CA affirms ruling for Philharbor to pay moral damages

THE Court of Appeals (CA) has affirmed a ruling that ordered Philharbor Ferries and Port Services, Inc. to pay its former chief operating officer (COO) P300,000 in moral damages P200,000 in exemplary damages and P100,000 in lawyer fees.

The tribunal imposed a 6% legal interest in addition to the previous damages and lawyer fees imposed on Philharbor.

In a 24-page decision dated Dec. 19, the CA Fifth Division said the firm failed to prove that its former executive Francis C. Carlos acted in bad faith in directing its corporate affairs.

“As correctly found by the RTC, the records are bereft of any evidence that he acted in bad faith, with gross or inexcusable negligence, or that he acted outside the scope of his authority as COO,” according to the ruling written by Associate Justice Jennifer Joy C. Ong.

The tribunal added that the firm’s filing of a civil action against the COO harmed his reputation in the shipping and maritime industry.

Mr. Carlos had responsibilities including planning and controlling the company’s day-to-day activities, and strategic planning in achieving its operational and financial goals.

He was also authorized by Philharbor to approve capital expenses for the repair and maintenance of its ships.

The COO, who was hired in 2002, filed for his optional retirement from the firm in 2009.

The case stemmed from Philharbor’s claim that Mr. Carlos acted negligently in approving certain capital projects expenses that “caused damage and prejudice” to the firm.

The Muntinlupa Regional Trial Court (RTC) Branch 276 ruled in 2018 that the shipping company did not present evidence that showed Mr. Carlos’ supposed negligence and that he acted outside his authority as COO.

“Its (Philharbor’s) sweeping accusations and unfounded imputations against Francis, without even determining what specifically injurious transactions were due to his supposed negligence, militates against any finding by this court that this case was filed with purely legitimate motives,” the appellate court said. — John Victor D. Ordoñez

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Your daily news source covering investing ideas, market stocks, business, retirement tips from Wall St. to Silicon Valley.

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 TheProficientInvestor. All Rights Reserved.

To Top