Title
Mercury Drug Corporation vs. De Leon
Case
G.R. No. 165622
Decision Date
Oct 17, 2008
A pharmacist dispensed ear drops instead of prescribed eye drops, causing injury. Courts ruled gross negligence by the drugstore, reducing excessive damages awarded.

Case Summary (G.R. No. 165622)

Factual Background

Respondent Raul T. De Leon noticed redness and blurred vision in his left eye on October 17, 1999. He consulted a physician friend who prescribed Cortisporin Ophthalmic and Ceftin. The next morning De Leon presented the prescription at the Betterliving, Paranaque branch of Mercury Drug Corporation, where Aurmela Ganzon, a pharmacist assistant, attended to him. De Leon paid for and accepted the medicine handed by Ganzon and later requested his sheriff to apply the drops. After two or three drops were instilled, De Leon experienced searing pain and discovered that he had been given Cortisporin Otic Solution (ear drops) instead of the prescribed ophthalmic preparation. He returned to the same branch, where Ganzon stated she could not fully read the prescription and the supervisor later apologized and said the ophthalmic preparation was out of stock. De Leon sought a written apology and explanation, sent a letter to Mercury Drug’s president, and, having received no satisfactory response, filed an action for damages.

Trial Court Proceedings

De Leon filed a complaint for damages against Mercury Drug Corporation and Aurmela Ganzon. The defendants denied negligence and asserted that De Leon’s own failure to read the bottle label or to have his sheriff check the medicine was the proximate cause of his injury. Mercury Drug also contended that no product labeled precisely “Cortisporin Opthalmic” existed in the market and that the paper presented read only “Cortisporin Solution,” which led Ganzon to dispense the available Cortisporin solution. The Regional Trial Court, after trial, rendered judgment for the plaintiff on April 30, 2003, awarding reimbursement for the medicine (Php 153.25), moral damages of P100,000.00, exemplary damages of P300,000.00, attorney’s fees of P50,000.00, and litigation expenses.

RTC Rationale

The RTC found that the proximate cause of De Leon’s injury was the negligent exercise of discretion by Aurmela Ganzon in dispensing the wrong drug. The court emphasized that Ganzon did not require a proper prescription, did not fully read the document presented, and presumed the customer accepted the medicine by paying without objection. The trial court invoked the principle that when an injury is caused by the negligence of a servant, a presumption of employer negligence arises either in selection or supervision of the employee, placing responsibility on the master under Civil Code, Art. 2180.

Court of Appeals Proceedings and Rulings

Mercury Drug Corporation and Aurmela Ganzon appealed to the Court of Appeals. De Leon moved for dismissal of the appeal on procedural grounds. The Court of Appeals granted the motion and dismissed the appeal for lack of page references to the record in the appellants’ brief, invoking Rule 50, Section 1(f) together with the requirements of Rule 44, Section 13. The CA, in a subsequent resolution, denied the appellants’ motion for reconsideration and declined to relax procedural rules despite recognizing that litigation should not be a game of technicalities.

Issues on Review

The petitioners raised principally that the Court of Appeals erred in dismissing their appeal for procedural defects and that the appellate court abused its discretion by favoring technicality over substantial justice. Petitioners argued substantial compliance with the rules and relied on precedents that permitted relaxation of procedural strictness where the brief enabled the court to locate the record.

Supreme Court Ruling

The Supreme Court granted the petition in part. It held that dismissal under Rule 50, Section 1 is discretionary, not mandatory, and that procedural rules must be exercised with sound discretion in the interest of justice. The Court found that although the appellants’ brief lacked exact page references, it contained references to exhibits, transcript of stenographic notes, and attachments that enabled the appellate court to locate the portions of the record referred to, amounting to substantial compliance with Rule 44, Section 13 in the circumstances of the case.

Legal Basis and Reasoning

The Court reiterated that an appellant’s brief serves to present the points in controversy concisely and to assist the court in reaching a just conclusion. The absence of page references is a ground for dismissal but is subject to the appellate court’s discretion. The Court surveyed its prior decisions, including Yuchengco v. Court of Appeals and De Leon v. Court of Appeals, to show that where citations in the brief permit expeditious location of the record, the requirements have been met substantially. The Court distinguished De Liano v. Court of Appeals and Heirs of Palomique v. Court of Appeals on their facts, noting more egregious and persistent defects in those cases that justified dismissal. On the merits, the Court applied the high standard of care demanded in the drugstore business. It cited foreign and domestic authorities, including Tombari v. Conners, Fleet v. Hollenkemp, United States v. Pineda, and Mercury Drug Corporation v. Baking, to affirm that dispensing the wrong drug is negligence of the gravest kind and that druggists must exercise the highest degree of care known to practical men. The Court invoked the presumption under Civil Code, Art. 2180 that employer responsibility arises from an employee’s torts absent proof that the employer observed all the diligence of a good father of a family.

Damages and Modification

The Supreme Court found the awards of moral and exemplary damages by the RTC excessiv

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