Gilchrist v Cuddy

Feb. 18 1915
Trent, J.
FACTS:
Cuddy was the owner of a film “Zigomar”. He lent it under a rental contract to the plaintiff
Gilchrist, the owner of a theater in Iloilo, for a week beginning May 26 for Php 125. A few days
to the date of delivery, Cuddy sent the money back to Gilchrist, and rented the film to Espejo
and his partner Zaldarriaga for P350 for the week - knowing that it was rented to someone else
and that Cuddy accepted it because he was paying about three times as much as he had
contracted with Gilchrist (but they didn’t know that it was Gilchrist who rented it first). Thus,
Gilchrist filed for injunction against these parties.
CFI and CA:  granted petition for injunction - there is a contract between  Gilchrist and Cuddy

ISSUE:
W/N Espejo and his partner Zaldarriaga  should be liable for damages though they do not know
the identity of Gilchrist 

HELD:
- YES. judgment is affirmed. Although the defendants did not, at the time their contract was
made, know the identity of the plaintiff as the person holding the prior contract but did
know of the existence of a contract in favor of someone In the case at bar the only motive
for the interference with the Gilchrist – Cuddy’s contract on the part of the appellants was a
desire to make a profit by exhibiting the film in their theater.
- There was no malice beyond this desire; but this fact does not relieve them of the legal
liability for interfering with that contract and causing its breach. It is, therefore, clear, under
the above authorities, that they were liable to Gilchrist for the damages caused by their
acts, unless they are relieved from such liability by reason of the fact that they did not know
at the time the identity of the original lessee (Gilchrist) of the film. 
- The liability of the appellants (Espejo and Zaldariaga) arises from unlawful acts and not from
contractual obligations, as they were under no such obligation to induce Cuddy to violate
his contract with Gilchrist. So that if the action of Gilchrist had been one for damages, it
would be governed by Chapter 2, title 16, book 4 of the (Spanish) Civil Code.
- One who buys something which he knows has been sold to some other person can be
restrained from using that thing to the prejudice of the person having the prior and better
right.

Separate Opinion:
MORELAND, J., concurring:
The court seems to be of the opinion that the action is one for a permanent injunction;
whereas, under my view of the case, it is one for specific performance.
The very nature of the case demonstrates that a permanent injunction is out of the question.
The only thing that plaintiff desired was to be permitted to use the film for the week beginning
the 26th of May. With the termination of that week his rights expired. After that time Cuddy
was perfectly free to turn the film over to the defendants Espejo and Zaldarriaga for exhibition
at any time. 
No damages are claimed by reason of the issuance of the mandatory injunction under which
the film was delivered to plaintiff and used by him during the week beginning the 26th of May.

NOTES:
Article 1902 of the code (Old Civil Code) provides that a person who, by act or omission, causes
damages to another when there is fault or negligence, shall be obliged to repair the damage do
done. There is nothing in this article which requires as a condition precedent to the liability of a
tort-feasor that he must know the identity of a person to whom he causes damages. In fact, the
chapter wherein this article is found clearly shows that no such knowledge is required in order
that the injured party may recover for the damage suffered.

Chief Justice Wells:"Everyone has a right to enjoy the fruits and advantages of his own
enterprise, industry, skill and credit. He has no right to be free from malicious and wanton
interference, disturbance or annoyance. If disturbance or loss come as a result of competition,
or the exercise of like rights by others, it is damnum absque injuria, unless some superior right
by contract or otherwise is interfered with." 
"One who wrongfully interferes in a contract between others, and, for the purpose of gain to
himself induces one of the parties to break it, is liable to the party injured thereby; and his
continued interference may be ground for an injunction where the injuries resulting will be
irreparable."