PEPSICO, INC., now known as
the PEPSI COLA COMPANY, Petitioner, - versus - JAIME LACANILAO, Respondent. x - - - - - - - - - - - - - - - - - - - - - - - x |
G.R.
No. 146007
Present: Quisumbing,
J., Chairperson, Carpio, Carpio
Morales, Tinga, and VELASCO,
JR., JJ. |
PEPSI-COLA PRODUCTS PHILS., INC., Petitioner, - versus - COURT OF APPEALS and JAIME LACANILAO, Respondents. |
G.R. No.
146295 Promulgated: June 2006 |
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QUISUMBING, J.:
Once again, the Court is called upon to rule on the rights and liabilities of the parties involved in the ill-fated “Number Fever” fiasco that befell Pepsi-Cola Products Phils., Inc. (PCPPI) and PEPSICO, Inc. (PI) more than a decade ago involving the number combination ”349”.
The
instant consolidated petition for review on certiorari is an appeal from the Decision[1]
dated February 4, 1999 and Resolution[2]
dated November 10, 2000 of the Court of Appeals in CA G.R. CV No. 50438, which ordered
petitioners to pay respondent the sum of P1,050,000
as aggregate prize for two allegedly
winning crowns in the promotional campaign sponsored by petitioners.
The facts are undisputed.
Petitioner
PCPPI is a domestic corporation engaged in the production, bottling, and
distribution of soft drink products namely, Pepsi, 7-Up, Mirinda, and Mountain
Dew. Petitioner PI is a foreign corporation licensed to do business in the
The controversy began when petitioners hired D.G. Consultores, a Mexican consulting firm, to randomly pre-select the winning numbers and send a list of the 60 winning combination with their corresponding security codes. The process of selecting the winning numbers was conducted with the approval of the Department of Trade and Industry (DTI).
Accordingly,
during the initial promotional period from February 17 to
Owing
to its success, petitioners extended the “Number Fever” promotion by five more
weeks, from May 12 to
On
Consequently, petitioners did not honor holders of
crowns bearing the number “349” with security codes “L-2560-FQ” and “L-3560-FQ”.
Some of these rejected crown holders,
tenaciously believing that they were entitled to the cash prize, resorted to
violence against petitioners’ employees and properties.
To
appease the holders of the non-winning “349” crowns, petitioners offered to pay
P500 for every non-winning “349” crown that would be presented on or
before
Still, a great many disgruntled holders of the non-winning “349” crowns, including respondent herein, filed against petitioners separate complaints for recovery of the cash prize and damages. Three of such cases, Rodrigo v. PCPPI, Mendoza v. PCPPI, and De Mesa v. Pepsi Cola Products Phils., Inc.[5] were dismissed at the trial court level, but eventually reached this Court.
In the Rodrigo and Mendoza cases, this Court denied the petition for review on certiorari for failure to show that a reversible error had been committed by the Court of Appeals in affirming the trial court’s finding that the security code was an indispensable element of a winning crown and that PCPPI and PI were not negligent in the conduct of their promotional campaign.
In the De Mesa case, on the other hand, the trial court dismissed the complaint outright based on the principle of stare decisis. Upon review on certiorari, this Court affirmed the trial court’s dismissal of the complaint considering the finality of the parallel cases of Rodrigo and Mendoza.
As for the complaint filed by respondent Jaime Lacanilao, the trial court ruled differently, to wit:
WHEREFORE, finding preponderance of evidence in favor
of the plaintiff, judgment is hereby rendered against the defendants as
follows:
1) Declaring the plaintiff as rightful winner in the
Number Fever promotional campaign conducted by the defendants from
2) Ordering the defendants jointly and severally to pay
the plaintiff the amount of P1,050,000.00 representing his legitimate prize for
two (2) winning crowns within ten (10) days from finality of this decision with
legal interest until [fully] paid;
3) Ordering the defendants to pay the plaintiff jointly
and severally the amount of P100,000.00 as moral damages, P100,000.00 as
exemplary damages, P25,000.00 as attorney’s fees and P25,000.00 as
reimbursement for transportation and meals with costs;
4) Dismissing defendants’ counterclaim for being
frivolous and unsubstantiated.[6]
The Court of Appeals, in its assailed Decision, affirmed with modification the aforequoted judgment, thus:
WHEREFORE, the foregoing considered, the Decision of
the lower court in Civil Case No. 92-13022 dated
No costs.
SO ORDERED.[7]
Hence, the instant consolidated petition separately filed by PCPPI and PI. Petitioner PCPPI submitted the following issues:
I.
WHETHER OR NOT
THIS CASE SHOULD BE DISMISSED ON THE BASIS OF THE RESOLUTIONS OF THIS HONORABLE
COURT IN THE CASE OF RODRIGO.
II.
WHETHER OR NOT
PEPSI’S COMPROMISE WITH MR. LACANILAO IS CONTRARY TO LAW, MORALS, GOOD CUSTOMS,
PUBLIC POLICY OR PUBLIC ORDER.
III.
WHETHER OR NOT
MR. LACANILAO HAS EXPRESSLY WAIVED HIS CLAIMS AGAINST PEPSI.
IV.
WHETHER OR NOT
THE TERMS OF THE “NUMBER FEVER” PROMOTION CLEARLY STATED THAT “EACH CROWN/CAP
WITH A WINNING NUMBER AND AUTHENTICATED SECURITY CODE WINS THE AMOUNT PRINTED
ON THE CROWN/CAP.”
V.
WHETHER OR NOT
THE MECHANICS OF THE “NUMBER FEVER” PROMOTION AMOUNTS TO A CONTRACT OF ADHESION.
VI.
WHETHER OR NOT
PEPSI WAS AWARE OF THE HIDDEN DEFECT IN THE MASTER LIST OF WINNING CROWNS FOR
THE EXTENSION PERIOD WHEN, IN GOOD FAITH, IT OFFERED “349” AS THE NUMBER OF A
WINNING CROWN.
VII.
WHETHER OR NOT THE
OFFER HAD ALREADY BEEN WITHDRAWN AT THE TIME MR. LACANILAO ACCEPTED PEPSI’S
OFFER OF “349” AS THE NUMBER OF A WINNING CROWN FOR
VIII.
WHETHER OR NOT
D.G. CONSULTORES WAS AN INDEPENDENT CONTRACTOR, NOT AN AGENT, OF PEPSI.
IX.
WHETHER OR NOT
THERE WAS PROOF OF A “COMPARABLE SNAFU” IN
X.
WHETHER OR NOT
THE COMPLAINT BELOW SHOULD HAVE BEEN DISMISSED FOR LACK OF THE REQUIRED
CERTIFICATE OF NON-FORUM SHOPPING.
XI.
WHETHER OR NOT
PAYMENT OF NON-WINNING “349” CROWNS BY PEPSI WOULD RENDER THE SERVICE SO DIFFICULT
AS TO BE MANIFESTLY BEYOND THE CONTEMPLATION OF THE PARTIES.[8]
Petitioner PI, on the other hand, put forth the following issues:
A. Whether or not the Court of Appeals had the authority to rule on
respondent’s claims, even after the latter had expressly waived his cause of
action and prayed to set aside the judgment in his favor.
B. Whether
or not the fundamental principles of res judicata and stare decisis
should be applied in this case in view of previous, final and executory
judgments on the same facts and issues.
C. Whether
or not the Court of Appeals, in disregarding:
i.
the nature of the
Number Fever Promotion, as an under-the-crown promotion, where only specific
preselected crowns seeded into the trade were intended to win; and
ii. the rules of the promotion whereby the security codes, along with the
printed three (3)-digit numbers and prizes, identified each specific
preselected crown,
decided questions of substance in a manner not in accord with
law and the law between the parties.
D. Whether or not the Court of Appeals’ conclusion that D.G.
Consultores was not an independent contractor, but an agent of Pepsi, is in
accordance with applicable jurisprudence.
E. Whether or not Pepsi was negligent in the conduct of the promotion.
Assuming arguendo that Pepsi was negligent, whether or not it was proper to
award the prizes indicated on the 349 crowns to respondent, rather than the
actual damages proximately caused by the alleged negligence.
F. Whether or not mistake, under which petitioner labored, vitiated
its consent, and that unilateral mistake suffices to annul a contract.
G. Whether or not Article 1267 of the Civil Code and the doctrine of
adjustment of rights apply in this case.[9]
For his part, respondent Jaime Lacanilao in his Comment[10]
abandoned all claims against petitioners. He instead confirmed the execution of a
compromise agreement where he had waived and withdrawn all claims subject of
his complaint against petitioners. He
reiterated the Manifestation dated
As respondent has joined petitioners’ cause and considering the recent pronouncement of this Court in De Mesa v. Pepsi Cola Products Phils., Inc.,[11] the sole issue for resolution now is whether the principle of stare decisis can likewise be applied in the instant case.
We rule in the affirmative.
When
a court has laid down a principle of law as applicable to a certain set of facts,
it will adhere to that principle and apply it to all future cases in which the
facts are substantially the same. Stare
decisis et non quieta movere. Stand by the decision and disturb not what is
settled. It simply means that a conclusion reached in one case should
be applied to those that follow if the facts are substantially the same, even
though the parties may be different. It comes
from the basic principle of justice that like cases ought to be decided alike. Thus, where the same question relating to the
same event is brought by parties similarly situated as in a previous case already
litigated and decided by a competent court, the rule of stare decisis is a bar to any attempt to relitigate the same issue.[12]
The Rodrigo and Mendoza cases were
both decided by this Court through a minute resolution. It is axiomatic that when a minute resolution denies a petition for lack of merit, the
challenged decision, together with its findings of fact and legal conclusions, is deemed sustained.[13]
The De Mesa case, on the other hand, was decided on the strength of the stare decisis doctrine considering that the legal rights and relations of the parties, the facts, the applicable laws, the causes of action, the issues, and the evidence are exactly the same as those in the decided cases of Rodrigo and Mendoza.
The instant case falls squarely within the same
set of facts as the Rodrigo,
The issues surrounding the “349” incident have
been laid to rest and must no longer be disturbed in this decision. Otherwise, a situation could arise where
decisions would conflict, rendering inutile the Court’s finding in the earlier
cases, and undermining the integrity of the Court and its capacity to dispense
justice equally.
Accordingly, since respondent Jaime Lacanilao is not a holder of the winning “349” crowns, petitioners are not liable to him for the payment of the cash prize. Further, there being no proof of negligence on the part of petitioners in the conduct of their promotional campaign, neither should they be held liable to respondent for damages. Respondent having withdrawn all claims against petitioners, and all parties now united in seeking reconsideration of the appellate court’s judgment, the reversal of the appellate court’s judgment is in order.
WHEREFORE,
the petition is GRANTED. The
assailed Decision dated
No
pronouncement as to costs.
SO ORDERED.
|
LEONARDO A.
QUISUMBING Associate Justice |
WE CONCUR:
ANTONIO T. CARPIO Associate Justice |
|
CONCHITA
CARPIO MORALES Associate Justice |
DANTE O. TINGA Associate Justice |
PRESBITERO J. VELASCO, JR. Associate Justice |
A T T E S T A T I O N
I attest that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division.
|
LEONARDO A.
QUISUMBING Associate Justice Chairperson |
C E R T I F I C A T I O N
Pursuant to Section 13, Article VIII of the Constitution, and the Division Chairperson’s Attestation, I certify that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division.
|
ARTEMIO V.
PANGANIBAN Chief Justice |
[1] Rollo (G.R. No. 146007), pp. 128-148. Penned by Associate Justice Romeo A. Brawner, with Associate Justices Angelina Sandoval-Gutierrez (now a member of this Court), and Martin S. Villarama, Jr. concurring.
[2]
[3] But see rollo (G.R. No. 146007), pp. 53-54, 504 non-winning; 436 unused.
[4] See rollo (G.R. No. 146007), p. 121.
[5] G.R. Nos. 153063-70,
[6] Rollo (G.R. No. 146007), pp. 133-134.
[7]
[8]
[9]
[10]
[11] Supra note 5.
[12] Ty v. Banco Filipino Savings & Mortgage Bank, G.R. No. 144705, November 15, 2005, 475 SCRA 65, 75-76.
[13]