Case Summary (G.R. No. 179736)
Procedural Posture and Relief Sought
Petitioners filed a Complaint for Injunction and Damages with a prayer for issuance of a temporary restraining order (TRO) / writ of preliminary mandatory injunction before the Regional Trial Court (RTC), Branch 28, Mandaue City (Civil Case No. MAN-5223). The RTC granted a TRO and issued a writ of preliminary injunction directing respondents to remove or reorient the surveillance camera. Respondents’ motion for reconsideration at the RTC was denied. Respondents then filed a petition for certiorari with the Court of Appeals (CA) arguing grave abuse of discretion; the CA annulled the RTC orders. Petitioners brought the case to the Supreme Court under Rule 45 (petition for review on certiorari).
Key Dates and Applicable Law
Decision reviewed by the Supreme Court: use the 1987 Philippine Constitution as the constitutional basis (Section 2, Article III, as quoted in the record). Relevant statutory and doctrinal authorities invoked in the record include Article 26(1) of the Civil Code (dignity, personality, privacy and peace of mind; prying into privacy of residence), the reasonable-expectation-of-privacy test as articulated in Ople v. Torres, and Rules of Court (Section 2, Rule 3 on parties-in-interest). The constitutional protection against unreasonable searches and seizures (Section 2, Article III) is quoted and relied upon.
Factual Findings at Trial-Level
Petitioners alleged the cameras were installed on June 13, 2005 to gather evidence for a separate suit and that the cameras were pointed at and covered a significant portion of petitioners’ property. The RTC conducted an ocular inspection, observed that a revolving camera captured not only respondent’s premises but a substantial portion of petitioners’ lot, and found petitioners’ testimony and objections credible. The RTC concluded petitioners had a reasonable expectation of privacy in their property and that the installation and operation of the surveillance equipment, without consent, violated their right to privacy.
Court of Appeals’ Ruling and Rationale
The CA granted respondents’ certiorari petition, holding the RTC committed grave abuse of discretion in issuing the injunctive writ. The CA reasoned that Article 26(1) protects the privacy of a residence and that petitioners’ property was not being used as a residence; therefore Article 26(1) did not apply. The CA also held respondents were not proper parties because they were not the registered owners of the building (Aldo, as a separate juridical person, installed the cameras), concluding that holding respondents liable would improperly pierce the corporate veil.
Issues Presented on Appeal
- Whether the CA erred in annulling the RTC’s orders and finding grave abuse of discretion.
- Whether petitioners’ right to privacy (constitutional and civil) was violated by the surveillance.
- Whether respondents were proper parties despite not being the registered owner of the building where the cameras were installed.
- Whether procedural defects in respondents’ pleadings were improperly overlooked by the CA.
Legal Standard on the Right to Privacy
The Supreme Court reiterates that the right to privacy is the right to be let alone and is protected both by the Constitution (right to be secure in persons, houses, papers and effects against unreasonable searches and seizures) and by Article 26(1) of the Civil Code (which proscribes prying into the privacy of another’s residence and analogous acts). The Court emphasizes that Article 26(1)’s reference to “residence” does not confine the protection to dwellings alone; business offices and other places where the public is excluded may likewise attract a reasonable expectation of privacy. The applicable test is the reasonable-expectation-of-privacy two-part inquiry from Ople v. Torres: (1) did the individual exhibit an expectation of privacy by his conduct, and (2) is that expectation one society recognizes as reasonable.
Application of the Privacy Standard to the Facts
Applying the two-part test, the RTC found and the Supreme Court accepted that petitioners manifested an expectation of privacy in their property and that the expectation was reasonable. The ocular inspection and testimony demonstrated that the revolving and stationary cameras installed on the Aldo building pointed to and covered a significant portion of petitioners’ lot; the cameras did not confine their view to respondent’s premises. The Court observed that while video surveillance may be legitimate for security, it must not intrude where a reasonable expectation of privacy exists absent consent. The Court concluded the RTC did not commit grave abuse of discretion in issuing preliminary injunctive relief because the factual findings supported a reasonable expectation of privacy and a resultant likelihood of success on the merits sufficient for injunctive relief.
Real Party in Interest and Corporate Separate Personality
The Court addressed whether respondents, who denied ownership of the building and claimed only to be stockholders of Aldo, were proper parties. Under Rule 3, Section 2, a real party-in-interest is the party
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Citation and Forum
- Reported as 712 Phil. 337, Second Division, G.R. No. 179736, decided June 26, 2013.
- Petition for Review on Certiorari under Rule 45 of the Rules of Court challenging the Court of Appeals (CA) Decision dated July 10, 2007 and Resolution dated September 11, 2007 in CA-G.R. CEB-SP No. 01473.
- Decision of the Supreme Court penned by Justice Del Castillo; concurrence by Carpio (Chairperson), Brion, Perez, and Perlas-Bernabe, JJ.
Parties and Subject Property
- Petitioners: Spouses Bill and Victoria Hing.
- Respondents: Alexander Choachuy, Sr. and Allan Choachuy.
- Registered owners of the lot claimed by petitioners: Lot 1900-B covered by TCT No. 42817, Barangay Basak, City of Mandaue, Cebu.
- Respondents associated with Aldo Development & Resources, Inc. (Aldo), with Aldo’s building located on lots 1901 and 1900-C, adjacent to petitioners’ property.
- Physical fact central to dispute: installation of two video surveillance cameras on Aldo Goodyear Servitec (one described as stationary directly facing petitioners’ property and one described as a revolving camera covering a significant portion of petitioners’ land).
Factual Antecedents (as alleged in the Complaint and record)
- On August 23, 2005 petitioners filed a Complaint for Injunction and Damages with prayer for a Writ of Preliminary Mandatory Injunction/Temporary Restraining Order (TRO), docketed Civil Case MAN-5223, Branch 28, RTC Mandaue City.
- Petitioners alleged respondents constructed an auto-repair shop building (Aldo Goodyear Servitec) on Lot 1900-C adjacent to petitioners’ lot.
- Allegation of an earlier suit: in April 2005 Aldo filed Civil Case No. MAN-5125 against petitioners, claiming petitioners were building a fence without a valid permit and that such construction would destroy Aldo’s wall; the court in that case denied Aldo’s application for preliminary injunction for failure to substantiate allegations.
- Petitioners allege that on June 13, 2005 respondents illegally set up and installed two video surveillance cameras on Aldo’s building facing petitioners’ property and that respondents, through employees and without petitioners’ consent, took pictures of petitioners’ ongoing construction.
- Petitioners claimed these acts violated their right to privacy and sought removal of the cameras and an injunction against illegal surveillance.
- Respondents denied installing the cameras or directing employees to take pictures and stated they were mere stockholders, not owners, of Aldo.
RTC Proceedings and Orders
- On October 18, 2005 the RTC (Judge Marilyn Lagura-Yap) granted petitioners’ application for a TRO and set a bond at P50,000.00; dispositive language directed respondents to immediately remove the revolving camera installed at left side of their building overlooking petitioners’ lot and to transfer and operate it elsewhere at the back where petitioners’ property could no longer be viewed within about 2–3 meters from the left corner of Aldo Servitec.
- Respondents moved for reconsideration; the RTC denied reconsideration in an Order dated February 6, 2006 (note in record: erroneously dated February 6, 2005) and directed issuance of a writ of preliminary injunction consistent with its October 18, 2005 Order.
Court of Appeals Proceedings and Ruling
- Respondents filed a Petition for Certiorari under Rule 65 with application for TRO and/or Writ of Preliminary Injunction before the CA.
- On July 10, 2007 the CA granted the petition and annulled and set aside the RTC orders dated October 18, 2005 and February 6, 2006, holding that the writ of preliminary injunction was issued with grave abuse of discretion because petitioners failed to show a clear and unmistakable right to injunctive relief.
- The CA reasoned, among others, that:
- Article 26(1) of the Civil Code protects the privacy of residence and was not violated because the property in controversy was not used as a residence.
- Respondents were not the owners of the building and, being mere stockholders of Aldo which has a separate juridical personality, could not have installed the cameras; hence they were not proper parties.
- The CA’s fallo: judgment GRANTING the petition, ANNULLED and SET ASIDE the assailed RTC orders.
Issues Presented to the Supreme Court
- Whether the CA gravely erred in annulling and setting aside the RTC Orders dated October 18, 2005 and February 6, 2006 for alleged grave abuse of discretion.
- Whether petitioners are entitled to a Writ of Preliminary Injunction given alleged violation of constitutional and civil right to privacy, in light of RTC factual findings unrefuted by respondents.
- Whether suing respondents constitutes an unwarranted piercing of the corporate veil because Aldo, not respondents, owns the building where cameras were installed.
- Whether the CA improperly overlooked alleged formal deficiencies in respondents’ pleadings and motions yet gave them due course and consideration.
Petitioners’ Contentions (as argued in their petition)
- Petitioners asserted respondents’ installation of a stationary camera directly facing petitioners’ property and a revolving camera covering a significant portion of the property violated petitioners’ right to privacy.
- Petitioners invoked Article 26(1) of the Civil Code, arguing the provision’s protection is not limited to residences; it includes business offices where the public is excluded, citing Professor Arturo M. Tolentino.
- Petitioners contended that respon