SAN FERNANDO REGALA TRADING, INC. vs. CARGILL PHILIPPINES, INC., G.R. No. 178008, October 9, 2013; and CARGILL PHILIPPINES, INC. vs. SAN FERNANDO REGALA TRADING, INC., G.R. No. 178042, October 9, 2013
“Lastly, the CA correctly deleted the award of attorney’s fees and cost of litigation to San Fernando. Attorney’s fees and expenses of litigation under Article 2208 of the Civil Code are proper only when exemplary damages are awarded. Here, the Court has ruled that San Fernando is not entitled to an award of exemplary damages. Both parties actually committed shortcomings in complying with their contractual obligations. San Fernando failed in Contract 5026 to accept Cargill’s delivery of 1,174 mt of molasses; Cargill only complied partially with its undertakings under Contract 5026 and altogether breached its obligations under Contract 5047. For these, they must bear their own expenses of litigation.”
