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VI PERSONS LIABLE MERCADO v.

COURT OF APPEALS AND QUISUMBING


L-14342 LABRADOR; May 30, 1960
A. THE TORTFEASOR NATURE: This is a petition to review a decision of the Court of
B. VICARIOUS LIABILITY Appeals
FACTS:
1. PARENTS - Plaintiff-appellant Manuel Quisumbing, Jr. is the son of his co-
2. GUARDIANS plaintiff-appellants Ana Pineda and Manuel L. Quisumbing,
while Augusto Mercado is the son of defendant-appellee
3. TEACHERS & HEAD OF Ciriaco L. Mercado, Manuel Quisumbing, Jr. and Augusto
INSTITUTIONS Mercado were classmates in the Lourdes Catholic School on
Kanlaon, Quezon City.
- A "pitogo", which figures prominently in this case, may be
Art. 218, FC. The school, its administrators and teachers, or
described as an empty nutshell used by children as a piggy
the individual, entity or institution engaged in child are shall
bank. On February 22, 1956, Augusto Mercado and Manuel
have special parental authority and responsibility over the
Quisumbing, Jr. quarrelled over a "pitogo". As a result, Augusto
minor child while under their supervision, instruction or
wounded Manuel, Jr. on the right cheek with a piece of razor.
custody.
Authority and responsibility shall apply to all authorized
ISSUES
activities whether inside or outside the premises of the school,
1. WON the teacher or head of the school should be held
entity or institution. (349a)
responsible instead of the of the father since the incident of the
inflicting of the wound on respondent occurred in a Catholic
Art. 219, FC. Those given the authority and responsibility
School (during recess time)
under the preceding Article shall be principally and solidarily
2. WON the moral damages fixed at P2,000 are excessive.
liable for damages caused by the acts or omissions of the
unemancipated minor. The parents, judicial guardians or the
HELD
persons exercising substitute parental authority over said minor
1. NO. The last paragraph of Article 2180 of the Civil Code,
shall be subsidiarily liable.
upon which petitioner rests his claim that the school where his
The respective liabilities of those referred to in the preceding
son was studying should be made liable, is as follows:
paragraph shall not apply if it is proved that they exercised the
ART. 2180. . . .
proper diligence required under the particular circumstances.
Lastly, teachers or heads of establishments of arts
All other cases not covered by this and the preceding articles
and trades shall be liable for damages caused by their
shall be governed by the provisions of the Civil Code on quasi-
pupils and students or apprentices, so long as they
delicts. (n)
remain in their custody.
Art. 2180, CC. The obligation imposed by Article 2176 is - It would be seemed that the clause "so long as they remain in
demandable not only for one's own acts or omissions, but also their custody," contemplates a situation where the pupil lives
for those of persons for whom one is responsible. and boards with the teacher, such that the control, direction
The father and, in case of his death or incapacity, the mother, and influence on the pupil supersedes those of the parents. In
are responsible for the damages caused by the minor children these circumstances the control or influence over the conduct
who live in their company. and actions of the pupil would pass from the father and mother
Guardians are liable for damages caused by the minors or to the teacher; and so would the responsibility for the torts of
incapacitated persons who are under their authority and live in the pupil.
their company. - Such a situation does not appear in the case at bar; the pupils
The owners and managers of an establishment or enterprise appear to go to school during school hours and go back to their
are likewise responsible for damages caused by their homes with their parents after school is over. The situation
employees in the service of the branches in which the latter are contemplated in the last paragraph of Article 2180 does not
employed or on the occasion of their functions. apply, nor does paragraph 2 of said article, which makes father
Employers shall be liable for the damages caused by their or mother responsible for the damages caused by their minor
employees and household helpers acting within the scope of children.
their assigned tasks, even though the former are not engaged
in any business or industry. 2. YES. It is possible that the Court of Appeals may have
The State is responsible in like manner when it acts through a considered Augusto Mercado responsible for or guilty, of a
special agent; but not when the damage has been caused by quasi-delict causing physical injuries, within the meaning of
the official to whom the task done properly pertains, in which paragraph 2 of Article 2219. Even if we assume that said court
case what is provided in Article 2176 shall be applicable. considered Mercado guilty of a quasi-delict when it imposed
Lastly, teachers or heads of establishments of arts and trades the moral damages, yet the facts found by said court indicate
shall be liable for damages caused by their pupils and students that Augusto's resentment, which motivated the assault, was
or apprentices, so long as they remain in their custody. occasioned by the fact that Manuel, Jr. had tried to intervene in
The responsibility treated of in this article shall cease when the or interfere with the attempt of Mercado to get "his pitogo from
persons herein mentioned prove that they observed all the Renato." It is, therefore, apparent that the proximate cause of
diligence of a good father of a family to prevent damage. the injury caused to Quisumbing was Quisumbing's own fault
(1903a) or negligence for having interfered with Mercado while trying to
get the pitogo from another boy. (Art. 2179, Civil Code.)
After considering all the facts as found by the Court of Appeals,
we find that none of the cases mentioned in Article 2219 of the
Civil Code, which authorizes the grant of moral damages, was
shown to have existed. Consequently, the grant of moral
damages is not justified.
PALISOC VS. BRILLANTES hence, it becomes their obligation as well as that of the school
41 SCRA 548 TEEHANKEE; October 4, 1971 itself to provide proper supervision of the students' activities
during the whole time that they are at attendance in the school,
NATURE: An appeal in forma pauperis on pure questions of including recess time, as well as to take the necessary
law from a decision of the CFI Manila. precautions to protect the students in their custody from
FACTS: dangers and hazards that would reasonably be anticipated,
- Palisoc spouses as parents of their 16-year old son, including injuries that some student themselves may inflict
Dominador Palisoc, and a student in automotive mechanics at willfully or through negligence on their fellow students.
the Manila Technical Institute filed the action below for Reasoning
damages arising from the death of their son at the hands of a - The lower court based its legal conclusion expressly on the
fellow student, defendant Virgilio L. Daffon, at the laboratory Court's dictum in Mercado vs. Court of Appeals, that "(I)t would
room of the said Institute. seem that the clause "so long as they remain in their custody,"
- the deceased Dominador Palisoc and the defendant Virgilio L. contemplates a situation where the pupil lives and boards with
Daffon were classmates, and one afternoon, they, together the teacher, such that the control, direction and influence. It is
with another classmate Desiderio Cruz were in the laboratory true that under the law abovequoted, teachers or directors of
room located on the ground floor. At that time the classes were arts and trades are liable for any damage caused by their
in recess. Desiderio Cruz and Virgilio L. Daffon were working pupils or apprentices while they are under their custody, but
on a machine while Dominador Palisoc was merely looking on this provision only applies to an institution of arts and trades
at them. Daffon made a remark to the effect that Palisoc was and not to any academic educational institution"
acting like a foreman. Because of this remark Palisoc slapped - phrase used in the cited article — "so long as (the students)
slightly Daffon on the face. Daffon, in retaliation, gave Palisoc a remain in their custody" means the protective and supervisory
strong flat blow on the face, which was followed by other fist custody that the school and its heads and teachers exercise
blows on the stomach. Palisoc retreated apparently to avoid over the pupils and students for as long as they are at
the fist blows, but Daffon followed him and both exchanged attendance in the school, including recess time. There is
blows until Palisoc stumbled on an engine block which caused nothing in the law that requires that for such liability to attach
him to fall face downward. Palisoc became pale and fainted. the pupil or student who commits the tortious act must live and
First aid was administered to him but he was not revived, so he board in the school, as erroneously held by the lower court,
was immediately taken to a hospital. He never regained and the dicta in Mercado on which it relied, must now be
consciousness; finally he died. deemed to have been set aside by the present decision.
- Defendants were: Antonio C. Brillantes, at the time when the - At any rate, the law holds them liable unless they relieve
incident occurred was a member of the Board of Directors of themselves of such liability, in compliance with the last
the institute; Teodosio Valenton, the president thereof; paragraph of Article 2180, Civil Code, by "(proving) that they
Santiago M. Quibulue, instructor of the class to which the observed all the diligence of a good father of a family to
deceased belonged; and Virgilio L. Daffon, a fellow student of prevent damage." In the light of the factual findings of the lower
the deceased. court's decision, said defendants failed to prove such
- At the beginning the Manila Technical Institute was a single exemption from liability.
proprietorship, but lately, it was duly incorporated. b. NO (Brillantes as a mere member of the school's board of
- the trial court found defendant Daffon liable for the quasi directors and the school) itself cannot be held similarly liable,
delict under Article 2176 of the Civil Code. since it has not been properly impleaded as party defendant
- The trial court, however, absolved from liability the three other - the school had been incorporated since and therefore the
defendants-officials of the Manila Technical Institute, in this school itself, as thus incorporated, should have been brought in
wise: as party defendant.
“In the opinion of the Court, this article(art.2180) of the Code is
not applicable to the case at bar, since this contemplates the DISPOSITION
situation where the control or influence of the teachers and The judgment appealed from is modified so as to provide as
heads of school establishments over the conduct and actions follows: .
by the pupil supersedes those of the parents...The clause "so 1. Sentencing the Daffon, Valenton and Quibulue jointly and
long as they remain in their custody" contemplated a situation severally to pay plaintiffs as heirs of the deceased Dominador
where the pupil lives and boards with the teacher, such that the Palisoc (a) P12,000.00 for the death of Dominador Palisoc; (b)
control or influence on the pupil supersedes those of the P3,375.00 for actual and compensatory expenses; (c)
parents...There is no evidence that the accused Daffon lived P5,000.00 for moral, damages; (d) P10,000.00 for loss of
and boarded with his teacher or the other defendant officials of earning power and (e) P2,000.00 for attorney's fee, plus the
the school.” costs of this action in both instances; 2. absolving defendant
Antonio C. Brillantes from the complaint; and 3. dismissing
ISSUE defendants' counterclaims. .
WON the school officials are jointly and severally liable as
tortfeasors with Daffon. REYES, J.B.L., J., concurring:
-I would like to clarify that the argument of the dissenting
HELD opinion of the effect that the responsibility of teachers and
a. YES (head and teacher of the Manila Technical Institute, school officers under Articles 2180 should be limited to pupils
Valenton and Quibulue, respectively) who are minors is not in accord with the plain text of the law.
Ratio The rationale of such liability of school heads and - Examination of the article shows that where the responsibility
teachers for the tortious acts of their pupils and students, so prescribed therein is limited to illegal acts during minority, the
long as they remain in their custody, is that they stand, to a article expressly so provides, as in the case of the parents and
certain extent, as to their pupils and students, in loco parentis of the guardians. It is natural to expect that if the law had
and are called upon to "exercise reasonable supervision over intended to similarly restrict the civil responsibility of the other
the conduct of the child." In the law of torts, the governing categories of persons enumerated in the article, it would have
principle is that the protective custody of the school heads and expressly so stated. The fact that it has not done so indicates
teachers is mandatorily substituted for that of the parents, and
an intent that the liability be not restricted to the case of dean, principal, or other administrative superior to exercise
persons under age. Further, it is not without significance that supervision over the pupils or students in the specific classes
- finally, that while in the case of parents and guardians, their or sections to which they are assigned. It is not necessary that
authority and supervision over the children and wards end by at the time of the injury, the teacher is physically present and in
law upon the latter reaching majority age, the authority and a position to prevent it.
custodial supervision over pupils exist regardless of the age of
the latter. Thus, for injuries caused by the student, the teacher and not
the parent shall be held responsible if the tort was committed
MAKALINTAL, J., dissenting: within the premises of the school at any time when its authority
- I see no reason to depart from the doctrine laid down by this could be validly exercised over him.
Court in Mercado v. Court of Appeals. I think it is highly
unrealistic and conducive to unjust results, considering the size In any event, the school may be held to answer for the acts of
of the enrollment in many of our educational institutions, its teacher or the head thereof under the general principle of
academic and non-academic, as well as the temper, attitudes respondent superior, but it may exculpate itself from liability by
and often destructive activism of the students, to hold their proof that it had exercised the diligence of a bonus
teachers and/or the administrative heads of the schools directly paterfamilias. Such defense they had taken necessary
liable for torts committed by them. precautions to prevent the injury complained of and thus be
- It would demand responsibility without commensurate exonerated from liability imposed by Art 2180.
authority, rendering teachers and school heads open to
damage suits for causes beyond their power to control. Basis of teacher’s vicarious liability is, as such, they acting in
- one other factor constrains me to dissent. The opinion of the Loco Parentis (in place of parents). However teachers are not
majority states: "Here, the parents of the student at fault, expected to have the same measure of responsibility as that
defendant Daffon, are not involved, since Daffon was already imposed on parent for their influence over the child is not equal
of age at the time of the tragic incident." Note that for parental in degree. x x x The parent can instill more lasting discipline
responsibility to arise the children must be minors who live in more lasting disciple on the child than the teacher and so
their company...it stands to reason that (1) the clause "so long should be held to a greater accountability than the teacher or
as they remain in their custody" as used in reference to the head for the tort committed by the child.
teachers and school heads should be equated with the phrase
"who live in their company" as used in reference to parents; As the teacher was not shown to have been negligent nor the
and (2) that just as parents are not responsible for damages school remised in the discharged of their duties, they were
caused by their children who are no longer minors, so should exonerated of liability.
teachers and school heads be exempt from liability for the
tortious acts of their students in the same age category. (Note – the court view on increasing students activism likely
causing violence resulting to injuries, in or out of the school
premises – J. Guttierez, Jr concurringly said many student x x
AMADORA VS CA (COLLEGIO DE SAN JOSE-RECOLLETOS) x view some teachers as part of the bourgeois and or
160 SCRA 315 CRUZ; April 15, 1988 reactionary group whose advice on behavior deportment and
other non-academic matters is not only resented but actively
Facts: rejected. It seems most unfair to hold teacher liable on a
It was summer of 1972 Alfredo Amadora about to graduate at presumption juris tantum of negligence for acts of students
the Colegio de San Jose-Recoletes. Alfredo went to the school even under circumstances where strictly speaking there could
to submit his “Report in Physic”. While they were in the be no in loco parentis relationship.
auditorium of their school, he was shot to death by his
classmate Pablito Daffon. The provision of Art 2180 NCC involved in this case has
outlived its purpose. The court cannot make law, it can only
ISSUE: apply the law with its imperfections. However the court can
WON Art 2180 is applicable. suggest that such a law should be amended or repealed.

Held:
Yes. Art 2180 NCC applies to all schools, academic or non- PASCO V CFI (ARANETA UNIVERSITY)
academic. Teachers are liable for acts of their student except 160 SCRA 785 PARAS; April 25, 1988
where the school is technical in nature (arts and trade
establishment) in which case the head thereof shall be NATURE
answerable. Petition for certiorari under RA5440 praying that judgment be
rendered setting aside the questioned order dismissing the
“There is really no substantial difference distinction between complaint as against the respondent school and denying the
the academic and non-academic schools in so far as torts reconsideration of the questioned order of dismissal.
committed by their students are concerned. The same
vigilance is expected from the teacher over the student under FACTS
their control and supervision, whatever the nature of the school - A group of students walking inside Araneta University were
where he is teaching”. “x x x x The distinction no longer obtains accosted and mauled by a group of Muslim students led by
at present. x x x “ Abdul Karin Madidis alias “Teng”. Petitioner (Reynaldo) was
subsequently stabbed by Teng requiring him to be hospitalized
The student is in the custody of the school authorities as long and to undergo surgery.
as he is under the control and influence of the school and - Petitioner filed a complaint for damages against Teng and
within its premises, whether the semester has not ended, or Arante University based on Art 2190 CC
has ended or has not yet begun. The term “custody” signifies - Respondent school filed a MTD claiming that the provision
that the student is within the control and influence of the school only applies to vocational schools and not to academic
authorities. The teacher in charge is the one designated by the institutions. They also claim that the civil liability in this case
arose from a crime, which they did not commit. Since it was a Ylarde, the concrete block caught him before he could get out,
civil case, respondent school claims that a demand should pinning him to the wall in a standing position. As a result
have been made by the plaintiff rendering it premature to bring thereof, Ylarde sustained injuries and died three (3) days later.
an action for damages against respondent school. MTD was
granted by the CA. Ylarde's parents, petitioners in this case, filed a suit for
- Petitioner mover to reconsider the Order of Dismissal. Motion damages against both private respondents Aquino and
was denied due to insufficient justification to disturb ruling. Soriano. The lower court dismissed the complaint on the
following grounds: (1) that the digging done by the pupils is in
ISSUE line with their course called Work Education; (2) that Aquino
WON the Art 2180 CC1 applies to academic institutions exercised the utmost diligence of a very cautious person; and
(3) that the demise of Ylarde was due to his own reckless
HELD imprudence.
It is unnecessary to answer the issue. What the petitioner
wants to know is WON the school or the university itself is ISSUE
liable. The answer is no since the provision speaks of WON whether or not under Article 2176 and Article 2180 of the
“teachers or heads” Civil Code, both private respondents can be held liable for
Dispositive damages.
WHEREFORE, this Petition is DISMISSED for lack of merit.
Article 2176 of the Civil Code provides:

YLARDE vs. AQUINO "Art. 2176. Whoever by act or omission causes damage to
GANCAYCO; 1988 July 29 another, there being fault or negligence, is obliged to pay for
the damage done. Such fault or negligence, if there is no pre-
NATURE: Petition for review on certiorari existing contractual relation between the parties, is called a
FACTS quasi-delict and is governed by the provisions of this Chapter."
Private respondent Mariano Soriano was the principal of the
Gabaldon Primary School and private respondent Edgardo On the other hand, the applicable provision of Article 2180
Aquino was a teacher therein. At that time, the school was states:
littered with several concrete blocks which were remnants of
the old school shop that was destroyed in World War II. "Art. 2180. . . .
Realizing that the huge stones were serious hazards to the
schoolchildren, another teacher by the name of Sergio Banez xxx xxx xxx
stated burying them all by himself.
"Lastly, teachers or heads of establishments of arts and trades
Deciding to help his colleague, private respondent Edgardo shall be liable for damages caused by their pupils and students
Aquino gathered eighteen of his male pupils, aged ten to or apprentices, so long as they remain in their custody."
eleven. Being their teacher-in-charge, he ordered them to dig
beside a one-ton concrete block in order to make a hole HELD
wherein the stone can be buried. The work was left unfinished. Only Aquino, the teacher, is liable.
The following day, also after classes, private respondent Ratio: As regards the principal, We hold that he cannot be
Aquino called four of the original eighteen pupils to continue made responsible for the death of the child Ylarde, he being
the digging. These four pupils ---- Reynaldo Alonso, Fransico the head of an academic school and not a school of arts and
Alcantara, Ismael Abaga and Novelito Ylarde, dug until the trades.
excavation was one meter and forty centimeters deep. At this Reasoning:
point, private respondent Aquino alone continued digging while This is in line with the Court’s ruling in Amadora vs. Court of
the pupils remained inside the pit throwing out the loose soil Appeals, wherein this Court thoroughly discussed the doctrine
that was brought about by the digging. that under Article 2180 of the Civil Code, it is only the teacher
and not the head of an academic school who should be
When the depth was right enough to accommodate the answerable for torts committed by their students. This Court
concrete block, private respondent Aquino and his four pupils went on to say that in a school of arts and trades, it is only the
got out of the hole. Then, said private respondent left the head of the school who can be held liable.
children to level the loose soil around the open hole while he Ratio: Private respondent Aquino can be held liable under
went to see Banez who was about thirty meters away. Private Article 2180 of the Civil Code as the teacher-in-charge of the
respondent wanted to borrow from Banez the key to the school children for being negligent in his supervision over them and
workroom where he could get some rope. Before leaving, his failure to take the necessary precautions to prevent any
private respondent Aquino allegedly told the children "not to injury on their persons.
touch the stone." Reasoning:
(1) failed to avail himself of services of adult manual laborers
A few minutes after private respondent Aquino left, three of the and instead utilized his pupils aged ten to eleven to make an
four kids, Alonso, Alcantara and Ylarde, playfully jumped into excavation near the one-ton concrete stone which he knew to
the pit. Then, without any warning at all, the remaining Abaga be a very hazardous task;
jumped on top of the concrete block causing it to slide down (2) required the children to remain inside the pit even after they
towards the opening. Alonso and Alcantara were able to had finished digging, knowing that the huge block was lying
scramble out of the excavation on time but unfortunately for nearby and could be easily pushed or kicked aside by any pupil
who by chance may go to the perilous area;
(3) ordered them to level the soil around the excavation when it
1"Lastly, teachers or heads of establishments of arts and trades shall be liable for damages caused by their pupils was so apparent that the huge stone was at the brink of falling;
and students or apprentices, so long as they remain in their custody."
(4) went to a place where he would not be able to check on the teachers exercise over the pupils and students for as long as
children's safety; and (5) left the children close to the they are at attendance in the school, including recess time."
excavation, an obviously attractive nuisance. Reasoning:
(6) In ruling that the child Ylarde was imprudent, it is evident a. The SC hold a contrary view to that espoused by the CA.
that the lower court did not consider his age and maturity. This According to the CA, while it is true that Abon was not
should not be the case. The degree of care required to be attending any class or school function at the time of the
exercised must vary with the capacity of the person shooting incident, which was at about 8 o'clock in the evening;
endangered to care for himself. A minor should not be held to but considering that Abon was employed as an armorer and
the same degree of care as an adult, but his conduct should be property custodian of the BCF ROTC unit, he must have been
judged according to the average conduct of persons of his age attending night classes and therefore that hour in the evening
and experience. The standard of conduct to which a child must was just about dismissal time for him or soon thereafter. The
conform for his own protection is that degree of care ordinarily time interval is safely within the "recess time" that the trial court
exercised by children of the same age, capacity, discretion, spoke of and envisioned by the Palisoc case, supra. In line
knowledge and experience under the same or similar with the case of Palisoc, 17 a student not "at attendance in the
circumstances. Bearing this in mind, We cannot charge the school" cannot be in "recess" thereat. A "recess," as the
child Ylarde with reckless imprudence. concept is embraced in the phrase "at attendance in the
school," contemplates a situation of temporary adjournment of
DISPOSITION: Granted. school activities where the student still remains within call of
his mentor and is not permitted to leave the school premises,
or the area within which the school activity is conducted.
SALVOSA v. IAC (CASTRO) Recess by its nature does not include dismissal. Likewise, the
166 SCRA 274 PADILLA, J.: October 5, 1988 mere fact of being enrolled or being in the premises of a school
without more does not constitute "attending school" or being in
FACTS the "protective and supervisory custody' of the school, as
Jimmy Abon, a commerce student of Baguio Colleges contemplated in the law.
Foundation (BCF) and a duly appointed armorer of the BCF b. Jimmy B. Abon was supposed to be working in the armory
ROTC (under the control of AFP) was convicted of the crime of with definite instructions from his superior, the ROTC
Homicide for shooting Napoleon Castro, a student of the Commandant, when he shot Napoleon Castro.
University of Baguio on 3 March 1977, at around 8:00 p.m., in
the parking space of BCF. BCF is both an academic and arts
and trade Union and the ROTC Unit was under the control of ST. FRANCIS HIGH SCHOOL v CA(Castillo/Cadiz)
AFP. 194 SCRA 340 Paras, J.: Feb. 25, 1991
Subsequently, the heirs of Napoleon Castro sued for damages,
impleading Jimmy B. Abon, Roberto C. Ungos (ROTC NATURE: Petition for review of the decision of the CA
Commandant Benjamin Salvosa (President and Chairman of FACTS:
the Board of BCF), Jesus Salvosa (Executive Vice President of -Ferdinand Castillo, then a freshman student at St. Francis HS
BCF), Libertad D. Quetolio (Dean of the College of Education wanted to join a school picnic at Talaan Beach, Quezon. His
and Executive Trustee of BCF) and the Baguio Colleges parents didn’t allow him to go due to short notice but directed
Foundation Inc. as party defendants. him to bring food to the teachers for the picnic and go straight
After hearing, the Trial Court rendered a decision, (1) home. However, he was persuaded by his teachers to go and
sentencing defendants Jimmy B. Abon, Benjamin Salvosa and later drowned in an attempt to rescue a drowning teacher.
Baguio Colleges Foundation, Inc., jointly and severally, to pay -his parents filed a complaint against St. Francis HS,
private respondents, as heirs of Napoleon Castro; (2) absolving represented by its principal, Illumin, and several teachers for
the other defendants; and (3) dismissing the defendants' damages incurred from the death of their son, contending that
counterclaim for lack of merit. it occurred due to petitioners’ failure to exercise proper
diligence of a good father of the family. The TC found against
ISSUE the teachers as they had failed to exercise diligence by not
WON petitioners can be held solidarity liable with Jimmy B. testing the waters in which the children (12-13 yrs old) were to
Abon for damages under Article 2180 of the Civil Code, as a swim. Also, the male teachers who were to watch over the kids
consequence of the tortious act of Jimmy B. Abon. were not even in the area as they went off drinking. The TC
dismissed the case against the principal and the teacher
HELD Cadorna as the former had not consented to the picnic which
NO. Jimmy B. Abon cannot be considered to have been "at was not school sanctioned, and as the latter had her own class
attendance in the school," or in the custody of BCF, when he to supervise then and was not actually invited.
shot Napoleon Castro. Logically, therefore, petitioners cannot -Both parties appealed to the CA. On the issue of the liability of
under Art. 2180 of the Civil Code be held solidarity liable with St. Francis HS and the Illumin, the CA held that both are liable
Jimmy B. Abon for damages resulting from his acts. under Article 2176 taken together with the 1 st, 4th, and 5th
Ratio: paragraphs of Article 2180. They cannot escape liability simply
Under the penultimate paragraph of Art. 2180 of the Civil Code, because it wasn’t an “extra-curricular activity of the HS”. From
teachers or heads of establishments of arts and trades are the evidence, it was shown that the principal had known of the
hable for "damages caused by their pupils and students or picnic from its planning stage and merely acquiesced to the
apprentices, so long as they remain in their custody." The holding of the event. As such, under Article 2180, both are
rationale of such liability is that so long as the student remains jointly and severally liable w/ the teachers for the damages
in the custody of a teacher, the latter "stands, to a certain incurred as the negligence of the employees (teachers) gives
extent, in loco parentis [as to the student] and [is] called upon rise to the presumption of negligence on the part of the
to exercise reasonable supervision over the conduct of the owner/manager (St. Francis and the principal). Petitioners
[student]." Likewise, "the phrase used in [Art. 2180 — 'so long contend that the victim’s parents failed to prove by evidence
as (the students) remain in their custody means the protective that they didn’t give their son consent to join the picnic. The
and supervisory custody that the school and its heads and Court finds this immaterial to the determination of the existence
of their liability. Also, 2 of the teachers who arrived after the ISSUES
drowning were absolved from liability as they had satisfactorily (1) WON PSBA may be held liable under articles 2176 and
explained their lateness and thus could not be said to have 2180
participated in the negligence attributed to the other teachers.
Hence this petition. HELD
(1) NO. Because the circumstances of the present case evince
ISSUE a contractual relation between the parties, the rules on quasi-
(1) WON there was negligence attributable to the defendants delict do not really govern; but the court has repeatedly held
(2) WON Art. 2180, in relation to 2176 is applicable that the liability for a tort may still exist even when there is a
(3) WON the award of exemplary and moral damages is proper contract.
-Quoting Cangco v Manila Railroad:”… the mere fact that a
HELD person is bound to another by contract does not relieve him
(1) NO. Petitioners are neither guilty of their own negligence or from extra-contractual liability to such person. When such a
the negligence of people under them. At the outset, it should contractual relation exists the obligor may break the contract
be noted that the victim’s parents allowed their son to join the under such conditions that the same act which constitutes a
picnic as evidenced by a mental and physical cross breach of the contract would have constituted the source of an
examination. extra-contractual obligation had no contract existed between
-Mere knowledge by Illumin of the planning of the picnic does the parties”
not show acquiescence or consent to it. If the CA’s findings are -Using the test in Cangco, a contractual relation is a condition
to be upheld, employers will be forever exposed to the risk and sine qua non to PSBA’s liability; hence, any finding of
danger of being hailed to Court to answer for the misdeeds or negligence would generally give rise to a breach of contractual
omissions of their employees even if such acts or omissions obligation only.
are committed while they are not in the performance of their -When an academic institution accepts a student for
duties. enrollment, a contract is established between them, resulting in
-No negligence can be attributable to the teachers as the a bilateral obligation. The school is obliged to provide the
presumption is overthrown by proof that they exercised student with an education, along with a safe atmosphere that
diligence of a good father of the family. In fact, 2 P.E. teachers promotes the undertaking of imparting knowledge. In turn, the
were invited as they were scout masters and had knowledge in student abides by the school’s academic requirements and
First Aid and swimming. Life savers were brought in the event observes its rules and regulations. However, a school cannot
of such an accident. The records also show that the 2 P.E. be an insurer for its students against all risks; one can only
teachers did all that was humanly possible to save the victim. expect it to employ the degree of diligence required by the
(2) NO. The CA erred in applying Art. 2180, particularly par 4. nature of the obligation and corresponding to the
For an employer to be held liable for the negligence of his circumstances of persons, time and place.
employee, the act or omission which caused damage or - In the case at bar a finding is yet to be made as to whether
prejudice must have occurred while an employee was in the the contract was breached due to PSBA’s negligence in
performance of his assigned task. In the case at bar, the providing proper security measures. At this stage, the
teachers were not in actual performance of their duties as the proceedings have yet to commence on the substance of the
picnic was a purely private affair and not a school sanctioned private respondent’s complaint and the record is bereft of all
activity. material facts which only the TC can determine.
(3) Since petitioners were able to prove that they had exercised WHEREFORE, the petition is DENIED. The Court of origin
the diligence required of them, no moral or exemplary is hereby ordered to continue proceedings consistent with
damages under Art. 2177 may be awarded in favor of this ruling of the Court. Costs against the petitioners.
respondent spouses.
PREMISES CONSIDERED, the questioned decision is SET
ASIDE SOLIMAN, JR. V JUDGE TUAZON
209 SCAR 47 FELICIANO, J; May 18, 1992

PSBA v CA (BENITEZ/BAUTISTA) NATURE: Civil complaint for damages


205 SCRA 729 Padilla, J.: Feb. 4, 1992 FACTS
- On August 13, 1982, while the plaintiff Maximo Soliman, Jr.,
FACTS a student of the defendant Republic Central Colleges (RCC),
-Carlitos Bautista, enrolled in the 3rd year commerce course of was in the campus premises thereof, the defendant, Jimmy
PSBA, was stabbed and killed while on campus by assailants Solomon, who was then in the premises of said school
who were from outside the school’s academic community. This performing his duties as security guard under the employment
prompted his parents to file suit with the RTC of Manila w/ of defendant R.L. Security Agency, Inc., without any
Judge Ordonez-Benitez presiding for damages against PSBA provocation, shot the plaintiff on the abdomen. The plaintiff was
and its corporate officers, alleging negligence, recklessness confined in a hospital, and as per doctor's opinion, he may not
and lack of security precautions, means and methods before, be able to attend to his regular classes and will be
during and after the attack of the victim. incapacitated in the performance of his usual work for a
-PSBA sought to dismiss the case, alleging that since they duration of from three to four months. Petitioner, represented
were presumably sued under Art 2180, there was no cause of by his guardian, filed a civil complaint for damages against
action since academic institutions are not subject to the said RCC, RL Security Agency and Solomon,
provision. - RCC filed a motion to dismiss, contending that the complaint
-A motion to dismiss and a subsequent MFR were denied by stated no cause of action against it. It argued that it is free from
the TC, yielding the same results upon appeal with the CA. any liability for the injuries sustained by petitioner student for
Hence this petition. the reason that it was not the employer of the security guard
Solomon, and hence was not responsible for any wrongful act
of Solomon. It further argued that Article 2180, 7th paragraph,
of the Civil Code did not apply, since said paragraph holds
teachers and heads of establishment of arts and trades liable - In Palisoc v. Brillantes, the Court held the owner and
for damages caused by their pupils and students or president of a school of arts and trades known as the Manila
apprentices, while security guard Jimmy Solomon was not a Technical Institute responsible in damages for the death of
pupil, student or apprentice of the school. Palisoc, a student of that Institute, which resulted from fist
- Resspondent Judge Ramon Tuazon granted RCC’s motion blows delivered by Daffon, another student of the Institute. It
to dismiss. Petitioner’s MFR was denied, Hence, this appeal. will be seen that the facts of Palisoc v. Brillantes brought it
expressly within the 7th paragraph of Article 2180, quoted
ISSUES above; but those facts are entirely different from the facts
1. WON RCC is liable for damages under Articles 2180, as well existing in the instant case.
as those of Articles 349, 350 and 352 of the Civil Code - Persons exercising substitute parental authority are made
2. WON RCC could be held liable upon any other basis in law, responsible for damage inflicted upon a third person by the
for the injury sustained by petitioner child or person subject to such substitute parental authority. In
the instant case, Solomon who committed allegedly tortious
HELD acts resulting in injury to petitioner, was not a pupil, student or
1. NO apprentice of the Republic Central Colleges; the school had no
- Under Art. 2180, the obligation to respond for damage substitute parental authority over Solomon.
inflicted by one against another by fault or negligence exists
not only for one's own act or omission, but also for acts or 2. YES
omissions of a person for whom one is by law responsible. - In the case of PSBA v CA, the Court held that Article 2180 of
Among the persons held vicariously responsible for acts or the Civil Code was not applicable where a student had been
omissions of another person are the following: injured by one who was an outsider or by one over whom the
xxx xxx xxx school did not exercise any custody or control or supervision.
Employers shall be liable for the damages caused by their At the same time, however, the court stressed that an implied
employees and household helper, acting within the scope of contract may be held to be established between a school which
their assigned tasks, even though the former are not engaged accepts students for enrollment, on the one hand, and the
in any business or industry. students who are enrolled, on the other hand, which contract
xxx xxx xxx results in obligations for both parties. It held: When an
Lastly, teachers or heads of establishments of arts and trades academic institution accepts students for enrollment, there is
shall be liable for damages caused by their pupils, their established a contract between them, resulting in bilateral
students or apprentices, so long as they remain in their obligations which parties are bound to comply with. For its part,
custody. the school undertakes to provide the student with an education
- The first paragraph quoted above offers no basis for holding that would presumably suffice to equip him with the necessary
RCC liable for the alleged wrongful acts the of security guard tools and skills to pursue higher education or a profession. On
Solomon inflicted upon Soliman, Jr. RCC was not the employer the other hand, the student covenants to abide by the school's
of Solomon. The employer of Solomon was the R.L. Security academic requirements and observe its rules and
Agency Inc., while the school was the client of the latter. It is regulations.Institutions of learning must also meet the implicit
settled that where the security agency, as here, recruits, hires or 'built-in' obligation of providing their students with an
and assigns the work of its watchmen or security guards, the atmosphere that promotes or assists in attaining its primary
agency is the employer of such guards or watchmen. Liability undertaking of imparting knowledge. Certainly, no student can
for illegal or harmful acts committed by the security guards absorb the intricacies of physics or higher mathematics or
attaches to the employer agency, and not to the clients of such explore the realm of the arts and other sciences when bullets
agency. There being no employer-employee relationship are flying or grenades exploding in the air or where there looms
between RCC and Solomon, petitioner cannot impose around the school premises a constant threat to life and limb.
vicarious liability upon the RCC for the acts of Solomon. Necessarily, the school must ensure that adequate steps are
- Since there is no question that Solomon was not a pupil or taken to maintain peace and order within the campus premises
student or an apprentice of the Colleges, he being in fact an and to prevent the breakdown thereof.
employee of the R.L. Security Agency Inc., the other above- - It was also pointed out in said case that: "In the
quoted paragraph of Article 2180 of the Civil Code is similarly circumstances obtaining in the case at bar, however, there is,
not available for imposing liability upon the RCC for the acts of as yet, no finding that the contract between school and
Solomon. Bautista had been breached thru the former's negligence in
- The relevant portions of the other Articles of the Civil Code providing proper security measures. This would be for the trial
invoked by petitioner are as follows: court to determine. And, even if there be a finding of
Art. 349. The following persons shall exercise substitute negligence, the same could give rise generally to a breach of
parental authority: contractual obligation only. Using the test of Cangco, supra,
xxx xxx xxx the negligence of the school would not be relevant absent a
(2) Teachers and professors; contract. In fact, that negligence becomes material only
xxx xxx xxx because of the contractual relation between PSBA and
(4) Directors of trade establishments with regard to Bautista. In other words, a contractual relation is a condition
apprentices; sine qua non to the school's liability. The negligence of the
xxx xxx xxx school cannot exist independently of the contract, unless the
Art. 350. The persons named in the preceding article shall negligence occurs under the circumstances set out in Article 21
exercise reasonable supervision over the conduct of the child. of the Civil Code.
xxx xxx xxx - In the PSBA case, the trial court had denied the school's
Art. 352. The relations between teacher and pupil, professor motion to dismiss the complaint against it, and both the CA and
and student are fixed by government regulations and those of this Court affirmed the trial court's order. In the case at bar, the
each school or institution. In no case shall corporal punishment court a quo granted the motion to dismiss filed by RCC, upon
be countenanced. The teacher or professor shall cultivate the the assumption that petitioner's cause of action was based,
best potentialities of the heart and mind of the pupil or student." and could have been based, only on Art. 2180 of the Civil
Code. As PSBA, however, states, acts which are tortious or
allegedly tortious in character may at the same time constitute wheel guide of the jeep, must be pinned on the minor’s parents
breach of a contractual or other legal obligation. Respondent primarily. The negligence of petitioner St. Mary’s Academy was
trial judge was in serious error when he supposed that only a remote cause of the accident. Between the remote
petitioner could have no cause of action other than one based cause and the injury, there intervened the negligence of the
on Article 2180 of the Civil Code. Respondent trial judge minor’s parents or the detachment of the steering wheel guide
should not have granted the motion to dismiss but rather of the jeep.Considering that the negligence of the minor driver
should have, in the interest of justice, allowed petitioner to or the detachment of the steering wheel guide of the jeep
prove acts constituting breach of an obligation ex contractu or owned by respondent Villanueva was an event over which
ex lege on the part of RCC. petitioner St. Mary’s Academy had no control, and which was
Disposition GRANT DUE COURSE to the Petition, to treat the the proximate cause of the accident, petitioner may not be held
comment of respondent Colleges as its answer, and to liable for the death resulting from such accident.
REVERSE and SET ASIDE the Order granting the motion to - It is not the school, but the registered owner of the vehicle
dismiss the case.This case is REMANDED to the court a quo who shall be held responsible for damages for the death of
for further proceedings. Sherwin Carpitanos.
Disposition. WHEREFORE, the Court REVERSES and SETS
ASIDE the decision of the Court of Appeals[18] and that of the
ST. MARY’S ACADEMY VS. CARPITANOS trial court.[19] The Court remands the case to the trial court for
determination of the liability of defendants, excluding petitioner
PARDO, February 6, 2002
St. Mary’s Academy, Dipolog City. No costs. SO ORDERED.
NATURE: Appeal via certiorari from CA deci and resolution
denying MFR
FACTS 4. OWNERS & MANAGERS OF
(this case was already assigned in PFR)
-Sherwin Carpitanos, together with James Daniel II (then 15,
ESTABLISHMENT
driving the jeep) and Ched Villanueva (then in possession and
was driving the jeep, Grandson of Vivencio Villanueva - the PHIL RABBIT BUS LINES V PHIL-AM FORWARDERS
owner of the jeep) and other companions were on their way to 63 SCRA 231 AQUINO; March 25, 1975
an enrollment drive for the Petitioner school when the vehicle
turned turtle. It was found out that the steering wheel guide NATURE: Petition for review of CFI Tarlac decision
was detached. Carpitanos sued the school, James Daniel II, FACTS
his parents, and Vivencio Villanueva. - PHIL RABBIT Bus Lines, Inc. and Felix PANGALANGAN filed
-TC: absolved Villanueva and James Daniel II, held parents a complaint for damages in an action based on quasi-delict or
and school liable culpa aquiliana against PHIL-AMERICAN FORWARDERS,
-CA: school liable under A218 and 219, FC, finding that school Inc., its manager BALINGIT and the driver, PINEDA.
was negligent in letting a minor drive the vehicle without a - It was alleged that Pineda drove recklessly a freight TRUCK,
teacher accompanying them. owned by Phil-Am, along the nat’l highway at Sto. Tomas,
Pampanga. The truck bumped the BUS driven by
ISSUE (regarding liability of St. Mary’s Academy) Pangalangan, owned by Phil Rabbit. Pangalangan suffered
WON St. Mary’s Academy should be held liable for death of injuries and the bus was damaged and could not be used for
Sherwin Carpitanos, and therefore, liable for damages 79 days. This deprived the company of earnings of about
P8,600.
HELD - Among the defenses interposed by the defendants was that
NO. The negligence of petitioner St. Mary’s Academy was only Balingit was not Pineda's employer. Balingit moved that the
a remote cause of the accident. Between the remote cause complaint against him be dismissed on the ground that the bus
and the injury, there intervened the negligence of the minor’s company and the bus driver had no cause of action against
parents or the detachment of the steering wheel guide of the him.
jeep. - CFI dismissed their complaint against BALINGIT on the
Ratio. For the school to be liable, it must be shown that the ground that he was not the manager of an establishment
‘injury for which recovery is sought must be the legitimate contemplated in Art.2180 CC.
consequence of the wrong done; the connection between the - In the appeal, the bus company also argued that Phil-Am is
negligence and the injury must be a direct and natural merely a business conduit of Balingit because out of its capital
sequence of events, unbroken by intervening efficient causes. stock with a par value of P41,200, Balingit and his wife had
Reasoning. The Carpitanos failed to prove that the negligence subscribed P40T. This implied that the veil of corporate fiction
of the school was the proximate cause of the death of the should be pierced and that Phil-Am and Balingit and his wife
victim. should be treated as one and the same civil personality. But
-The cause of the accident was not the recklessness of James this was not alleged in their complaint.*
Daniel II but the mechanical defect in the jeep of Vivencio
Villanueva. ISSUE
-Respondents did not present any evidence to show that the WON the terms "employers" and "owners and managers of an
proximate cause of the accident was the negligence of the establishment or enterprise" used in Art. 2180 NCC (Art.1903
school authorities, or the reckless driving of James Daniel II so OCC) embrace the manager of a corporation owning a truck
reliance on A219 is unfounded. (this is a novel and unprecedented legal issue!)
-There was no evidence that petitioner school allowed the
minor James Daniel II to drive the jeep of respondent Vivencio HELD
Villanueva. It was Ched Villanueva was in possession and in NO
control of the jeep, and was in fact the one who allowed James Vicarious Liability of Owners and Managers of
Daniel II to drive the jeep. Establishments: Art.2180 uses the term "manager"
-Liability for the accident, whether caused by the negligence of ("director" in the Spanish version) to mean "employer.”
the minor driver or mechanical detachment of the steering
- Hence, under the allegations of the complaint, no tortious or -Court of Appeals affirmed the decision of the trial court, and
quasi-delictual liability can be fastened on Balingit as manager denied MFR
of Phil-American Forwarders, Inc., in connection with the -Hence, this appeal
vehicular accident because he himself may be regarded as an
employee or dependiente of his employer, Phil-American ISSUE
Forwarders, Inc. WON petitioner Philtranco is solidarily liable with Manilhig for
* This issue was not raised in the lower court so it would be damages
unfair to allow them to do so now. The case has to be decided
on the basis of the pleadings filed in the trial court where it was HELD
assumed that Phil-Am has a personality separate and distinct Yes.
from that of the Balingit spouses. -Civil Case No. 373 is an action for damages based on quasi-
Dispositive Lower court’s order of dismissal is AFFIRMED. delict under Article 21762 and 21803 of the Civil Code against
petitioner Manilhig and his employer, petitioner Philtranco,
respectively.
5. EMPLOYERS -We have consistently held that the liability of the registered
owner of a public service vehicle, like petitioner
PHILTRANCO V CA (HEIRS OF ACUESTA) Philtranco, for damages arising from the tortious acts of
273 SCRA 562 DAVIDE; June 17, 1997 the driver is primary, direct, and joint and several or
solidary with the driver. As to solidarity, Article 2194
NATURE: Appeal by certiorari from a decision of the CA expressly provides: the responsibility of two or more
FACTS persons who are liable for a quasi-delict is solidary.
-Civil Case No. 373 was an action against herein petitioners for -Since the employer's liability is primary, direct and solidary, its
damages instituted by the heirs of Ramon A. Acuesta only recourse if the judgment for damages is satisfied by it is to
-Private respondents alleged that the petitioners were guilty of recover what it has paid from its employee who committed the
gross negligence, recklessness, violation of traffic rules and fault or negligence which gave rise to the action based on
regulations, abandonment of victim, and attempt to escape quasi-delict. Article 2181 of the Civil Code provides: Whoever
from a crime pays for the damage caused by his dependents or employees
Private Respondents’ Version may recover from the latter what he has paid or delivered in
-In the early morning of March 24, 1990, about 6:00 o’clock, satisfaction of the claim.
the victim Ramon A. Acuesta was riding in his easy rider Disposition
bicycle along the Gomez Street Appealed decision is affirmed. (with regard to this issue)
-On the Magsaysay Blvd., defendant Philtranco Service
Enterprises, Inc. (Philtranco for brevity) Bus No. 4025 driven by
defendant Manilhig was being pushed by some persons in CASTILEX V. VASQUEZ
order to start its engine. Dec. 21, 1999. Davide
-The Magsaysay Blvd. runs perpendicular to Gomez St. and
the said Philtranco bus 4025 was heading in the general Facts: At around 1:30 to 2:00 in the morning, Romeo So
direction of the said Gomez Street. Vasquez, was driving a Honda motorcycle around Fuente
-As the bus was pushed, its engine started thereby the bus Osmeña Rotunda. He was traveling counter-clockwise, (the
continued on its running motion and it occurred at the time normal flow of traffic in a rotunda) but without any protective
when Ramon A. Acuesta who was still riding on his bicycle was helmet or goggles. He was also only carrying a Student's
directly in front of the said bus. Permit to Drive at the time. Upon the other hand, Benjamin
-As the engine of the Philtranco bus started abruptly and Abad [was a] manager of Appellant Castilex Industrial
suddenly, its running motion was also enhanced by the said Corporation, registered owner [of] a Toyota Hi-Lux Pick-up with
functioning engine, thereby the subject bus bumped on the plate no. GBW-794. On the same date and time, Abad drove
victim Ramon A. Acuesta who, as a result thereof fell and, the said company car out of a parking lot but instead of going
thereafter, was run over by the said bus. around the Osmeña rotunda he made a short cut against [the]
Petitioner’s Version flow of the traffic in proceeding to his route to General Maxilom
-Manilhig, in preparation for his trip back to Pasay City, St. or to Belvic St.
warmed up the engine of the bus and made a few rounds In the process, the motorcycle of Vasquez and the
within the city proper of Calbayog. pick-up of Abad collided with each other causing severe
-While the bus was slowly and moderately cruising along injuries to the former. Abad stopped his vehicle and brought
Gomez Street, the victim, who was biking towards the same Vasquez to the Southern Islands Hospital and later to the Cebu
direction as the bus, suddenly overtook two tricycles and Doctor's Hospital. Vasquez died at the Cebu Doctor's Hospital.
swerved left to the center of the road. It was there that Abad signed an acknowledgment of
-The swerving was abrupt and so sudden that even as Manilhig Responsible Party (Exhibit K) wherein he agreed to pay
applied the brakes and blew the bus horn, the victim was
bumped from behind and run over by the bus.
-Petitioners alleged that Philtranco exercised the diligence of a 
(limited to that involved in the outline)
2Art. 2176. Whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay
good father of a family in the selection and supervision of its
for the damage done. Such fault or negligence, if there is no pre-existing contractual relation between the parties, is
employees, including petitioner Manilhig who had excellent called a quasi-delict and is governed by the provisions of this Chapter
3Art. 2180. The obligation imposed by Article 2176 is demandable not only for one's own acts or omissions, but also
record as a driver and had undergone months of rigid training
for those of persons for whom one is responsible.
before he was hired. xxxxxxxxx
-Petitioners further claimed that it was the negligence of the 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.
victim in overtaking two tricycles, without taking precautions xxxxxxxxx
such as seeing first that the road was clear, which caused the Employers shall be liable for the damages caused by their employees and household helpers acting within the
scope of their assigned tasks, even though the former are not engaged in any business or industry.
death of the victim xxxxxxxxx
**Trial Court ruled in favor of private respondents The responsibility treated of in this article shall cease when the persons herein mentioned prove that they observed
all the diligence of a good father of a family to prevent damage
whatever hospital bills, professional fees and other incidental whether he was acting within the scope of his assigned task is
charges Vasquez may incur. a question of fact, which the court a quo and the Court of
After the police authorities had conducted the Appeals resolved in the affirmative.
investigation of the accident, a Criminal Case was filed against Well-entrenched in our jurisprudence is the rule that
Abad but which was subsequently dismissed for failure to the factual findings of the Court of Appeals are entitled to great
prosecute. So, the present action for damages was respect, and even finality at times. This rule is, however,
commenced by Vicente Vasquez, Jr. and Luisa So Vasquez, subject to exceptions such as when the conclusion is grounded
parents of the deceased Romeo So Vasquez, against Jose on speculations, surmises, or conjectures. Such exception
Benjamin Abad and Castilex Industrial Corporation. In the obtain in the present case to warrant review by this Court of the
same action, Cebu Doctor's Hospital intervened to collect finding of the Court of Appeals that since ABAD was driving
unpaid balance for the medical expense given to Romeo So petitioner's vehicle he was acting within the scope of his duties
Vasquez. as a manager.
On the issue of whether the private respondents have
Issue: WON an employer may be held vicariously liable for the sufficiently established that ABAD was acting within the scope
death resulting from the negligent operation by a managerial of his assigned tasks, ABAD, who was presented as a hostile
employee of a company-issued vehicle. witness, testified that at the time of the incident, he was driving
a company-issued vehicle, registered under the name of
Held: Castilez is absolved from any liability. The negligence of petitioner. He was then leaving the restaurant where he had
ABAD is not an issue at this instance. Petitioner CASTILEX some snacks and had a chat with his friends after having done
presumes said negligence but claims that it is not vicariously overtime work for the petitioner. No absolutely hard and fast
liable for the injuries and subsequent death caused by ABAD. rule can be stated which will furnish the complete answer to the
Petitioner contends that the fifth paragraph of Article 2180 of problem of whether at a given moment, an employee is
the Civil Code should only apply to instances where the engaged in his employer's business in the operation of a motor
employer is not engaged in business or industry. Since it is vehicle, so as to fix liability upon the employer because of the
engaged in the business of manufacturing and selling furniture employee's action or inaction; but rather, the result varies with
it is therefore not covered by said provision. Instead, the fourth each state of facts. The court a quo and the Court of Appeals
paragraph should apply. Petitioner's interpretation of the fifth were one in holding that the driving by a manager of a
paragraph is not accurate. The phrase "even though the former company-issued vehicle is within the scope of his assigned
are not engaged in any business or industry" found in the fifth tasks regardless of the time and circumstances. The SC does
paragraph should be interpreted to mean that it is not not agree. The mere fact that ABAD was using a service
necessary for the employer to be engaged in any business or vehicle at the time of the injurious incident is not of itself
industry to be liable for the negligence of his employee who is sufficient to charge petitioner with liability for the negligent
acting within the scope of his assigned task. operation of said vehicle unless it appears that he was
A distinction must be made between the two operating the vehicle within the course or scope of his
provisions to determine what is applicable. Both provisions employment. It used the principles in American Jurisprudence
apply to employers: the fourth paragraph, to owners and on the employer's liability for the injuries inflicted by the
managers of an establishment or enterprise; and the fifth negligence of an employee in the use of an employer's motor
paragraph, to employers in general, whether or not engaged in vehicle:
any business or industry. The fourth paragraph covers I. Operation of Employer's Motor Vehicle in
negligent acts of employees committed either in the service of Going to or from Meals
the branches or on the occasion of their functions, while the It has been held that an employee who uses his
fifth paragraph encompasses negligent acts of employees employer's vehicle in going from his work to a place where he
acting within the scope of their assigned task. The latter is an intends to eat or in returning to work from a meal is not
expansion of the former in both employer coverage and acts ordinarily acting within the scope of his employment in the
included. Negligent acts of employees, whether or not the absence of evidence of some special business benefit to the
employer is engaged in a business or industry, are covered so employer. Evidence that by using the employer's vehicle to go
long as they were acting within the scope of their assigned to and from meals, an employee is enabled to reduce his time-
task, even though committed neither in the service of the off and so devote more time to the performance of his duties
branches nor on the occasion of their functions. For, supports the findings that an employee is acting within the
admittedly, employees oftentimes wear different hats. They scope of his employment while so driving the vehicle.
perform functions which are beyond their office, title or II. Operation of Employer's Vehicle in Going to
designation but which, nevertheless, are still within the call of or from Work
duty.This court has applied the fifth paragraph to cases where In the same vein, traveling to and from the place of
the employer was engaged in a business or industry such as work is ordinarily a personal problem or concern of the
truck operators and banks. The Court of Appeals cannot, employee, and not a part of his services to his employer.
therefore, be faulted in applying the said paragraph of Article Hence, in the absence of some special benefit to the employer
2180 of the Civil Code to this case. Under the fifth paragraph of other than the mere performance of the services available at
Article 2180, whether or not engaged in any business or the place where he is needed, the employee is not acting
industry, an employer is liable for the torts committed by within the scope of his employment even though he uses his
employees within the scope of his assigned tasks. But it is employer's motor vehicle. 14 cda
necessary to establish the employer-employee relationship; The employer may, however, be liable where he
once this is done, the plaintiff must show, to hold the employer derives some special benefit from having the employee drive
liable, that the employee was acting within the scope of his home in the employer's vehicle as when the employer benefits
assigned task when the tort complained of was committed. It is from having the employee at work earlier and, presumably,
only then that the employer may find it necessary to interpose spending more time at his actual duties. Where the employee's
the defense of due diligence in the selection and supervision of duties require him to circulate in a general area with no fixed
the employee. place or hours of work, or to go to and from his home to
It is undisputed that ABAD was a Production Manager various outside places of work, and his employer furnishes him
of petitioner CASTILEX at the time of the tort occurrence. As to with a vehicle to use in his work, the courts have frequently
applied what has been called the "special errand" or "roving - TC and CA ruled in favor of Kapunan. SC reversed, saying
commission" rule, under which it can be found that the that FCI is not liable for the injuries caused by Funtecha on the
employee continues in the service of his employer until he grounds that the latter was not an authorized driver for whose
actually reaches home. However, even if the employee be acts the petitioner shall be directly and primarily answerable.
deemed to be acting within the scope of his employment in
going to or from work in his employer's vehicle, the employer is ISSUE
not liable for his negligence where at the time of the accident, WON the employer of the janitor driving the school jeep can be
the employee has left the direct route to his work or back home held liable
and is pursuing a personal errand of his own.
III. Use of Employer's Vehicle Outside Regular HELD: YES
Working Hours - Driving the vehicle to and from the house of the school
An employer who loans his motor vehicle to an president where both Allan and Funtecha reside is an act in
employee for the latter's personal use outside of regular furtherance of the interest of the petitioner-school. Allan's
working hours is generally not liable for the employee's job demands that he drive home the school jeep so he can use
negligent operation of the vehicle during the period of it to fetch students in the morning of the next school day.
permissive use, even where the employer contemplates that a - It is indubitable under the circumstances that the school
regularly assigned motor vehicle will be used by the employee president had knowledge that the jeep was routinely driven
for personal as well as business purposes and there is some home for the said purpose. Moreover, it is not improbable that
incidental benefit to the employer. Even where the employee's the school president also had knowledge of Funtecha's
personal purpose in using the vehicle has been accomplished possession of a student driver's license and his desire to
and he has started the return trip to his house where the undergo driving lessons during the time that he was not in his
vehicle is normally kept, it has been held that he has not classrooms.
resumed his employment, and the employer is not liable for the - In learning how to drive while taking the vehicle home in the
employee's negligent operation of the vehicle during the return direction of Allan's house, Funtecha definitely was not, having
trip. a joy ride Funtecha was not driving for the purpose of his
The foregoing principles and jurisprudence are enjoyment or for a "frolic of his own" but ultimately, for the
applicable in our jurisdiction albeit based on the doctrine of service for which the jeep was intended by the petitioner
respondeat superior, not on the principle of bonus pater school. The act of Funtecha in taking over the steering wheel
familias as in ours. Whether the fault or negligence of the was one done for and in behalf of his employer for which act
employee is conclusive on his employer as in American law or the petitioner-school cannot deny any responsibility by arguing
jurisprudence, or merely gives rise to the presumption juris that it was done beyond the scope of his janitorial duties. The
tantum of negligence on the part of the employer as in ours, it clause "within the scope of their assigned tasks" for purposes
is indispensable that the employee was acting in his of raising the presumption of liability of an employer, includes
employer's business or within the scope of his assigned task. any act done by an employee, in furtherance of the interests of
ABAD was engaged in affairs of his own or was carrying out a the employer or for the account of the employer at the time of
personal purpose not in line with his duties at the time he the infliction of the injury or damage. Even if somehow, the
figured in a vehicular accident. It was then about 2:00 a.m., employee driving the vehicle derived some benefit from the act,
way beyond the normal working hours. ABAD's working day the existence of a presumptive liability of the employer is
had ended; his overtime work had already been completed. His determined by answering the question of whether or not the
being at a place which, as petitioner put it, was known as a servant was at the time of the accident performing any act in
"haven for prostitutes, pimps, and drug pushers and addicts," furtherance of his master's business.
had no connection to petitioner's business; neither had it any - Funtecha is an employee of petitioner FCI. He need not have
relation to his duties as a manager. Rather, using his service an official appointment for a driver's position in order that the
vehicle even for personal purposes was a form of a fringe petitioner may be held responsible for his grossly negligent act,
benefit or one of the perks attached to his position. it being sufficient that the act of driving at the time of the
incident was for the benefit of the petitioner. Hence, the fact
that Funtecha was not the school driver or was not acting with
FILAMER V IAC the scope of his janitorial duties does not relieve the petitioner
212 SCRA 637 GUTIERREZ SR; August 17, 1992 of the burden of rebutting the presumption juris tantum that
NATURE: Motion for Reconsideration there was negligence on its part either in the selection of a
FACTS servant or employee, or in the supervision over him. The
- Funtecha is a scholar of FCI. He is also employed as a petitioner has failed to show proof of its having exercised the
janitor. The president of FCI is Agustin Masa. Agustin has a required diligence of a good father of a family over its
son, Allan, who is the school bus (bus na jeepney) driver. Allan employees Funtecha and Allan. There were no rules and
lives with his dad. Funtecha also lives in the president’s house regulations prohibiting the use of the school jeep by persons
free of charge while a student at FCI. other than the driver. There was thus no supervision on the
- It is the practice of the driver (Allan) after classes to bring the part of FCI over its employees with regard to the use of the
kids home, then go back to the school, then go home in the jeep.
school jeep. He is allowed to bring home the jeep because in - The petitioner, thus, has an obligation to pay damages for
the morning he’s supposed to fetch the kids and bring them to injury arising from the unskilled manner by which Funtecha
school. drove the vehicle. In the absence of evidence that the
- One night, Funtecha wanted to drive home. He has a student petitioner had exercised the diligence of a good father of a
license. After a dangerous curb, and seeing that the road was family in the supervision of its employees, the law imposes
clear, Allan let Funtecha drive. Then there was a fast moving upon it the vicarious liability for acts or omissions of its
truck (opposite direction) with glaring lights. Funtecha swerved employees. The liability of the employer is, under Article 2180,
right and hit the pedestrian Kapunan. Kapunan was walking in primary and solidary. However, the employer shall have
his lane in the direction against vehicular traffic (I think ito yung recourse against the negligent employee for whatever
tamang lane and direction ng pedestrians). The jeep had only damages are paid to the heirs of the plaintiff.
one functioning headlight that night.
NPC v CA (PHESCO INC.) - At the exact moment that Navidad fell, an LRT train, operated
294 CRA 209 ROMERO; August 14, 1998 by petitioner Rodolfo Roman, was coming in. Navidad was
struck by the moving train, and he was killed instantaneously.
NATURE: Petition for review on certiorari - Marjorie Navidad (Nicanor’s widow), along with their children,
FACTS filed a complaint for damages against Junelito Escartin,
- On July 22, 1979, a convoy of four dump trucks owned by Rodolfo Roman, the LRTA, the Metro Transit Organization, Inc.
the National Power Corporation (NPC) left Marawi City bound (Metro Transit), and Prudent for the death of her husband.
for Iligan City. Unfortunately, enroute to its destination, one of - LRTA and Roman filed a counterclaim against Navidad and a
the trucks driven by Gavino Ilumba figured in a head-on- cross-claim against Escartin and Prudent. Prudent, in its
collision with a Toyota Tamaraw. The incident resulted in the answer, denied liability and averred that it had exercised due
death of three persons riding in the Toyota Tamaraw, as well diligence in the selection and supervision of its security guards.
as physical injuries to seventeen other passengers. - The LRTA and Roman presented their evidence while
- The heirs of the victims filed a complaint for damages against Prudent and Escartin, instead of presenting evidence, filed a
NPC and PHESCO Incorporated (PHESCO is a contractor of demurrer contending that Navidad had failed to prove that
NPC with the main duty of supplying workers and technicians Escartin was negligent in his assigned task.
for the latter's projects, but in this case it was alleged that they - TC: Rendered in favor of the Navidads and against the
own the dump trucks). Prudent Security and Junelito Escartin ordered the latter to pay
- The trial court rendered a decision absolving NPC of any jointly and severally the plaintiffs the following:
liability. PHESCO appealed to the Court of Appeals, which "a) 1) Actual damages of P44,830.00; 2) Compensatory
reversed the trial court's judgment absolving PHESCO and damages of P443,520.00; 3) Indemnity for the death of Nicanor
sentencing NPC to pay damages. Navidad in the sum of P50,000.00; b) Moral damages of
P50,000.00; c) Attorney’s fees of P20,000; d) Costs of suit.
ISSUE - TC: dismissed complaint against defendants LRTA and
WON NPC is the employer of Ilumba, driver of the dump truck, Rodolfo Roman for lack of merit.
which should be solidarily liable for the damages to the victims -Prudent appealed to the Court of Appeals.
- CA: exonerated Prudent from any liability for the death of
HELD Nicanor Navidad and, instead, holding the LRTA and Roman
YES jointly and severally liable for the following amounts:
- In the provisions of the "Memorandum of Understanding" a) P44,830.00 as actual damages; b) P50,000.00 as nominal
entered into by PHESCO and NPC, we are convinced that damages; c) P50,000.00 as moral damages; d) P50,000.00 as
PHESCO was engaged in "labor only" contracting. In a "labor indemnity for the death of the deceased; and e) P20,000.00 as
only" contract, the person acting as contractor is considered and for attorney’s fees.
merely as an agent or intermediary of the principal who is -CA ratiocinated that while the deceased might not have then
responsible to the workers in the same manner and to the as yet boarded the train, a contract of carriage theretofore had
same extent as if they had been directly employed by him. already existed when the victim entered the place where
Finding that a contractor was a "labor-only" contractor is passengers were supposed to be after paying the fare and
equivalent to a finding that an employer-employee relationship getting the corresponding token therefor. In exempting Prudent
existed between the owner (principal contractor) and the from liability, the court stressed that there was nothing to link
"labor-only" contractor, including the latter's workers. the security agency to the death of Navidad. It said that
- Article 2180 of the Civil Code explicitly provides: Navidad failed to show that Escartin inflicted fist blows upon
"Employers shall be liable for the damages caused by their the victim and the evidence merely established the fact of
employees and household helpers acting within the scope of death of Navidad by reason of his having been hit by the train
their assigned tasks, even though the former are not engaged owned and managed by the LRTA and operated at the time by
in any business or industry." Roman. The appellate court faulted petitioners for their failure
- In this regard, NPC's liability is direct, primary and solidary to present expert evidence to establish the fact that the
with PHESCO and the driver. Of course, NPC, if the judgment application of emergency brakes could not have stopped the
for damages is satisfied by it, shall have recourse against train.
PHESCO and the driver who committed the negligence which - CA denied petitioners’ motion for reconsideration in its
gave rise to the action. resolution of 10 October 2000.
DISPOSITION Assailed decision affirmed.
ISSUES:
WON CA ERRED IN FINDING THAT LRTA IS LIABLE FOR
LIGHT RAIL TRANSIT AUTHORITY & RODOLFO ROMAN THE DEATH OF NICANOR NAVIDAD, JR.
vs MARJORIE NAVIDAD, Heirs of the Late NICANOR WON ERRED CA ERRED IN FINDING THAT RODOLFO
NAVIDAD & PRUDENT SECURITY AGENCY ROMAN IS AN EMPLOYEE OF LRTA AND ALSO LIABLE
397 SCRA 75 VITUG, J/February 6, 2003 FOR THE DEATH OF NAVIDAD

NATURE: APPEAL from CA’s DECISION LRTA’s CLAIMS:


- 14 Oct 1993, about 730pm, Nicanor Navidad, then drunk, -Escartin’s assault upon Navidad, which caused the latter to fall
entered the EDSA LRT station after purchasing a "token" on the tracks, was an act of a stranger that could not have
(representing payment of the fare). been foreseen or prevented.
- While Navidad was standing on the platform near the LRT - NO employer-employee relationship between Roman and
tracks, Junelito Escartin, the security guard assigned to the LRTA because Roman himself had testified being an employee
area approached Navidad. of Metro Transit and not of the LRTA.
- A misunderstanding or an altercation between the two Navidads Contention:
apparently ensued that led to a fist fight. - A contract of carriage was deemed created from the moment
- No evidence, however, was adduced to indicate how the fight Navidad paid the fare at the LRT station and entered the
started or who, between the two, delivered the first blow or how premises of the latter, entitling Navidad to all the rights and
Navidad later fell on the LRT tracks. protection under a contractual relation, and that the appellate
court had correctly held LRTA and Roman liable for the death "This liability of the common carriers does not cease
of Navidad in failing to exercise extraordinary diligence upon proof that they exercised all the diligence of a good father
imposed upon a common carrier. of a family in the selection and supervision of their employees."
"Article 1763. A common carrier is responsible for
HELD: injuries suffered by a passenger on account of the willful acts
1. NO. The foundation of LRTA’s liability is the contract of or negligence of other passengers or of strangers, if the
carriage and its obligation to indemnify the victim arises from common carrier’s employees through the exercise of the
the breach of that contract by reason of its failure to exercise diligence of a good father of a family could have prevented or
the high diligence required of the common carrier. In the stopped the act or omission."
discharge of its commitment to ensure the safety of
passengers, a carrier may choose to hire its own employees or -The law requires common carriers to carry passengers safely
avail itself of the services of an outsider or an independent firm using the utmost diligence of very cautious persons with due
to undertake the task. In either case, the common carrier is not regard for all circumstances.
relieved of its responsibilities under the contract of carriage. - Such duty of a common carrier to provide safety to its
- PRUDENT could also be held liable but only for tort under the passengers so obligates it not only during the course of the trip
provisions of Article 217612 and related provisions, in but for so long as the passengers are within its premises and
conjunction with Article 2180,13 of the Civil Code. (But there where they ought to be in pursuance to the contract of carriage
wasn’t any evidence shown that linking Prudent to the death of - The statutory provisions render a common carrier liable for
Navidad in this case- SC) The premise, however, for the death of or injury to passengers (a) through the negligence or
employer’s liability is negligence or fault on the part of the wilful acts of its employees or b) on account of wilful acts or
employee. negligence of other passengers or of strangers if the common
- Once such fault is established, the employer can then be carrier’s employees through the exercise of due diligence could
made liable on the basis of the presumption juris tantum that have prevented or stopped the act or omission.
the employer failed to exercise diligentissimi patris families in - In case of such death or injury, a carrier is presumed to have
the selection and supervision of its employees. The liability is been at fault or been negligent, and by simple proof of injury,
primary and can only be negated by showing due diligence in the passenger is relieved of the duty to still establish the fault
the selection and supervision of the employee, a factual matter or negligence of the carrier or of its employees and the burden
that has not been shown. shifts upon the carrier to prove that the injury is due to an
- A contractual obligation can be breached by tort and when unforeseen event or to force majeure. In the absence of
the same act or omission causes the injury, one resulting in satisfactory explanation by the carrier on how the accident
culpa contractual and the other in culpa aquiliana, Article occurred, which LRTA and Roman, according to the CA, have
219414 of the Civil Code can well apply. failed to show, the presumption would be that it has been at
- In fine, a liability for tort may arise even under a contract, fault, an exception from the general rule that negligence must
where tort is that which breaches the contract. Stated be proved.
differently, when an act which constitutes a breach of contract
would have itself constituted the source of a quasi-delictual DISPOSITION: CA’S DECISION AFFIRMED with
liability had no contract existed between the parties, the MODIFICATION but only in that (a) the award of nominal
contract can be said to have been breached by tort, thereby damages is DELETED and (b) petitioner Rodolfo Roman is
allowing the rules on tort to apply. absolved from liability. No costs.
2. YES. ______________
12
There is no showing that Rodolfo Roman himself is guilty of Art. 2176. Whoever by act or omission causes damage to another,
any culpable act or omission, he must also be absolved from there being fault or negligence, is obliged to pay for the damage done.
liability as Prudent is. Needless to say, the contractual tie Such fault or negligence, if there is no pre-existing contractual relation
between the parties, is called a quasi-delict and is governed by the
between the LRT and Navidad is not itself a juridical relation
provisions of this Chapter.
between the latter and Roman; thus, Roman can be made 13
Art. 2180. The obligation imposed by Article 2176 is demandable not
liable only for his own fault or negligence. only for one’s own acts or omissions, but also for those of persons for
whom one is responsible.
REASONING: The father and, in case of his death or incapacity, the mother, are
- Law and jurisprudence dictate that a common carrier, both responsible for the damages caused by the minor children who live in
from the nature of its business and for reasons of public policy, their company.
is burdened with the duty of exercising utmost diligence in Guardians are liable for damages caused by the minors or
incapacitated persons who are under their authority and live in their
ensuring the safety of passengers.
company.
- The Civil Code, governing the liability of a common carrier for The owners and managers of an establishment or enterprise are
death of or injury to its passengers, provides: likewise responsible for damages caused by their employees in the
"Article 1755. A common carrier is bound to carry the service of the branches in which the latter are employed or on the
passengers safely as far as human care and foresight can occasion of their functions.
provide, using the utmost diligence of very cautious persons, Employers shall be liable for the damages caused by their employees
with a due regard for all the circumstances. and household helpers acting within the scope of their assigned tasks,
"Article 1756. In case of death of or injuries to even though the former are not engaged in any business or industry.
The State is responsible in like manner when it acts through a special
passengers, common carriers are presumed to have been at
agent, but not when the damage has been caused by the official to
fault or to have acted negligently, unless they prove that they whom the task done properly pertains, in which case what is provided
observed extraordinary diligence as prescribed in articles 1733 in article 2176 shall be applicable.
and 1755." Lastly, teachers or heads of establishments of arts and trades shall be
"Article 1759. Common carriers are liable for the liable for damages caused by their pupils and students or apprentices,
death of or injuries to passengers through the negligence or so long as they remain in their custody.
willful acts of the former’s employees, although such The responsibility treated of in this article shall cease when the
employees may have acted beyond the scope of their authority persons herein mentioned prove that they observed all the diligence of
a good father of a family to prevent damage.
or in violation of the orders of the common carriers. 14
Art. 2194. The responsibility of two or more persons who are liable
for a quasi-delict is solidary.
MCKEE V IAC (TAYAG & MANALO) VALENZUELA v CA (LI and ALEXANDER COMMERCIAL, INC.)
221 SCRA 517 Davide, Jr.; July 16, 1992 253 SCRA 303 KAPUNAN; February 7, 1996

NATURE: Petition to review the resolution of the CA NATURE: Petition for review on certiorari
FACTS FACTS
- On January 8, 1977, in Pulong Pulo Bridge along MacArthur - Ma. Lourdes Valenzuela was driving when she realized she
Highway, Pampanga, a head-on-collision took place between had a flat tire. She parked along the sidewalk of Aurora Blvd.,
an International cargo truck, Loadstar, owned by private put on her emergency lights, alighted from the car, and went to
respondents, Jaime Tayag and Rosalina Manalo, and driven by the rear to open the trunk. She was standing at the left side of
Ruben Galang, and a Ford Escort car driven by Jose Koh. The the rear of her car pointing to the tools to a man who will help
collision resulted in the deaths of Jose Koh, Kim McKee and her fix the tire when she was suddenly bumped by a car driven
Loida Bondoc, and physical injuries to George McKee, by defendant Richard Li and registered in the name of
Christopher McKee and Araceli McKee, all passengers of the defendant Alexander Commercial, Inc.
Ford Escort. - Because of the impact plaintiff was thrown against the
- Immediately before the collision, the cargo truck, which was windshield of the car of the defendant, which was destroyed,
loaded with 200 cavans of rice weighing about 10,000 kilos, and then fell to the ground. She was pulled out from under
was traveling southward from Angeles City to San Fernando defendant's car. Plaintiff's left leg was severed up to the middle
Pampanga, and was bound for Manila. The Ford Escort, on the of her thigh, with only some skin and sucle connected to the
other hand, was on its way to Angeles City from San Fernando. rest of the body. She was confined in the hospital for twenty
When the northbound car was about 10 meters away from the (20) days and was eventually fitted with an artificial leg. She
southern approach of the bridge, 2 boys suddenly darted from filed a claim for damages against defendant.
the right side of the road and into the lane of the car. The boys - Li’s alibi was that he was driving at 55kph when he was
were moving back and forth, unsure of whether to cross all the suddenly confronted with a speeding car coming from the
way to the other side or turn back. Jose Koh blew the horn of opposite direction. He instinctively swerved to the right to avoid
the car, swerved to the left and entered the lane of the truck; colliding with the oncoming vehicle, and bumped plaintiff's car,
he then switched on the headlights of the car, applied the which he did not see because it was midnight blue in color,
brakes and thereafter attempted to return to his lane. Before he with no parking lights or early warning device, and the area
could do so, his car collided with the truck. The collision was poorly lighted. Defendants counterclaimed for damages,
occurred in the lane of the truck, which was the opposite lane, alleging that plaintiff was the one who was reckless or
on the said bridge. negligent.
- Please see first Mckee digest for details on the collision. -RTC found Li and Alexander solidarily liable. CA absolved
- Civil cases for damages based on quasi-delict were filed as a Alexander.
result of a vehicular accident.
ISSUE
ISSUE 1. WON Li was grossly negligent in driving the company issued
WON the owners of the cargo truck (Tayag and Manalo) are car
liable for the resulting damages 2. WON Valenzuela was guilty of contributory negligence
3. WON Alexander Commercial is liable as Li’s employer
HELD
YES HELD
- The Court rules that it was the truck driver's negligence in 1. YES
failing to exert ordinary care to avoid the collision which was, in - The average motorist alert to road conditions will have no
law, the proximate cause of the collision. As employers of the difficulty applying the brakes to a car traveling at the speed
truck driver, Manalo and Tayag are, under Article 2180 of the claimed by Li. Given a light rainfall, the visibility of the street,
Civil Code, directly and primarily liable for the resulting and the road conditions on a principal metropolitan
damages. The presumption that they are negligent flows from thoroughfare like Aurora Boulevard, Li would have had ample
the negligence of their employee. That presumption, however, time to react to the changing conditions of the road if he were
is only juris tantum, not juris et de jure. Their only possible alert as every driver should be to those conditions. Driving
defense is that they exercised all the diligence of a good father exacts a more than usual toll on the senses. Physiological
of a family to prevent the damage. Article 2180 reads as "fight or flight" mechanisms are at work, provided such
follows: mechanisms were not dulled by drugs, alcohol, exhaustion,
The obligation imposed by Article 2176 is demandable not only drowsiness, etc. Li's failure to react in a manner which would
for one's own acts or omissions, but also for those of persons have avoided the accident could therefore have been only due
for whom one is responsible. to either or both of the two factors: 1) that he was driving at a
xxx xxx xxx "very fast" speed as testified by one of the witneses; and 2)
Employers shall be liable for the damages caused by their that he was under the influence of alcohol. Either factor
employees and household helpers acting within the scope of working independently would have diminished his
their assigned tasks, even though the former are not engaged responsiveness to road conditions, since normally he would
in any business or industry. have slowed down prior to reaching Valenzuela's car, rather
xxx xxx xxx than be in a situation forcing him to suddenly apply his brakes.
The responsibility treated of in this article shall cease when the - Li was, therefore, negligent in driving his company-issued
persons herein mentioned prove that they observed all the Mitsubishi Lancer
diligence of a good father of a family to prevent damage. 2. NO
The diligence of a good father referred to means the diligence - Contributory negligence is conduct on the part of the injured
in the selection and supervision of employees. party, contributing as a legal cause to the harm he has
- The answers of the private respondents in Civil Cases Nos. suffered, which falls below the standard to which he is required
4477 and 4478 did not interpose this defense. Neither did they to conform for his own protection. Under the "emergency rule"
attempt to prove it. adopted by this Court in Gan vs. Court of Appeals, an
individual who suddenly finds himself in a situation of danger
and is required to act without much time to consider the best condition. This latter weakness was always noticed when the
means that may be adopted to avoid the impending danger, is plaintiff had to do any difficult mental labor, especially when he
not guilty of negligence if he fails to undertake what attempted to use his money for mathematical calculations.
subsequently and upon reflection may appear to be a better - Witnesses testified that plaintiff’s physical and mental
solution, unless the emergency was brought by his own condition before the accident was excellent. He was one of the
negligence. best contractors of wooden buildings. He could not now earn
- While the emergency rule applies to those cases in which even a half of the income that he had secured for his work
reflective thought or the opportunity to adequately weigh a because he had lost 50 per cent of his efficiency. He had to
threatening situation is absent, the conduct which is required of dissolve a partnership that he had with an engineer and give
an individual in such cases is dictated not exclusively by the up a contract for the construction of a building.
suddenness of the event which absolutely negates thoroughful - Trial court held that the collision was due solely on the
care, but by the over-all nature of the circumstances. A woman negligence of the chauffeur and awarded the plaintiff the sum
driving a vehicle suddenly crippled by a flat tire on a rainy night of P14, 741.
will not be faulted for stopping at a point which is both - Act No. 2457 was enacted. It states that “E. Merritt is hereby
convenient for her to do so and which is not a hazard to other authorized to bring suit in the Court of First Instance of the city
motorists. She is not expected to run the entire boulevard in of Manila against the Government of the Philippine Islands in
search for a parking zone or turn on a dark street or alley order to fix the responsibility for the collision between his
where she would likely find no one to help her. motorcycle and the ambulance of the General Hospital, and to
- Negligence, as it is commonly understood is conduct which determine the amount of the damages, if any, to which Mr. E.
creates an undue risk of harm to others. It is the failure to Merritt is entitled on account of said collision, and the Attorney-
observe that degree of care, precaution, and vigilance which General of the Philippine Islands is hereby authorized and
the circumstances justly demand, whereby such other person directed to appear at the trial on the behalf of the Government
suffers injury. of said Islands, to defendant said Government at the same.”
3. YES
- Since important business transactions and decisions may ISSUES
occur at all hours in all sorts of situations and under all kinds of WON the government is liable for the damages resulting from a
guises, the provision for the unlimited use of a company car tort committed by an agent or employee of the government
therefore principally serves the business and goodwill of a
company and only incidentally the private purposes of the HELD
individual who actually uses the car, the managerial employee NO
or company sales agent. As such, in providing for a company Ratio The State is only liable for the acts of its agents, officers
car for business use and/or for the purpose of furthering the and employees when they act as special agents within the
company's image, a company owes a responsibility to the meaning of paragraph 5 of article 1903.
public to see to it that the managerial or other employees to Reasoning
whom it entrusts virtually unlimited use of a company issued - In the United States the rule is that the state is not liable for
car are able to use the company issue capably and the torts committed by its officers or agents whom it employs,
responsibly. except when expressly made so by legislative enactment. The
- In fine, Alexander Commercial, inc. has not demonstrated, to Government does not undertake to guarantee to any person
our satisfaction, that it exercised the care and diligence of a the fidelity of the officers or agents whom it employs, since that
good father of the family in entrusting its company car to Li. No would involve it in all its operations in endless
allegations were made as to whether or not the company took embarrassments, difficulties and losses, which would be
the steps necessary to determine or ascertain the driving subversive of the public interest.
proficiency and history of Li, to whom it gave full and unlimited - As to the scope of legislative enactments permitting
use of a company car. Not having been able to overcome the individuals to sue the state where the cause of action arises
burden of demonstrating that it should be absolved of liability out of either fort or contract, the rule is stated in 36 Cyc., 915,
for entrusting its company car to Li, said company, based on thus:
the principle of bonus pater familias, ought to be jointly and By consenting to be sued a state simply waives its
severally liable with the former for the injuries sustained by Ma. immunity from suit. It does not thereby concede its liability
Lourdes Valenzuela during the accident. to plaintiff, or create any cause of action in his favor, or
DISPOSITION Judgment of RTC reinstated. extend its liability to any cause not previously recognized.
It merely gives a remedy to enforce a preexisting liability
and submits itself to the jurisdiction of the court, subject to
6. STATE its right to interpose any lawful defense.
- Paragraph 5 of article 1903 of the Civil Code reads:
The state is liable in this sense when it acts through a
MERRITT v GOVERNMENT
special agent, but not when the damage should have been
34 Phil 311 TRENT; March 31, 1916
caused by the official to whom properly it pertained to do
the act performed, in which case the provisions of the
NATURE: Appeal from decision of the CFI
preceding article shall be applicable.
FACTS
- The obligation to indemnify for damages which a third person
- E. Merritt, riding on a motorcycle, was hit by the General
causes to another by his fault or negligence is based, as is
Hospital ambulance, which turned suddenly and unexpectedly
evidenced by the same Law 3, Title 15, Partida 7, on that the
to Taft Avenue without sounding any whistle or horn, in
person obligated, by his own fault or negligence, takes part in
contravention of an ordinance and the Motor Vehicle Act.
the act or omission of the third party who caused the damage.
- Plaintiff was so severely injured. His leg showed a
It follows therefrom that the state, by virtue of such provisions
contraction of an inch and a half and a curvature that made his
of law, is not responsible for the damages suffered by private
leg very weak and painful at the point of the fracture.
individuals in consequence of acts performed by its employees
Examination of his head revealed a notable readjustment of the
in the discharge of the functions pertaining to their office,
functions of the brain and nerves. The patient apparently was
because neither fault nor even negligence can be presumed on
slightly deaf, had a light weakness in his eyes and in his mental
the part of the state in the organization of branches of public On the computation of damages
service and in the appointment of its agents; on the contrary, The two items which constitute a part of the P14,741 and which
we must presuppose all foresight humanly possible on its part are drawn in question by the plaintiff are (a) P5,000, the award
in order that each branch of service serves the general weal an awarded for permanent injuries, and (b) the P2,666, the
that of private persons interested in its operation. Between amount allowed for the loss of wages during the time the
these latter and the state, therefore, no relations of a private plaintiff was incapacitated from pursuing his occupation. We
nature governed by the civil law can arise except in a case find nothing in the record which would justify us in increasing
where the state acts as a judicial person capable of acquiring the amount of the first. As to the second, the record shows,
rights and contracting obligations. and the trial court so found, that the plaintiff's services as a
- The Civil Code in chap 2, title 16, book 4, regulates the contractor were worth P1,000 per month. The court, however,
obligations which arise out of fault or negligence; and whereas limited the time to 2months and 21 days, which the plaintiff was
in the first article thereof. No. 1902, where the general principle actually confined in the hospital. In this we think there was
is laid down that where a person who by an act or omission error, because it was clearly established that the plaintiff was
causes damage to another through fault or negligence, shall be wholly incapacitated for a period of 6 months. The mere fact
obliged to repair the damage so done, reference is made to that he remained in the hospital only 2 months and 21 days
acts or omissions of the persons who directly or indirectly while the remainder of the 6 months was spent in his home,
cause the damage, the following articles refers to this persons would not prevent recovery for the whole time. We, therefore,
and imposes an identical obligation upon those who maintain find that the amount of damages sustained by the plaintiff,
fixed relations of authority and superiority over the authors of without any fault on his part, is P18,075.
the damage, because the law presumes that in consequence Dispositive Judgment appealed from reversed. Whether the
of such relations the evil caused by their own fault or Government intends to make itself legally liable for the amount
negligence is imputable to them. This legal presumption gives of damages above set forth, which the plaintiff has sustained
way to proof, however, because, as held in the last paragraph by reason of the negligent acts of one of its employees, by
of article 1903, responsibility for acts of third persons ceases legislative enactment and by appropriating sufficient funds
when the persons mentioned in said article prove that they therefor, we are not called upon to determine. This matter rests
employed all the diligence of a good father of a family to avoid solely with the Legislature and not with the courts.
the damage, and among these persons, called upon to answer
in a direct and not a subsidiary manner, are found, in addition
to the mother or the father in a proper case, guardians and ROSETE v AUDITOR GENERAL
owners or directors of an establishment or enterprise, the state, 81 Phil 453 FERIA; August 31, 1948
but not always, except when it acts through the agency of a
special agent, doubtless because and only in this case, the NATURE: Appeal from the decision of the Insular Auditor
fault or negligence, which is the original basis of this kind of FACTS
objections, must be presumed to lie with the state. - Jose Panlilio ignited his lighter near a drum into which
- Although in some cases the state might by virtue of the gasoline was being drained causing fire in the warehouse of
general principle set forth in article 1902 respond for all the Emergency Control Administration (ECA, a government
damage that is occasioned to private parties by orders or agency).
resolutions which by fault or negligence are made by branches - The fire destroyed the building owned by the petitioner,
of the central administration acting in the name and thereby giving rise to this claim for damages against Panlilio for
representation of the state itself and as an external expression his negligence and the officers of ECA for storing gasoline in
of its sovereignty in the exercise of its executive powers, yet said warehouse contrary to the provisions of ordinances of the
said article is not applicable in the case of damages said to City of Manila (ordinance requires a license for storing
have been occasioned to the petitioners by an executive flammable substances, which ECA didn’t have).
official, acting in the exercise of his powers, in proceedings to - Insular Auditor dismissed the claim hence this appeal.
enforce the collections of certain property taxes owing by the
owner of the property which they hold in sublease. ISSUE
- The responsibility of the state is limited by article 1903 to the WON the government is liable for the damages
case wherein it acts through a special agent (one who receives
a definite and fixed order or commission, foreign to the HELD: NO
exercise of the duties of his office if he is a special official) so - Art. 1903 of the Civil Code reads:
that in representation of the state and being bound to act as an “Art. 1903. The obligation imposed in the preceding
agent thereof, he executes the trust confided to him. This article is enforceable not only for personal acts and
concept does not apply to any executive agent who is an omission but also for those persons for whom another
employee of the acting administration and who on his own is responsible.
responsibility performs the functions which are inherent in and xx
naturally pertain to his office and which are regulated by law “The state is liable in this sense when it acts through a
and the regulations. special agent, but not when the damage should have
- The responsibility of the state is limited to that which it been caused by the official to whom it properly
contracts through a special agent, duly empowered by a pertained to do the act performed, in which case the
definite order or commission to perform some act or charged provisions of the preceding article shall be applicable.”
with some definite purpose which gives rise to the claim, and
not where the claim is based on acts or omissions imputable to - In the case of Merritt v. Government, the court held the
a public official charged with some administrative or technical following:
office who can be held to the proper responsibility in the “ ’… The state is not responsible for the
manner laid down by the law of civil responsibility. damage suffered by private individuals in
- The chauffeur of the ambulance of the General Hospital was consequence of acts performed by its employees in
not such an agent within the meaning of paragraph 5 of article the discharge of the functions pertaining to their
1903 office… n relations of a private nature governed by
the civil law can arise except in a case where the
state acts as a juridical person capable of acquiring injuries suffered by private
rights and contracting obligations.’ individuals in the administration of strictly governmental
xx functions, like immunity is enjoyed by the municipality in
“ ‘That the responsibility of the state is limited the performance of the same duties, unless it is
by article 1903 to the case wherein it acts through a expressly made liable by statute.
special agent (and a special agent, in the sense in  A municipality is not exempt from liability for the
which these words are employed, is one who receives negligent performance of its corporate or proprietary or
a definite and fixed order by the commission, foreign business functions. In the administration of its
to the exercise of duties of his office if he is a special patrimonial property, it is to be regarded as a private
official) so that in representation of the state and corporation or individual so far as its liability to third
being bound to act as an agent thereof, he executes persons on contract or in tort is concerned. Its
the trust confided to him. contracts, validly entered into, may be enforced and
damages may be collected from it for the
- There being no showing that whatever negligence may be torts of its officers or agents within the scope of their
imputed to the ECA or its officers, was done by a special employment in precisely the
agent, because the officers of the ECA did not act as special same manner and to the same extent as those of private
agents of the government within the above defined meaning of corporations or individuals. As to such matters the
that wod in Article 1903 of the Civil Code in storing gasoline in principles of respondeat superior applies. It is for these
the warehouse of ECA, the government is not responsible for purposes that the municipality is made liable to suits in the
damages caused through such negligence. courts.
- Although there is an act (Act No. 327) authorizing the filing of  The leasing of a municipal ferry to the highest bidder
claims against the government with the Insular Auditor, and for a specified period of time is not a governmental but
appeal by private persons or entities from the latter’s decision a corporate function. Such a lease, when validly entered
to the Supreme Court, it does not make any and all claims into, constitutes a contract with the lessee which the
against the government allowable, and the latter responsible municipality is bound to respect.
for all claims.  It cannot be said that in rescinding the contract with the
DISPOSITION Decision appealed from is affirmed. plaintiff, thereby making the municipality liable to an
action for damages for no valid reason at all, the
defendant councilors were honestly acting for the
MENDOZA V. DE LEON interests of the municipality. The defendants are liable
G.R. L-9596 Trent Feb. 11, 1916 jointly and severally for the damages sustained by the
plaintiff from the rescission of his contract of lease of the
FACTS ferry privilege in question.
 Plaintiff was the grantee of an exclusive lease privilege
under Act No. 1643 of the Philippine Commission. After
a little over one year, plaintiff was forcibly ejected FONTANILLA V MALIAMAN and NATIONAL IRRIGATION
under and pursuant to a resolution adopted by the ADMINSITRATION 194 SCRA 486 PARAS; Feb 27, 1991
defendants-members of the municipal council of
Villasis, Pangasinan. NATURE: Resolution
 Thus, plaintiff brought action against such individual FACTS
members for damages. Act No. 1643 provides that the - The National Irrigation Administration (NIA) maintains that
use of each fishery, fish-breeding ground, ferry, stable, it does not perform solely and primarily proprietary
market, and slaughterhouse belonging to any municipality functions, but is an agency of the government tasked with
or township shall be let to the highest bidder annually or governmental functions, and is therefore not liable for the
for such longer period not exceeding five years as tortuous act of its driver Garcia, who was not its special
may have been previously approved by the provincial agent.
board of the province in which the municipality or o NIA believes this bases this on:
township is located.  PD 552 – amended some provisions
of RA 3601 (the law which created the NIA)
ISSUE:  The case of Angat River Irrigation
W/N the municipality is liable for acts of its officers or System v. Angat River Workers’ Union
agents in the performance of governmental functions. - Angat Case: Although the majority opinion declares that
the Angat System, like the NIA, exercised a governmental
HOLDING & RATIO DECIDENDI function because the nature of its powers and functions
 It depends. In this case, it is not liable. does not show that it was intended to “bring to the
 When the acts of its officers come within the powers Government any special corporate benefit or pecuniary
which it has as agent of the state, it is exempt from profit”, a strong dissenting opinion held that Angat River
liability for its own acts and the acts of its officers; if the system is a government entity exercising proprietary
acts of the officer or agent of the city are for the special functions.
benefits of the corporation in its private or corporate - The Angat dissenting opinion:
interest, such officer is deemed the agent or servant of the - Alegre protested the announced termination of his
city, but where the act is not in relation to a private employment. He argued that although his contract did
or corporate interest of the stipulate that the same would terminate on July 17, 1976,
municipality, but for the benefit of the public at large, since his services were necessary and desirable in the
such acts by the agents and usual business of his employer, and his employment had
servants are deemed to be acts by public or state officers, lasted for five years, he had acquired the status of regular
and for the public benefit. Governmental affairs do not employee and could not be removed except for valid
lose their governmental character by being delegated to cause.
the municipal governments. The state being immune for -
- The employment contract of 1971 was executed when the of the above powers and objectives, including the power to
Labor Code of the Philippines had not yet been establish and maintain subsidiaries, and in general, to exercise
promulgated, which came into effect some 3 years after all the powers of a corporation under the Corporation Law,
the perfection of the contract. insofar as they are not inconsistent with the provisions of this
Act.
ISSUE DISPOSITION We conclude that the National Irrigation
WON the NIR is a government agency with a juridical Administration is a government agency with a juridical
personality separate and distinct from the government, thereby personality separate and distinct from the government. It is not
opening it up to the possibility that it may be held liable for the a mere agency of the government but a corporate body
damages caused by its driver, who was not its special agent performing proprietary functions. Therefore, it may be held
liable for the damages caused by the negligent act of its driver
HELD YES who was not its special agent.
Reasoning the functions of government have been classified ACCORDINGLY, the Motion for Reconsideration dated
into governmental or constituent and proprietary or ministrant. January 26, 1990 is DENIED WITH FINALITY. The decision of
The former involves the exercise of sovereignty and this Court in G.R. No. 55963 and G.R. No. 61045 dated
considered as compulsory; the latter connotes merely the December 1, 1989 is hereby AFFIRMED.
exercise of proprietary functions and thus considered as
optional. DISSENTING: PADILLA: to say that NIA has opened itself to
suit is one thing; to say that it is liable for damages arising from
The National Irrigation Administration was not created for tort committed by its employees, is still another thing.
purposes of local government. While it may be true that the The state or a government agency performing governmental
NIA was essentially a service agency of the government aimed functions may be held liable for tort committed by its
at promoting public interest and public welfare, such fact does employees only when it acts through a special agent.
not make the NIA essentially and purely a "government-
function" corporation. NIA was created for the purpose of
"constructing, improving, rehabilitating, and administering all Art. 2189, CC. Provinces, cities and municipalities shall be
national irrigation systems in the Philippines, including all liable for damages for the death of, or injuries suffered by, any
communal and pump irrigation projects." Certainly, the state person by reason of the defective condition of roads, streets,
and the community as a whole are largely benefited by the bridges, public buildings, and other public works under their
services the agency renders, but these functions are only control or supervision. (n)
incidental to the principal aim of the agency, which is the
irrigation of lands.
NIA is a government agency invested with a corporate CITY OF MANILA V TEOTICA
personality separate and distinct from the government, thus is 22 SCRA 267 CONCEPCION; January 29, 1968
governed by the Corporation Law. Section 1 of Republic Act
No. 3601 provides: NATURE: Appeal by certiorari from a decision of the Court of
Sec. 1. Name and Domicile — A body corporate is hereby Appeals.
created which shall be known as the National Irrigation FACTS
Administration. . . . which shall be organized immediately after - Genaro N. Teotico, an accountant, was at the corner of the
the approval of this Act. It shall have its principal seat of Old Luneta and P. Burgos Avenue, Manila, waiting for a jeep.
business in the City of Manila and shall have representatives in After waiting 5 mins, he hailed a jeep that came to a stop. As
all provinces, for the proper conduct of its business. (Emphasis he stepped down from the curb to board the jeep, and took a
for emphasis). few steps, he fell inside a manhole on P. Burgos Avenue. Due
Besides, Section 2, subsection b of P.D. 552 provides that: to the fall, his head hit the rim of the manhole breaking his
(b) To charge and collect from the beneficiaries of the water eyeglasses and causing broken pieces thereof to pierce his left
from all irrigation systems constructed by or under its eyelid. As blood flowed therefrom, impairing his vision, several
administration, such fees or administration charges as may be persons came to his assistance and pulled him out of the
necessary to cover the cost of operation, maintenance and manhole. One of them brought Teotico to the Philippine
insurance, and to recover the cost of construction within a General Hospital, where his injuries were treated, after which
reasonable period of time to the extent consistent with he was taken home. In addition to the lacerated wound in his
government policy; to recover funds or portions thereof left upper eyelid, Teotico suffered contusions on the left thigh,
expended for the construction and/or rehabilitation of the left upper arm, the right leg and the upper lip apart from an
communal irrigation systems which funds shall accrue to a abrasion on the right infra-patella region. These injuries and
special fund for irrigation development under section 2 hereof; the allergic eruption caused by anti-tetanus injections
Unpaid irrigation fees or administration charges shall be administered to him in the hospital, required further medical
preferred liens first, upon the land benefited, and then on the treatment by a private practitioner.
crops raised thereon, which liens shall have preference over all - Teotico filed with CFI Manila, a complaint which was,
other liens except for taxes on the land, and such preferred subsequently, amended for damages against the City of
liens shall not be removed until all fees or administration Manila, its mayor, city engineer, city health officer, city
charges are paid or the property is levied upon and sold by the treasurer and chief of police.
National Irrigation Administration for the satisfaction thereof. . . - Defense pointed out that because of the lucrative scrap iron
. business then prevailing, stealing of iron catchbasin covers
The same section also provides that NIA may sue and be sued was rampant; that the Office of the City Engineer has filed
in court. complaints in court resulting from theft of said iron covers; that
It has its own assets and liabilities. It also has corporate in order to prevent such thefts, the city government has
powers to be exercised by a Board of Directors. Section 2, changed the position and layout of catchbasins in the City by
subsection (f): constructing them under the sidewalks with concrete cement
(f) . . . and to transact such business, as are directly or covers and openings on the side of the gutter; and that these
indirectly necessary, incidental or conducive to the attainment changes had been undertaken by the city from time to time
whenever funds were available. REPUBLIC vs PALACIO
- CFI Manila sustained the theory of the defendants and 23 SCRA 899 REYES, J.B.L., J.: May 29, 1968
dismissed the amended complaint, without costs.
- This decision was affirmed by the Court of Appeals, except FACTS:
insofar as the City of Manila is concerned, which was Ortiz instituted action against Handong Irrigation Association to
sentenced to pay damages in the aggregate sum of recover possession of land which HIA allegedly entered and
P6,750.00. Hence, this appeal by the City of Manila. occupied at the inducement of Irrigation Service Unit, an
- The first issue raised by the Manila is whether the present agency under the Dept. of Public Works and Communications.
case is governed by Section 4 of RA 409 (Charter of the City of A writ of execution and order of garnishment was served
Manila) reading: against the deposits and trust funds of ISU to pay for the
The city shall not be liable or held for damages or damages to Ortiz .CA upheld on the basis that ISU is engaged
injuries to persons or property arising from the failure of the in the private business of purchase and sale of irrigationpumps.
Mayor, the Municipal Board, or any other city officer, to enforce
the provisions of this chapter, or any other law or ordinance, or ISSUE:
from negligence of said Mayor, Municipal Board, or other WON State or its fund can be made liable for damages
officers while enforcing or attempting to enforce said
provisions. HELD : NO
or by Article 2189 of the Civil Code of the Philippines
which provides: RATIO:
Provinces, cities and municipalities shall be liable for The ISU liability in inducing HIA to invade and occupy land of
damages for the death of, or injuries suffered by, any person Ortiz arose from torts and not from contract.It is a well-
by reason of defective conditions of road, streets, bridges, entrenched rule in this jurisdiction that embodied in Art 2180 of
public buildings, and other public works under their control or CC that the State is only liable for tortscaused by its special
supervision. agents especially commissioned to carry out the acts
- Manila maintains that the former provision should prevail over complained of outside of such agent’s regular duties.There
the latter, because RA 409, is a special law, intended being no proof that the making of the tortuous inducement was
exclusively for the City of Manila, whereas the Civil Code is a authorized, neither the state nor its fundscan be made
general law, applicable to the entire Philippines. liable.Other issues:Even if the liability of the state had been
judicially ascertained, the state is at liberty to determine for
ISSUES itself whether to paythe judgment or not. Thus execution
WON City of Manila should be held liable for the damages cannot issue on a judgment against the state.
suffered by Teotica.

HELD
YES.
Ratio RA 409,sec.4 refers to liability arising from negligence, in
general, regardless of the object thereof, whereas Article 2189,
CC governs liability due to "defective streets," in particular.
Since the present action is based upon the alleged defective
condition of a road, said Article 2189 is decisive thereon.

Reasoning The assertion to the effect that said Avenue is a


national highway was made, for the first time, in its motion for
reconsideration of the decision of the Court of Appeals. At any
rate, under Article 2189 of the Civil Code, it is not necessary for
the liability therein established to attach that the defective
roads or streets belong to the province, city or municipality
from which responsibility is exacted. What said article requires
is that the province, city or municipality have either "control or
supervision" over said street or road. Even if P. Burgos Avenue
were, therefore, a national highway, this circumstance would
not necessarily detract from its "control or supervision" by the
City of Manila, under Republic Act 409.
Then, again, the determination of whether or not P. Burgos
Avenue is under the control or supervision of the City of Manila
and whether the latter is guilty of negligence, in connection with
the maintenance of said road, which were decided by the Court
of Appeals in the affirmative, is one of fact, and the findings of
said Court thereon are not subject to our review.

Dispositive WHEREFORE, the decision appealed from should


be as it is hereby affirmed, with costs against the City of
Manila.

Voting Reyes, J.B.L., Dizon, Makalintal, Bengzon, J.P.,


Zaldivar, Sanchez, Castro, Angeles and Fernando, JJ., concur.

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