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HELD:
Yes.
The Court finds petitioner guilty of breach of contract when it
unjustifiably refused to release respondents deposit despite demand.
In cases of breach of contract, moral damages may be recovered only
if the defendant acted fraudulently or in bad faith, or is guilty of gross
negligence amounting to bad faith, or in wanton disregard of his
contractual obligations.
In this case, a review of the circumstances surrounding the issuance of
the Hold Out order reveals that petitioner issued a Hold Out order
in bad faith. First of all, the order was issued without legal basis.
Second, petitioner did not inform respondents of the reason for the
Hold Out. Third, the order was issued prior to the filing of the
criminal complaint.
The Court finds that petitioner indeed acted in a wanton, fraudulent,
reckless, oppressive or malevolent manner when it refused to release
the deposits of respondent without any legal basis.