Friday, March 20, 2020

[CASE DIGEST] NORTH NEGROS SUGAR CO. v. SERAFIN HIDALGO (G.R. No. L-42334)

October 31, 1936 

Ponente: Recto, J.

FACTS:

·         North Negros Sugar Co. (NNSC) was the owner of a site in which was located its sugar central, with its factory building and residence for its employees and laborers, known as the "mill site." It also owned the adjoining sugar plantation known as Hacienda "Begoña." Across its properties, NNSC constructed a road connecting the "mill site" with the provincial highway. Through this road plaintiff allowed vehicles to pass upon payment of a toll charge of P0.15 for each truck or automobile. Pedestrians were allowed free passage through it.

·         One of the users of said road was Serafin Hidalgo, the owner of a billiard hall and a tuba saloon located at Hacienda Sañgay adjacent to NNSC's mill site. Like other people in and about the place, Hidalgo used to pass through the said road because it was his only means of access to Hacienda Sañgay. Later on, by NNSC' order, every time that Hidago passed by driving his automobile with a cargo of tuba, NNSC's gatekeeper would stop him and prevent him from passing through said road. In such cases, Hidalgo merely deviated from said road and continued on his way to Hacienda Sañgay across the fields of Hacienda "Begoña," which also belonged to NNSC.

·         In October 1933, NNSC filed before the CFI of Negros Occidental a complaint praying that an injunction be issued, restraining Serafin Hidalgo from entering or passing through NNSC's properties, specially through the "mill site." NNSC alleged that Hidalgo caused trouble among the peaceful people of the place by disturbing public order and molesting NNSC's employees and their families. The CFI ruled in favor of NNSC and issued a preliminary injunction prohibiting Hidalgo from using said road. 

·         After the issuance of the preliminary injunction, NNSC decided to amend its complaint by dropping its allegations against Hidalgo. It turned out that NNSC merely fabricated the allegations and failed to state that the subject road was in fact open for the public to use. The real damage which NNSC sought to avoid, as it were, did not consist in Hidalgo's taking tuba with him while traversing the NNSC's property, as there was no causal relation between the act and any resultant damage, but in the fact that tuba was disposed of at the Hacienda Sañgay to which NNSC's laborers had access. As a result, said laborers would ingest tuba, become drunk, and occasionally fight against one another, to the detriment of the peace in NNSC's property and the sugar production.

RULING:  

Writ of injunction against Hidalgo denied.




Whether NNSC can enjoin Hidalgo from using its road. – NO. 

·         NNSC's road is an easement of way voluntarily constituted in favor of a community. Art. 531 of the old Civil Code read that "easements may also be established for the benefit of one or more persons or of a community to whom the encumbered estate does not belong," while Art. 594 of the old Civil Code provided that, "The owner of an estate may burden it with such easements as he may deem fit, and in such manner and form as he may consider desirable, provided he does not violate the law or public order."

·         It is undisputed the road in question was constructed by NNSC on its own land, and that it connected the central or the "mill site" with the provincial road. NNSC also made this road accessible to the general public, regardless of class or group of persons or entities. Its use has been extended to employees and laborers of NNSC, and so also to all those who have a mind to pass through it, except that, in cases of motor vehicles, a passage fee of P0.15, each should be paid. 

·         It has also been sufficiently proven in court that NNSC's road was the only road that can be used by those living in Hacienda Sañgay because they didn't have access to the provincial road. Therefore, under Art. 564 of the old Civil Code, there existed a forcible right of way in favor of the owner and occupants of Hacienda Sañgay. Property becomes clothed with a public interest when used in a manner to make it of public consequence, and affect the community at large. 

·         Therefore, as a private property affected with a public interest, it is unlawful to make arbitrary exceptions with respect to its use and enjoyment. The circumstance that NNSC is not the holder of a franchise or certificate of public convenience, or that it is a company devoted principally to the manufacturer of sugar and not to the business of public service or that the state has not as yet assumed control or jurisdiction over the operation of the road in question by NNSC, does not preclude the idea that the said road is a public utility. 

·         All told, Hidalgo cannot be enjoined from using said road for no valid cause, especially since he complies with the condition set by NNSC to pay P0.15 as toll every time he uses said road. He cannot be arbitrarily or whimsically excluded from its use.

Whether NNSC was in good faith when it filed for an injunction to prevent Hidalgo from using its road. – NO. 

·         The existence of a right violated is a prerequisite to the granting of an injunction. The alleged conveyance of tuba to NNSC's "mill site" or the sale thereof within its property has not been established by the evidence adduced in this case. Neither is there any evidence to show that Hidalgo actually created disturbance in NNSC's properties, including its "mill site." In other words, there has been a failure on NNSC's part to establish either the existence of a clear and positive right specially calling for judicial protection through an extraordinary writ of the kind applied for, or that Hidalgo has committed or attempts to commit any act which has endanger or tends to endanger the existence of said right, or has injured or threatens to injure the same.

·         The legal rule is that what the law does not authorize to be done directly cannot be hone indirectly. If NNSC cannot judicially enjoin Hidalgo from selling tuba at Hacienda Sañgay, neither can it obtain said injunction to prevent him from passing over its property to transport tuba to that place as long as Hidalgo is ready to pay the transit fees required by NNSC and does not sell the said goods inside the said property.

·         NNSC's action is frivolous and baseless. In petitioning the courts for an injunction to avert "friction or ill-feeling" against Hidalgo, NNSC is in effect attempting to intrust to the courts a mission at once beyond those conferred upon them by the Constitution and the laws, and unbecoming of their dignity and decorum.

·         The well-known principle of equity that "he who comes to equity must come with clean hands" bars the granting of the remedy applied for by NNSC.  To obtain a preliminary injunction in this case, NNSC alleged under oath in its original complaint facts which it knew to be false, or, at least, unprobable, because it did not only eliminate them from the amended complaint which it filed after the issuance of the preliminary injunction, but it failed to substantiate them at the trial. From all this, it follows that NNSC, in order to obtain a preliminary injunction, trifled with the good faith of the lower court by knowingly making untrue allegations on matters important and essential to its cause of action. Consequently, it did not come to court with clean hands.






CONCURRING AND DISSENTING: J. Laurel

·         No servitude of way under the (old) Civil Code has been created on the tenement of the NNSC in favor of Hidalgo. No legal servitude of way exists in the present case. Hidalgo has not shown that his right of passage across the tenement of NNSC exists by reason of necessity growing out of the peculiar location of his property. He does not even own the tenement where he conducts his business.

·         NNSC's construction of a road, performed wholly upon its own exclusive property, should not be construed to constitute the creation of a servitude. Servitus in faciendo consistere nequit. "For a man should not use that which belongs to him as if it were a service only, but as his own property."

·         The mere opening of the private way in question to the public did not necessarily clothe it with a public interest such as to compel the owner thereof to allow everybody to pass thereon. Even on the hypothesis that such private way is affected with a public interest, still, it is good law that the owner thereof may make reasonable restrictions and limitations on the use thereof by the general public.

·         NNSC was denied the right as the owner of the private way to impose a reasonable limitation upon the use of its property.  Hidalgo in his store sells and otherwise dispenses tuba which intoxicates the laborers of NNSC, incapacitates them for work, and breaks their morale. The damage to NNSC is positive and real. It is not mere "bare possibility." Therefore, NNSC may prohibit Hidalgo from using its private property. Stated otherwise, the use by Hidalgo of the private way of NNSC may be conditioned upon his not carrying tuba.

·         Nonetheless, J. Laurel still concurs with the majority opinion that a writ of injunction should not be issued in favor of NNSC because: (a) the relief sought for by NNSC is an "accion negatoria," which has been repealed by the (old) Civil Code; (b) the granting/denial of an injunction is not subject to appeal except where there is a clear showing of abuse of discretion on the part of the judge, which abuse is absent in this case; (c) the remedy sought here is not against the transportation of tuba by Hidalgo through the premises of NNSC, but the entire exclusion therefrom of Hidalgo regardless of whether he carries tuba or not; and (d) issuing the writ of injunction in favor of NNSC will result in a discriminatory and unjust condition where Hidalgo shall become the sole person excluded from the use of the subject road while the general public will still be able to use it.


DISSENTING: J. Villareal

·         Writ of injunction should be issued in favor of NNSC because as the owner of the private road in question, NNSC has a right to regulate its use by imposing reasonable restrictions and limitations. To prohibit its use by Hidalgo who has repeatedly disregarded the warning of NNSC's auditor not to use the road when delivering tuba, thus becoming a persona non grata, is certainly not unjust.