Filipinas Broadcasting vs. Ago Medical Center (GR No. 141954, January 17, 2005)

​ Facts:
Rima & Alegre were host of FBNI radio program “Expose”. Respondent Ago was the owner of the Medical & Educational center, subject of the radio program “Expose” AMEC claimed that the broadcasts were defamatory and owner Ago and school AMEC claimed for damages. The complaint further alleged that AMEC is a reputable learning institution. With the supposed expose, FBNI, Rima and Alegre “transmitted malicious imputations and as such, destroyed AMEC reputation. FBNI was included as defendant for allegedly failing to exercise due diligence in the selection and supervision of its employees. The trial court found Rima’s statements to be within the bounds of freedom of speech and ruled that the broadcast was libelous. It ordered the defendants Alegre and FBNI to pay AMEC 300k for moral damages.”

Issue:
Whether or not AMEC is entitled to moral damages.

Ruling:
​Yes. A juridical person is generally not entitled to moral damages because, unlike a natural person, it cannot experience physical suffering or such sentiments as wounded feelings, serious anxiety, mental anguish or moral shock. Nevertheless, AMEC’s claim, or moral damages fall under item 7 of Art – 2219 of the NCC. This provision expressly authorizes the recovery of moral damages in cases of libel, slander or any other form of defamation. Art 2219 (7) does not qualify whether the plaintiff is a natural or juridical person. Therefore, a juridical person such as a corporation can validly complain for libel or any other form of defamation and claim for moral damages. Moreover, where the broadcast is libelous per se, the law implied damages. In such a case, evidence of an honest mistake or the want of character or reputation of the party libeled goes only in mitigation of damages. In this case, the broadcasts are libelous per se. thus, AMEC is entitled to moral damages. However, we find the award P500,000 moral damages unreasonable. The record shows that even though the broadcasts were libelous, per se, AMEC has not suffered any substantial or material damage to its reputation. Therefore, we reduce the award of moral damages to P150k.