YHT vs CA

Facts:

Respondent McLoughlin would always stay at Tropicana Hotel every time he is here in the Philippinesand
would rent a safety deposit box. The safety deposit box could only be opened through the use of 2 keys,
one of which is given to the registered guest, and the other remaining in the possession of the
management of the hotel.

McLoughlin allegedly placed the following in his safety deposit box 2 envelopes containing US Dollars,
one envelope containing Australian Dollars, Letters, credit cards, bankbooks and a checkbook.

On 12 December 1987, before leaving for a brief trip, McLoughlin took some items from the safety box
which includes the ff: envelope containing Five Thousand US Dollars (US$5,000.00), the other envelope
containing Ten Thousand Australian Dollars (AUS$10,000.00), his passports and his credit cards. The other
items were left in the deposit box. Upon arrival, he found out that a few dollars were missing and the
jewelry he bought was likewise missing.

Eventually, he confronted Lainez and Paiyam who admitted that Tan opened the safety deposit box with
the key assigned to him. McLoughlin went up to his room where Tan was staying and confronted her. Tan
admitted that she had stolen McLouglins key and was able to open the safety deposit box with the
assistance of Lopez, Paiyam and Lainez. Lopez also told McLoughlin that Tan stole the key assigned to
McLouglin while the latter was asleep.

McLoughlin insisted that it must be the hotel who must assume responsibility for the loss he suffered.
Lopez refused to accept responsibility relying on the conditions for renting the safety depositbox entitled
Undertaking For the Use of Safety Deposit Box.

Issue: Whether there was gross negligence on the part of the innkeepers.

Held: Yes.

Payam and Lainez, who were employees of Tropicana, had custody of the master key of the management
when the loss took place. They even admitted that they assisted Tan on three separate occasions in
opening McLoughlins safety deposit box.

The management contends that McLoughlin made its employees believe that Tan was his spouse for she
was always with him most of the time. The evidence on record is bereft of any showing that McLoughlin
introduced Tan to the management as his wife. Mere close companionshi p and intimacy are not enough
to warrant such conclusion. They should have confronted him as to his relationship with Tan considering
that the latter had been observed opening McLoughlins safety deposit box a number of times atthe early
hours of the morning.

Art 2180, par (4) of the same Code provides that the owners and managers of an establishment or
enterprise are likewise responsible for damages caused by their employees in the service of the branches
in which the latter are employed or on the occasion of their functions. Given the fact that the loss of
McLoughlins money was consummated through the negligence of Tropicanas employees both the
employees and YHT, as owner of Tropicana, should be held solidarily liable pursuant to Art 2193.