Dear PAO,

Can libel be committed against corporations/businesses? If yes, can they be awarded damages even if they do not have feelings which could be hurt?

Jerry

Dear Jerry,

Please be informed of the Supreme Court’s ruling in the case of FBNI v. AMEC-BCCM (GR 141994, Jan. 17, 2005, Ponente: Associate Justice Antonio Carpio), where it was held that:

“A libel is a public and malicious imputation of a crime, or of a vice or defect, real or imaginary, or any act or omission, condition, status, or circumstance tending to cause the dishonor, discredit, or contempt of a natural or juridical person, or to blacken the memory of one who is dead. x x x

“A juridical person is generally not entitled to moral damages because, unlike a natural person, it cannot experience physical suffering or such sentiments as wounded feelings, serious anxiety, mental anguish or moral shock. The Court of Appeals cites Mambulao Lumber Co. vs PNB, et al. to justify the award of moral damages. However, the Court’s statement in Mambulao that ‘a corporation may have a good reputation which, if besmirched, may also be a ground for the award of moral damages’ is an obiter dictum.

“Nevertheless, AMEC’s claim for moral damages falls under item 7 of Article 2219 of the Civil Code. This provision expressly authorizes the recovery of moral damages in cases of libel, slander or any other form of defamation. Article 2219(7) does not qualify whether the plaintiff is a natural or juridical person. Therefore, a juridical person such as a corporation can validly complain for libel or any other form of defamation and claim for moral damages.” (Emphasis supplied)

As emphasized in the aforementioned jurisprudence, and as expressly provided under Article 353 of the Revised Penal Code, libel or defamation may be committed against a juridical person such as corporations, partnerships and associations, to which the law grants a juridical personality. In such a case, even if the mentioned juridical persons are incapable of having wounded feelings, they could still be entitled to moral damages as sanctioned by Article 2219 (7) of the New Civil Code, which did not distinguish between natural and juridical persons, insofar as entitlement to moral damages is concerned.

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our application of the same. Our opinion may vary when other facts are changed or elaborated on.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]