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Pan Pacific V Phil Ad Corp
Pan Pacific V Phil Ad Corp
Advertising Corporation
No. L-22050
Concepcion, J.
Issues/Held:
-
Defendants contention:
1. The sum representing the aggregate amount of inland freight, ocean freight, arrastre
and sales tax should be deemed included in the price agreed upon, considering that none
of the goods supplied by plaintiff are accessories;
2. 8 of the bowling alleys were second-hand, contrary to the contract;
3. The bowling alleys were of lower quality than agreed upon;
4. The installations were defective.
Accessories according to plaintiff: includes all the parts thereof (the alleys itself, the pinballs, the
pins, etc.) Hence (I think) the logic of the defendant that since theyre necessary parts of the
bowling alley, they cant be considered as accessories.
o SC: affirmed the interpretation of the plaintiff. The term bowling alley does not apply
except to one already installed. Prior thereto, the materials necessary to install and
1 Firm quotation = quoted price and conditions which remain unchanged for a
specified expiration date. (businessdictionary.com)
operate a bowling alley do not constitute an alley. They are merely parts of, and in
this sense, accessories to the principal, namely, the bowling alley once said parts or
accessories have been duly assembled. If none of these goods were accessories then
the proviso under consideration would be meaningless.
SC also did not give credence to the contention of the defendant that 8 alleys were second-hand
as defendant never made an official or written complaint to plaintiff.
o Also, there was positive declaration from the export manager J.E. Whitaker that said
bowling alleys were new but were unfortunately not properly maintained by defendant.
Defendant maintains that what it ordered was the centennial type of bowling alleys but what was
installed was the liberty type, which was inferior.
o There was no mention in their agreement as to what kind of bowling alley would be
installed.
o
Also, the aforementioned J.E. Whitaker mentioned that there was technically no
difference between the centennial type and the liberty type.
Plaintiff managed to rebut what the defendants termed as the defective installation made by the
former. Sufficient evidence show that the installments were made in accordance with the standard
requirements, and that what defendant experienced as defective was just normal for all new
bowling installations and also was also minor in character. Also, there was poor maintenance on
the part of the defendants.
SC: defendant liable for exemplary damages
o Under A. 2232 of the CC: In contracts and quasi-contracts, the court may award
exemplary damages if the defendant acted in a wanton, fraudulent, reckless, oppressive,
or malevolent manner.
o The records of the case (defendants absolute refusal to pay the installments + abuse of
plaintiffs good faith) clearly show that the defendants, in utter disregard of the rights of
plaintiff, had refused deliberately and wantonly to pay plaintiff what is justly due.
o The business of defendant since its opening in 1951 had brought it lucrative income, and
yet it still refused to pay plaintiff.
o Not only that, but the defendants actuations with plaintiff was characterized as unsavory
and that the letters sent to plaintiff were replete with discourteous remarks.
Actual damages and attorneys fees also awarded.
Judgment Affirmed.