So Ping Bun Vs CA

G.R. No.
120554 September 21, 1999

SO PING BUN, petitioner,
vs.
COURT OF APPEALS, TEK HUA ENTERPRISES
CORP. and MANUEL C. TIONG, respondents.
Street, Binondo Manila, making permanent the writ of

preliminary injunction issued by this Court on June 21,
1991, and ordering So Ping Bun to pay Tek Hua
P500,000 as attys fees.
CA affirmed RTC, but reduced amount of attys fees to
P200,000.
QUISUMBING, J.:
FACTS
In 1963, Tek Hua Trading Co, through its managing
partner, So Pek Giok, entered into lease agreements
with lessor Dee C. Chuan & Sons Inc. (DCCSI). Subjects
of four lease contracts were premises located at Soler
Street, Binondo, Manila. Tek Hua used the areas to store
its textiles. The contracts each had a one-year term.
They provided that should the lessee continue to occupy
the premises after the term, the lease shall be on a
month-to-month basis.
When the contracts expired, the parties did not renew
the contracts, but Tek Hua continued to occupy the
premises. In 1976, Tek Hua Trading Co. was dissolved.
Later, the original members of Tek Hua Trading Co.
including Manuel C. Tiong, formed Tek Hua Enterprising
Corp., herein respondent corporation.
So Pek Giok, managing partner of Tek Hua Trading, died
in 1986. So Pek Giok's grandson, petitioner So Ping
Bun, occupied the warehouse for his own textile
business, Trendsetter Marketing.
On August 1, 1989, lessor DCCSI sent letters addressed
to Tek Hua Enterprises, informing the latter of the 25%
increase in rent effective September 1, 1989. The rent
increase was later on reduced to 20% effective January
1, 1990, upon other lessees' demand. Again on
December 1, 1990, the lessor implemented a 30% rent
increase. Enclosed in these letters were new lease
contracts for signing. DCCSI warned that failure of the
lessee to accomplish the contracts shall be deemed as
lack of interest on the lessee's part, and agreement to
the termination of the lease. Private respondents did not
answer any of these letters. Still, the lease contracts
were not rescinded.
Petitioner refused to vacate. On March 4, 1992,
petitioner requested formal contracts of lease with
DCCSI in favor of Trendsetter Marketing. So Ping Bun
claimed that after the death of his grandfather, So Pek
Giok, he had been occupying the premises for his textile
business and religiously paid rent. DCCSI acceded to
petitioner's request. The lease contracts in favor of
Trendsetter were executed.
ISSUE
WON So Ping Bun is guilty of tortuous interference of
contract
HELD
YES. However, So Ping Bun is not liable to pay
damages because his motive in committing tortuous
interference is not solely to harm Tek Hua, but for the
furtherance of his own business interests.
Tort Interference
Damage is the loss, hurt, or harm which results from
injury, and damages are the recompense or
compensation awarded for the damage suffered. One
becomes liable in an action for damages for a
nontrespassory invasion of another's interest in the
private use and enjoyment of asset if (a) the other has
property rights and privileges with respect to the use or
enjoyment interfered with, (b) the invasion is substantial,
(c) the defendant's conduct is a legal cause of the
invasion, and (d) the invasion is either intentional and
unreasonable or unintentional and actionable under
general negligence rules.
The elements of tort interference are: (1) existence of a
valid contract; (2) knowledge on the part of the third
person of the existence of contract; and (3) interference
of the third person is without legal justification or excuse.
A duty which the law of torts is concerned with is respect
for the property of others, and a cause of action ex
delicto may be predicated upon an unlawful interference
by one person of the enjoyment by the other of his
private property. This may pertain to a situation where a
third person induces a party to renege on or violate his
undertaking under a contract.
In the case before us, petitioner's Trendsetter
Marketing asked DCCSI to execute lease contracts in
its favor, and as a result petitioner deprived
respondent corporation of the latter's property right.
Clearly, and as correctly viewed by the appellate
court, the three elements of tort interference abovementioned are present in the instant case.
Motive for Tort Interference
In the suit for injunction, private respondents pressed for

the nullification of the lease contracts between DCCSI
and petitioner. They also claimed damages.
RTC ruled in favor of the respondents, annulling the four
Contracts of Lease between defendant So Ping Bun and
defendant DCCSI over the premises located at, Soler
As a general rule, justification for interfering with the

business relations of another exists where the
actor's motive is to benefit himself. Such justification
does not exist where his sole motive is to cause harm to
the other. It is not necessary that the interferer's interest
outweigh that of the party whose rights are invaded, and
that an individual acts under an economic interest that is

substantial, not merely de minimis, such that wrongful
and malicious motives are negatived, for he acts in selfprotection. Moreover justification for protecting one's
financial position should not be made to depend on a
comparison of his economic interest in the subject
matter with that of others. It is sufficient if the impetus of
his conduct lies in a proper business interest rather than
in wrongful motives.
In the instant case, it is clear that petitioner So Ping
Bun prevailed upon DCCSI to lease the warehouse
to his enterprise at the expense of respondent
corporation. Though petitioner took interest in the
property of respondent corporation and benefited
from it, nothing on record imputes deliberate
wrongful motives or malice on him.
Damages
Sec. 1314 of the Civil Code categorically provides also
that: "Any third person who induces another to violate his
contract shall be liable for damages to the other
contracting party." Petitioner argues that damage is an
essential element of tort interference, and since the trial
court and the appellate court ruled that private
respondents were not entitled to actual, moral or
exemplary damages, it follows that he ought to be

absolved of any liability, including attorney's fees.
It is true that the lower courts did not award damages,
but this was only because the extent of damages was
not quantifiable.
While we do not encourage tort interferers seeking their
economic interest to intrude into existing contracts at the
expense of others, however, we find that the conduct
herein complained of did not transcend the limits
forbidding an obligatory award for damages in the
absence of any malice. The business desire is there to
make some gain to the detriment of the contracting
parties. Lack of malice, however, precludes damages.
But it does not relieve petitioner of the legal liability for
entering into contracts and causing breach of existing
ones. The respondent appellate court correctly
confirmed the permanent injunction and nullification of
the lease contracts between DCCSI and Trendsetter
Marketing, without awarding damages. The injunction
saved the respondents from further damage or injury
caused by petitioner's interference.
The award of attys fees is decreased to P100,000.

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G.R. No.

120554 September 21, 1999

Street, Binondo Manila, making permanent the writ of

In the suit for injunction, private respondents pressed for

As a general rule, justification for interfering with the

that an individual acts under an economic interest that is

exemplary damages, it follows that he ought to be

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