THIRD DIVISION G.R. No. 119850 June 20, 1996 MANDARIN VILLA, INC., petitioner, vs.

COURT OF APPEAL , !n" CLODUALDO DE JE U , respondents. RESOLUTION FRANCI CO, J.:p In the evening of October 1 , 1 ! , priv"te respondent, #$od%"$do de &es%s, " pr"cticing $"'(er "nd b%siness)"n, hosted " dinner for his friends "t the petitioner*s rest"%r"nt, the +"nd"rin Vi$$" Se"foods Vi$$"ge ,reenhi$$s, +"nd"$%(ong #it(. -fter dinner the '"iter h"nded to hi) the bi$$ in the ")o%nt of ./,01!.12. .riv"te respondent offered to p"( the bi$$ thro%gh his credit c"rd iss%ed b( .hi$ippine #o))erci"$ #redit #"rd Inc. 34-N5-RD6. This c"rd '"s "ccepted b( the '"iter 'ho i))edi"te$( proceeded to the rest"%r"nt*s c"shier for c"rd verific"tion. Ten )in%tes $"ter, ho'ever, the '"iter ret%rned "nd "%dib$( infor)ed priv"te respondent th"t his credit c"rd h"d e7pired. 1 .riv"te respondent re)onstr"ted th"t s"id credit c"rd h"d (et to e7pire on Septe)ber 1 2, "s e)bossed on its f"ce. 2 The '"iter '"s %n)oved, th%s, priv"te respondent "nd t'o of his g%ests "ppro"ched the rest"%r"nt*s c"shier 'ho "g"in p"ssed the credit c"rd over the verific"tion co)p%ter. The s")e infor)"tion '"s prod%ced, i.e., #-RD E8.IRED. .riv"te respondent "nd his g%ests ret%rned to their t"b$e "nd "t this 9%nct%re, .rofessor Lir"g, "nother g%est, %ttered the fo$$o'ing re)"r:s; <Clody [referring to Clodualdo de Jesus], may problema ba= Baka kailangang maghugas na kami ng pinggan=< # There%pon, priv"te respondent $eft the rest"%r"nt "nd got his 4.I E7press #redit #"rd fro) his c"r "nd offered it to p"( their bi$$. This '"s "ccepted "nd honored b( the c"shier "fter verific"tion. $ .etitioner "nd his co)p"nions $eft "fter'"rds. The incident triggered the fi$ing of " s%it for d")"ges b( priv"te respondent. >o$$o'ing " f%$$?dress tri"$, 9%dg)ent '"s rendered directing the petitioner "nd 4-N5-RD to p"( 9oint$( "nd sever"$$( the priv"te respondent; 3"6 )or"$ d")"ges in the ")o%nt of ./12,222.22@ 3b6 e7e)p$"r( d")"ges in the ")o%nt of .122,222.22, "nd 3c6 "ttorne(*s fees "nd $itig"tion e7penses in the ")o%nt of .12,222.22. 4oth the petitioner "nd 4-N5-RD "ppe"$ed to the respondent #o%rt of -ppe"$s 'hich rendered " decision, th%s; AHERE>ORE, the decision "ppe"$ed fro) is hereb( +ODI>IED b(; 1. >inding "ppe$$"nt +-ND-RIN so$e$( responsib$e for d")"ges in f"vor of "ppe$$ee@ /. -bso$ving "ppe$$"nt 4-N5-RD of "n( responsibi$it( for d")"ges@ B. Red%cing )or"$ d")"ges "'"rded to "ppe$$ee to TAENTC >IVE THOUS-ND "nd 22D122 3./1,222.226 .ESOS@ E. Red%cing e7e)p$"r( d")"ges "'"rded to "ppe$$ee to TEN THOUS-ND "nd 22D122 3.12,222.226 .ESOS@ 1. Reversing "nd setting "side the "'"rd of ./12,222.22 for "ttorne(*s fees "s 'e$$ "s interest "'"rded, "nd 0. ->>IR+IN, the dis)iss"$ of "$$ co%nterc$"i)s "nd cross?c$"i)s. #osts "g"inst "ppe$$"nt +"nd"rin. SO ORDERED. 5 Ae note th"t +"nd"rin Vi$$" Se"food Vi$$"ge is "ffi$i"ted 'ith 4-N5-RD. In f"ct, "n <-gree)ent< 6 entered into b( petitioner "nd 4-N5-RD d"ted &%ne /B, 1 ! , provides inter alia; The +ER#H-NT sh"$$ honor v"$id$( iss%ed .###I credit c"rds presented b( their corresponding ho$ders in the p%rch"se of goods "ndDor services s%pp$ied b( it provided th"t the c"rd e7pir"tion d"te h"s not e$"psed "nd the c"rd n%)ber does not "ppe"r on the $"test c"nce$$"tion b%$$etin of $ost, s%spended "nd c"nce$ed .###I credit c"rds "nd, no signs of t")pering, "$ter"tions or irreg%$"rities "ppe"r on the f"ce of the credit c"rd. %

Ahi$e priv"te respondent, )"( not be " p"rt( to the s"id "gree)ent, the "bove?F%oted stip%$"tion conferred " f"vor %pon the priv"te respondent, " ho$der of credit c"rd v"$id$( iss%ed b( 4-N5-RD. This stip%$"tion is " stip%$"tion pour autri "nd %nder -rtic$e 1B11 of the #ivi$ #ode priv"te respondent )"( de)"nd its f%$fi$$)ent provided he co))%nic"ted his "ccept"nce to the petitioner before its revoc"tion. 8 In this c"se, priv"te respondent*s offer to p"( b( )e"ns of his 4-N5-RD credit c"rd constit%tes not on$( "n "ccept"nce of the s"id stip%$"tion b%t "$so "n e7p$icit co))%nic"tion of his "ccept"nce to the ob$igor. In "ddition, the record sho's th"t petitioner posted " $ogo inside +"nd"rin Vi$$" Se"food Vi$$"ge st"ting th"t <4"n:"rd is "ccepted here. 9 This represent"tion is conc$%sive %pon the petitioner 'hich it c"nnot den( or disprove "s "g"inst the priv"te respondent, the p"rt( re$(ing thereon. .etitioner, therefore, c"nnot disc$"i) its ob$ig"tion to "ccept priv"te respondent*s 4-N5-RD credit c"rd 'itho%t vio$"ting the eF%it"b$e princip$e of estoppe$. 10 -nent the second iss%e, petitioner insists th"t it is not neg$igent. The test for deter)ining the e7istence of neg$igence in " p"rtic%$"r c"se )"( be st"ted "s fo$$o's; Did the defend"nt in doing the "$$eged neg$igent "ct %se the re"son"b$e c"re "nd c"%tion 'hich "n ordin"r( pr%dent person 'o%$d h"ve %sed in the s")e sit%"tion= If not, then he is g%i$t( of neg$igence. 11 The .oint of S"$e 3.OS6 ,%ide$ines 'hich o%t$ined the steps th"t petitioner )%st fo$$o' %nder the circ%)st"nces provides. #-RD E8.IRED ". #hec: e7pir( d"te on c"rd. b. If %ne7pired, refer to #4. b.1. If v"$id, honor %p to )"7i)%) of S.L on$(. b./. If in #4 "s Lost, do proced%res /" to /e., b.B. If in #4 "s S%spendedD#"nce$$ed, do not honor c"rd. c. If e7pired, do not honor c"rd. 12 - c%rsor( re"ding of s"id r%$e reve"$s th"t 'henever the 'ords #-RD E8.IRED f$"shes on the screen of the verific"tion )"chine, petitioner sho%$d chec: the credit c"rd*s e7pir( d"te e)bossed on the c"rd itse$f. If %ne7pired, petitioner sho%$d honor the c"rd provided it is not inv"$id, c"nce$$ed or other'ise s%spended. 4%t if e7pired, petitioner sho%$d not honor the c"rd. In this c"se, priv"te respondent*s 4-N5-RD credit c"rd h"s "n e)bossed e7pir( d"te of Septe)ber 1 2. 1# #$e"r$(, it h"s not (et e7pired on October 1 , 1 ! , 'hen the s")e '"s 'rongf%$$( dishonored b( the petitioner. Hence, petitioner did not %se the re"son"b$e c"re "nd c"%tion 'hich "n ordin"r( pr%dent person 'o%$d h"ve %sed in the s")e sit%"tion "nd "s s%ch petitioner is g%i$t( of neg$igence. In this connection, 'e F%ote 'ith "pprov"$ the fo$$o'ing observ"tions of the respondent #o%rt. Ahi$e it is tr%e th"t priv"te respondent did not h"ve s%fficient c"sh on h"nd 'hen he hosted " dinner "t petitioner*s rest"%r"nt, this f"ct "$one does not constit%te neg$igence on his p"rt. Neither c"n it be c$"i)ed th"t the s")e '"s the pro7i)"te c"%se of priv"te respondent*s d")"ge. Ae t":e 9%dici"$ notice of the c%rrent pr"ctice ")ong )"9or est"b$ish)ents, petitioner inc$%ded, to "ccept p"()ent b( )e"ns of credit c"rds in $ie% of c"sh. Th%s, petitioner "ccepted priv"te respondent*s 4.I E7press #redit #"rd "fter verif(ing its v"$idit(, " f"ct 'hich "$$ the )ore ref%tes petitioner*s i)p%t"tion of neg$igence on the priv"te respondent. Neither c"n 'e conc$%de th"t the re)"r: of .rofessor Lir"g '"s " s%pervening event "nd the pro7i)"te c"%se of priv"te respondent*s in9%r(. The h%)i$i"tion "nd e)b"rr"ss)ent of the priv"te respondent '"s bro%ght "bo%t not b( s%ch " re)"r: of .rofessor Lir"g b%t b( the f"ct of dishonor b( the petitioner of priv"te respondent*s v"$id 4-N5-RD credit c"rd. If "t "$$, the re)"r: of .rofessor Lir"g served on$( to "ggr"v"te the e)b"rr"ss)ent then fe$t b( priv"te respondent, "$beit si$ent$( 'ithin hi)se$f. AHERE>ORE, the inst"nt petition is hereb( DIS+ISSED. SO ORDERED.