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Manila Electric Company v. T.E.A.M. Electronics Corporation

This case involves a dispute between Manila Electric Company (Meralco) and T.E.A.M. Electronics Corporation (TEC) over alleged electric meter tampering by TEC resulting in deficiency assessments. The trial court found insufficient evidence that TEC tampered with the meter installations. The issue is whether TEC is entitled to moral damages. The Supreme Court ruled that no moral damages should be awarded because as a corporation, TEC cannot experience physical suffering or emotions. Moral damages would only be awarded if the corporation's reputation was debased in the business realm, but there was no evidence presented that TEC's name or reputation suffered as a result of Meralco's actions.

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404 views

Manila Electric Company v. T.E.A.M. Electronics Corporation

This case involves a dispute between Manila Electric Company (Meralco) and T.E.A.M. Electronics Corporation (TEC) over alleged electric meter tampering by TEC resulting in deficiency assessments. The trial court found insufficient evidence that TEC tampered with the meter installations. The issue is whether TEC is entitled to moral damages. The Supreme Court ruled that no moral damages should be awarded because as a corporation, TEC cannot experience physical suffering or emotions. Moral damages would only be awarded if the corporation's reputation was debased in the business realm, but there was no evidence presented that TEC's name or reputation suffered as a result of Meralco's actions.

Uploaded by

joyiveeong
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Manila Electric Company

v.
T.E.A.M. Electronics Corporation
G.R. No. 131723
December 13, 2007

Facts:

TEC is a corporation engaged in electronics and is renting in a building called DCIM.


Meralco has been sending letters to TEC informing the latter of cases involving electric meter
tampering which is resulting to a deficiency assessment in the reading. Meralco threatened to
cut the electric supply of TEC if it will not pay for the differential billing to which TEC paid in
protest.  The trial court found the evidence of petitioner insufficient to prove that TEC was
guilty of tampering the meter installations.

Issue: Whether or not an award of moral damages to TEC is proper.

Ruling: No.

As a rule, a corporation is not entitled to moral damages because, not being a natural
person, it cannot experience physical suffering or sentiments like wounded feelings, serious
anxiety, mental anguish and moral shock. The only exception to this rule is when the
corporation has a reputation that is debased, resulting in its humiliation in the business realm.
But in such a case, it is essential to prove the existence of the factual basis of the damage and
its causal relation to petitioner's acts.

In this case, where the records are bereft of evidence that the name or reputation of the
corporation has been debased as a result of Meralco’s act (which in this case is the
disconnection without written notice of the disconnection of the electricity supply to the
building of the corporation due to alleged meter tampering), the corporation is not entitled to
moral damages.

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