the RTC’s findings that MWSS acted arbitrarily and injuriously by disconnecting service without due process, thus justifying damages under Article 19 of the Civil Code.
    • Corrected a typographical error in the RTC decision that had misstated attorney’s fees as ₱500,000 instead of the correct ₱5,000.
  • Petition for Review on Certiorari to the Supreme Court
    • MWSS challenged the CA’s affirmation of the civil decision, the award of attorney’s fees, and the application of Article 19 instead of Article 429 of the Civil Code.

Issues:

  • Whether the Court of Appeals validly affirmed the Regional Trial Court’s decision directing MWSS to pay damages and attorney’s fees to Act Theater, Inc.
  • Whether the award of attorney’s fees to Act Theater, Inc. was proper despite the absence of justification in the body of the RTC decision.
  • Whether Article 19 of the Civil Code was correctly applied, considering MWSS’s claimed right under Article 429 to exclude any person from its property.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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