This case has been cited 1 times or more.
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2006-06-27 |
CORONA, J. |
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| Likewise, the award of exemplary damages to Meralco must be sustained. The CA granted exemplary damages because South Pacific acted in a fraudulent manner:[19] On numerous occasions, and while in the presence of South Pacific's officers, Meralco agents were able to discover that the former had been using a removable short circuiting device as indicated by the pricked holes on the secondary current leads for lower and upper element near the [bushing current transformer or] BCT terminal. Further inspection revealed that the [BCT] terminal, main terminal and cover seals of the electric meters were deformed. This meant that the electric meters concerned were not registering the full amount of electric energy actually being used by the former. These, among other instances, point to South Pacific's culpability. It would seem inconceivable for all the four electric meters inside South Pacific's premises to be in such a defective condition even without any deliberate act on its part. The evidence in the case at bar affords a substantial basis of fact to justify a conclusion that South Pacific must be held responsible for the tampered meters.[20] Again, fraud is a question of fact which must be alleged and proved at the level of the courts below.[21] Fraud cannot be presumed and must be proven by clear and convincing evidence.[22] We agree with the CA that it was incredible that not just one but all four meters in South Pacific's premises would, at the same time, fail to completely register the amount of energy consumed. South Pacific's full physical control of these meters clearly enabled it to tamper with them and this undeniably redounded to its benefit. | |||||