EDUARDO M. COJUANGCO, JR., petitioner, vs.
COURT OF APPEALS, THE PHILIPPINE CHARITY SWEEPSTAKES OFFICE
and FERNANDO O. CARRASCOSO, JR., respondents.
G.R. No. 119398. July 2, 1999
FACTS:
Eduardo Cojuangco, a businessman and a sportsman, was the owner of several racehorces, which he entered in the sweepstakes races from March 6, 1986 to September 18, 1989. The said racehorses won first, second and third places which granted Cojuangco with prizes from PCSO. Cojuangco sent PCSO demand letters claiming the prizes but Carracoso replied stating that he was advised by the PCGG to withhold the prizes in the mean time. The RTC held that PCSO and Carrascoso had no authority to withhold the winnings since no writ of sequestration was issued by the PCGG. The trial court also said that Carrascoso’s initiative of not issuing the prizes were manifestations of Bad Faith. The Court of Appeals, however, held that Carrascoso was merely carrying out the instructions of PCGG backed by the intention to protect public interest. The appellate court said that Carrascoso was in good faith since he replied to demand letters, he released the winnings upon PCGG’s advice nad he had no objection to the partial execution.
ISSUE:
Whether the award for damages against Carrascoso is warranted by evidence and the law.
RULING:
The Court ruled that Carrascoso acted in good faith. Bad faith, to be recognized by court, should be constituted by dishonest purpose, moral obliquity, and conscious doing of a wrong. The Court further stated that a public official shall not be liable by way of moral and exemplary damages for acts done in the performance of their official duties unless there is no clear showing of bad faith, malice and gross negligence. But Carrascoso should still be liable under Article 32(6) which states “rights against deprivation of property without due process of law”. There was a violation of Cojuangco’s constitutional right even if done in good faith since no writ for the sequestration of his racehorse winnings. Therefore, Cojuangco’s petition was granted and Carrasco is obliged to pay nominal damages worth P/ 50,000.00.
