Case Digest
Case Digest
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25. The Consolidated Bank & Trust Co v. CA
FACTS: L.C. Diaz opened a savings account with Solidbank. Mercedes Macaraya, L.C.
Diaz’s cashier, instructed the messenger of L.C. Diaz, Ismael Calapre, to deposit the
money with Solidbank. Macaraya also gave Calapre the Solidbank passbook. Calapre
went to Solidbank and presented to Teller No. 6 2 deposit slips and the passbook. Since
the transaction took time and Calapre had to make another deposit for L.C.Diaz with
Allied Bank, he left the passbook with Solidbank. When Calapre returned to Solidbankto
retrieve the passbook, Teller No. 6 informed him that somebody got the passbook. L.C.
Diaz through its CEO, Luis C. Diaz, called Solidbank to stop any transaction using the
same passbook until L.C. Diaz could open a new account. On that same day, L.C. Diaz
learned of the unauthorized withdrawal the day before, 14 August 1991, of P300,000
from its savings account.L.C. Diaz through its counsel demanded from Solidbank the
return of its money. Solidbank refused. L.C. Diaz filed a Complaint or Recovery of a
Sum of Money against Solidbank with the RTC.
ISSUE:
Whether Solid Bank is liable due to quasi delict
HELD:
No, solid bank is liable for the loss of the 300k based on the ground of culpa contractual.
The contract between the bank and its depositor is governed by the provisions of the
Civil Code on simple loan (Article 1980, Civil Code). There is a debtor-creditor
relationship between the bank and its depositor. The bank is the debtor and the depositor
is the creditor. The depositor lends the bank money and the bank agrees to pay the
depositor on demand. The savings deposit agreement between the bank and the
depositor is the contract that determines the rights and obligations of the parties. Under
their contract, it is the duty of LC Diaz to secure its passbook. However, this duty is also
applicable to Solidbank when it gains possession of said passbook which it did when the
messenger left it to the bank’s possession through the bank’s teller. The act of the teller
returning the passbook to someone else other than Calapre, the firm’s authorized
messenger, is a clear breach of contract. Such negligence
binds the bank under the principle of respondeat superior or command responsibility.
However, mitigating damages must be applied since Under Article 1172, "liability (for
culpa contractual) may be regulated by the courts, according to the circumstances." This
means that if the defendant exercised the proper diligence in the selection and
supervision of its employee, or if the plaintiff was guilty of contributory negligence,
then the courts may reduce the award of damages. In this case, L.C.Diaz was guilty of
contributory negligence in allowing a withdrawal slip signed by its authorized
signatories to fall into the hands of an impostor. Thus, the liability of Solidbank should
be reduced.
The trial court, ruling in favour of Solidbank stated that Solidbank's act of allowing the
withdrawal of P300,000 was not the direct and proximate cause of the loss. The trial
court believed that L.C. Diaz's negligence in not securing its passbook under lock and
key was the proximate cause that allowed the impostor to withdraw the P300,000 (1) the
possession of the passbook by a person other than the depositor L.C. Diaz; (2) the
presentation of a signed withdrawal receipt by an unauthorized person; and (3) the
possession by an unauthorized person of a PBC check "long closed" by L.C. Diaz,
which check was deposited on the day of the fraudulent withdrawal.)
On the other hand, CA ruled that it is Solidbank’s negligence was the proximate cause of
the unauthorized withdrawal of P300,000 from the savings account of L.C. Diaz. The
teller of Solidbank who received the withdrawal slip for P300,000 allowed the
withdrawal without making the necessary inquiry. Had the teller called up L.C. Diaz,
Solidbank would have known that the withdrawal was unauthorized. The teller did not
even verify the identity of the impostor who made the withdrawal. Thus, the appellate
court found Solidbank liable for its negligence in the selection and supervision of its
employees.
ISSUE(S):
Whose negligence is the proximate cause of the unauthorized withdrawal.
HELD:
SC did not agree with both courts. Proximate cause is that cause which, in natural and
continuous sequence, unbroken by any efficient intervening cause, produces the injury
and without which the result would not have occurred. Proximate cause is determined by
the facts of each case upon mixed considerations of logic, common sense, policy and
precedent.
L.C. Diaz was not at fault that the passbook landed in the hands of the impostor.
Solidbank was in possession of the passbook while it was processing the deposit. After
completion of the transaction, Solidbank had the contractual obligation to return the
passbook only to Calapre, the authorized representative of L.C. Diaz. Solidbank failed
to fulfill its contractual obligation because it gave the passbook to another person.
Solidbank's failure to return the passbook to Calapre made possible the withdrawal of
the P300,000 by the impostor who took possession of the passbook. Under Solidbank's
rules on savings account, mere possession of the passbook raises the presumption of
ownership. It was the negligent act of Solidbank's Teller No. 6 that gave the impostor
presumptive ownership of the passbook. Had the passbook not fallen into the hands of
the impostor, the loss of P300,000 would not have happened. Thus, the proximate cause
of the unauthorized withdrawal was Solidbank's negligence in not returning the
passbook to Calapre.
SC did not agree to the appellate court's theory that the proximate cause of the
unauthorized withdrawal was the teller's failure to call up L.C. Diaz to verify the
withdrawal. Solidbank did not have the duty to call up L.C. Diaz to confirm the
withdrawal. There is no arrangement between Solidbank and L.C. Diaz to this effect.
There is no law mandating banks to call up their clients whenever their representatives
withdraw significant amounts from their accounts. L.C. Diaz therefore had the burden
to prove that it is the usual practice of Solidbank to call up its clients to verify a
withdrawal of a large amount of money. L.C. Diaz failed to do so.
ISSUE(S):
WON Solidbank is liable for breach of contract due to negligence.
RULING:
YES. The law imposes on banks high standards in view of the fiduciary nature of
banking. Section 2 of Republic Act No. 8791 ("RA 8791”), which took effect on 13 June
2000, declares that the State recognizes the “fiduciary nature of banking that requires
high standards of integrity and performance.” This new provision in the general banking
law, introduced in 2000, is a statutory affirmation of Supreme Court decisions holding
that, “the bank is under obligation to treat the accounts of its depositors with meticulous
care, always having in mind the fiduciary nature of their relationship.” This fiduciary
relationship means that the bank's obligation to observe “high standards of integrity and
performance” is deemed written into every deposit agreement between a bank and its
depositor. The fiduciary nature of banking requires banks to assume a degree of
diligence higher than that of a good father of a family. Section 2 of RA 8791 prescribes
the statutory diligence required from banks — that banks must observe "high standards
of integrity and performance" in servicing their depositors. Although RA 8791 took
effect almost nine years after the unauthorized withdrawal of the P300,000 from
L.C. Diaz's savings account, jurisprudence at the time of the withdrawal already
imposed on banks the same high standard of diligence required under RA No. 8791.
However, the fiduciary nature of a bank-depositor relationship does not convert thecontr
act between the bank and its depositors from a simple loan to a trust agreement, whether
express or implied. Failure by the bank to pay the depositor is failure to pay a simple
loan, and not a breach of trust. The fiduciary nature of banking does not convert a simple
loan into a trust agreement because banks do not accept deposits to enrich depositors but
to earn money for themselves.
SC finds no error in the findings of the respondent court in its original decision that the
accident which befell private respondents was due to the lack of diligence of respondent
Antonio Esteban and was not imputable to negligent omission on the part of petitioner
PLDT. The presence of warning signs could not have completely prevented the accident;
the only purpose of said signs was to inform and warn
the public of the presence of excavations on the site. The private respondents already kn
ew of the presence of said excavations. It was not the lack of knowledge of these
excavations which caused the jeep of respondents to fall into the excavation but the
unexplained sudden swerving of the jeep from the inside lane towards the accident
mound.
Plaintiff's jeep was running along the inside lane of Lacson Street. If it had remained on
that inside lane, it would not have hit the accident mound. Through the tiremarks, it can
be seen that the accident mound was hit by the jeep swerving from the inside lane. It was
not the lack of knowledge of these excavations which caused the jeep of respondents to
fall into the excavation but the unexplained sudden swerving of the jeep from the inside
lane towards the accident mound. Plaintiff's jeep was not running at 25 kilometers an
hour as plaintiff-husband claimed. At that speed, he could have braked the vehicle the
moment it struck the accident mound. The jeep must have been running quite fast. If the
jeep had been braked at 25 kilometers an hour, plaintiffs would not have been thrown
against the windshield and they would not have suffered their injuries. If the accident
did not happen because the jeep was running quite fast on the inside lane and for some
reason or other it had to swerve suddenly to the right and had to climb over the accident
mound, then plaintiff-husband had not exercised the diligence of a good father of a
family to avoid the accident.
As a general rule, that negligence in order to render a person liable need not be the sole
cause of an injury. It is sufficient that his negligence, concurring with one or more
efficient causes other than plaintiff's, is the proximate cause of the injury. Accordingly,
where several causes combine to produce injuries, a person is not relieved from liability
because he is responsible for only one of them, it being sufficient that the negligence of
the person charged with injury is an efficient cause without which the injury would not
have resulted to as great an extent, and that such cause is not attributable to the person
injured. It is no defense to one of the concurrent tortfeasors that the injury would not
have resulted from his negligence alone, without the negligence or wrongful acts of the
other concurrent tortfeasor. Where several causes producing an injury are concurrent and
each is an efficient cause without which the injury would not have happened, the injury
may be attributed to all or any of the causes and recovery may be had against any or all
of the responsible persons although under the circumstances of the case, it may appear
that one of them was more culpable, and that the duty owed by them to the injured
person was not the same. No actor's negligence ceases to be a proximate cause merely
because it does not exceed the negligence of other actors. Each wrongdoer is responsible
for the entire result and is liable as though his acts were the sole cause of the injury.
There is no contribution between joint tortfeasors whose liability is solidary since both
of them are liable for the total damage. Where the concurrent or successive negligent
acts or omissions of two or more persons, although acting independently, are in
combination the direct and proximate cause of a single injury to a third person, it is
impossible to determine in what proportion each contributed to the injury and either of
them is responsible for the whole injury. Where their concurring negligence resulted in
injury or damage to a third party, they become joint tortfeasors and are solidarily liable
for the resulting damage under Article 2194 of the Civil Code
Plaintiff’s action proceeded upon two theories: (1) Upon the theory that the defendants,
having entered into the possession of a house and lot, the property of the plaintiff, by
gross negligence and carelessness, caused it to be burned to the damage of the plaintiff;
and (2) upon the theory that the defendants entered into possession of a house and lot
belonging to the plaintiff, knowing that they were not entitled to the possession thereof,
and acting, therefore, in bad faith, they were responsible to the plaintiff for the
destruction of the house by fire.
HELD:
SC held that it is quite clear that the description contained in the mortgage of parcel
No. 2 fully includes the house and lot described by the appellant. The defendant having
entered into possession of the property lawfully, he was obligated to
exercise only reasonable diligence and care in themanagement of the property. It appeari
ng from the nature of the relation of the defendant to the property that he was not a
holder in bad faith nor a usurper, he is responsible only for those losses which are shown
to have been caused by his negligence. No negligence having been shown in this
case, the complaint was properly dismissed upon the merits.
Issue: Whether or not an act of God (fortuitous event) exempts from liability parties
who would otherwise be due to negligence?
Ruling: No, they are not exempted from liability. There is no dispute that the earthquake
is a fortuitous event or an act of god. But, if upon the happening of a fortuitous event or
an act of God, here concurs a corresponding fraud, negligence, delay or violation or
contravention in any manner of the tenor of the obligation, which results in loss or
damage, the obligor cannot escape liability. The negligence of the defendant was shown
when and proved that there was an alteration of the plans and specification that had been
so stipulated among them. Therefore, therefore there should be no question that
NAKPIL and UNITED are liable for damages because of the collapse of the building.
One who negligently creates a dangerous condition cannot escape liability for the natural
and probable consequences thereof, although the act of a third person, or an act of God
for which he is not responsible, intervenes to precipitate the loss.
Article 1174 of the New Civil Code, states that no person shall be responsible for events,
which could not be foreseen. But to be exempt from liability due to an act of God, the
following must occur: 1) cause of breach must be independent of the will of the debtor
2) event must be unforeseeable or unavoidable 3) event must be such that it would
render it impossible for the debtor to fulfill the obligation 4) debtor must be free from
any participation or aggravation of the industry to the creditor.
PRESUMPTION OF NEGLIGENCE
32. Kapalaran Bus Line v. Coronado
ACTS: Two vehicles were involved in this accident (1) a jeepney driven by respondent
KAPALARAN BUS LINE VS CORONADO, GRAJERA, SHINYO AND
CA
FACTS: Two vehicles were involved in this accident (1) a jeepney driven by respondent
Facts: The first vehicle to arrive at the intersection was a jeepney. Seeing that the road
was clear, the jeepney driven by Lope Grajera which had stopped at the intersection
began to move forward, and for his part, Atty. Manicad stopped his car at the
intersection to give way to the jeepney. At about this time, the KBL bus driven by
Virgilio Llamoso was approaching the intersection and its driver was engaged in
determining from his Conductor if they would still pass through the town proper of Pila.
Upon learning that they were already full, he turned his attention to the road and found
the stopped vehicles at the intersection with the jeepney trying to cross the intersection.
The KBL bus ignored the stopped vehicles of Atty. Manicad and the other vehicles
behind Atty. Manicad and overtook both vehicles at the intersection, therefore, causing
the accident. The KBL bus had no more room within which to stop without slamming
into the rear of the vehicle behind the car of Atty. Manicad. The KBL driver chose to
gamble on proceeding on its way, unfortunately, the jeepney driven by Grajera, which
had the right-of-way, was about to cross the center of the highway and was directly on
the path of the KBL bus. The gamble made by Llamoso did not pay off. The impact
indicates that the KBL bus was travelling at a fast rate of speed because, after the
collision, it did not stop; it travelled for another 50 meters and stopped only when it hit
an electric post. The KBL bus driver violated traffic rules and regulations on restriction
as to speed and restrictions on overtaking and passing. Kapalaran argues that there was
no justification for holding it, the employer, liable for damages, considering that such
liability was premised upon the bus driver's negligence and that petitioner"as mere
employer" was not guilty of such negligence or imprudence.
Issue: Whether or not KBL is liable for negligence
Ruling: YES . KBL is liable for the damages in the collision. Yes, KBL is liable for
negligence.
The patent and gross negligence on the part of the petitioner Kapalaran's
driver raised the legal presumption that Kapalaran as employer was guilty of negligence
either in the selection or in the supervision of its bus driver. Where the employer is held
liable for damages; it has of course a right of recourse against its own negligent
employee. The liability of the employer under Article 2180 of the Civil Code is direct
and immediate; it is not conditioned
upon prior recourse against the negligent employee and a prior showing of the
insolvency of such employee. So far as the record shows, petitioner Kapalaran was
unable to rebut the presumption of negligence on its own part. The award of moral
damages against petitioner Kapalaran is not only entirely in order; it is also quite modest
considering Dionisio Shinyo's death during the pendency of this petition, a death
hastened by, if not directly due to, the grievous injuries sustained by him in the violent
collision
Traffic Rules; U-turns are generally not advisable particularly on major streets
The Court of Appeals also concluded that Bedania made the U-turn at an intersection. Again, this is
not supported by the evidence on record. The police sketch does not indicate an intersection and
onlyshows that there was a road leading to the Orchard Golf Course near the place of the collision.
Furthermore, U-turns are generally not advisable particularly on major streets. Contrary to
Videna’s testimony, it is not normal for a truck to make a U-turn on a highway. We agree with the
trial court that if Bedania wanted to change direction, he should seek an intersection where it is safer to
maneuver the truck. Bedania should have also turned on his signal light sand made sure that the
highway was clear of vehicles from the opposite direction before executing the U-turn
Proximate cause is that which, in the natural and continuous sequence, unbroken
by any efficient, intervening cause, produces the injury, and without which the
result would not have occurred.
Bedania’s negligence was the proximate cause of the collision which claimed the life of Antero and
injured the petitioners. The cause of the collision is traceable to the negligent act of Bedania for
if the U-turn was executed with the proper precaution, the mishap in all probability would not
have happened. The sudden U-turn of the truck without signal lights posed a serious
risk to oncoming motorists. Bedania failed to prevent or minimize that risk. The truck’s sudden
U-turn triggered a series of events that led to the collision and, ultimately, to the death of Antero and
the injuries of petitioners.
Under Article 2180: Employers are liable for the damages caused by their
employees acting within the scope of their assigned tasks. This liability arises due to the
presumed negligence in their supervision of their employees unless they can prove that
they exercised the diligence of a good father of a family to prevent the damage.
Mendoza is directly and separately liable for her failure to exercise due diligence in
supervising Macasasa. She had been unable to prove that she had exercised the diligence
of a good father of a family in supervising Macasasa. Note: the contributory negligence
of Sonny for not using the pedestrian overpass only serves as a mitigating circumstance.
(Article 2179).
The records show that Macasasa violated two traffic rules under the Land Transportation
and Traffic Code. Macasasa was found to be overspeeding and did not aid the accident
victim. Petitioner, as owner and employer, is directly and separately civilly liable for her
failure to exercise due diligence in supervising Macasasa.
34. Anonuevo v. CA
Facts: Villagracia was traveling along Boni Ave. on his bicycle, while Añonuevo,
traversing the opposite lane was driving a Lancer car owned by Procter and Gamble Inc.,
the employer of Añonuevo’s brother. Añonuevo was in the course of making a left turn
towards Libertad Street when the collision occurred. Villagracia sustained serious
injuries and had to undergo four operations. Villagracia instituted an action for damages
against P&G Phils., Inc. and Añonuevo before the RTC. Añonuevo claims that
Villagracia violated traffic regulations when he failed to register his bicycle or install
safety gadgets. He posits that Article 2185 of the Civil Code applies by analogy.
Article 2185. Unless there is proof to the contrary, it is presumed that a persondriving a
motor vehicle has been negligent if at the time of the mishap he was violating any traffic
regulation.
Issue: W/N Art. 2185 of the New Civil Code should apply to non-motorized vehicles,
making Villagracia presumptively negligent
Ruling: No. There is pertinent basis for segregating between motorized and non-
motorized vehicles. A motorized vehicle, unimpeded by the limitations in physical
exertion is capable of greater speeds and acceleration than non-motorized vehicles. At
the same time, motorized vehicles are more capable in inflicting greater injury or
damage in the event of an accident or collision. This is due to a combination of factors
peculiar to the motor vehicle, such as the greater speed, its relative greater bulk of mass,
and greater combustibility due to the use of fuel.
The evidence on record discloses that three or four meters from the rear of the parked
truck, a lighted kerosene lamp was placed. Whether the cargo truck was parked along
the road or on half the shoulder of the right side of the road would be of no moment
taking into account the warning device consisting of the lighted kerosene lamp placed
three or four meters from the back of the truck. But despite this warning which we rule
as sufficient, the Isuzu truck driven by Daniel Serrano, an employee of the private
respondent, still bumped the rear of the parked cargo truck. It is clear from the foregoing
disquisition that the absence or want of care of Daniel Serrano has been established by
clear and convincing evidence.
This doctrine is stated thus: "Where the thing which causes injury is shown to be under
the management of the defendant, and the accident is such as in the ordinary course of
things does not happen if those who have the management use proper care, it affords
reasonable evidence, in the absence of an explanation by the defendant, that the accident
arose from want of care.
Res ipsa loquitur. The thing speaks for itself Rebuttable presumption or inference that
defendant was negligent, which arises upon proof that instrumentality causing injury
was in defendant's exclusive control, and that the accident was one which ordinarily
does not happen in absence of negligence.
it has generally been held that the presumption of inference arising from the doctrine
cannot be availed of, or is overcome, where plaintiff has knowledge and testifies or
presents evidence as to the specific act of negligence which is the cause of the injury
complained of or where there is direct evidence as to the precise cause of the accident
and all the facts and circumstances attendant on the occurrence clearly appear. 43 Finally,
once the actual cause of injury is established beyond controversy, whether by the
plaintiff or by the defendant, no presumptions will be involved and the doctrine becomes
inapplicable when the circumstances have been so completely eludicated that no
inference of defendant's liability can reasonably be made, whatever the source of the
evidence, 44 as in this case.
Two weeks after Natividad returned from the United States to seek further treatment, her
daughter found a piece of gauze protruding from her vagina. Upon being informed about
it, Dr. Ampil proceeded to her house where he managed to extract by hand a piece of
gauze measuring 1.5 inches in width. He then assured her that the pains would soon
vanish. Dr. Ampil’s assurance did not come true. Instead, the pains intensified,
prompting Natividad to seek treatment at the Polymedic General Hospital. While
confined there, Dr. Ramon Gutierrez detected the presence of another foreign object in
her vagina — a foul-smelling gauze measuring 1.5 inches in width which badly infected
her vaginal vault. A recto-vaginal fistula had formed in her reproductive organs which
forced stool to excrete through the vagina. Another surgical operation was needed to
remedy the damage. Natividad and her husband filed with the RTC a complaint for
damages against the Professional Services, Inc. (PSI), owner of the Medical City
Hospital, Dr. Ampil, and Dr. Fuentes. They alleged that the latter are liable for
negligence for leaving two pieces of gauze inside Natividad’s body and malpractice for
concealing their acts of negligence. Pending the outcome of the above cases, Natividad
died and was duly substituted by her children (the Aganas). The RTC rendered its
Decision in favor of the Aganas, finding PSI, Dr. Ampil and Dr. Fuentes liable for
negligence and malpractice.
The Court of Appeals rendered its Decision dismissing the case against Dr. Fuentes with
Dr. Ampil liable to reimburse Professional Services, Inc., whatever amount the latter
will pay or had paid to the plaintiffs.
The Aganas assailed the dismissal by the trial court of the case against Dr. Fuentes on
the ground that it is contrary to the doctrine of res ipsa loquitur. According to them, the
fact that the two pieces of gauze were left inside Natividad’s body is a prima facie
evidence of Dr. Fuentes’ negligence.
Held: No. The requisites for the applicability of the doctrine of res ipsa loquitur are: (1)
the occurrence of an injury; (2) the thing which caused the injury was under the control
and management of the defendant; (3) the occurrence was such that in the ordinary
course of things, would not have happened if those who had control or management
used proper care; and (4) the absence of explanation by the defendant. Of the foregoing
requisites, the most instrumental is the "control and management of the thing which
caused the injury."
SC find the element of "control and management of the thing which caused the injury"
to be wanting. Hence, the doctrine of res ipsa loquitur will not lie. In this jurisdiction, res
ipsa loquitur is not a rule of substantive law, hence, does not per se create or constitute
an independent or separate ground of liability, being a mere evidentiary rule. In other
words, mere invocation and application of the doctrine does not dispense with the
requirement of proof of negligence. Here, the negligence was proven to have been
committed by Dr. Ampil and not by Dr. Fuentes.
It was duly established that Dr. Ampil was the lead surgeon during the operation of
Natividad. He requested the assistance of Dr. Fuentes only to perform hysterectomy
when he (Dr. Ampil) found that the malignancy in her sigmoid area had spread to her
left ovary. Dr. Fuentes performed the surgery and thereafter reported and showed his
work to Dr. Ampil. The latter examined it and finding everything to be in order, allowed
Dr. Fuentes to leave the operating room. Dr. Ampil then resumed operating on
Natividad. He was about to finish the procedure when the attending nurses informed him
that two pieces of gauze were missing. A "diligent search" was conducted, but the
misplaced gauzes were not found. Dr. Ampil then directed that the incision be closed.
During this entire period, Dr. Fuentes was no longer in the operating room and had, in
fact, left the hospital. Under the "Captain of the Ship" rule, the operating surgeon is the
person in complete charge of the surgery room and all personnel connected with the
operation. Their duty is to obey his orders. Clearly, the control and management of the
thing which caused the injury was in the hands of Dr. Ampil, not Dr. Fuentes.
RULE: Yes. The doctrine applies and respondents are held liable solidarily to petitioners.
Res ipsa Loquitur is a rule to the effect that “where the thing which caused the injury
complained of is shown to be under the management of defendant or his servants and the
accident is such as in the ordinary course of things does not happen if those who have its
management or control use proper care, it affords reasonable evidence, in absence of
explanation of defendant, that the incident happened because of want of care. The
aforesaid principle enunciated in Espiritu vs. Philippine Power and Development Co. is
applicable in this case.
The gasoline station, with all its appliances, equipment and employees, was under the
control of appellees. A fire occurred therein and spread to and burned the neighboring
houses. The person who knew or could have known how the fire started were the
appellees and their employees, but they gave no explanation thereof whatsoever. It is
fair and reasonable inference that the incident happened because of want of care. The
report by the police officer regarding the fire, as well as the statement of the driver of the
gasoline tank wagon who was transferring the contents thereof
intothe underground storage when the fire broke out, strengthen the presumption of negli
gence. Verily, (1) the station is in a very busy district and pedestrians often pass through
or mill around the premises; (2) the area is used as a car barn for around 10taxicabs
owned by Boquiren; (3) a store where people hang out and possibly smoke cigarettes is
located one meter from the hole of the underground tank; and (4) the concrete walls
adjoining the neighborhood are only 2 meters high at most and cannot prevent the
flames from leaping over it in case of fire.
Even then the fire possibly would not have spread to the neighboring houses were it not
for another negligent omission on the part of defendants, namely, their failure to provide
a concrete wall high enough to prevent the flames from leaping over it.. Defendants’
negligence, therefore, was not only with respect to the cause of the fire but also with
respect to the spread thereof to the neighboring houses.
There is an admission on the part of Boquiren in his amended answer to the second
amended complaint that “the fire was caused through the acts of a stranger who, without
authority, or permission of answering defendant, passed through the gasoline station and
negligently threw a lighted match in the premises.” No evidence on this point was
adduced, but assuming the allegation to be true — certainly any unfavorable inference
from the admission may be taken against Boquiren — it does not extenuate his
negligence. A decision of the Supreme Court of Texas, upon facts analogous to those of
the present case, states the rule which we find acceptable here. “It is the rule that those
who distribute a dangerous article or agent, owe a degree of protection to the public
proportionate to and commensurate with a danger involved … we think it is the
generally accepted rule as applied to torts that ‘if the effects of the actor’s negligent
conduct actively and continuously operate to bring about harm to another, the fact that
the active and substantially simultaneous operation of the effects of a third person’s
innocent, tortious or criminal act is also a substantial factor in bringing about the harm,
does not protect the actor from liability.’ Stated in another way, “The intention of an
unforeseen and unexpected cause, is not sufficient to relieve a wrongdoer from
consequences of negligence, if such negligence directly and proximately cooperates with
the independent cause in the resulting injury.”
RATIO: No. Resort to the doctrine, however, may be allowed only when (a) the event is
of a kind which does not ordinarily occur in the absence of negligence; (b) other
responsible causes, including the conduct of the plaintiff and third persons, are
sufficiently eliminated by the evidence; and (c) the indicated negligence is within the
scope of the defendant's duty to the plaintiff Thus, it is not applicable when an
unexplained accident may be attributable to one of several causes, for some of which the
defendant could not be responsible.
Res ipsa loquitur is not applicable in this case. Res ipsa loquitur holds a defendant liable
when the thing that caused the injury is shown to be under their management and the
accident is such that it would not ordinarily happen if proper care was used. It relieves
the plaintiff of the burden of producing specific proof of negligence. However, it can
only be applied when other responsible causes are sufficiently eliminated and the
indicated negligence is within the scope of the defendant's duty to the plaintiff. In this
case, it is not shown that the accident could have been exclusively due to the driver's
negligence, so res ipsa loquitur does not apply.
In August 2000, OEP received reports from its client in Taiwan that there was a defect
in the packaging of the Diltelan capsules. It was discovered that some 90-mg capsules
were mistakenly wrapped in foils meant for 120-mg capsules and placed in boxes meant
for 90-mg capsules. OEP demanded reimbursement from Interphil for the expenses
incurred in recalling and destroying the defectively packaged capsules, but Interphil
refused to pay.
OEP filed a complaint against Interphil, and the Regional Trial Court (RTC) ruled in
favor of OEP, ordering Interphil to pay actual damages, compensatory damages,
exemplary damages, and attorney's fees. Interphil appealed to the Court of Appeals
(CA), but the CA affirmed the RTC's decision. Interphil then filed a petition for review
on certiorari with the Supreme Court.
Issue: Whether or not Interphil was negligent based on the doctrine of res ipsa loquitur.
Ruling: Yes.
On the merits of the case, the Court found that Interphil was negligent based on the
doctrine of res ipsa loquitur. The elements of res ipsa loquitur were clearly established,
as Interphil had exclusive control over the packaging process and the accident would not
have happened except for Interphil's negligence. OEP did not contribute to the incident,
and its unilateral destruction of the products was a prudent move to prevent further harm
to the public.
Interphil was held liable for actual damages, compensatory damages, exemplary
damages, and attorney's fees. The Court affirmed the decision of the CA, with the
modification of imposing an interest rate of six percent (6%) per annum on all damages
awarded from the date of finality of the decision until fully paid.
A criminal complaint for Reckless Imprudence Resulting to Damage in Property was fil
ed against petitioner Pascual. On the other hand, petitioner-corporation was asked to pay
the amount of P7,992,350, inclusive of the value of the commercial building. The
complaint was later on withdrawn. Respondents later on filed a civil complaint based on
quasi-delict against petitioners for a sum of money and damages, alleging that Pascual
acted with gross negligence while petitioner-corporation lacked the required diligence in
the selection and supervision of Pascual as its employee. Pascual insisted that the fire
was purely an accident, a caso fortuito, hence, he was not liable for damages. He also
denied putting a container of gasoline in the cars rear compartment. For its part,
petitioner-corporation refused liability for the accident on the ground that it exercised
due diligence of a good father of a family in the selection and supervision of Pascual as
its branch manager. The trial court ruled in favor of respondents and held that Pascual
was negligent based on the doctrine of res ipsa loquitur. The Court of Appeals affirmed
the lower court’s ruling and only modified the amount for damages.
To sustain the allegation of negligence based on the doctrine of res ipsa loquitur, the
following requisites must concur: 1) the accident is of a kind which does not ordinarily
occur unless someone is negligent; 2) the cause of the injury was under the exclusive
control of the person in charge and 3) the injury suffered must not have been due to any
voluntary action or contribution on the part of the person injured. Under the first
requisite, the occurrence must be one that does not ordinarily occur unless there is
negligence. Ordinary refers to the usual course of events. Flames spewing out of a car
engine, when it is switched on, is obviously not a normal event. Neither does an
explosion usually occur when a car engine is revved. Hence, in this case, without any
direct evidence as to the cause of the accident, the doctrine of res ipsa loquitur comes
into play and, from it, we draw the inference that based on the evidence at hand,
someone was in fact negligent and responsible for the accident.
Here, the fact that Pascual, as the caretaker of the car, failed to submit any proof that he
had it periodically checked (as its year-model and condition required) revealed his
negligence. A prudent man should have known that a 14-year-old car, constantly used in
provincial trips, was definitely prone to damage and other defects. For failing to prove
care and diligence in the maintenance of the vehicle, the necessary inference was that
Pascual had been negligent in the upkeep of the car. The circumstances on record do not
support the defense of Pascual. Clearly, there was nocaso fortuito because of his want of
care and prudence in maintaining the car.
Facts:
On December 10, 2002, Christopher Magnaye parked his car in front of a
shop in Cainta, Rizal, leaving the engine running.
While Magnaye was inside the shop, a Hino Bus, driven by Ramon Lojo,
crashed into the rear of a passenger jeepney, driven by Guidofredo Solamillo
Jr., which was stopped behind Magnaye's car.
As a result, the jeepney rear-ended Magnaye's car, pushing it forward and
causing it to hit an electric post.
Magnaye filed a complaint for damages against Gloria Padillo, the owner of
the Hino Bus, and Jesus Fernandez, the owner of the jeepney.
Magnaye sought payment for actual damages, transportation expenses,
moral damages, and attorney's fees.
Issue:
Whether Gloria Padillo should be held liable for damages to Christopher
Magnaye and Jesus Fernandez.
Ruling:
The Supreme Court upheld the lower courts' findings and ruled that Gloria
Padillo is liable for damages to Magnaye and Fernandez.
The Court denied Padillo's petition for review on certiorari and affirmed the
decision of the Court of Appeals.
Ratio:
1. Padillo's claim that she was not the registered owner of the bus is a factual
matter that cannot be entertained in a petition for review on certiorari.
2. Padillo failed to prove that she exercised the required degree of diligence in
selecting and supervising the bus driver, making her liable for damages
under the Civil Code.
3. Magnaye was the real party-in-interest as he already possessed and was
driving the vehicle at the time of the collision, despite the registration
occurring three days after the incident.
4. The Hino Bus was the proximate cause of the damages sustained by
Magnaye's car, as it rear-ended the jeepney, which then collided with
Magnaye's car.
5. The award of actual damages to Magnaye and Fernandez was supported by
competent proof, while the award of attorney's fees was deleted for lack of
basis.
CHAPTER 3
1. Singapore Airlines Ltd v. CA
2. Lafarge Cement Philippines, Inc v. Continental Cement Corp
3. Ngo Sin Sing v. Li Seng Giap & Sons, Inc
4. Far Eastern Shipping Co. v. CA
5. Negros Navigation Co, Inc. v. BPI/MS Insurance, Corp
6. Republic v. Sandiganbayan (GR 925594)
7. Zenith Radio Corp v. Hazeltine Research, Inc8. Cangco v. Manila Railroad Co
9. Metro Manila Transit Corp v. CA
10. Cerezo v. Tuazon
11. Vitug, concurring opinion, Valenzuela v. CA
19. Go v. IAC
20. Martin v. CA
21. 10 Am. Jur. 105-107; 263-265
22. Dixie Motor Coach Corp v. Toler
23. Van Hoeffen v. Columbia Taxicab Co
24. Brockway v. Modenti
25. Korner v. Cosgrove
26. Maranan v. Perez citing Texas v. Monroe
27. Marchan v. Mendoza
28. Baliwag Transit v. CA
29. Campo v. Camarote
30. MMTC v. CA (GR 116617 & 126395)
31. Victory Liner v. Heirs of Malecdan
32. Francis HS v. CA
33. Imperial v. Heirs of Sps Bayaban
34. Filamer Christian Institute v. IAC (GR 75112, 1990)
35. Filamer Christian Institute v. IAC (GR 75112, 1992, MR)
36. Poblete v. Fabros
37. Cuison Norton, 55 Phil. 18
38. Cerf v. Medel (GR 10351)
39. LG Foods Corp v. Hon. Pagapong-Agraviador
40. Pantranco North Express, Inc. v. Baesa
41. Victory Liner v. Malecdan
42. MMTC v. CA (298 SCRA 495)
43. Ph Hawk Corp v. Lee
44. Lampesa v. Vera
45. Syki v. Begasa citing MMTC v. CA(298 SCRA 495)
46. Perla Compania de Seguros v. Sps Sarangaya
47. Equitable Leasing Corp v. Suyom
48. Montecalvo v. Tan (GR 241941)
49. Del Carmen Jr v. Bacoy
50. Sps Mangaron v. Hanna Via Design
51. Phil Bus Rabbit v. Phil-American Forwarders
52. Rafael Trucking v. Ppl
53. Calang v. Ppl (2010)
54. Basa Marketing Corp v. Bolinao
55. Carpio v. Doroja
56. Equitable Leasing Corp v. Suyom
57. Franco v. IAC
58. Alvarez v. CA
59. Cerezo v. Tuazon (2004)
60. Aguila v. Baldovizo (2007)
61. Chapman v. Underwood
62. Duavit v. CA
63. R Transport v. Yu (2015)
64. Lung Chea Kung Kee & Co v. Wright
65. Fontanilla v. Maliaman
66. E. Meritt v. Ph (March 21, 1916)
67. US v. Guinto
68. City of Manila v. Teotico (1968)
69. Guilatco v. City of Dagupan
70. San Fernando v. Judge Firme (1991)71. Exconde v. Capuno
72. Mercado v. CA
73. Amadora v. CA*
74. Palisoc v. Brillantes (1971)
75. Salvosa v. IAC (1988)
76. PSBA v. CA
77. Soliman Jr. v Tuazon
78. University of the East v. Jader (2000
79. De Roy v. CA (1988)
CHAPTER 4
1. Ilusorio v. CA
2. Fe Cayao-Lasam v. Ramolete
3. Taylor v. Manila Electric Railroad and Light Company (1910)
4. Hidalgo Enterprises v. Balandan
5. Ylarde et. al v. Aquino
6. Menchavez et al v. Teves Jr
7. Nikko Hotel Manila Garden et al v. Reyes
8. Culion Ice, Fish and Elect. Co v. Phil Motors Corporation
9. Fernando et al v. CA
10.Afialda v. Hisole
11.Ilocos Norte Electric Comp v. CA
12.Rakes v. Atlantics Gulf
13.Ong v. MWD
14.Picart v. Smith
15.Mckee v. IAC
16.LBC Air Cargo et al v. CA
17.Glan People’s Lumber and Hardware v. IAC
18.Pantranco North Express Inc. v. Baesa et al
19.Consolidated Bank and Trust Corp v. CA
20.Tiu et al v. Arriesgado
21.De Roy et al v. CA
22.BPI v. Spouses Quiaoit (2019)
23.Gan v. CA (1988)
24.Valenzuela v. CA
25.Delsan Transport Lines Inc v. C&A Construction
26.Kramer v. CA (1989)
27.Franco et al v. IAC
28.Cangco v. Manila Railroad Co
29.Wildvalley Shipping v. CA
30.MMTC v. CA (1993)
31.Secosa v. Francisco (2004)
32.Rakes v. Atlantic (1907)
33.Syki v. Begasa (2003)
34.Ma-ao Sugar Central Co v. CA
35.Picart v. Smith
36.JArco Marketing Corp v. CA
37.PCIB v. CA (2001)
38.Lambert v. Castillon (2005)
39.National Transmission Corp v. De Jesus (2015)
40.Genobiagon v. CA citing Ppl v. Orbeta
41.Ramos v. COL Realty (2009)