Case Digest: International Flavors and Fragrances (PHIL) Inc., v. Argos

INTERNATIONAL FLAVORS AND FRAGRANCES (PHIL) INC., petitioner, vs. MERLIN J. ARGOS and JAJA C.
PINEDA, respondents
G.R. No. 130362. September 10, 2001

Facts:

Merlin J. Argos and Jaja C. Pineda, general manager and commercial director respectively of the International Flavors and Fragrances Incorporated (IFFI) filed a libel case against Hernan H. Costa, the managing director of IFFI after being described by the latter as pesona non grata in his Personal Announcement after termination of their services. They later filed a separate civil case for damages against Costa and IFFI in its subsidiary capacity as employer with the Regional Trial Court of Pasig wherein IFFI moved to dismiss the complaint. The Regional Trial Court granted IFFI’s motion to dismiss for respondent’s failure to reserve its right to institute a separate civil action. Upon a motion for reconsideration, the Regional Trial Court granted Argos and Pineda’s petition which was later affirmed by the appellate court.

Issue:

Whether or not Argos and Pineda could sue IFFI for damages based on subsidiary liability in an independent civil action under Article 33 of the Civil Code.

Ruling:

IFFI, petitioner contends that respondents did not allege that IFFI was primarily liable for damages and on the contrary, the complaint was replate with references that IFFI was being sued for its subsidiary capacity. Article 33 of the New Civil Code provides that in cases of defamation, a civil action for damages, entirely separate and distinct from the criminal action, may be brought by the injured party. As ruled in Joaquin vs. Aniceto however, article 33 contemplates an action against the employee in his primary capacity. It does not apply to an action against the employer to enforce its subsidiary civil liability as such liability arises only after conviction of the employee in the criminal case or when the employee adjudged guilty of the wrongful act. Thus, the Supreme Court granted IFFI’s petition for dismissal.