The principle of abuse of rights is found under Articles 19,
20 and 21 of the Civil Code of the Philippines, which states that:
Art. 19. "Every person must, in the exercise of his rights
and in the performance of his duties, act with justice, give everyone his
due and observe honesty and good faith."
Art. 20. "Every person who, contrary to law, wilfully or negligently
causes damage to another, shall indemnify the latter for the same."
Art. 21. "Any person who wilfully causes loss or injury to another in
manner that is contrary to morals, good customs or public policy shall
compensate the latter for the damage."
The above articles, depart from the classical theory that "he who uses
a right injures no one". The modern tendency is to depart from the classical
and traditional theory, and to grant indemnity for damages in cases where
there is an abuse of rights, even when the act is not illicit.
When a right is exercised in a manner which does not conform with the
norms enshrined in Article 19 and results in damage to another, a legal
wrong is thereby committed for which the wrongdoer must be held responsible.
Although the requirements of each provision is different, these three (3)
articles are all related to each other. As the eminent Civilist Senator
Arturo Tolentino puts it: "With this article (Article 21), combined with
articles 19 and 20, the scope of our law on civil wrongs has been very
greatly broadened; it has become much more supple and adaptable than the
Anglo-American law on torts. It is now difficult to conceive of any malevolent
exercise of a right which could not be checked by the application of these
articles" (Tolentino, 1 Civil Code of the Philippines 72).
There is however, no hard and fast rule which can be applied to determine
whether or not the principle of abuse of rights may be invoked. The question
of whether or not the principle of abuse of rights has been violated, resulting
in damages under Articles 20 and 21 or other applicable provision of law,
depends on the circumstances of each case. (Globe Mackay Cable and Radio
Corporation vs. Court of Appeals, 176 SCRA 778 [1989]).
The elements of an abuse of right under Article 19 are the following:
(1) There is a legal right or duty; (2) which is exercised in bad faith;
(3) for the sole intent of prejudicing or injuring another. Article 20
speaks of the general sanction for all other provisions of law which do
not especially provide for their own sanction (Tolentino, supra, p. 71).
Thus, anyone who, whether willfully or negligently, in the exercise of
his legal right or duty, causes damage to another, shall indemnify his
victim for injuries suffered thereby. Article 21 deals with acts contra
bonus
mores, and has the following elements: 1) There is an act which is legal;
2) but which is contrary to morals, good custom, public order, or public
policy; 3) and it is done with intent to injure. Thus, under any of these
three (3) provisions of law, an act which causes injury to another may
be made the basis for an award of damages.
Of the three articles, Art. 19 was intended to expand the concept of
torts by granting adequate legal remedy for the untold number of moral
wrongs which is impossible for human foresight to provide specifically
in statutory law. If mere fault or negligence in one's acts can make him
liable for damages for injury caused thereby, with more reason should abuse
or bad faith make him liable. The absence of good faith is essential to
abuse of right. Good faith is an honest intention to abstain from taking
any unconscientious advantage of another, even through the forms or technicalities
of the law, together with an absence of all information or belief of fact
which would render the transaction unconscientious. In business relations,
it means good faith as understood by men of affairs.
While Article 19 may have been intended as a mere declaration of
principle, the "cardinal law on human conduct" expressed in said article
has given rise to certain rules, e.g. that where a person exercises his
rights but does so arbitrarily or unjustly or performs his duties in a
manner that is not in keeping with honesty and good faith, he opens himself
to liability.
Article 19 of the Civil Code, sets certain standards which may be observed
not only in the exercise of one's rights but also in the performance of
one's duties. These standards are the following: to act with justice; to
give everyone his due; and to observe honesty and good faith. The law,
therefore, recognizes the primordial limitation on all rights: that in
their exercise, the norms of human conduct set forth in Article 19 must
be observed. A right, though by itself legal because recognized or granted
by law as such, may nevertheless become the source of some illegality.