Nissan North Edsa Vs United Digest

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NISSAN NORTH EDSA VS.

UNITED PHILIPPINE SCOUT VETERANS DETECTIVE AND


PROTECTIVE AGENCY
G.R. No. 179470
April 20, 2010

FACTS:

Respondent United is a domestic corporation engaged in the business of providing security services. In
1993, it entered into a contract for security services with petitioner Nissan. In the morning of 31 January
1996, Nissan informed United, through the latter’s General Manager, Mr. Ricarte Galope (Galope), that its
services were being terminated beginning 5:00 p.m. of that day. On February 27, 1996 United wrote to
Nissan demanding payment of the amount equivalent to thirty (30) days of service in view of Nissan’s act
of terminating United’s services without observing the required 30-day prior written notice as stipulated
under paragraph 17 of their service contract. As a result of Nissan’s continued failure to comply with
United’s demands, the latter filed a case for Sum of Money with damages before the Metropolitan Trial
Court of Las Piñas City. In its Answer, Nissan maintained that the service contract expressly confers upon
either party the power to terminate the contract, without the necessity of a prior written notice, in cases of
violations of the provisions thereof. Nissan, in its defense alleged that the failure of United’s security
guards to report for duty on two occasions, without justifiable cause, constitutes a violation of the
provisions of the service contract, sufficient to entitle Nissan to terminate the same without the necessity
of a 30-day prior notice. Nissan claims that its premises had been exposed to threats in security, which
allegedly constitutes a clear violation of the provisions of the service contract. The Metropolitan Trial
Court ruled in favor of herein respondent United. The trial court pronounced that Nissan has not adduced
any evidence to substantiate its claim that the terms of their contract were violated by United; and that
absent any showing that violations were committed, the 30-day prior written notice should have been
observed. Nissan appealed to the Regional Trial Court, questioning the award of actual and exemplary it
alleged that there was no evidence to support the award of actual damages, as the service contract, upon
which the amount of the award was based, was never presented nor offered as evidence in the trial.
Furthermore, no evidence was adduced to show bad faith on the part of Nissan in unilaterally terminating
the contract, making the award of exemplary damages improper. RTC and later the CA affirmed the
decision.

ISSUE:

WoN the best evidence rule is applicable in a claim for damages when respondent failed, during the trial
of the case, to offer in evidence the service contract upon which it based its claim for sum of money and
damages?

HELD:

No. Nissan’s reliance on the best evidence rule is misplaced. The best evidence rule is the rule which
requires the highest grade of evidence to prove a disputed fact. However, the same applies only when the
contents of a document are the subject of the inquiry. In this case, the contents of the service contract
between Nissan and United have not been put in issue. Neither United nor Nissan disputes the contents
of the service contract; as in fact, both parties quoted and relied on the same provision of the contract
(paragraph 17) to support their respective claims and defenses. Thus, the best evidence rule finds no
application here.

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