ALBENSON

vs. COURT OF APPEALS

FACTS:
Albenson Ent. Delivered mild steel plates to Guaranteed Industries Inc. A
Pacific banking corporation Check was paid and drawn against the
account of EL Woodworks. Check was later dishonored for the reason “Account
Closed.” Company traced source of check and later
discovered that the signature belonged to one Eugenio Bal
t a o . A l b e n s o n m a d e a n extrajudicial demand upon Baltao but latter
denied that he issued the check or that the signature was his. Company
filed a complaint against Baltao for violation of BP 22. It was
later discovered that private respondent had son: Eugene Baltao III,
who manages the business establishment, EL Woodworks. No effort from the
father to inform Albenson of such information. Rather the father filed complaint
for damages against Albenson.

ISSUE:
Whether there is indeed cause for the damages against Albenson Enterprise.

RULING:
Based on Art 19, 20, 21 of the civil code, petitioners didn’t have the intent to cause
damage to the respondent or enrich themselves but just to collect what was due to
them. There was no abuse of right on the part of Albenson on accusing Baltao of BP
22.Albenson Corp. Honestly believed that it was private respondent who issued
check based on ff inquiries:
• SEC records showed that president to Guaranteed was Eugene Baltao
• Bank said signature belonged to EB
• EB did not do his part in clarifying that there were in fact 3 Ebs, Jr., Sr. And
the III.
There was no malicious prosecution on the part of Albenson: there must be proof
that:
• The prosecution was prompted by a sinister design to vex
a n d h u m i l i a t e a person and
• That damages was initiated deliberately by defendant knowing that his
charges were false and groundless
Elements of abuse of right under Article 19:
1. There is a legal right or duty
2.exercised in bad faith
3.for the sole intent of prejudicing or injuring another

Elements under Article 21: contra bonus mores:
1.there is an act, which is legal
2.but which is contrary to morals, good custom, public order or public
policy
3.it is done with intent to injure

A person who has not been paid an obligation owed to him will
n a t u r a l l y s e e k w a y s t o compel the debtor to pay him. It was normal for
petitioners to find means to make the issuer of the check pay the amount
thereof. In the absence of a wrongful act or omission or of fraud or bad
faith, moral damages cannot be awarded and that the adverse result of an
action does not per se make the action wrongful and subject the actor to
the payment of damages, for the law could not have meant to impose a penalty on
the right to litigate.

WHEREFORE, the petition is GRANTED and the decision of the Court of Appeals in
C.A. G.R.C.V. No. 14948 dated May 13, 1989, is hereby REVERSED and SET
ASIDE. Costs against respondent Baltao.