Bacolod-Murcia Milling Co. v. First Farmers Milling Co.

L-29041; March 24, 1981

Melencio-Herrera, J.

FACTS:
Bacolod-Murcia Milling Co. filed an action for injunction and prohibition with
damages against First Farmer Milling Co, (FFMC) and others, alleging that the
defendant FFMC established and operated a sugar central known as the First
Farmer Sugar Central (FFSC) and for the crop years 1964-1966, the defendants
transferred their quota A allotments to FFSC and are actually milling their sugar
with the said entity, and constitutes an illegal transfer with the illegal approval of
the Sugar Quota Administration.

Subsequently, a motion to admit amended and supplemental complaint was filed,

including PNB and National Investment and Development Corp (NIDC) as
defendants, alleging that they have extended loans to FFMC amounting to Php16
210 000, to assist in the illegal creation and operation of the said mill and thus, a
joint tortfeasor in the violation of the plaintiffs rights. In answer to this, PNB and
NIDC contends that the granting of loans in favor of FFMC were extended in the
ordinary and usual course of business, and that they have no participation on the
alleged illegal transactions complained of.

ISSUE: w/n PNB and NIDC can be considered as joint tortfeasors

HELD:
NO. PNB and NIDC granted loans in the ordinary and usual course of business
after the borrowing entity had established itself as capable of being treated as
anew milling district as it could already operate and had its array of adhering
planters. The doing of an act which is in itself perfectly lawful will not render
one liable as for a tort, simply because the unintended effect of such act is
to enable or assist another person to do or accomplish a wrong, assuming
that there was such a wrong.