SECOND DIVISION
MAMITUA SABER,
SUBSTITUTE
BY HIS HEIRS,
REPRESENTED BY ORFIA
ALICER SABER,
Petitioners,
G.R.
No.
132981
August 31, 2004
-versus-
COURT OF APPEALS,
PHILIPPINE AMANAH BANK
AND ASGARI ARADJI,
Respondents.
chanroblesvirtualawlibrary
D E C I S I O N
CALLEJO,
SR., J.:chanroblesvirtuallawlibrary
This is a Petition for
Review on
Certiorari filed by
the heirs of Dr. Mamitua Saber of the
decision[1]
of the Court of Appeals in CA-G.R. CV No. 22626 reversing the decision[2]
of the Regional Trial Court of Marawi City, Branch 9, in Civil Case No.
2323 (84-R), as well as the resolution of the appellate court denying
the
motion for reconsideration thereof. The Antecedents
On April 8, 1974 then
President Ferdinand E. Marcos appointed Dr. Mamitua Saber, then Dean of
Research at the Mindanao State University and Acting Director, National
Science Museum, as Executive Vice-President of the Philippine Amanah
Bank
(PAB).[3]
He was also designated as the Officer-in-Charge of the bank pending the
election of its president by the Board of Directors. Saber was
surprised
because he did not apply for appointment to the position. He
inquired
from Executive Secretary Alejandro Melchor why he was appointed
thereto,
considering that he had no experience whatsoever in the field of
business
and banking. He was told that he was chosen by the President from among
forty applicants because of his proven personal integrity. Saber
took a year-long leave of absence from the university and assumed
office
at the PAB. From the serenity of the academe, he plunged head-on
into the turbulent and intricate world of business.cralaw:red
One of the members of
the Board of Directors of the bank was Asgari Aradji who was also the
Acting
Chairman of the Screening Committee for Personnel. Martin Saludo, then
Senior Vice-President of the Philippine National Bank (PNB), was a
management
consultant of the PAB.cralaw:red
Saber was sent to Malaysia
to study how its Malaysian government prepared and managed the annual
Muslim
pilgrimage (Hajj) to Mecca, and thus, avoid the fiascos that plagued
previous
such pilgrimages of Filipino Muslims in the past. After his stint
in Malaysia, Saber resumed his duties at the PAB.cralaw:red
In a Letter dated September
19, 1974, Executive Secretary Alejandro Melchor informed Chairman of
the
PAB Board of Directors Dr. Cesar A. Majul, that the bank had been
designated
to make appropriate preparations and arrangements for the annual
pilgrimage
of Filipino Muslims to Mecca.[4]
The next day, Majul forwarded the letter to Saber, directing the latter
to undertake the appropriate arrangements for the pilgrimage.[5]
Saber was concerned because he had only two months to prepare; the
pilgrims
had to be in Mecca in time for the one-day ceremony at Mt. Arafat on
December
23, 1974. Considering that Saber had no experience thereon, the
PAB
Board of Directors designated Saludo as the head of the one-man
oversight
committee to oversee the preparations.cralaw:red
Saber issued Office
Memorandum No. 92 forming a Pilgrimage Secretariat with the following
officers:
Atty. Lanang S. Ali, as Chairman and Pilgrimage Administrator; Dialel
Basman,
as Finance Officer; and Kuisan Go, as Trade and Investment
Officer.
Saber later issued Office Order No. 95, designating ten (10) members of
the Secretariat who would join the pilgrimage and coordinate the
same.
This included Lugum Uka, as Vice-Chairman, and Alexander Lucman, as
member.[6]
On October 4, 1974, Saber issued another Memorandum delineating the
specific
duties of the Secretariat members who were joining the trip.[7]
Saber decided to charter
the M/V Sweet Homes, owned by the Sweet Lines, Inc., for the trip. In
behalf
of the PAB, as charter, Saber executed a Uniform Time-Charter on
October
15, 1974 under which the PAB chartered the M/V Sweet Homes to transport
the pilgrims to Mecca and back to the Philippines for P5,300,000 cash,
the amount budgeted[8]
by the PAB. The parties executed a Rider to Charter Party in
which
the PAB was allowed to load cargoes in the cargo hold of the vessel up
to 500 metric tons free of freight.[9]
The vessel was scheduled to leave on November 28, 1974. There was
no time to lose; the PAB conducted a massive information drive to
inform
the Muslims of the arrangements, including the accommodations on board
the vessel and urged them to join the Hajj through the bank.
Prospective
pilgrims, including PAB depositors, made reservations for the voyage
and
made partial payments for their tickets thereon.cralaw:red
On October 25, 1974,
Saber wrote then President Marcos requesting that other parties not be
allowed to charter any ship or aircraft bringing pilgrims to Jeddah, to
avoid unfair competition with the PAB.[10]
However, President Marcos granted Congressman Ali Dimaporo and some
politicians
from Lanao del Sur permission to charter a plane to transport the
pilgrims.
Worse, Sacar Basman, the General Manager of the Arabian Gulf Export
Agency
Corporation (AGEAC) had been representing to the public that he was one
of the Pilgrimage Directors, that he had been allotted 25 passengers
for
the voyage on board the M/V Sweet Homes and solicited fare payments
from
interested pilgrims.[11]chanrobles virtual law library
On November 8, 1974,
Indar Tampi, the Marawi Branch Manager of the PAB, wrote Saber
expressing
his disappointment over the turn of events – politicians being allowed
to charter a private plane which was in direct competition with the
PAB.
He stated that this could derail the success of the pilgrimage and
cause
great financial loss to the bank. He also expressed his
apprehensions
about the representations of Sacar Basman that he was one of pilgrimage
directors, and that he was allotted 25 accommodations on the M/V Sweet
Homes.[12]
Tampi sent a telegram to Saber on November 14, 1974 informing the
latter
that many prospective passengers, including 120 depositors of the PAB
who
were booked for the voyage on board the M/V Sweet Homes, had withdrawn
their reservations. Furthermore, about 200 1st and 2nd class
cabin
accommodations were rendered vacant.[13]
When he learned of the foregoing developments, President Marcos was
alarmed
and ordered that pilgrims going to Mecca by plane be limited to 100
passengers.[14]
In November 1974, Saber
formed a three-man panel called the “Troika,” composed of Atty. Lanang
Ali, Dialel Basman and Ibrahim Mamao, to coordinate the arrangements
for
the pilgrimage. Rather than allow the vessel to leave for Mecca
with
many vacant cabins, Saber decided to sell tickets to Basman on
credit.
He issued a Memorandum[15]
on November 21, 1974, informing the Troika that he had reached an
agreement
with Basman that the latter would purchase forty (40) first class
(ordinary)
cabin accommodations and thirty (30) second class (dormitory)
accommodations
on board the M/V Sweet Homes, and that Basman would pay via a postdated
check. Saber directed the Troika to implement the
agreement.
Saber issued a supplemental memorandum to the Secretariat ordering it
as
follows:
x
x x To give and issue on credit purchase basis
additional One Hundred Twenty (120) fare tickets all of first class
accommodations
at P6,500.00 each under the following terms and conditions, tax FREE;
1. The said fare
tickets
all first class accommodations at P6,500.00 each in the total sum of
SEVEN
HUNDRED FIFTY-SIX THOUSAND (P756,000.00) PESOS, Philippine Currency,
shall
consist of the unsold tickets and the same shall be given and issued to
Datu Sacar Basman on credit purchase basis.
2. The said sum of
P756,000.00
shall be paid by means of post-dated check issued by Datu Sacar Basman
in favor of the Philippine Amanah Bank.[16]
In a parallel
development,
Atty. Mangawan Toro, the Legal Counsel of the PAB, prepared a Freight
Contract
which the PAB, through Saber, and the AGEAC, through Basman, its
General
Manager, executed without the approval of the PAB Board of
Directors.
Under the contract, AGEAC was allowed to load on the M/V Sweet Homes
chartered
by the PAB, exportable/importable goods and other cargoes on its trip
to
Saudi Arabia and return, in consideration of P178,000 to be paid by
AGEAC
via a postdated check, under the following terms and conditions:
7. That the PARTY
OF
THE SECOND PART will pay, and hand in and deliver the payment of the
consideration
referred to above within a period of ten (10) days from and after
arrival
in the Philippines in its return home trip.
8. That as a
security
for the payment of the freight agreed upon, the PARTY OF THE SECOND
PART
hereby agrees that the PARTY OF THE FIRST PART shall have a superior
lien
in the proceeds on the sale of the goods evidenced by the bill of
lading,
invoices and other documents and/or on the goods in case no sale is
made.[17]chanrobles virtual law library
On the other hand,
Saber
stated in his Memo-Directives in the Secretariat that in connection
with
the Freight Contract with AGEAC –
4. The proceeds
of the exported goods sold shall be placed in the possession of the PAB
Treasurer or his authorized representative which shall be made
available
to Datu Sacar Basman for use in payment for goods to be imported;
likewise,
the proceeds derived from the sale of the imported goods shall be kept
by the said Treasurer or his authorized representative and all sums
indicated
in the postdated check/s issued by Datu Sacar Basman be deducted
therefrom
and/or whatever amount or sums of money due to the bank as embodied in
the memo-directive of November 21, 1974 and in this addendum, likewise,
in other contracts signed by the parties herein.[18]
Although they believed
that the agreements of Saber with Basman/AGEAC were against the
policies
of the PAB, the Troika/Secretariat had to implement the Memoranda, and
because of Saber’s insistence, gave the tickets to Basman. In
payment
thereof, Basman drew and issued PAB Check Nos. 00377 and 00378, both
postdated
February 4, 1975 against his account No. 10000008 payable to PAB with
no
amounts written thereon.[19]
Basman loaded exportable goods on board the vessel. When the
vessel
arrived in Saudi Arabia, the authorities did not allow the M/V Sweet
Homes
to dock. Its passengers were boarded on boats and transported to
the pier. Basman failed to unload and sell the exportable goods,
much less purchase importable goods. When the postdated checks
were
deposited on the due dates thereof in the account of the PAB, they were
dishonored.[20]
Basman, likewise, failed to pay for the freight charge for the
exportable
cargo of AGEAC to Saudi Arabia. Consequently, the PAB sustained a huge
financial loss.cralaw:red
PAB Auditor Aramis Aguilar
submitted his Report of the Accounts Receivables in connection with the
pilgrimage in the total amount of P1,033,700, thus:
SCHEDULE OF RECEIVABLES
I.
For Tickets Sold:
1.
Sacar
Basman
P654,000.00
2.
78 Passengers (Surrenderees)
sponsored by PC
Authorities
296,400.00chanrobles virtual law library
3.
Eight (8) persons guaranteed
by Ambassador L.
Pangandaman
49,600.00
4.
Nascuin
Dakinangcob
1,700.00
5.
Acmad
Buat
2,700.00
6.
Ali
Usman
3,800.00
7.
Ali
Laguindab
3,800.00
Sub-total P1,012,000.00
II.
For Mutawiff:chanrobles virtual law library
1.
Cosain Ali
Usman
900.00chanrobles virtual law library
2.
Surrenderees assessed by
the PC
Authorities
13,600.00
3.
Eight (8) Passengers guaranteed
by Ambassador L.
Pangandaman
7,200.00
Sub-total
P 21,700.00
TOTAL
RECEIVABLES
P 1,033,700.00[21]
During the meeting of
the PAB Board of Directors, Saber was present. The Board, after
exhaustive
deliberations, approved Resolution No. 67, Series of 1975, without any
objection, declaring Saber liable for the receivables on the ground
that
the Board did not authorize him to sell tickets on credit payable via
postdated
checks, and to execute the Freight Contract with AGEAC. The Board
directed Saber to collect the receivables himself, because of its
perception
that if the PAB endeavored to collect the receivables, it would,
thereby,
be ratifying the unauthorized acts of Saber.chanrobles virtual law library
PAB Director Asgari
A. Aradji, who was also Acting Chairman of the Personnel Screening
Committee
of the PAB, made verbal representations to the PAB Board of Directors
to
grant PAB Management Consultant and PAB Senior Vice-President Martin L.
Saludo the power to perform the duties and exercise the powers of PAB
President,
in lieu of Saber who was only the Officer-in-Charge. He issued a
Memorandum to the Board of Directors, through the Chairman of the
Board,
on February 21, 1975 reiterating his proposal. He explained the
following
therein:
Specifically, I refer
to the mishandling of the 1974 MECCA Pilgrimage. The Board set a
budget of P5.53 million but the incumbent OIC authorized a total
disbursement
of P9.157 million or an excess of P3.62 million.cralaw:red
As Chairman of the Personnel
Screening Committee, I have discovered, much to my surprise, that a
number
of employees have been retained in spite their not having the necessary
qualifications for the positions; other[s] were terminated despite the
fact that they are more deserving than those who were retained.cralaw:red
These instances clearly
indicate the apparent lack of exercise of effective leadership which is
so vital and essential at this crucial stage if we are to make the
Amanah
Bank truly responsive to the needs of our Muslim brothers.
Moreover,
the purpose for which Dr. Namitua Saber has been designated as OIC have
already been accomplished and such designation has become academic with
the constitution of the PAB Board of Directors.[22]
Meanwhile, Saber’s leave
of absence at the Mindanao State University expired and he had to
report
back to the university. He applied for a clearance from the
PAB.
Assistant Auditor Rodolfo Ocampo signed the said clearance for and in
behalf
of Auditor Aramis Aguilar, subject to Resolution No. 67, Series of 1975
of the PAB Board of Directors. Because of the conditional
clearance
issued by the PAB, Saber was reinstated to his position as professor at
the university with the salary of P34,000.00 per annum, but not to his
former position as Dean for Research.chanrobles virtual law library
On May 6, 1975, the
PAB Board of Directors approved Resolution No. 92 confirming the
recommendation
of the management of the bank for the creation of an Investigating
Committee
of five (5) members, chaired by Aradji, to look into the administrative
and/or criminal liabilities of the persons involved in the Pilgrimage
Project.[23]
It also resolved that pending the outcome of the investigation, Saber
be
given only a conditional clearance.[24]
During the formal investigation,
Saber testified and submitted documentary evidence. Aradji
submitted
his Report to the PAB Board of Directors that there was basis for Saber
to be charged with violation of Republic Act No. 3019, otherwise known
as the Anti-Graft and Corrupt Practices Act, and recommended that the
proper
criminal complaint be filed against him. The management approved
the recommendation of Aradji.cralaw:red
On July 10, 1975, the
Board of Directors of the PAB approved Resolution No. 155 confirming
the
recommendation of the PAB Management based on the Report of the
Investigating
Committee headed by Aradji. The resolution authorized the filing
of a criminal complaint against Saber for violation of Rep. Act No.
3019,
and for Aradji to sign the said complaint and testify against Saber:
1. That a criminal
case for violation of the provisions of the Anti-Graft and Corrupt
Practices
Act (Republic Act 3019) be filed against Dr. Mamitua Saber and that
Director
Asgari A. Aradji, Chairman, Investigation Committee, 1974 Mecca
Pilgrimage
Project be authorized, as he is hereby authorized to sign for and in
behalf
of the Bank the complaint against Dr. Mamitua Saber and thereafter to
testify
and represent the Bank. Should sufficient evidence be found later
to prove conspiracy in the preparation and execution of the Freight
Contract,
the memorandum and the addendum thereto mentioned above, that Messrs.
Lanang
Ali, Mañgawan Doro, Dialel Basman and other persons involved be
included as respondents;[25]chanrobles virtual law library
Pursuant thereto, Aradji
signed the criminal complaint filed with the Office of the City Fiscal
of Zamboanga City against Saber for violation of Rep. Act No.
3019.
The case was docketed as Slip No. 527-75. The complaint, as well
as the report on the investigation of Saber, was the subject of a news
item in the Times Journal, a newspaper of general circulation under the
by-line of reporter Emilio Macaspac.[26]
On October 6, 1975,
Saber filed a civil complaint for damages in the RTC of Marawi City,
Branch
9, against the PAB,[27]
the Chairman and the members of its Board of Directors, its Managing
Director
Martin Saludo, Auditor Aramis Aguilar, and Assistant Auditor Rodolfo
Ocampo.
Saber alleged therein that the PAB was authorized to make the
appropriate
arrangements for the pilgrimage; he had the implied authority to enter
into transactions, including the authority to sell the tickets to
Basman
on credit and to execute the Freight Contract with AGEAC. He
pointed
out that Martin Saludo, who was appointed by the Board of Directors to
oversee the preparation of the pilgrimage, approved the said
transactions;
hence, he is not personally liable for the receivables of
P1,033,700.
He alleged that the defendants therein acted arbitrarily, oppressively
and unfairly in considering the receivables in connection with the
pilgrimage
as his personal obligation and in approving Resolution No. 67. He
further averred that the conditional clearance made by Ocampo and
Aguilar
caused him great damage and prejudice, and that the filing of the
anti-graft
charges against him by the PAB and its Board of Directors was devoid of
any factual and legal basis. He claimed that the filing of the
charges,
the nationwide publication thereof at the behest of the PAB, and the
press
release of the Investigating Committee’s report and the complaint
caused
him dishonor, shame, discredit and contempt, shock, besmirched
reputation,
and wounded feelings, for which the defendants were liable for moral,
exemplary
and actual damages. He also alleged that because of his
preventive
suspension, he failed to receive his salary from the Mindanao State
University,
causing him and his family severe economic losses. He further
claimed
that Aradji and Saludo conspired to oust him from the PAB.cralaw:red
Saber, thereafter, prayed
that, after due proceedings, judgment be rendered in his favor:chanrobles virtual law library
WHEREFORE,
it is respectfully prayed that judgment be rendered in favor of
plaintiff
and against defendants, as follows:
1.
Declaring
PAB Board’s Resolution No. 67, Series of 1975 (Annex ‘D’) null and void;
2. Ordering the
deletion
of the questioned notation ‘Subject to Board Resolution No. 67, Series
of 1975’ contained in the Certificate of Clearance (Annex ‘E’);
3. Ordering
defendant,
jointly and severally in their official and/or personal capacity, to
pay
plaintiff, the following:
1. The
amount
of no less than P1,000,000.00 as and for moral damages;
2. The amount
of no
less than P3,650.00 monthly from July 1975, until plaintiff shall have
resumed his position in the Mindanao State University;
3. The amount
of no
less than P100,000.00 as nominal damages;
4. A
reasonable amount
to be determined by the Honorable Court, as and for exemplary damages;
5. Attorney’s
fees in
the amount equivalent to 25% of whatever amount is awarded by the
Honorable
Court in favor of the plaintiff.
Plaintiff further
prays
for such other and further relief as this Honorable Court may deem just
and equitable in the premises.[28]
On motion of Saber, the
complaint was dismissed as against the chairman and members of the PAB
Board of Directors.[29]chanrobles virtual law library
The remaining defendants
therein, the PAB and Aradji, alleged the following in their Answer:
Saber
sold tickets on credit to Basman payable via postdated checks without
authority
from the PAB Board of Directors; defendant Martin Saludo approved in
principle
the lease of the cargo spaces in the M/V Sweet Home, but subject to the
approval of the PAB Board of Directors; the said lease contract,
including
the Freight Contract with AGEAC, was never approved by the PAB Board of
Directors; the PAB had no obligation to issue a clearance to Saber, and
it would have been injudicious it to have done so on account of Saber’s
unpaid personal obligations to the bank; contrary to Saber’s claim,
there
were factual and legal bases for the approval of Resolution No. 67 and
the filing of the graft charges against him; Saber made no allegations
in the complaint that they (the defendants therein) caused or in any
way
participated in the publication of the charges filed by the PAB against
him; and, the defendants acted in good faith, in the performance of
their
duties in the filing of the complaint in violation of Section 3, Rep.
Act
No. 3019.cralaw:red
On December 9, 1975,
the Board of Trustees of the MSU approved Resolution No. 969, Series of
1975, approving the reinstatement of Saber to his former position as
Dean
of Research, with the corresponding salary effective from the date he
would
report for work.[30]
After a preliminary
investigation, Special Counsel Genaro T. Lorena, Jr. of the Office of
the
City Fiscal issued a Resolution dismissing the complaint in Slip No.
527-75.[31]
The petition for review thereon filed by the PAB was dismissed on
August
2, 1978.[32]
However, upon review by the Tanodbayan, the resolution of the Special
Counsel
was reversed with the following recommendation:
The undersigned finds
and so holds that there exists a prima facie case for violation of Sec.
3, par. (e) on three (3) counts (on the basis of the memoranda of
November
21 and 28, 1974, and that of the freight contract, respectively) of the
Anti-Graft Law against respondents MAMITUA SABER, LANANG ALI, DIALEL
BASMAN,
IBRAHIM MAMAO, TINDUG MACARAMBON, IBRAHIM MACADATAR and SACAR
BASMAN,
and that they are probably guilty thereof. Accordingly, it is
recommended
that the corresponding informations for Violation of the Anti-Graft Law
be filed against respondents.[33]
Three Informations were
filed against Saber, Sacar Basman, Lanang Ali, Dialel Basman, Ibrahim
Mamao,
Tindug Macarambon and Ibrahim Macadatar in the Sandiganbayan for
violation
of Section 3(e) of Rep. Act No. 3019. The cases were docketed as
Criminal Cases Nos. 1835 to 1837.[34]
Saber was preventively suspended by the Sandiganbayan as required by
law.chanrobles virtual law library
After trial, the Sandiganbayan
rendered a Decision on January 6, 1982 acquitting all the accused.[35]
In acquitting Saber of the charge, the Sandiganbayan ruled:
It is of no legal consequence
that both the MEMORANDUM and the ADDENDUM were not approved by the
Board
of Directors of the BANK. For one thing, it is not the absence of
such approval that made the transactions subject of both documents
criminal
under the penalizing Act but whether they caused undue injury to the
BANK
or gave unwarranted benefits, advantage or preference to Sacar Basman
through
manifest partiality, evident bad faith or gross inexcusable negligence
of the accused BANK officials, which the court believes did not.
For another thing, the time element and the fact that the members of
the
Board were themselves responsible officials of different government
offices
precluded convening them to a meeting for that purpose. And still
for another thing, Dr. Saber, who was then the Executive Vice President
and Officer-in-Charge of the BANK and entrusted with the management of
the Pilgrimage Project must be deemed to have been impliedly clothed
with
authority to enter into any contract related to the Project. A
corporate
officer, entrusted with the general management and control of its
business,
has implied authority to make any contract or do any other act which is
necessary or appropriate to the conduct of the ordinary business of the
corporation. (Board of Liquidators vs. Kalaw, supra, citing 2
Fletcher
Cyclopedia Corporations, p. 607.)[36]
On February 11, 1989,
the RTC rendered a Decision in Civil Case No. 2323 in favor of Saber,
and
against the PAB and Aradji, thus:
WHEREFORE,
for all the foregoing findings, judgment is hereby rendered in favor of
plaintiff and against defendants, as follows:
1.
Ordering defendant Philippine Amanah Bank jointly and severally with
defendant
Asgari Aradji, to pay plaintiff the amounts of:
a.
Nine Hundred Thousand (P900,000.00) Pesos as moral damages;chanrobles virtual law library
b.
One Hundred Thousand (P100,000.00) Pesos as nominal damages;chanrobles virtual law library
c.
Seventy Thousand (P70,000.00) Pesos as and for Attorney’s fee; andchanrobles virtual law library
d.
The costs of suit.chanrobles virtual law library
SO ORDERED.[37]
The trial court ruled
that
the PAB and Aradji were liable for damages based on the following:
(1) Malicious Prosecution
of the criminal cases against plaintiff; (2) Libel arising from
derogatory
and malicious publications against plaintiff; and (3) willful injury
against
plaintiff under the provisions of the New Civil Code on Human
Relations,
arising from Resolution No. 67, Series of 1975 and the conditional
clearance
in question.[38]
The trial court based
its ruling partly on the decision of the Sandiganbayan in Criminal
Cases
Nos. 1836 to 1837, on the finding that the PAB and Aradji caused the
publication
of the filing of the criminal charges against Saber in the Office of
the
City Fiscal in the Times Journal, and that the ouster of the plaintiff
from the PAB was instigated by Aradji. Thus:
It is unrebutted that
plaintiff’s ouster was conspired in as demonstrated by the fact that
when
Saludo and other members of the Task Force prepared the budget for
Amanah
Bank, the salary of the President of the Bank was P67,000.00 per annum
and the salary of the Executive Vice-President which the plaintiff
assumed
was P48,000.00 but to pressure plaintiff from giving up his position,
the
Board was moved by Saludo to reduce his salary to only P30,000.00 per
annum.
When plaintiff left the Bank, Saludo took over the position which
plaintiff
held. After Saludo, defendant Aradji assumed the position of
Executive
Vice-President, the same position which plaintiff held before he left
the
Bank. (pp. 4, 26, Deposition of Aradji).[39]
The trial court also
ruled that the sales of the tickets to Basman on credit and the
execution
of the Freight Contract were with the prior approval of Martin Saludo,
the head of the One-Man Oversight Committee, as well as Nestor Kalaw,
who
was the PNB Legal Counsel.cralaw:red
The decision was appealed
to the Court of Appeals, which rendered a judgment reversing the
decision
of the trial court. The CA ruled that Saber failed to prove bad
faith
and malice against the PAB and Aradji in the performance of their
duties,
and in exercising the powers of their office. It also held that
the
latter acted out of duty to protect the interests of the PAB. The CA
further
ratiocinated that:
Defendants could not
be blamed for acting the way they did for they were charged with the
duty
to act for the bank with loyalty and dedication, and according to their
best judgment. It is a well-known rule of law that questions of
policy
or of management are left solely to the honest decisions of officers
and
directors of a corporation, and so long as they act in good faith,
their
orders are not reviewable by the courts.chanrobles virtual law library
It is, thus, evident
that defendants PAB and Aradji were not in the least motivated by any
malicious
intent or by a sinister design to unduly harass plaintiff Saber, but
only
by a well-founded anxiety to protect the interests of the bank when
they
caused the filing of a criminal complaint against the latter. The
facts which presented themselves were such as would excite the belief
in
a reasonable mind that the person charged was guilty of the crimes for
which he was prosecuted. This is the essence of probable cause
which
eliminates the element of malice essential in making out a case of
malicious
prosecution. (Almendra v. Alvero, 50 SCRA 62 [1965]).chanrobles virtual law library
But whether or not defendants’
perception of the facts and circumstances is actually correct is
irrelevant,
the only issue being whether or not there was probable cause in the
filing
of the criminal complaint.[40]
The appellate court
disagreed with the trial court’s finding of the existence of conspiracy
between Saludo and Aradji, thus:
Nor can we see any “conspiracy”
to pressure Saber into giving up his position by the reduction of his
salary.
As explained by defendants, PAB’s salary structure could not be made at
par with that of the Philippine National Bank, for instance, since it
was
just a small bank with a paid-up capital of only P50 Million and
moreover,
it had only eight branches. It was therefore deemed necessary to
rationalize the salary level of the bank’s officers and staff to make
the
operations of the bank more economically sound and viable.[41]
The Present
Petition
In the meantime, Saber
died intestate. His heirs, represented by Orfia Alicer Saber,
filed
the instant petition for review on certiorari of the decision of the
CA,
alleging that the appellate court erred in reversing the decision of
the
trial court:chanrobles virtual law library
Petitioners herein respectfully
submit that the Court a quo committed error in concluding that under
the
environmental circumstances, the award of damages to plaintiff may not
be sustained whether based on the principle of abuse of rights or for
malicious
prosecution.[42]
The petitioners aver
that Saber was able to prove his claims for damages against the
respondent,
based on the principles of abuse of rights and malicious prosecution.cralaw:red
The petitioners contend
that the respondents acted with malice and/or in bad faith. They
allege that Saber was deprived of his right to be investigated by the
impartial
investigator. They pointed out that respondent Aradji, who was
the
Chairman of the Investigating Committee, was biased against Saber,
considering
that the respondent made strong representations to the Board of
Directors
of the respondent bank that he (Saber) be replaced by Saludo. The
petitioners stress that respondent Aradji, a non-lawyer, was designated
to head the Investigating Committee to investigate the pilgrimage
fiasco.
The petitioners also allege that Saber was denied due process, as he
was
never furnished with a copy of the Report of the Investigating
Committee.
They claim that Saludo and respondent Aradji pressed Saber into
resigning
by proposing for the reduction of his salary as PAB Executive
Vice-President
from P48,000 per annum to P24,000 per annum, and conspired to oust him
from the said position and as officer-in-charge of the petitioner bank
because of their ambitions: Saludo aspired to become the president of
the
respondent bank, while respondent Aradji wanted to be the Managing
Director.cralaw:red
The petitioners claim
that Saber acted in good faith in entering into agreements with
Basman/AGEAC
as confirmed by the Sandiganbayan in its decision; yet, respondent PAB
still approved Resolution No. 67, Series of 1975, holding Saber
personally
liable for P1,012,000.00 even before the PAB tried to collect the
amount
from the debtors; by its acts, the respondent bank merely made
Saber
as a scapegoat.cralaw:red
Finally, the petitioners
aver that the respondents are liable for damages for malicious
prosecution
because (a) Saber alone was charged for violation of Rep. Act No. 3019,
although there were others who were involved in the pilgrimage fiasco;
and (b) despite the dismissal of the criminal complaint by the Special
Counsel, the respondents, nevertheless, pursued their appeal in the
Tanodbayan
who found probable cause against Saber which finding was barren of
factual
basis as confirmed by the decision of the Sandiganbayan acquitting him
of the charges.chanrobles virtual law library
The Ruling of the
Court
The petition has no
merit.cralaw:red
Abuse of right under
Article 19 of the New Civil Code on which Saber anchored his claim for
damages and attorney’s fees, provides:
Art.
19.
Every person must, in the exercise of his rights and in the performance
of his duties, act with justice, give everyone his due, and observe
honesty
and good faith.
The elements of abuse
of
rights are the following: (a) the existence of a legal right or
duty
which is exercised in bad faith; and (b) for the sole intent of
prejudicing
or injuring another. Malice or bad faith is at the core of said
provision.[43]
Good faith is presumed and he who alleges bad faith has the duty to
prove
the same.[44]
Good faith refers to the state of the mind which is manifested by the
acts
of the individual concerned. It consists of the intention to
abstain
from taking an unconscionable and unscrupulous advantage of another.[45]
A public officer is presumed to have acted in good faith in the
performance
of his duties. Unless there is a clear showing of malice, bad
faith
or gross negligence, such public officer is not liable for moral and
exemplary
damages for acts done in the performance of his official duties.[46]
Mistakes committed by a public officer are not actionable absent any
clear
showing that they were motivated by malice or gross negligence
amounting
to bad faith.[47]
Bad faith, on the other hand, does not simply connote bad judgment to
simple
negligence, dishonest purpose or some moral obloquy and conscious doing
of a wrong, a breach of known duty due to some motives or interest or
ill-will
that partakes of the nature of fraud.[48]
Malice connotes ill-will or spite and speaks not in response to
duty.
It implies an intention to do ulterior and unjustifiable harm.
Malice
is bad faith or bad motive.[49]chanrobles virtual law library
We agree with the petitioners
that a person other than respondent Aradji should have been designated
as Chairperson of the Investigating Committee to investigate the
pilgrimage
fiasco. This is so because in his Memorandum to the Board of
Directors
of the PAB on February 21, 1975, respondent Aradji had declared that
the
1974 Mecca pilgrimage under the supervision of Saber was mishandled and
there were indications then that there was an apparent lack of exercise
of effective leadership which was so vital and essential to make the
bank
truly responsive to the needs of the Filipino Muslims. Respondent
Aradji then proposed that Saludo exercise the powers of the president
of
the respondent bank in place of Saber. In fine, respondent Aradji
attributed the problems attendant to the pilgrimage fiasco to
Saber.
But then Saber did not oppose the designation by the Board of Directors
for respondent Aradji to be the Chairman of the Investigating
Committee,
or even asked for the latter’s inhibition. Saber must have
believed
that he could still prove that he acted in good faith, and was not
guilty
of any wrongdoing regardless of any misconception of respondent
Aradji.
Besides, respondent Aradji was only the chairman of the committee, and
there were four (4) other members who could rule in Saber’s
favor.
As it was, Saber even appeared before the committee and adduced
testimonial
and documentary evidence in his behalf. Thus, Saber testified:
Q
Now, what was your rule in the investigation when you were invited to
appear?
A
As I have stated, they wanted me to shed light or give information
about
the behavior or what had happened in that pilgrimage.cralaw:red
Q
Did you actually appear and testified?chanrobles virtual law library
A
Yes, I testified. I even gave the committee some documentary
reports,
a copy of the report which had been submitted to the chairman of the
bank,
Dr. Majul.cralaw:red
Q
You said that Mr. Aradji headed the investigation committee created by
the bank. Is that Mr. Aradji the same defendant in this case?
A
Yes, sir.[50]
It was only after the
Report and Recommendation of the Investigating Committee was approved
by
the Board of Directors of the respondent PAB, and the subsequent
publication
of the said report in the Times Journal that Saber complained, for the
first time, of the impropriety of the designation of respondent Aradji
as Chairman of the committee.cralaw:red
In any event, it cannot
be concluded that the Board of Directors of the PAB acted in bad faith
or with malice in designating the respondent Aradji as chairman of the
committee, and that the latter acted in bad faith or with malice in
accepting
the position and in not inhibiting himself from the said investigation.cralaw:red
Respondent Aradji was
the Acting Chairman of the Personnel Servicing Committee. There
were
four (4) other members of the Investigating Committee, one of whom was
a lawyer, Atty. Arasad Alpad, Jr.; the other members were Executive
Vice-President
Berua Ibrahim and Assistant Vice-President Alexander Lacman,[51]
all of whom could rule for Saber based on the evidence on record.
Moreover, the report and recommendations of the committee were still
subject
to the review of the Board of Directors of the respondent bank, which
included
then Minister Cesar Virata. Respondent Aradji, for his part,
could
also still rule for Saber, based on the evidence on record.cralaw:red
It is true that in his
Memorandum dated February 21, 1975 respondent Aradji proposed to the
Board
of Directors of the respondent PAB that Saludo, a Senior Vice-President
of the PNB and PAB management consultant, to exercise the powers and
perform
the duties of the president of the respondent bank, in effect
terminating
the designation of Saber as Officer-in-Charge. However, he did so
not to spite Saber, but for good and justifiable reasons, thus:
Mr. Saludo has behind
him more than 35 years of solid banking experience and expertise in the
Bank. He is acceptable to both Christians and Muslims. I
strongly
believe that he is imminently qualified to exercise the duties and
powers
of the President of the Bank.chanrobles virtual law library
For the record, I wish
to emphasize that Mr. Saludo was never sought much less intimated to me
his desire to exercise such duties and powers. On the contrary,
his
being connected with our Bank is an additional burden to him but which
he has graciously accepted as [a] challenge to place the Bank on a
competitive
level with the other commercial banks in the country.cralaw:red
In submitting this proposal,
I am only motivated by my desire to improve the stature of the Bank,
which
gesture could only be accomplished if we grant the men that executive
freedom
to act, and to exercise strong, positive and assertive leadership in
our
organization.[52]
Saber failed to adduce
convincing evidence that Saludo and respondent Aradji conspired to oust
him from his position as Assistant Vice-President of the respondent
bank.cralaw:red
Neither may bad faith
nor malice be imputed on the respondents in holding Saber personally
liable
for the receivables of P1,033,700. The evidence of Saber, no
less,
shows that he was present during the 16th Meeting of the Board of
Directors
of the PAB. So were Ministers Cesar Virata and Leonides
Virata.
After an intensive and exhaustive discussion, the Board resolved that
Saber
had no authority to enter into any agreement with Basman for the sale
of
the tickets on credit payable by postdated checks, and to execute a
Freight
Contract with AGEAC over the cargo hold in the M/V Sweet Homes.
The
Board unanimously resolved not to ratify the agreements executed by
Basman
and Saber in behalf of the PAB and with AGEAC, and for Saber to take
full
responsibility for the collection of receivables. This is shown
by
the Minutes of the stenographic notes taken during the Board Meeting:chanrobles virtual law library
CHAIRMAN
: Item No. 3 is
the
Pilgrimage Project Report.cralaw:red
DIR. L.
VIRATA
: How much money
did you lose?
DIR. C.
VIRATA
: How much did
you
collect from Basman?
DR.
SABER
: None.cralaw:red
DIR. C.
VIRATA
: What is the
reason
for not collecting?
DR.
SABER
: We have sent
him
demand letters.cralaw:red
DIR. C.
VIRATA
: Is that all
what
you have done?
MR.
SALUDO
: In the case of Sacar Basman, the management committee is preparing
letters
on this, but we have not finished them yet. If we are going to
demand
money from Basman, the thing is, it compels us that we are recognizing
an unauthorized act of management, because the moment an official
demand
letter will be made, they will file an action against us, because I
understand
that the tickets are actually first class but sold at discounted rates.cralaw:red
DIR.
DOMINGO
: Will you repeat
those words?chanrobles virtual law library
MR.
SALUDO
: That they will
file an action against Amanah Bank for alleged violation of the
contract
between Dr. Saber and Sacar Basman. Since the delivery of tickets
to Basman is without the consent and knowledge of the Board, this will
be equivalent to sanctioning the action of Management.cralaw:red
DIR. C.
VIRATA
: I think we
sanctioned
the acts of management to collect. It was done by management and
therefore we are asking management to collect. If we can’t do
anything,
we will be responsible the same as management.cralaw:red
DIR. L.
VIRATA
: I agree, there
is no other way.cralaw:red
CHAIRMAN
: If the tickets
are then sold at 3rd class rates not first class.cralaw:red
MR.
SALUDO
: Mr. Basman is
now
in Manila.cralaw:red
DIR. L.
VIRATA
: Let him do
whatever
he wants to do against the Bank. You can not count on us, Dr.
Saber.
You try to press your collection without the Board being
involved.
There is no other way.cralaw:red
DIR. C.
VIRATA
: How much is the
amount involved?
MR.
SALUDO
: The value of
the
tickets is P700,000.00 plus the cost of the freightage.cralaw:red
CHAIRMAN
: You study all
the
legalities.chanrobles virtual law library
DR.
SABER
: I gave a
directive
to my Legal Officer about this including the check that bounced but
issued
to the Amanah Bank.cralaw:red
CHAIRMAN
: He issued a
check
that bounced. How can the Board held (sic) Management. Let
us
help Management.
Can we have lawyers from other institutions that can help the Legal
Officer?
The Legal Officer is only one man. You might have
consultants
in other institutions, can we allow them to help?
DIR. L.
VIRATA
: I think, Mr.
Saludo
can take care of that.cralaw:red
DIR.
CRUZ
: We have also
the
Corporate Secretary, it’s a simple case.cralaw:red
DR.
SABER
: We are all
saddled
in (sic) this problem, we have to concentrate all our efforts.cralaw:red
MR.
SALUDO
: Atty. Sadac is
a lawyer, there are problems but we have to concentrate on this.cralaw:red
ATTY.
ABBAS
: Does the Board
ratify such act?
DIR. C.
VIRATA
: No.cralaw:red
ATTY.
ABBAS
: Is it against
Dr.
Saber in his individual capacity?
DR.
SABER
: I have not been
acting as an individual person. I have always acted on that
because
it is part of my position as an officer of the Bank. There is not
a single act that have not think (sic) to save the predicament of the
boat
in the tense moments. When the boat was about to leave, my Troika
recommended to me that this is the recourse, even my Legal Officer
advised
me, even the Auditor himself who is (sic) there in Zamboanga. If
(sic) it was really very urgent that I have to act on the spot. I
have to take (sic) a decision because it is going to affect the entire
boat if the result was negative but the real intention is (sic) to
help.
We thought that we will make good for the Bank.chanrobles virtual law library
DIR. C.
VIRATA
: I think, we
have
to clarify, Dr. Saber, as between the responsibility of the officers
and
that of the Board. While it is true that you have certain
discretionary
powers but that is either affirmed or reviewed by the Board. In
this
case, you have no authority on this very important matter so you have
to
take on your individual capacity because the Board refuses to share the
responsibility.cralaw:red
DIR.
DOMINGO
: Which we will
review
or affirm.cralaw:red
DIR. C.
VIRATA
: That is the
responsibility
as being the head of the institution and all of us are subject to this
restriction.cralaw:red
CHAIRMAN
: So, I think,
better
muster all the legal minds in the Bank, Mr. Saludo and the staff.chanrobles virtual law library
DIR.
DOMINGO
: And finish this
once and for all.cralaw:red
MR.
SALUDO
: We could file
an
action against Sacar Basman. The question is, can we recommend?
DIR.
CRUZ
: That is
ratifying
an act.cralaw:red
MR.
SALUDO
: We declared
that
Troika is short.cralaw:red
DR.
SABER
: The Troika is
here.cralaw:red
DIR. C.
VIRATA
: It is
useless.
The Troika will say that
Dr.
Saber was the one.cralaw:red
CHAIRMAN
: You run after
them
individually.cralaw:red
DIR.
DOMINGO
: Who are the
members
of the Troika?
DR.
SABER
: They are: Atty.
Lanang Ali, Administrator, Dialel Basman, the Treasurer, Tindug
Macarambon,
Project Accountant and Ibrahim Mamao. Anything they recommended
that
these are their needs I issued them because they are the ones
implementing.
They implemented even in the Branches and I thought it is for the good
of the Bank.chanrobles virtual law library
DIR.
TEODORO
: The problem
here
is they are funds due to the Bank. This boat was chartered even
without
the approval of the Board.cralaw:red
AUD.
AGUILAR
: Excuse me,
there
is a possibility to collect because they have issued a communication
ordering
the people to ride in the boat.cralaw:red
DIR.
CRUZ
: We will get
good
Legal Advisers here. It must be the Solicitor General.cralaw:red
CHAIRMAN
: This was what I
was suggesting.cralaw:red
MR.
SALUDO
: Atty. Sadac
here
is willing to assist the Legal Counsel of the Amanah Bank.cralaw:red
DIR.
CRUZ
: Can we not
engage
the services of the government counsel?
CHAIRMAN
: If you think
you
find this necessary. (MR. SALUDO)
DIR.
CRUZ
: I don’t know
the
lawyer involved but basing in (sic) our experience, unless you hire a
super-duper
lawyer at least you can easily win the case. We could ask for the
assistance of the Office of the Solicitor General.cralaw:red
DR.
SABER
: Mr. Chairman
and
gentlemen, let me comment. Will you please look on this affair of
the pilgrimage not in terms of loss but in terms of other things, what
are the various outcome[s] of the pilgrimage.chanrobles virtual law library
CHAIRMAN
: With all
respect
to your views, Dr. Saber, there are 2 points here. The Bank is
incurring
losses, the other one is, there are people owing money. These are
2 different things. The way I look at it, the Bank is already
incurring
a loss of P900,000. We are only talking on (sic) the Accounts
Receivables,
it can only serve to explain why we are losing. I think every
effort
should be made because it involved not only you but also other people
like
Ambassador Pangandaman. Even these people, you have to have the
legal
counseling to help, and we will work hand in hand with other lawyers
with
their advice. If this is difficult, we have government lawyers,
this
is a government bank. We can seek their advice.
The problem is how
do we collect money? We are not talking (sic) that the charter of
the boat is exorbitant, if it is high. The question is how can
the
Bank recover? Shall the people owing the Bank pay? Even the
Charter rate, it is very big, that is something else. I think,
that
is the problem. I don’t know if we understand the Board here,
whether
we like it or not, we have to collect.cralaw:red
DIR.
CRUZ
: We have reached
a consensus, why don’t we give Dr. Saber 30 days to liquidate? He
is accountable, then we will decide later what course of action shall
we
take.cralaw:red
DIR.
TEODORO
: Until the money
is returned here as the Board has found it necessary and it is
reflected
in the report, and efforts should be made on the Accounts
Receivables.
He is responsible to go after the people involved. This is the
only
official action of the Board.chanrobles virtual law library
MR.
SALUDO
: Sir, do you
think
the case will drag on if we can not liquidate within 30 days?chanrobles virtual law library
DIR.
TEODORO
: We can not
close
our eyes that the money of the Bank is lacking in amount.cralaw:red
DIR.
CRUZ
: The idea here
is
that, such Legal action on those people responsible, so these people
have
to liquidate the account within 30 days, failure on your part, then we
resort on (sic) the other courses of action.cralaw:red
CHAIRMAN
: Any objections?
BOARD MEMBERS
: None.cralaw:red
CHAIRMAN
: APPROVED[53]
Indeed, the Sandiganbayan
ruled in its decision in Criminal Cases Nos. 1835-1837 that Saber had
the
implied authority as Executive Vice-President to sell tickets on credit
via postdated checks and to allow Basman to load his cargoes in the
cargo
section of the M/V Sweet Homes; that Saber acted in good faith; hence,
was not criminally liable therefor; that the respondent bank resorted
to
the dubious expedience of charging the receivables against the account
of Saber, instead of availing itself of legal remedies for their
collection.
However, it cannot thereby be concluded that the Board of Directors of
respondent PAB acted in bad faith or with malice.cralaw:red
There is no evidence
on record that as claimed by the petitioners, Saludo and respondent
Aradji
conspired to oust Saber as Executive Vice-President of the PAB and
Officer-in-Charge.
Saludo merely told Saber intimately that it was his ambition to become
President of the bank had not President Marcos appointed Saber.
Moreover,
Saludo and Saber even became intimate friends:chanrobles virtual law library
ATTY. FABIE:
Cross-examination to
elucidate not because he does not understand. It is not that,
Your
Honor. A practitioner should be fair. If he cross-examines,
the purpose is to elicit the truth, not to distort. Here, in this
case, we want the truth.cralaw:red
ATTY. SADAC:
That is the purpose
of my cross-examination.cralaw:red
COURT:
LET US PROCEED.chanrobles virtual law library
ATTY. SADAC: (to
witness)
Q
Again, Dr. Saber, on page 213 of the transcript of stenographic notes,
dated January 16, 1980, you testified that Mr. Saludo allegedly
manifested
to you his desire to be president of the Philippine Amanah Bank.
For the information of this Honorable Court, will you tell us when was
this made or relayed to you?
A
During my incumbency in the Philippine Amanah Bank. He did not
tell
me that he desires to replace me, only his desire to become president
of
the Bank. He told me intimately, he said: “Brod, if
President
Marcos did not get you I would have been made president of the
Philippine
Amanah Bank because I am also a Muslim.” He told that to me
intimately.
It was intimate, the same as I was intimate with you.cralaw:red
Q
When was that within your incumbency, when was that made?
A
In fact, he said this to me several times, and again I cannot count how
many times I am not keeping statistics of statements.chanrobles virtual law library
COURT:
Q
AND THAT WAS SAID TO YOU DURING YOUR INCUMBENCY?
A
Yes, Your Honor.cralaw:red
ATTY. SADAC:
Q
Will you tell us, Dr. Saber, because we want to be specific, in what
occasion
did Mr. Saludo tell you, what particular occasion?
A
Well, under the roof of the Philippine Amanah Bank and some other
occasions,
but I cannot recall again as I said I did not put this in my diary.cralaw:red
Q
You cannot again remember, Dr. Saber?
A
Yes, Sir.cralaw:red
Q
And when he made this alleged manifestation of his desire to become
president
of the Philippine Amanah Bank, were there other people around you in
these
alleged several occasions?
A
I cannot remember if there were people around. If there were I
will
bring them to court to testify because, as I said, this is
between
friends. Mr. Saludo confirmed his friendship to me and we became
friends when we were in the Philippine Amanah Bank.[54]chanrobles virtual law library
Neither is there evidence
that respondent Aradji had any involvement at all in the reduction of
Saber’s
salary from P48,000 to P24,000 per annum. The budget of the bank
was modified upon the advice of PNB President Panfilo Domingo and
Saludo.
This is gleaned from the transcript of stenographic notes of Saber’s
testimony:
Q
Do you know, Mr. Saber, for the information of this Honorable Court,
how
much does the president of the Philippine Amanah Bank received?
A
The budget was P48,000.00 per annum, but I received that for a few
months
the Board of Directors with the advise of President Domingo of the
Philippine
National Bank and Vice-President Saludo reduced it to 50% and I was
paid
only P24,000.00 per annum. That discourage me staying with the
Bank.cralaw:red
Q
In other words, the President of the Philippine Amanah Bank under that
new budget that you have mentioned is receiving about P24,000.00 per
annum?
A
The last salary was P24,000.00 instead of P48,000.00.[55]chanrobles virtual law library
The budget was approved
by the Board of Directors of the PAB and Central Bank of the
Philippines
Governor Gregorio Licaros.[56]
Saber failed to adduce
evidence that respondent Aradji issued any press release covering his
Report
to the Board of Directors of the PAB or his
formal investigation
and the criminal complaint he filed against Saber for violation of Rep.
Act No. 3019. The news report of Emil Macaspac of the Times
Journal
does not attribute the source of the facts contained therein. When
pressed
to adduce evidence to prove that the news report was based on the press
release issued by the respondent Aradji, Saber hedged and surmised that
the source of the news report could have been Atty. Roberto Sadac, the
Legal Officer of the PAB:
Q
Do you know personally Emil Macaspac, the reporter of the Times Journal?chanrobles virtual law library
ATTY. R. SADAC:
I just want to remind the witness that he is testifying under oath.chanrobles virtual law library
ATTY. B. FABIE:
The witness, Your Honor, is an intelligent man. Dr. Saber is an
educator.cralaw:red
COURT:
GO AHEAD ANSWER THE QUESTION.cralaw:red
WITNESS:
A
I do not know him personally nor intimately associated with him.
I cannot remember his face but he was among the newspaper men
frequenting
your office and my office.cralaw:red
Q
To be specific Dr. Saber, will you tell this Honorable Court the day or
the time or the period when these newspaper men especially Emil
Macaspac
frequenting my office or your office?
A
I am getting the evidence from the dateline of the news of July 28,
1975.
So, I presumed that before the news report was printed, he was
frequenting
your office, otherwise, where is the source of the news? He
cannot
get it from outside.[57]
The respondent PAB cannot be faulted, nor can it be ordered to pay
damages
and attorney’s fees for issuing a conditional clearance to Saber after
his resignation from respondent PAB. Saber had not yet liquidated
his accountability of P1,012,000 when his leave of absence from the
university
had expired. The Investigating Committee had yet to commence and
terminate its investigation of Saber’s accountability, administrative
or
civil, for the pilgrimage fiasco. The respondent PAB had no
discretion
to issue a clearance to Saber. It bears stressing that a public
officer,
in the discharge of his duties has to use prudence, caution and
attention
in the management of his affairs. In fact, the respondent
PAB
was duty bound to withhold such clearance to Saber pending final
determination
of his monetary accountabilities. Even assuming that Saber and/or
the petitioners sustained economic difficulties on account of the
conditional
clearance issued by the respondent PAB, the petitioners are not
entitled
to moral and exemplary damages. The act of the respondent PAB was
not wrongful. It is a case of damnum absque injuria and not of
damnum
et injuria.[58]chanrobles virtual law library
To constitute malicious
prosecution, there must be a proof that the prosecutor was prompted by
a sinister or devious design to vex and humiliate a person, and that it
was initiated deliberately, knowing that the charges are false and
groundless.[59]
Malice with probable cause must both be clearly established to justify
an award of damages based on malicious prosecution.[60]
Lack of probable cause is an element separate and distinct from that of
malice. One cannot be held liable for damages for malicious
prosecution
where he acted with probable cause.[61]
We also held that a determination that there is no probable cause
cannot
be made to rest solely on the fact that the trial court after trial
decided
to acquit the accused. Neither can lack of probable cause be made
to rest on the fact that the finding of probable cause of the Special
Counsel
was reversed by the Secretary of Justice or the Ombudsman as the case
may
be.[62]
The mere act of submitting the case to the authorities for prosecution
does not make one liable for malicious prosecution.[63]
Moreover, the adverse result of an action does not per se make the
action
wrongful and subject the action to damages, for the law could not have
meant to impose a penalty on the right to litigate. If damages
result
from a person’s exercise of a right, it is damnum absque injuria.[64]
Probable cause is that
which engenders a well-founded belief that a crime has been committed
and
that the respondent is probably guilty thereof and should be held for
trial.
A finding for probable cause needs only to rest on evidence showing
that
in all probability, a crime has been committed by the respondent.
Probable cause need not be based on clear and convincing evidence
beyond
reasonable doubt. While probable cause demands more than mere
suspicion,
it does not require that the evidence would justify conviction.[65]
Saber failed to prove
that the respondents filed the criminal complaints against him with
malice
and despite lack of probable cause therefor.cralaw:red
The respondent PAB,
through respondent Aradji, filed a criminal complaint against Saber for
violations of Section 3(e) of Rep. Act No. 3019, which has the
following
enumerated elements:chanrobles virtual law library
(1) The accused is a public officer or a private person charged
in
conspiracy with the former;
(2) The said public officer commits the prohibited acts during
the
performance of his or her official duties or in relation to his or her
public functions;
(3) That he or she causes undue injury to any party, whether the
government or a private party;
(4) Such undue injury is caused by giving unwarranted benefits,
advantage
or preference to such parties; and
(5) That the public officer has acted with manifest partiality,
evident
bad faith or gross inexcusable neglect.[66]
In this case, the Tanodbayan
found probable cause for three (3) counts of violations of Section 3(e)
of Republic Act No. 3019.[67]
Indeed, the evidence on record shows the following:
First. Saber allowed
Basman to buy tickets worth P756,000 payable on credit via postdated
checks
over the objection of the Troika-
Secretariat.
The postdated checks were blank as to the amounts. As found by
the
Sandiganbayan:
Pursuant to the MEMORANDUM
(Exh.“G”), accused Dialel Basman as Finance Officer of the Secretariat
issued to Sacar Basman the seventy (70) tickets
therein specified worth P392,000 (t.s.n., p. 23, August 11, 1981), for
which Sacar Basman issued Philippine Amanah Bank Check No. 00377
payable
to the BANK, postdated February 4, 1975, drawn against Sacar Basman’s
account
No. 10000008 but blank as to the amount (Exh. “I”). Under the
ADDENDUM
(Exh. “G-1”), Dialel Basman issued one hundred twenty (120) first class
tickets to Sacar Basman for which Sacar Basman issued PAB Check
No.
00378 payable to the BANK, similarly postdated February 4, 1975, drawn
against the same account, and also blank as to the amount. (Exh.
“I-1”.).[68]chanrobles virtual law library
Saber failed to ascertain
whether Basman issued the said checks against sufficient funds in his
account
with the respondent bank. When the checks were deposited by
respondent
PAB in its account, the said checks were dishonored.cralaw:red
Second. Saber
allowed the AGEAC to pay freight charges of P178,000 via Check Nos.
00377
and 00378 postdated February 4, 1975, although the balance of the
account
of Basman in the respondent bank was only P1,834.55. AGEAC/Basman
failed to pay the amount to the respondent PAB after the pilgrimage.cralaw:red
IN LIGHT OF ALL THE
FOREGOING, the petition is DENIED DUE COURSE. No costs.cralaw:red
SO ORDERED.cralaw:red
Austria-Martinez, J.,
(Acting Chairman), Tinga and Chico-Nazario, JJ., concur.
Puno, J.,
(Chairman),
on official leave.
____________________________
Endnotes:
[1]
Penned by Associate Justice Oswaldo D. Agcaoili (retired), with
Associate
Justices Corona Ibay-Somera (retired) and Rodrigo V. Cosico, concurring.
[2]
Penned by Judge Amer R. Ibrahim.chanrobles virtual law library
[3]
Exhibit “A.”chanrobles virtual law library
[4]
Exhibit “D.”
[5]
Exhibit “E.”
[6]
Exhibit “F.”
[7]
Exhibit “F-1.”
[8]
Exhibit “O.”
[9]
Exhibits “N-1” and “N-1-a.”
[10]
Exhibit “I.”chanrobles virtual law library
[11]
Exhibit “J-2.”
[12]
Ibid.
[13]
Exhibit “J.”
[14]
Ibid.
[15]
Exhibit “L.”
[16]
Exhibit “L-1.”
[17]
Exhibits “H-1” and “H-2.”
[18]
Exhibit “L-3.”chanrobles virtual law library
[19]
Exhibit “W.”
[20]
Exhibit “O-1.”
[21]
Exhibit “O.”
[22]
Exhibit “7.”
[23]
Exhibit “5.”
[24]
Ibid.
[25]
Exhibit “6-A.”
[26]
Exhibit “T.”
[27]
The Charter of the PAB, P.D. No. 264, as amended by P.D. 542 was
repealed
by Republic Act No. 6848 which was approved on January 26, 1990.
Section 48 of R.A. No. 6848 provides that:chanroblesvirtuallawlibrary
SEC. 48. Transformation of Islamic Banking Business. - Upon
approval of this Act, all the assets, liabilities and capital accounts
of the Philippine Amanah Bank are hereby transferred to the A-1Amanah
Islamic
Investment Bank.chanrobles virtual law library
[28]
CA Rollo, pp. 100-101.
[29]
RTC Decision, p. 1; Records, p. 232.
[30]
Exhibit “5.”chanrobles virtual law library
[31]
Exhibit “U.”
[32]
Exhibit “V.”
[33]
Exhibit “3-A.”chanrobles virtual law library
[34]
The Information in Criminal Case No. 1835 is quoted below:chanroblesvirtuallawlibrary
That on or about November 28, 1974, and periods prior and subsequent
thereto,
at Zamboanga City, Philippines, and within the jurisdiction of this
Honorable
Court, accused Mamitua Saber, then Executive Vice-President and
Officer-in-charge
of the Philippine Amanah Bank, a banking corporation owned or
controlled
by the Philippine Government, with head offices at Zamboanga City,
Philippines,
(hereinafter called the “Bank”) and who was then the over-all chairman
of the 1974 Mecca Pilgrimage Project sponsored by the aforesaid Bank
(hereinafter
referred to as the “Project”), Atty. Lanang Ali, then Pilgrimage
Administrator
and Chairman, 1974 Mecca Pilgrimage Troika and Secretariat (each such
bodies
hereinafter referred to individually as the “Troika” &
“Secretariat”
and collectively as the “Troika-Secretariat”), Dialel Basman, then
Project
Treasurer-Finance Officer and Troika-Secretariat Member, Ibrahim Mamao,
then auditor and Troika-Secretariat member, Tindug Macarambon, then
Project
accountant and Secretariat Member, and Ebrahim Macadatar, then Trading
Officer and Secretariat member, all of whom are Bank Officers and
employees,
taking advantage of their official positions, and conspiring,
confederating,
conniving and cooperating with each other, and with the conspiracy,
confederation,
connivance and indispensable cooperation of Sacar Basman, then a
private
citizen but who is now the Philippine Commercial attaché in the
Republic of Gabon attached to the Philippine Embassy in said country,
with
manifest partiality, evident bad faith and/or inexcusable negligence,
did
then and there willfully, unlawfully and feloniously cause undue
injury,
loss and prejudice to the Philippine Amanah Bank, including the
Government
as the owner or controlling stockholder thereof, by preparing,
executing,
signing and delivering a freight contract dated November 28, 1974, the
Bank being therein represented by the accused Mamitua Saber, in favor
of
the Arabian Gulf Export Agency Corporation (hereinafter referred to as
the “Corporation”), represented in said contract by the accused Sacar
Basman,
allowing the latter to ship goods for export to Saudi Arabia on the M/V
Sweet Home, a luxury ship chartered by the Bank for the 1974 pilgrimage
to Mecca, Saudi Arabia, and on the return trip to again ship
goods
for import to the Philippines, all for a consideration of One Hundred
Seventy-Eight
Thousand Pesos (P178,000.00), but which contract is manifestly and
grossly
disadvantageous to the Bank considering that the freight charges in the
aforementioned amount were not collected by the accused Bank Officials,
who were dealing with the accused Sacar Basman directly, in advance,
nor
a portion thereof by way of down payment on the charges or any valuable
security thereof attempted or required to be collected, taken or
received
by the said accused, except two (2) blank postdated checks (blank as to
amount) numbered 00377 & 00378, respectively, both dated February
4,
1975 drawn on Sacar Basman’s current account numbered 10000008 with the
Bank which current account contained only at the time a deposit
totaling
P1,834.55 the gross disadvantageousness of which contract was
compounded
by provisions in the Freight Contract that the consideration aforesaid
will be paid by the Corporation, acting thru the accused Sacar Basman,
within a period of ten (10) days after the arrival of the ship in the
Philippines,
that the proceeds of the goods exported to Saudi Arabia, on which a
superior
lien was purported to be created by the contract, instead of being
delivered
and paid to the project treasurer, the accused Dialel Basman who was
himself
on the trip, shall be placed, as in fact they were placed, in the
possession
of accused Sacar Basman, who was also on said trip, for himself and as
the representative of the Corporation, to be used for the purchase of
goods
to be imported by the latter into the Philippines, all the accused
knowing
fully well that the said conditions are grossly disadvantageous to the
Bank and greatly favorable, beneficial and profitable to the accused
Sacar
Basman and the Corporation which he represents, all contrary to and in
direct violation of Section 76 of R.A. 337, as amended, otherwise known
as the General Banking Act and the By-Laws of the Philippine Amanah
Bank,
as in fact, the Corporation and Sacar Basman who purported to represent
the Corporation failed to pay the freight charges in the amount of
P178,000.00,
all of the above being the direct result of the accused Bank officials
desire to vest to Sacar Basman and the Corporation unwarranted
benefits,
advantage or preference in the discharge of their official
administrative
functions through manifest partiality, evident bad faith or gross
inexcusable
negligence which the accused Sacar Basman procured and knowingly
induced
the accused bank officials to grant him, to the loss, damage and
prejudice
of the Bank in the sum of P178,000.00.chanrobles virtual law library
CONTRARY TO LAW. (Exhibits “4,” “4-A” and “4-B”)chanrobles virtual law library
The informations in Criminal Cases Nos. 1836 and 1837 are couched in
identical
language. Only the Information in Crim. Case No. 1836 is
hereunder
reproduced, with reference footnotes on material facts where it varies
from the information in Criminal Case No. 1837, to wit:chanroblesvirtuallawlibrary
chan
That on or about November 21, 1974, and periods prior and subsequent
thereto,
at Zamboanga City, Philippines, and within the jurisdiction of this
Honorable
Court, accused Mamitua Saber, then Executive Vice-President and
Officer-In-Charge
of the Philippine Amanah Bank, a banking corporation owned or
controlled
by the Philippine Government with head offices at Zamboanga City,
Philippines
(hereinafter called the “Bank”) and who was then the over-all chairman
of the 1974 Mecca Pilgrimage Project sponsored by the aforesaid Bank
(hereinafter
referred to as the “Project”), Atty. Lanang Ali, then Pilgrimage
Administrator
and Chairman, 1974 Mecca Pilgrimage Troika and Secretariat (each such
bodies
hereinafter referred to individually as the “Troika” and “Secretariat”
and collectively as the “Troika-Secretariat”), Dialel Basman, then
Project
Treasurer-Finance Officer and Troika-Secretariat member, Ibrahim Mamao,
then Project Auditor, General Coordinator and Troika-Secretariat
member,
Tindug Macarambon, then Project Accountant and Secretariat member, and
Ebrahim Macadatar, then Trading Officer and Secretariat member, all of
whom are Bank Officers and employees, taking advantage of their
official
positions and conspiring, confederating, conniving and cooperating with
each other and with the conspiracy, confederation, connivance and
indispensable
cooperation of Sacar Basman, then a private citizen but who is
now
the Philippine Commercial Attache in the Republic of Gabon attached to
the Philippine Embassy in said country, with manifest partiality,
evident
bad faith and/or inexcusable negligence, did then and there willfully,
unlawfully, and feloniously cause undue injury, loss and prejudice to
the
Philippine Amanah Bank, including the Government as the owner or
controlling
stockholder thereof by selling, issuing and conveying, without the
authority
of the Bank’s Board of Directors, seventy (70) pilgrim tickets with a
total
value of FOUR HUNDRED EIGHTY EIGHT THOUSAND PESOS (P488,000.00),
Philippine
Currency, to accused Sacar Basman on credit without any security or
collateral
except two (2) postdated blank checks (blank as to amount) numbered
00377
and 00378 both dated February 4, 1975 and drawn on Amanah Bank, when
all
the accused well knew that at the time of the transaction the same was
not authorized by the Bank’s Board of Directors, nor was the
transaction
subsequently ratified by the said Board, and that Sacar Basman at that
time had on deposit in his current account numbered 10000008, the
amount
of P1,834.55 only, and that said accused Sacar Basman had not been
subjected
to a credit worthiness and capability of fulfilling his commitment to
the
Bank contrary to and in direct violation of Section 76 of R.A. 337, as
amended, otherwise known as the General Banking Act and the By-Laws of
the Philippine Amanah Bank as, in fact, the accused failed to pay his
outstanding
obligation to the Bank representing the amount of the pilgrim tickets
sold
to and purchased by him, which amount the latter up to this date,
failed
and refused to pay despite repeated demands, thus giving accused Sacar
Basman, a private party, unwarranted benefits, advantage or preference
in the discharge of their official duties which the accused Sacar
Basman
procured and knowingly induced the accused officials to grant him
knowing
the same to be unlawful, to the damage and prejudice of the Bank in the
sum of P488,000.00, Philippine Currency” (Exhibits “5,” “5-A” and “5-B”)
[35]
Exhibit “T.”chanrobles virtual law library
[36]
Exhibit “WW,” Folder of Exhibits (Appendix “GG”), pp. 44-45.
[37]
Id. at 34.
[38]
Decision, Civil Case No. 2323, p. 21.
[39]
Id. at 23.
[40]
Decision, CA-G.R. CV No. 22626, p. 34.
[41]
Id. at 28.
[42]
Rollo, p. 33.chanrobles virtual law library
[43]
ABS-CBN Broadcasting Corporation v. Court of Appeals, 301 SCRA 572
(1999).
[44]
Chua v. Court of Appeals, 242 SCRA 341 (1997).
[45]
Farolan v. Soliman Marketing Corporation, 195 SCRA 168 (1999).
[46]
Cojuangco, Jr. v. Court of Appeals, et al. 30 SCRA 602 (1999).
[47]
Farolan v. Court of Appeals, supra.
[48]
Cojuangco Jr. v. Court of Appeals, supra.
[49]
Boyal v. Court of Appeals, 201 SCRA (1999).
[50]
TSN, 15 January 1980, pp. 189-190.
[51]
Exhibit “5.”chanrobles virtual law library
[52]
Folder of Exhibits for Defendant, p. 86.
[53]
Exhibit “O-1.”chanrobles virtual law library
[54]
TSN, 19 March 1980, pp. 31-33.
[55]
Id. at 33-34.chanrobles virtual law library
[56]
Id. at 40.chanrobles virtual law library
[57]
TSN, 15 January 1980, pp. 238-239.chanrobles virtual law library
[58]
Custodio v. Court of Appeals, 253 SCRA 483 (1996).
[59]
Orosa v. Court of Appeals, 329 SCRA 852 (2000).
[60]
Chua v. Court of Appeals, supra.chanrobles virtual law library
[61]
Conuta v. Court of Appeals, 341 SCRA 563 (1999).
[62]
Ibid.chanrobles virtual law library
[63]
Salao v. Salao, 70 SCRA 65 (1976).chanrobles virtual law library
[64]
ABS-CBN Broadcasting Corporation v. Court of Appeals, supra.
[65]
Webb v. De Dios, 247 SCRA 652 (1995).chanrobles virtual law library
[66]
Baylon v. Office of the Ombudsman, 372 SCRA 437 (2001).
[67]
Exhibit “1.”
[68]
Exhibit “WW.” |