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Nikko Hotel Manila Garden vs. Reyes

The petition was granted, reversing the Court of Appeals and reinstating the trial court's dismissal of the damages complaint. Petitioner Ruby Lim, as hotel executive secretary, asked uninvited guest Roberto Reyes to leave an exclusive birthday party. While the appellate court found Lim liable for acting contrary to morals by allegedly humiliating Reyes publicly, the Supreme Court gave more credence to the trial court's finding that Lim acted discreetly and within her rights. Because the elements of abuse of rights and acts contra bonos mores require proof of bad faith or intent to injure—neither of which was established—no liability attaches under Articles 19 and 21 of the Civil Code. Consequently, the employer, Nikko Hotel, was also absolved of vicarious liability.

Primary Holding

The exercise of a legitimate right to exclude an uninvited guest from a private party does not give rise to damages under Articles 19 and 21 of the Civil Code absent proof that the right was exercised in bad faith or with the sole intent to prejudice or injure another.

Background

Roberto Reyes, a known actor, encountered his friend Dr. Violeta Filart in the lobby of Hotel Nikko on October 13, 1994. Filart invited Reyes to join her at the penthouse for the birthday party of the hotel's former general manager, Masakazu Tsuruoka. Reyes was not on the exclusive guest list generated by the hotel's executive secretary, Ruby Lim. Upon noticing the uninvited guest, Lim made inquiries and eventually asked Reyes to leave, resulting in a verbal exchange and Reyes's subsequent escort out of the hotel by a policeman. Reyes claimed he was loudly and publicly humiliated; Lim maintained she spoke to him discreetly and closely.

History

  1. Filed complaint for damages under the human relations provisions of the New Civil Code in the RTC of Quezon City, Branch 104

  2. RTC dismissed the complaint, finding that Lim was discreet and Reyes assumed the risk of being asked to leave as an uninvited guest

  3. Appealed to the Court of Appeals

  4. CA reversed the RTC, finding Lim liable for acting contrary to morals and imposing solidary liability on Hotel Nikko, Lim, and Filart for exemplary and moral damages

  5. Filed Motion for Reconsideration in the CA; denied

  6. Filed Petition for Review on Certiorari to the Supreme Court

Facts

  • The Party and the Invitation: On October 13, 1994, Roberto Reyes was having coffee at the Hotel Nikko lobby when Dr. Violeta Filart invited him to the penthouse birthday party of the hotel's former manager, Mr. Masakazu Tsuruoka. Reyes carried Filart's fruit basket to the penthouse and joined her group.
  • The Uninvited Guest: The party was an exclusive, by-invitation-only event with a guest list of approximately sixty close friends and hotel employees, generated by Hotel Nikko Executive Secretary Ruby Lim. Reyes was not on this list.
  • The Confrontation: Upon noticing Reyes, Lim made inquiries with a waiter and Filart's sister, Ms. Fruto, both of whom confirmed Filart did not invite him. Lim requested Fruto and later Captain Batung to ask Reyes to leave, but Reyes lingered. When Reyes went to the buffet table and then to a corner to eat, Lim approached him directly.
  • Conflicting Testimonies: Reyes testified that Lim loudly told him within hearing distance of other guests, "huwag ka nang kumain, hindi ka imbitado, bumaba ka na lang," causing him severe humiliation. A policeman subsequently escorted him out. Lim testified that she waited until Reyes was eating in a corner, approached him closely, and discreetly said, "alam ninyo, hindo ho kayo dapat nandito. Pero total nakakuha na ho kayo ng pagkain, ubusin na lang ninyo at pagkatapos kung pwede lang po umalis na kayo." Filart disclaimed inviting Reyes and testified she ignored the commotion.
  • Lower Court Findings: The RTC credited Lim's version, noting the close physical proximity between the two made shouting unnecessary and improbable, and attributing the public scene to Reyes's own reaction. The CA reversed, crediting Reyes's version and finding Lim's act of bypassing Filart and speaking to Reyes publicly to be rude and contrary to morals.

Arguments of the Petitioners

  • Volenti Non Fit Injuria: Petitioners argued that under the doctrine of volenti non fit injuria, Reyes assumed the risk of being asked to leave—and the consequent embarrassment—as a gatecrasher, precluding recovery of damages.
  • Absence of Solidary Liability: Petitioners maintained that Hotel Nikko and Lim cannot be held jointly and severally liable with Filart, given the CA's own finding that the humiliation would not have occurred but for Filart's invitation.
  • Reversal of Factual Findings: Petitioners argued the CA erred in departing from the trial court's factual findings regarding the circumstances of the confrontation, which are entitled to great respect.
  • Unfounded Poverty Claim: Petitioners contended the CA erred in concluding Reyes was treated unjustly due to poverty, as this was never raised as an issue, supported by evidence, or applicable to Reyes's actual socio-economic standing.
  • Defective Appellant's Brief: Petitioners asserted the CA departed from judicial proceedings by failing to rule on the defects of the appellant's brief.

Arguments of the Respondents

  • Abuse of Rights: Respondent countered that Lim acted abusively by loudly ordering him to leave within hearing of other guests, violating the standards of human relations under Articles 19 and 21 of the Civil Code.
  • Rudeness and Bad Faith: Respondent argued that Lim's act of approaching several people to inquire into his presence exposed him to ridicule, demonstrated bad faith, and constituted a violation of human dignity.

Issues

  • Abuse of Rights: Whether Ruby Lim acted abusively in asking Roberto Reyes to leave the party, thereby incurring liability under Articles 19 and 21 of the Civil Code.
  • Vicarious Liability: Whether Nikko Hotel is solidarily liable with Ruby Lim if the latter is found liable.
  • Factual Credibility: Whether the Court of Appeals erred in reversing the trial court's factual findings regarding the manner Lim asked Reyes to leave.

Ruling

  • Abuse of Rights: No liability attaches under Articles 19 and 21 because Lim did not abuse her right. The elements of abuse of rights require (1) a legal right or duty, (2) exercised in bad faith, (3) for the sole intent of prejudicing or injuring another. Similarly, acts contra bonos mores require (1) a legal act, (2) contrary to morals or public policy, (3) done with intent to injure. A common theme under both provisions is that the act complained of must be intentional. Absent any proof of ill motive or animosity, and given Lim's legitimate right to exclude an uninvited guest, her actions did not constitute bad faith or intent to injure.
  • Vicarious Liability: Nikko Hotel is not solidarily liable because an employer's liability under Article 2180 of the Civil Code is derivative of the employee's liability; since Lim committed no actionable wrong, the Hotel incurs no liability.
  • Factual Credibility: The CA erred in reversing the trial court's factual findings. The trial court's version is more credible. It is highly improbable that Lim would shout at Reyes from a very close distance—admittedly close enough that they "nearly kissed each other"—and risk disrupting a formal, intimate party, especially given her 20 years of experience in the hotel business. Reyes's version was unsupported by independent witnesses and lacked a plausible motive for Lim's alleged abusive conduct. Any embarrassment Reyes suffered resulted from his own reaction and the legitimate exercise of Lim's right, not from an abusive act.

Doctrines

  • Abuse of Rights (Article 19, Civil Code) — Every person must, in the exercise of rights and performance of duties, act with justice, give everyone his due, and observe honesty and good faith. The elements are: (1) There is a legal right or duty; (2) which is exercised in bad faith; (3) for the sole intent of prejudicing or injuring another. Applied to hold that asking an uninvited guest to leave a private party is a legitimate right, and exercising it discreetly without ill motive does not constitute abuse.
  • Acts Contra Bonos Mores (Article 21, Civil Code) — Any person who willfully causes loss or injury to another in a manner contrary to morals, good customs, or public policy shall compensate the latter for the damage. The elements are: (1) There is an act which is legal; (2) but which is contrary to morals, good custom, public order, or public policy; (3) it is done with intent to injure. Applied to emphasize that liability requires intent to injure, which was not proven against Lim.
  • Volenti Non Fit Injuria — To which a person assents is not esteemed in law as injury; refers to self-inflicted injury or consent to injury which precludes recovery of damages by one who knowingly and voluntarily exposes himself to danger. Not strictly applied as formulated by petitioners because even if an uninvited guest assumes the risk of ejection, the host or organizer still bears the duty under Articles 19 and 21 to treat the person fairly. However, because Lim fulfilled this duty, the petitioner ultimately prevailed.

Key Excerpts

  • "Article 19, known to contain what is commonly referred to as the principle of abuse of rights, is not a panacea for all human hurts and social grievances."
  • "A common theme runs through Articles 19 and 21, and that is, the act complained of must be intentional."
  • "If at all, Ms. Lim is guilty only of bad judgment which, if done with good intentions, cannot amount to bad faith."

Precedents Cited

  • Garciano v. Court of Appeals, G.R. No. 96126, 10 August 1992, 212 SCRA 436 — Cited by the RTC and Supreme Court regarding the principle that a plaintiff who is at fault or assumed the risk cannot recover damages.
  • Globe-Mackay Cable and Radio Corp. v. Court of Appeals, G.R. No. 81262, 25 August 1989, 176 SCRA 779 — Cited as controlling precedent for the definition and nature of the principle of abuse of rights under Article 19.
  • Albenson Enterprises Corp. v. Court of Appeals, G.R. No. 88694, 11 January 1993, 217 SCRA 16 — Cited as controlling precedent for the specific elements of abuse of rights under Article 19 and acts contra bonos mores under Article 21.

Provisions

  • Article 19, Civil Code — Mandates that every person must, in the exercise of rights and performance of duties, act with justice, give everyone his due, and observe honesty and good faith. Applied to establish the standard of conduct for Lim; her actions met this standard as she acted within her rights without bad faith.
  • Article 20, Civil Code — Pertains to damages arising from a violation of law. Found inapplicable because Lim was perfectly within her right to ask Reyes to leave, hence no law was violated.
  • Article 21, Civil Code — Pertains to damages for acts contrary to morals, good customs, or public policy. Found inapplicable because there was no intent to injure and the manner of ejection was not contrary to morals.
  • Article 2180, Civil Code — Governs employer's vicarious liability. Applied to confirm that Hotel Nikko's liability is derivative of its employee's; because Lim is not liable, neither is the Hotel.
  • Article 2234, Civil Code — Governs the imposition of exemplary damages. Found inapplicable because the CA's basis for awarding exemplary damages—social inequality and prejudice against the poor—was factually baseless.

Notable Concurring Opinions

Puno (Chairman), Austria-Martinez, Callejo, Sr., and Tinga.