FACTS:
Casa Montessori discovered that 9 of its checks had been encashed by a certain Sonny Santos, a fictitious name used by Leonardo Yabut. Yabut admitted that he forged the signature of Ms. Lebron, Casa Montessori’s President, and encashed the checks.
The CA took into account CASA’s contributory negligence that resulted in the undetected forgery. Hence, both Yabut and BPI were ordered to reimburse CASA. However, it disallowed attorney’s fees and moral and exemplary damages.
ISSUE:
I. WON CASA is entitled moral damages.
RULING:
I.
No, CASA cannot claim for moral damages.
Under the law, a corporation -- being an artificial person without feelings, emotions and senses, and having existence only in legal contemplation -- is not entitled to moral damages, because it cannot experience physical suffering and mental anguish. However, for breach of the fiduciary duty required of a bank, a corporate client may claim such damages when its good reputation is besmirched by such breach, and social humiliation results. therefrom
In this case, CASA, is a corporation. Hence, it cannot be entitled to moral damages. Moreover, CASA was unable to prove that BPI had debased its good reputation of, and consequently caused its incalculable embarrassment.
Therefore, CASA cannot claim for moral damages.
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