G.R. No. 163255, 22 June 2007

FACTS:

In June 1987 respondent Manuel M. Serrano bought from petitioner Insular Life Assurance Company, Limited, a life insurance policy called “Diamond Jubilee, Participating” on his understanding that he shall be paying premiums for seven (7) years only. Dividend accumulations and earned interests were to be applied to subsequent premium payments. Respondent obtained six Diamond Jubilee Life Insurance policies, and religiously paid the premiums.
In early 1996, respondent was informed by his accountant that he had been paying premiums on some of his policies even beyond the seven-year period of their effectivity. Consequently, respondent wrote a letter to Atty. Ernesto G. Montalban, petitioner’s Senior Vice President, Sales Operations Group, requesting that the overpayments be applied as premium payments of his other policies which have not reached the seven-year period. The request was denied on the ground that the self-liquidating option of the policies was not guaranteed because it was based on dividends which vary. Atty. Montalban, however, assured respondent that some of his policies will self-liquidate.

ISSUE:

Whether the publication of the notice is libelous.

HELD:

No. Respondent acted with utmost good faith and without malice when he caused the publication of the alleged libelous “urgent notice” to all those who may feel victim of Insular Life’s refusal to honor its representation that their policy becomes self-liquidating after a lapse of seven (7) years.
To say in public that Insular Life Assurance refused to honor its representation that the policy issued becomes self-liquidating after a lapse of seven (7) years does not amount to an imputation of a “crime, or of a vice or defect, real or imaginary, or any act, omission, condition, status or circumstance that tends to cause the dishonor, discredit or contempt of the person defamed.” x x x But if it is at all defamatory, it is qualified privileged communication made on an occasion of privilege without actual malice. Through the published “urgent notice,” respondent apparently made in good faith a communication on a subject matter in which he has an interest or in reference to which he has duty of reaching out to other persons having corresponding interest or duty, although it may contain matters which, without this privilege would be actionable, and although the duty is not a legal one but only a moral or social duty of imperfect obligation. Circumstances exist or are reasonably believed to exist which cast upon respondent the duty of making a communication to certain third persons in the performance of such duty or where the person is so situated that it becomes right in the interest of society that he should tell third persons certain facts which he, in good faith, proceeds to do.

*Case digest by Geraldine M. Cabucos, LLB-IV, Andres Bonifacio College Law School, SY 2018-2019