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PHILIPPINE NATIONAL BANK v. SPS. AGUSTIN AND PILAR ROCAMORA

This case has been cited 3 times or more.

	GR No. 177050 2013-07-01	CARLOS LIM v. DEVELOPMENT BANK OF PHILIPPINES DEL CASTILLO, J.
In Philippine National Bank v. Spouses Rocamora,[123] we said that: Moral damages are not recoverable simply because a contract has been breached. They are recoverable only if the defendant acted fraudulently or in bad faith or in wanton disregard of his contractual obligations. The breach must be wanton, reckless, malicious or in bad faith, and oppressive or abusive. Likewise, a breach of contract may give rise to exemplary damages only if the guilty party acted in a wanton, fraudulent, reckless, oppressive or malevolent manner.
	GR No. 153852 2012-10-24	SPS. HUMBERTO P. DELOS SANTOS AND CARMENCITA M. DELOS SANTOS v. METROPOLITAN BANK BERSAMIN, J.
It is relevant to observe in this connection that escalation clauses like those affecting the petitioners were not void per se, and that an increase in the interest rate pursuant to such clauses were not necessarily void. In Philippine National Bank v. Rocamora,[30] the Court has said: Escalation clauses are valid and do not contravene public policy. These clauses are common in credit agreements as means of maintaining fiscal stability and retaining the value of money on long-term contracts. To avoid any resulting one-sided situation that escalation clauses may bring, we required in Banco Filipino the inclusion in the parties' agreement of a de-escalation clause that would authorize a reduction in the interest rates corresponding to downward changes made by law or by the Monetary Board.
	GR No. 193178 2011-05-30	PHILIPPINE SAVINGS BANK v. SPS. ALFREDO M. CASTILLO NACHURA, J.
On the matter of damages, we agree with petitioner. Moral damages are not recoverable simply because a contract has been breached. They are recoverable only if the party from whom it is claimed acted fraudulently or in bad faith or in wanton disregard of his contractual obligations. The breach must be wanton, reckless, malicious or in bad faith, and oppressive or abusive. Likewise, a breach of contract may give rise to exemplary damages only if the guilty party acted in a fraudulent or malevolent manner.[20]