### Facts:
Isaac Chaves and his family were long-time customers of MERALCO since 1953. Upon moving to Mercedes Street, Singalong, Manila, Isaac encountered an issue with MERALCO represented by Pedro Yambao regarding two overdue bills from early 1965. Despite partial payment, their electric service was disconnected without prior notice in April 1965. After settling the outstanding bills the following day, the service was reinstated. Feeling aggrieved, the Chaves family filed a complaint, leading to the trial court’s award of damages, which the Court of Appeals affirmed. The petitioners brought the case to the Supreme Court citing issues with the award of damages based on the lack of notice of disconnection.
### Issues:
1. Whether the disconnection of electricity service without prior notice constitutes a tortious act deserving of moral and exemplary damages.
2. The applicability of the “clean hands” doctrine in denying moral damages to individuals in arrears but who were disconnected without notice.
### Court’s Decision:
The Supreme Court dismissed the petition, upholding the decisions of the lower courts. It established that electricity, being a necessity, subjects providers like MERALCO to regulatory conditions including the necessity of prior written notice before service disconnection. The failure to provide such notice was found to be a tortious act justifying damages. The Court also rejected the applicability of the “clean hands” doctrine in this context, indicating that the breach on the part of MERALCO was independent of the arrears and constituted a distinct injurious act.
### Doctrine:
This case reiterated the doctrine that a public utility’s failure to provide prior written notice before disconnection of service constitutes a tortious act, potentially justifying the award of moral and exemplary damages. Furthermore, it was established that the “clean hands” doctrine does not absolve a utility provider from its procedural obligations nor does it nullify claims for damages resulting from such failures.
### Class Notes:
– **Necessity of Prior Notice:** Public utilities must provide a 48-hour prior written notice before disconnecting service for non-payment, as per regulatory requirements.
– **Tortious Act and Damages:** Disconnection without prior notice constitutes a tortious act, supporting claims for moral and exemplary damages even if the customer is in arrears.
– **“Clean Hands” Doctrine:** A customer’s default in payments does not negate their right to damages resulting from a utility provider’s procedural breach.
– **Relevance of Regulatory Compliance:** Public utilities are bound by regulatory conditions, and failure to comply can lead to liability for damages.
### Historical Background:
The case underscores the evolving jurisprudence on the obligations of public utilities to their customers and how regulatory measures aim to balance the interests of both parties. It highlights the recognition of electricity as a basic necessity and the legal expectations placed upon providers in the conduct of their service disconnections.
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