G.R. No. 163087 - Silahis International Hotel, Inc. vs. Soluta

Petitioners Silahis International Hotel, Inc. (the Hotel) and Jose Marcel Panlilio (Panlilio) – Vice President for Finance of the Hotel.
Respondents Rogelio S. Soluta, Joselito Santos, Edna Bernate, Vicenta Delola, Florentino Matilla, and Glowhrain-Silahis Union Chapter (the Union) – employees of the Hotel and union officers.
Other key persons involved: Coronel Floro Maniego (Maniego), General Manager of Rapier Enforcement Professional Investigation and Security Agency, Inc. (REPISA), and Steve Villanueva (Villanueva), REPISA security guard.

Late 1987: Maniego received reports alleging illegal activities in the union office (sale/use of marijuana, dollar smuggling, prostitution, theft syndicate).
Maniego conducted surveillance of suspected union officers with Panlilio’s approval.

Morning of January 11, 1988: Panlilio, personal secretary Andy Dizon, Maniego, journalist Nonoy Rosales, and Villanueva entered the union office with consent from union officer Henry Babay.
They searched the premises and Villanueva found a plastic bag containing dry marijuana leaves.
Panlilio ordered Maniego to investigate and report to authorities.

January 10, 1988: Loida Somacera, hotel laundrywoman, heard pounding outside female locker room at hotel basement around dawn.
She saw 5 men in barong tagalog forcibly opening union office door; one hid something behind his back.
Soluta and other union officers attempted to open the union office door in the morning but failed and were attacked by unidentified men in barong tagalog armed with clubs, forcing them to retreat and seek police help.
While waiting for police, Babay met with Panlilio who instructed Villanueva to force open the union office door despite Babay’s objection and questioning whether they had a search warrant.
Inside, they searched and found a plastic bag with marijuana flowering tops.

Complaint filed against 13 union officers for violation of the Dangerous Drugs Act (R.A. No. 6425, as amended).
Information filed before the Regional Trial Court (RTC) of Manila, Branch 5.
RTC acquitted all accused due to inadmissible evidence and suspicious circumstances surrounding confiscation of marijuana.

Respondents filed a complaint for malicious prosecution and violation of constitutional right against illegal search against petitioners and others.
RTC, Branch 55, ruled petitioners Silahis International Hotel, Panlilio, Maniego, and Villanueva jointly and severally liable for damages (moral, exemplary, actual, and attorney’s fees).
Court of Appeals affirmed with modifications: found petitioners liable only for violation of constitutional rights against illegal search, reduced actual damages awarded to respondents, and deleted award to the union.

Petitioners contended the search was lawful and reasonable under circumstances, disputing Court of Appeals’ application of People v. Aruta and Section 13, Rule 126 of the Rules of Criminal Procedure.
Argued violation of constitutional right against unlawful searches and seizures applies only to state actors, not private persons.
Claimed consensual entry by union officer Babay justified the search.

Whether petitioners’ warrantless search of the union office violated the respondents’ constitutional right against unreasonable searches and seizures.
Whether petitioners, as private individuals, can be held civilly liable under Article 32 of the Civil Code for violation of constitutional rights against unreasonable search and seizure.
Whether the consent of union officer Babay legitimized petitioners’ entry and search of the union office.
Whether the Court of Appeals erred in applying People v. Aruta and Section 13, Rule 126 of the Rules of Criminal Procedure in holding petitioners liable.
Whether the respondents are entitled to recover actual, moral, and exemplary damages from petitioners.