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 Baltao. Albenson made an
extrajudical 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 and humiliate 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 naturally seek ways to
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.