Professional Documents
Culture Documents
L-10659
January 31, 1958
Facts:
SabasTorralba was employed as a truck driver of the provincial
government of Ilocos Norte. While driving his truck in the course of his
work at the construction of a road, he ran over Proceto Palafox,
resulting to the latter’s death. Sabas was prosecuted for homicide
through reckless imprudence to which he pleaded guilty. The heirs of
Palafox instituted a civil case againstTorralba, together with the
Province of Ilocos Norte, District Engineer, Provincial Treasurer and
SabasTorralba. The trial court dismissed the complaint.
ISSUE: Whether or not the Province of Ilocos Norte may be held liable
for the negligent act of its employee under Article 2180 of the New
Civil Code.
RULING: NO.
The Supreme Court in affirming the trial court's dismissal of
the complaint for damages held that the province could not be made
liable because its employee was in the performance of a
governmental function — the construction and maintenance of roads
— and however tragic and deplorable it may be, the death of Palafox
imposed on the province no duty to pay monetary consideration.
THE UNITED STATES,Plaintiff-Appellee, vs. JUAN testified that she did not see the knife until the second blow was
CABILING,Defendant-Appellant. struck.
However, in the case at bar it was proven that at the time of
The defendant was charged in the court below with the murder the offense, Cabiling was 17. The penalty above mentioned for the
of Clarence T. Allen on the 22d of November, 1905. He was convicted crime of murder is, by the terms of the Penal Code, inflicted only upon
of that crime and sentenced to life imprisonment. From this judgment those persons who are more than 18 years old. By the provisions of
he appealed. article 85 of the said code, if the defendant is more that 15 years and
Juan Cabiling, was a student of the Government school at less than 18 years of age, the penalty provided in article 403 cannot
Ormoc, and the deceased was the principal of said school. On the be inflicted, but in its place there must be inflicted the penalty
morning of November 22, 1905, a normal school was opened at immediately inferior to the one indicated by that article.
Ormoc for the training of teachers from the various towns on the As to the aggravating circumstance, we agree with the
western coast of Leyte. Mr. Allen was authorized to select from the Attorney-General that circumstance 20 of article 10 was proven which
students those who were to be promoted to said school. Cabiling was provide that:
one of those who desired to attend said school, and inquired of Mrs. “When the act is committed with insult or in disregard for the
Allen if he was not going to be in said normal class, and upon being respect which may be due the aggrieved party on account of his rank,
answered 'no' he stated that he was not satisfied. Mrs. Allen then said age, or sex, or when it is committed in his dwelling, if he has not given
that she would go to talk with Mr. Allen and have him settle the matter. provocation.”
Thereafter, Mr. Allen said to defendant: "What is the matter It is applicable to this case because the person attacked was
with you this morning, Juan? If you are not satisfied here you may go the teacher and the person attacking was the pupil. There being one
away." The defendant upon hearing these words,stabbed him in the aggravating circumstance and no extenuating circumstance, the
stomach; the deceased pushed him back then the defendant gave penalty must according to the law, be imposed in the maximum
deceased a second blow in the same place, whereupon the deceased degree.
caught the defendant by the right hand wherein he had the knife, and The judgment of the court below is modified by imposing
by the neck. At this stage of the struggle the lieutenant of the instead of life imprisonment the penalty of fourteen years eight
municipal police arrived and pointing his revolver at the defendant, months and one day of cadena temporal, and the payment of 1,000
separated them and took the knife away from the defendant. pesos to the heirs of the deceased as indemnity.
The Attorney-General is of the opinion that in order to raise the
guilt of a person to the grade of murder it is necessary that there is
treachery, which the Attorney General stated that there is none in this
case.
ISSUE:
Whether the crime committed was that of homicide or murder.
RULING:
With this conclusion we cannot agree. Among the circumstances
which qualify the act, there is mentioned in article 403 "treachery" (
alevosia). The killing was done with a pocketknife. It is very apparent
that Allen did not know that the defendant had this knife in his
possession; in fact, Mrs. Allen, who was standing near her husband,
MARCELA M. BAGAJO vs.THE HONORABLE GERONIMO R. In other words, under the foregoing Civil Code and
MARAVE, Presiding Judge of the Court of First Instance of administrative injunctions, no teacher may impose corporal
Misamis Occidental, Branch 11, and THE PEOPLE OF THE punishment upon any student in any case. But we are not concerned
PHILIPPINES (1978) in this appeal with the possible administrative liability of petitioner.
Neither are we called upon here to pass on her civil liability other than
Facts: Petitioner who was a teacher, left her classroom to go to the what could be ex-delicto, arising from her conviction, if that should be
principal's office. Complainant Wilma Alcantara tripped her classmate the outcome hereof.
while petitioner is out of the classroom. At that precise moment, The sole question for Our resolution in this appeal relates
petitioner was entering the room. She asked Wilma what happened exclusively to her criminal responsibility for the alleged crime of slight
but the latter denied having anything to do with what had just taken physical injuries as defined in Article 266, paragraph 2, of the Revised
place. Petitioner thereupon became angry and, with a piece of Penal Code, pursuant to which she was prosecuted and convicted in
"bamboo stick" which she was using as a pointer whipped Wilma the courts below.
behind her legs and her thigh, thereby causing the bruises to her legs. In this respect, it is Our considered opinion, and so We Hold
that as a matter of law, petitioner did not incur any criminal liability for
CFI: Petitioner is liable for the crime of slight physical her act of whipping her pupil, Wilma, with the bamboo-stick-pointer, in
injuries.Petitioner maintains that as the teacher, she was just trying to the circumstances proven in the record. Independently of any civil or
discipline her pupil Wilma for tripping her classmate and for denying administrative responsibility for such act she might be found to have
that she did so. She contends she was not actuated by any criminal incurred by the proper authorities, We are persuaded that she did
intent. not do what she had done with criminal intent. That she meant to
punish Wilma and somehow make her feel such punishment may be
Issue: Whether Bagajo is liable for the crime of slight physical injuries. true, but We are convinced that the means she actually used was
moderate and that she was not motivated by ill-will, hatred or any
Held: No. Petitioner is hereby acquitted, without prejudice to her being malevolent intent. The nature of the injuries actually suffered by
dealt with administratively or in a civil case for damages not resulting Wilma, a few linear bruises (at most 4 inches long and ¼ cm. wide)
ex delicto. and the fact that petitioner whipped her only behind the legs and
In the school premises and during school activities and affairs, thigh, show, to Our mind, that indeed she intended merely to
the teacher exercises substitute parental authority over the students. discipline her. And it cannot be said, that Wilma did not deserve to be
(Article 349, Civil Code.) More specifically, according to Article 352, discipline. In other words, it was farthest from the thought of petitioner
"The relations between teacher and pupil, professor and student, are to commit any criminal offense. Actus non facit reum, nisi mens sit
fixed by government regulations and those of each school or rea.Nothing said above is intended to mean that this Court sanctions
institution. In no case shall corporal punishment be countenanced. generally the use of corporal punishment by teachers on their pupils.
The teacher or professor shall cultivate the best potentialities of the All that We hold here is that in the peculiar circumstances of the
heart and mind of the pupil or student." And pursuant to this provision, instant case before Us, there is no indication beyond reasonable
Section 150 of the Bureau of Public Schools Service Manual enjoins: doubt, in the evidence before the trial court, that petitioner was
The use of corporal punishment by teachers (slapping, jerking, or actuated by a criminal design to inflict the injuries suffered by
pushing pupils about), imposing manual work or degrading tasks as complainant as a result of her being whipped by petitioner. What
penalty, meting out cruel and unusual punishments of any nature, appears is that petitioner acted as she did in the belief as a teacher
reducing scholarship rating for bad conduct, holding up a pupil to exercising authority over her pupil in loco parentis, she was
unnecessary ridicule, the use of epithets and expressions tending to within her rights to punish her moderately for purposes of
destroy the pupil's self-respect, and the permanent confiscation of discipline.
personal effects of pupils are forbidden.
Felina Rosaldes v. People of the Philippines Article 233. The person exercising substitute parental authority
G.R. No. 173988, October 8, 2014 shall have the same authority over the person of the child as
the parents.
FACTS: Seven year old Michael Ryan Gonzales, then a Grade 1 In no case shall the school administrator, teacher or individual
pupil, was hurriedly entering his classroom when he accidentally engaged in child care exercising special parental authority
bumped the knee of his teacher, herein petitioner, who was then inflict corporal punishment upon the child. (n)
asleep on a bamboo sofa. Petitioner asked Michael to apologize, the
latter, however, proceeded instead to his seat. Petitioner then pinched Section 3 of RepublicAct No. 7610 defines child abuse thusly:
Michael on his thigh, held him up by his armpits and pushed him to xxxx
the floor causing him to hit a desk and, consequently, losing his (b) "Child abuse" refers to the maltreatment, whether habitual
consciousness. Petitioner proceeded to pick Michael by his ears and or not, of the child which includes any of the following:
repeatedly slammed him down on the floor. (1) Psychological and physical abuse, neglect, cruelty, sexual
abuse and emotional maltreatment;
The petitioner contends that she did not deliberately inflict the (2) Any act by deeds or words which debases, degrades or
physical injuries suffered by Michael Ryan to maltreat or malign him in demeans the intrinsic worth and dignity of a child as a human
a manner that would debase, demean or degrade his dignity. She being;
characterizes her maltreatment as an act of discipline that she as a (3) Unreasonable deprivation of his basic needs for survival,
school teacher could reasonably do towards the development of the such as food and shelter; or
child. She insists that her act further came under the doctrine of in (4) Failure to immediately give medical treatment to an injured
loco parentis (in the place of the parent; refers to the legal child resulting in serious impairment of his growth and
responsibility of a person or organization to take on some of the development or in his permanent incapacity or death.
functions and responsibilities of a parent.). xxxx
Ruling: Although we affirm the factual findings of fact by the RTC and
the CA to the effect that the petitioner struck Jayson at the back with
his hand and slapped Jayson on the face, we disagree with their
holding that his acts constituted child abuse within the purview of the
above-quoted provisions. The records did not establish beyond
reasonable doubt that his laying of hands on Jayson had been
intended to debase the "intrinsic worth and dignity" of Jayson as a
human being, or that he had thereby intended to humiliate or
embarrass Jayson. The records showed the laying of hands on
Jayson to have been done at the spur of the moment and in anger,
indicative of his being then overwhelmed by his fatherly concern for
the personal safety of his own minor daughters who had just suffered
harm at the hands of Jayson and Roldan. With the loss of his self-
control, he lacked that specific intent to debase, degrade or demean
the intrinsic worth and dignity of a child as a human being that was so
essential in the crime of child abuse.
Respondents, in turn, filed a Third-Party Complaint against Galaxy 3) Quasi-delict – vicarious liability between Galaxy Agency and
Dvpt and Mgt Corp. (Galaxy), the agency contracted by FEU to security guard Rosete
provide security services within its premises and Mariano D. Imperial
(Imperial), Galaxy's President, to indemnify them for whatever would Quasi-delict – but SC held that there is no vicarious liability
be adjudged in favor of petitioner, if any; and to pay attorney's fees between FEU and Rosete
and cost of the suit. On the other hand, Galaxy and Imperial filed a
Quasi-delict – damage to FEU due to the negligence of Galaxy
Fourth-Party Complaint against AFP General Insurance.
Agency in supplying FEU with an unqualified guard (Imperial, the
Trial court ruled in favor of Saludaga: president of Galaxy is solidarily liable with the agency)
1. FEU and Edilberto de Jesus, in his capacity as president of FEU to Breach of Contract
pay jointly and severally Joseph Saludaga the amount of P35,298.25
It is undisputed that Saludaga was enrolled as a sophomore law
for actual damages with 12% interest per annum from the filing of the
student in FEU. As such, there was created a contractual obligation
complaint until fully paid; moral damages xxx, exemplary damages xx,
between the two parties. On Saludaga's part, he was obliged to
attorney's fees xx and cost of the suit;
comply with the rules and regulations of the school. On the other
2. Galaxy Corp. and its president, Col. Mariano Imperial to indemnify hand, FEU, as a learning institution is mandated to impart knowledge
jointly and severally 3rd party plaintiffs (FEU and Edilberto de Jesus in and equip its students with the necessary skills to pursue higher
his capacity as President of FEU) for the above-mentioned amounts; education or a profession. At the same time, it is obliged to ensure
and take adequate steps to maintain peace and order within the
3. And the 4th party complaint (against the insurance company) is campus.
dismissed for lack of cause of action. No pronouncement as to costs.
It is settled that in culpa contractual, the mere proof of the Article 1170 of the Civil Code provides that those who are negligent in
existence of the contract and the failure of its compliance justify, prima the performance of their obligations are liable for damages.
facie, a corresponding right of relief. In the instant case when
Saludaga was shot inside the campus by no less the security guard Accordingly, for breach of contract due to negligence in
who was hired to maintain peace and secure the premises, there is a providing a safe learning environment, respondent FEU is liable to
prima facie showing that FEU failed to comply with its obligation to petitioner for damages.
provide a safe and secure environment to its students. President of FEU (De Jesus) is not liable
In order to avoid liability, however, FEU alleged that the SC noted that the trial court held respondent De Jesus solidarily liable
shooting incident was a fortuitous event because they could not have with respondent FEU. In Powton Conglomerate, Inc. v. Agcolicol, SC
reasonably foreseen nor avoided the accident caused by Rosete as held that:
he was not their employee; and that they complied with their
obligation to ensure a safe learning environment for their students by ... Personal liability of a corporate director, trustee or officer along
having exercised due diligence in selecting the security services of (although not necessarily) with the corporation may so validly attach,
Galaxy. as a rule, only when - (1) he assents to a patently unlawful act of the
corporation, or when he is guilty of bad faith or gross negligence in
After a thorough review of the records, the SC found that FEU directing its affairs, or when there is a conflict of interest resulting in
failed to discharge the burden of proving that they exercised due damages to the corporation, its stockholders or other persons; (2) he
diligence in providing a safe learning environment for their students. consents to the issuance of watered down stocks or who, having
They failed to prove that they ensured that the guards assigned in the
knowledge thereof, does not forthwith file with the corporate secretary
campus met the requirements stipulated in the Security Service his written objection thereto; (3) he agrees to hold himself personally
Agreement. Certain documents about Galaxy were presented during and solidarily liable with the corporation; or (4) he is made by a
trial; however, no evidence as to the qualifications of Rosete as a specific provision of law personally answerable for his corporate
security guard for the university was offered. FEU also failed to show action.
that they undertook steps to ascertain and confirm that the security
guards assigned to them actually possess the qualifications required None of the foregoing exceptions was established in the instant case;
in the Security Service Agreement. hence, respondent De Jesus should not be held solidarily liable with
respondent FEU.
Consequently, FEU's defense of force majeure must fail. In
order for force majeure to be considered, FEU must show that no Cause of Action of FEU: Quasi Delict
negligence or misconduct was committed that may have occasioned
the loss. An act of God cannot be invoked to protect a person who Incidentally, although the main cause of action in the instant case is
has failed to take steps to forestall the possible adverse the breach of the school-student contract, petitioner, in the alternative,
consequences of such a loss. When the effect is found to be partly the also holds respondents vicariously liable under Article 2180 of the
result of a person's participation - whether by active intervention, Civil Code. However, respondents cannot be held liable for damages
neglect or failure to act - the whole occurrence is humanized and under Art. 2180 of the Civil Code because respondents are not the
removed from the rules applicable to acts of God. employers of Rosete. The latter was employed by Galaxy. The
instructions issued by respondents' Security Consultant to Galaxy and a. respondent Far Eastern University (FEU) is ORDERED to pay
its security guards are ordinarily no more than requests commonly petitioner actual damages in the amount of P35,298.25, plus 6%
envisaged in the contract for services entered into by a principal and a interest per annum from the filing of the complaint until the finality of
security agency. this Decision.After this decision becomes final and executory, the
applicable rate shall be twelve percent (12%) per annum until its
As to the Third Party Claim against Galaxy, evidence duly satisfaction;
supports that Galaxy is negligent not only in the selection of its
employees but also in their supervision. Indeed, no administrative b. respondent FEU is also ORDERED to pay petitioner temperate
sanction was imposed against Rosete despite the shooting incident; damages in the amount of P20,000.00; moral damages in the amount
moreover, he was even allowed to go on leave of absence which led of P100,000.00; and attorneys fees and litigation expenses in the
eventually to his disappearance. Galaxy also failed to monitor amount of P50,000.00;
petitioner's condition or extend the necessary assistance. For these
acts of negligence and for having supplied respondent FEU with an c. the award of exemplary damages is DELETED.
unqualified security guard, which resulted to the latter's breach of The Complaint against respondent Edilberto C. De Jesus is
obligation to petitioner, it is proper to hold Galaxy liable to respondent DISMISSED. The counterclaims of respondents are likewise
FEU for such damages equivalent to the above-mentioned amounts DISMISSED.
awarded to petitioner.
Galaxy Development and Management Corporation (Galaxy) and its
Unlike respondent De Jesus, we deem Imperial to be solidarily president, Mariano D. Imperial are ORDERED to jointly and severally
liable with Galaxy for being grossly negligent in directing the affairs of
pay respondent FEU damages equivalent to the above-mentioned
the security agency. It was Imperial who assured petitioner that his amounts awarded to petitioner.
medical expenses will be shouldered by Galaxy but said
representations were not fulfilled.
Lastly, teachers or heads of establishments of arts and trades shall be liable for
Respondents filed a suit for damages against the petitioner, praying
damages caused by their pupils and students or apprentices, so long as they remain
for P5,000.00 covering the moral damages they allegedly suffered
in their custody.
due to their son's being wounded; and the sum of P3,000.00 as
attorney's fees. Counsel for petitioner argues that since the incident of It would be seem that the clause "so long as they remain in
the inflicting of the wound on respondent occurred in a Catholic
their custody," contemplates a situation where the pupil lives and
School (during recess time), through no fault of the father, petitioner
herein, the teacher or head of the school should be held responsible boards with the teacher, such that the control, direction and influence
instead of the latter. on the pupil supersedes those of the parents. In these circumstances
the control or influence over the conduct and actions of the pupil
would pass from the father and mother to the teacher; and so would
Issues: the responsibility for the torts of the pupil.
1) WON the respondents are entitled to moral damages. Such a situation does not appear in the case at bar; the pupils
appear to go to school during school hours and go back to their
2) WON the school is liable pursuant to Art. 2180 CC.
homes with their parents after school is over. The situation
Ruling: contemplated in the last paragraph of Article 2180 does not apply, nor
does paragraph 2 of said article, which makes father or mother
responsible for the damages caused by their minor children. The
claim of petitioner that responsibility should pass to the school must, when it imposed the moral damages, yet the facts found by said court
therefore, be held to be without merit. indicate that Augusto's resentment, which motivated the assault, was
occasioned by the fact that Manuel, Jr. had tried to intervene in or
We next come to the claim of petitioner that the moral damages fixed interfere with the attempt of Mercado to get "his pitogo from Renato."
at P2,000 are excessive. We note that the wound caused to This is, according to the decision appealed from, the reason why
respondent was inflicted in the course of an ordinary or common fight Mercado was incensed and pushed Quisumbing who, in turn, also
between boys in a grade school. The Court of Appeals fixed the pushed Mercado. It is, therefore, apparent that the proximate
medical expenses incurred in treating and curing the wound at P50. cause of the injury caused to Quisumbing was Quisumbing's
Said court stated that the wound did not even require hospitalization. own fault or negligence for having interfered with Mercado while
Neither was Mercado found guilty of any offense nor the scar in trying to get the pitogo from another boy. (Art. 2179, Civil Code.)
Quisumbing's face pronounced to have caused a deformity, unlike the
case of Araneta, et al. vs. Arreglado, et al., 104 Phil., 529; 55 Off. After considering all the facts as found by the Court of Appeals, we
Gaz. (9) 1561. Petitioner's counsel argues that if death call for P3,000 find that none of the cases mentioned in Article 2219 of the Civil
to P6,000, certainly the incised wound could cause mental pain and Code, which authorizes the grant of moral damages, was shown to
suffering to the tune of P2,000. have existed. Consequently, the grant of moral damages is not
justified.
In the decision of the Court of Appeals, said court pronounces that the
child Quisumbing suffered moral damages "by reason of the wound For the foregoing considerations, the decision appealed from is
inflicted by Augusto Mercado." While moral damages included hereby reversed and the petitioner is declared exempt or free from the
physical suffering, which must have been caused to the wounded boy payment of moral damages. The award of P50 for medical expenses,
Quisumbing (Art. 2217, Civil Code), the decision of the court below however, is hereby affirmed. Without costs.
does not declare that any of the cases specified in Article 2219 of the
Civil Code in which moral damages may be recovered, has attended
or occasioned the physical injury. The only possible circumstance in
the case at bar in which moral damages are recoverable would be if a
criminal offense or a quasi-delict has been committed.
It does not appear that a criminal action for physical injuries was
ever presented. The offender, Augusto Mercado, was nine years
old and it does not appear that he had acted with discernment
when he inflicted the physical injuries on Manuel Quisumbing,
Jr.
At any rate, assuming that he was the teacher-in-charge, there is no Mercado v. Court of Appeals, (which reiterated the Exconde Case) whichexculpated
showing that Dicon was negligent in enforcing discipline upon Daffon the school once more and declared in another obiter (as the school itself had also not
been sued that the school was not liable because it was not an establishment of arts
or that he had waived observance of the rules and regulations of the and trades. Moreover, the custody requirement had not been proved as this
school or condoned their non-observance. His absence when the "contemplates a situation where the student lives and boards with the teacher, such
tragedy happened cannot be considered against him because he was that the control, direction and influences on the pupil supersede those of the parents.”
not supposed or required to report to school on that day. And while it
Palisoc v. Brillantes, which declared that the head of the school and the teacher-in-
is true that the offending student was still in the custody of the charged be held solidarily liable with the wrongdoer - despite of the fact that he was
teacher-in-charge even if the latter was physically absent when the already of age, and was not boarding in the school.
tort was committed, it has not been established that it was caused by
his laxness in enforcing discipline upon the student. On the contrary, The Palisoc case abandoned the pronouncement that the phrase “so long as they
the private respondents have proved that they had exercised due remain in their custody” in Article 2180, does not mean that the student must be
boarding with the school authorities, it does signify that the student should be within
diligence, through the enforcement of the school regulations, in the control and under the influence of the school authorities at the time of the
maintaining that discipline. (BURDEN TO PROVE NEGLIGENCE occurrence of the injury. This does not necessarily mean that such, custody be co-
WAS NOT MET) terminous with the semester, beginning with the start of classes and ending upon the
close thereof, and excluding the time before or after such period, such as the period
of registration, and in the case of graduating students, the period before the
In the absence of a teacher-in-charge, it is probably the dean of boys commencement exercises. The student is in the custody of the school authorities
who should be held liable especially in view of the unrefuted evidence as long as he is under the control and influence of the school and within its
that he had earlier confiscated an unlicensed gun from one of the premises, whether the semester has not yet begun or has already ended.
students and returned the same later to him without taking disciplinary
action or reporting the matter to higher authorities. While this was This very case, on the other hand, abandoned the pronouncements in Exconde and
Mercado, that the last paragraph of Article 2180 applies to all school. There is really
clearly negligence on his part, for which he deserves sanctions from no substantial distinction between the academic and the non-academic schools
the school, it does not necessarily link him to the shooting of Amador insofar as torts committed by their students are concerned. The same vigilance
as it has not been shown that he confiscated and returned pistol was is expected from the teacher over the students under his control and
the gun that killed the petitioners' son. supervision, whatever the nature of the school where he is teaching.
a. Article 2180 of the New Civil Code under which it was sued applies only to
vocational schools and not to academic institutions;
b. That every person criminally liable for a felony is also civilly liable under Article 100
of the Revised Penal Code. Hence, the civil liability in this case arises from a criminal
action which the defendant university has not committed;
c. Since this is a civil case, a demand should have been made by the plaintiff, hence,
it would be premature to bring an action for damages against defendant University.
Besides, the record shows that before the shooting incident, Ungos
ROTC Unit Commandant, AFP, had instructed Abon "not to leave the
office and [to keep the armory] well guarded." Apart from negating a
finding that Abon was under the custody of the school when he
committed the act for which the petitioners are sought to be held
liable, this circumstance shows that Abon was supposed tobe working
in the armory with definite instructions from his superior, the ROTC
Commandant, when he shot Napoleon Castro.
(Petitioners also raise the issue that, under Art. 2180 of the Civil
Code, a school which offers both academic and technical/vocational
courses cannot be held liable for a tort committed by a student
enrolled only in its academic program; however, considering that
Jimmy B. Abon was not in the custody of BCF when he shot Napoleon
Castro, the Court deems it unnecessary to pass upon such other
issue.)
SO ORDERED.
ST. FRANCIS HIGH SCHOOL, as represented by SPS. The obligation imposed by article 2176 is demandable not only for
FERNANDO NANTES AND ROSARIO LACANDULA, BENJAMIN one's own acts or omissions, but also for those of persons for whom
ILUMIN, TIRSO DE CHAVEZ, LUISITO VINAS, CONNIE ARQUIO one is responsible.
AND PATRIA CADIZ vs. THE HONORABLE COURT OF APPEALS,
ELEVENTH DIVISION and DR. ROMULO CASTILLO and LILIA xxx xxx xxx
CADIZ (1991)
Employers shall be liable for the damages caused by their employees
FACTS: Ferdinand Castillo, a freshman student at the St. Francis and household helpers acting within the scope of their assigned tasks,
High School, wanted to join a school picnic. His parents, respondents even though the former are not engaged in any business or industry.
spouses Dr. Romulo Castillo and Lilia Cadiz Castillo, because of short (TAKE NOTE: The provision in Art. 2180 …. Lastly, teachers or heads
notice, did not allow their son to join but merely allowed him to bring of establishments of arts and trades shall be liable for damages
food to the teachers for the picnic, with the directive that he should go caused by their pupils and students or apprentices, so long as they
back home after doing so. However, because of persuasion of the remain in their custody., is not applicable because the student is not in
teachers, Ferdinand went on with them to the beach. During the the premises of the school. The case at bar is purely private affair)
picnic, one of the female teachers was apparently drowning. Some of Under this paragraph, it is clear that before an employer may be held
the students, including Ferdinand, came to her rescue, but in the liable for the negligence of his employee, the act or omission which
process, it was Ferdinand himself who drowned. He died. Respondent caused damage or prejudice must have occurred while an
spouses filed a civil case against petitioner and some of their employee was in the performance of his assigned tasks.
teachers. Trial court found teachers liable but dismissed complaint
against the school. In the case at bar, the teachers/petitioners were not in the actual
performance of their assigned tasks. The incident happened not within
the school premises, not on a school day and most importantly while
ISSUE: W/N petitioner school and teachers are liable. the teachers and students were holding a purely private affair, a
picnic. It is clear from the beginning that the incident happened while
RULING: Petition granted.
some members of the I-C class of St. Francis High School were
RATIO: NO. The school and the teachers are not liable. having a picnic at Talaan Beach. This picnic had no permit from the
school head or its principal, Benjamin Illumin because this picnic is
On the part of the school not a school sanctioned activity neither is it considered as an extra-
curricular activity.
Respondent Court of Appeals committed an error in applying Article
2180 of the Civil Code in rendering petitioner school liable for the As earlier pointed out by the trial court, mere knowledge by
death of respondent's son. petitioner/principal Illumin of the planning of the picnic by the students
and their teachers does not in any way or in any manner show
Article 2180, par. 4 states that: acquiescence or consent to the holding of the same. The application
therefore of Article 2180 has no basis in law and neither is it
supported by any jurisprudence. If we were to affirm the findings of
respondent Court on this score, employers wig forever be exposed to
the risk and danger of being hailed to Court to answer for the
misdeeds or omissions of the employees even if such act or omission
he committed while they are not in the performance of their duties.
Because the circumstances of the present case evince a contractual Any person who wilfully causes loss or injury to another in a manner
relation between the PSBA and Carlitos Bautista, the rules on that is contrary to morals, good custom or public policy shall
quasi-delict do not really govern. A perusal of Article 2176 shows compensate the latter for the damage. (emphasis supplied).
that obligations arising from quasi-delicts or tort, also known as extra- Air France penalized the racist policy of the airline which emboldened
contractual obligations, arise only between parties not otherwise the petitioner's employee to forcibly oust the private respondent to
bound by contract, whether express or implied. However, this cater to the comfort of a white man who allegedly "had a better right to
impression has not prevented this Court from determining the
the seat." In Austro-American, supra, the public embarrassment
existence of a tort even when there obtains a contract. In Air France caused to the passenger was the justification for the Circuit Court of
vs. Carrascoso (124 Phil. 722), the private respondent was awarded Appeals, (Second Circuit), to award damages to the latter. From the
damages for his unwarranted expulsion from a first-class seat aboard foregoing, it can be concluded that should the act which breaches a
the petitioner airline. It is noted, however, that the Court referred to contract be done in bad faith and be violative of Article 21, then there
the petitioner-airline's liability as one arising from tort, not one arising is a cause to view the act as constituting a quasi-delict.
from a contract of carriage. In effect, Air France is authority for the
view that liability from tort may exist even if there is a contract, for the In the circumstances obtaining in the case at bar, however, there
act that breaks the contract may be also a tort. (Austro-America S.S. is, as yet, no finding that the contract between the school and
Co. vs. Thomas, 248 Fed. 231). Bautista had been breached thru the former's negligence in
providing proper security measures. This would be for the trial
court to determine. And, even if there be a finding of negligence, the
same could give rise generally to a breach of contractual obligation to continue proceedings consistent with this ruling of the Court. Costs
only. Using the test of Cangco, supra, the negligence of the school against the petitioners.
would not be relevant absent a contract. In fact, that negligence
becomes material only because of the contractual relation SO ORDERED.
between PSBA and Bautista. In other words, a contractual
relation is a condition sine qua non to the school's liability (had
there been no contract, the school is not liable because the
assailants are not it’s students?). The negligence of the school
cannot exist independently of the contract, unless the
negligence occurs under the circumstances set out in Article 21
of the Civil Code.
In the PSBA case, the trial court had denied the school's motion to
dismiss the complaint against it, and both the Court of Appeals and
this Court affirmed the trial court's order. In the case at bar, the
court a quo granted the motion to dismiss filed by respondent
Colleges, upon the assumption that petitioner's cause of action
was based, and could have been based, only on Article 2180 of
the Civil Code. As PSBA, however, states, acts which are tortious
or allegedly tortious in character may at the same time constitute
breach of a contractual, or other legal, obligation. Respondent
trial judge was in serious error when he supposed that petitioner
could have no cause of action other than one based on Article
2180 of the Civil Code. Respondent trial judge should not have
granted the motion to dismiss but rather should have, in the
interest of justice, allowed petitioner to prove acts constituting
breach of an obligation ex contractu or ex lege on the part of
respondent Colleges.
In line, therefore, with the most recent jurisprudence of this Court, and
in order to avoid a possible substantial miscarriage of justice, and
putting aside technical considerations, we consider that respondent
trial judge committed serious error correctible by this Court in the
instant case.
Facts: Respondent Taguiam was the Class Adviser of Grade 5- Dismissal is proper
Esmeralda of the petitioner, School of the Holy Spirit of Quezon City. Respondent had been grossly negligent. First, it is undisputed that
The class president, wrote a letter to the grade school principal Chiara Maes permit form was unsigned. Yet, respondent allowed her
requesting permission to hold a year-end celebration at the school to join the activity because she assumed that Chiara Maes mother
grounds. The principal authorized the activity and allowed the pupils has allowed her to join it by personally bringing her to the school with
to use the swimming pool. In this connection, respondent distributed her packed lunch and swimsuit.
the parents/guardians permit forms to the pupils.
The purpose of a permit form is precisely to ensure that the parents
Respondent admitted that Chiara Mae Federicos permit form was have allowed their child to join the school activity involved.
unsigned. Nevertheless, she concluded that Chiara Mae was allowed Respondent cannot simply ignore this by resorting to assumptions.
by her mother to join the activity since her mother personally brought Respondent admitted that she was around when Chiara Mae and her
her to the school with her packed lunch and swimsuit. Before the mother arrived. She could have requested the mother to sign the
activity started, respondent warned the pupils who did not know how permit form before she left the school or at least called her up to
to swim to avoid the deeper area. However, while the pupils were obtain her conformity.
swimming, two of them sneaked out. Respondent went after them to
verify where they were going. Second, it was respondents responsibility as Class Adviser to
supervise her class in all activities sanctioned by the school.[18] Thus,
Unfortunately, while respondent was away, Chiara Mae drowned she should have coordinated with the school to ensure that proper
(shed died).
safeguards, such as adequate first aid and sufficient adult personnel,
Petitioner school administratively charged the respondent and was were present during their activity. She should have been mindful of
eventually dismissed on the ground of gross negligence resulting to the fact that with the number of pupils involved, it would be impossible
loss of trust and confidence. for her by herself alone to keep an eye on each one of them.
Meanwhile, Chiara Mae’s parents filed a P7 Million damage suit As it turned out, since respondent was the only adult present, majority
against petitioners and respondent, among others. They also filed of the pupils were left unsupervised when she followed the two pupils
against respondent a criminal complaint for reckless imprudence who sneaked out. In the light of the odds involved, respondent should
resulting in homicide. have considered that those who sneaked out could not have left the
school premises since there were guards manning the gates. The
Respondent in turn filed a complaint against the school and/or Sr. guards would not have allowed them to go out in their swimsuits and
Crispina Tolentino for illegal dismissal, with a prayer for reinstatement without any adult accompanying them. But those who stayed at the
with full backwages and other money claims, damages and attorneys pool were put at greater risk, when she left them unattended by an
fees. adult.
Notably, respondents negligence, although gross, was not habitual. In
view of the considerable resultant damage, however, we are in
agreement that the cause is sufficient to dismiss respondent.
Xxx
SO ORDERED.
ST. JOSEPHS COLLEGE, SR. JOSEPHINI AMBATALI, SFIC, and no student must face, much less look into, the opening of the test tube
ROSALINDA TABUGO, until the heated compound has cooled.
Petitioners v. JAYSON MIRANDA, represented by his father, Since SJC did not accede to the demand, Rodolfo Miranda, Jayson’s
RODOLFO S. MIRANDA, Respondent father, sued for damages Jayson’s behalf.
G.R. No. 182353 June 29, 2010 After trial, the Regional Trial Court rendered judgment awarding actual
damages, moral damages and attorney’s fees in favor of Jayson.
Facts:
The Court of Appeals affirmed the ruling of the Regional Trial Court.
On November 17, 1994, at around 1:30 in the afternoon inside St. Thus, SJC Sr. Josephini Ambatali, SFIC, and Rosalinda Tabugo
Joseph College’s (SJC’s) premises, the class to which Jayson Val (petitioners) filed the instant case to the Supreme Court.
Miranda, a twelve year-old student, belonged was conducting a
science experiment about fusion of sulphur powder and iron fillings Issue : WON the petitioners shall be held liable for the injury suffered
under the tutelage of Rosalinda Tabugo, she being the subject by the respondent?
teacher and employee of SJC.
Held:
Tabugo left her class while it was doing the experiment. In the middle
of the experiment, Jayson, who was the assistant leader of one of the YES. The petitioners shall be held liable.
class groups, checked the result of the experiment by looking into the The Supreme Court found no reason to depart from the uniform
test tube with magnifying glass. The test tube was being held by one rulings of the lower courts that petitioners were “negligent since they
of his group mates who moved it close and towards the eye of all failed to exercise the required reasonable care, prudence, caution
Jayson. At that instance, the compound in the test tube spurted out
and foresight to prevent or avoid injuries to the students.”
and several particles of which hit Jayson’s eye and the different parts
of the bodies of some of his group mates. As a result thereof, Petitioners claim that the proximate cause of Jayson’s injury was his
Jayson’s eyes were chemically burned, particularly his left eye, for own negligence in disregarding the instructions given by Tabugo prior
which he had to undergo surgery and had to spend for his medication. to the experiment and peeking into the test tube did not convince the
Supreme Court.
On December 6, 1994, the parents of Jayson, through counsel, wrote
SJC a letter demanding that it should shoulder all the medical As found by both lower courts, the proximate cause of Jayson’s injury
expenses of Jayson that had been incurred and will be incurred was the concurrent failure of petitioners to prevent the foreseeable
further arising from the accident caused by the science experiment. In mishap that occurred during the conduct of the science experiment.
a letter dated December 14, 1994, the counsel for SJC, represented All of the petitioners are equally at fault and are liable for negligence
by Sr. Josephini Ambatali, SFIC, explained that the school cannot because all of them are responsible for exercising the required
accede to the demand because “the accident occurred by reason of reasonable care, prudence, caution and foresight to prevent or avoid
[Jayson’s] failure to comply with the written procedure for the injuries to the students. The individual petitioners are persons charged
experiment and his teacher’s repeated warnings and instruction that with the teaching and vigilance over their students as well as the
supervision and ensuring of their well-being. Sr. Josephini Ambatali is
likewise culpable under the doctrine of command responsibility of dangerous science experiments conducted by the students during
because the other individual petitioners were under her direct control class;
and supervision. The negligent acts of the other individual petitioners
were done within the scope of their assigned tasks. 2. Petitioner school did not install safety measures to protect the
students who conduct experiments in class;
Article 218 of the Family Code, in relation to Article 2180 of the Civil
Code, bestows special parental authority on the following persons 3. Petitioner school did not provide protective gears and devices,
with the corresponding obligation, thus: specifically goggles, to shield students from expected risks and
dangers; and
Art. 218. The school, its administrators and teachers, or the individual,
entity or institution engaged in child care shall have special parental 4. Petitioner Tabugo was not inside the classroom the whole time
authority and responsibility over the minor child while under their her class conducted the experiment, specifically, when the accident
supervision, instruction or custody. involving Jayson occurred. In any event, the size of the class—fifty
(50) students— conducting the experiment is difficult to monitor.
Authority and responsibility shall apply to all authorized activities
whether inside or outside the premises of the school, entity or However, [Jayson] is partly responsible for his own injury, hence, he
institution. should not be entitled to recover damages in full but must likewise
bear the consequences of his own negligence. [Petitioners], therefore,
Art. 2180. The obligation imposed by Article 2176 is demandable not should be held liable only for the damages actually caused by their
only for one’s own acts or omissions, but also for those of persons for negligence.
whom one is responsible.
Lastly, given our foregoing ruling, we likewise affirm the lower courts
Lastly, teachers or heads of establishments of arts and trades shall be award of actual and moral damages, and grant of attorneys fees. The
liable for damages caused by their pupils and students or apprentices, denial of petitioners counterclaim is also in order.
so long as they remain in their custody.
Not satisfied, the Intons elevated the case to the Court of Appeals Of course, Aquinas still had the responsibility of taking steps to ensure
(CA). They asked the CA to increase the award of damages and hold that only qualified outside catechists are allowed to teach its young
Aquinas solidarily liable with Yamyamin. Finding that an employer- students. In this regard, it cannot be said that Aquinas took no steps
employee relation existed between Aquinas and Yamyamin, the CA
to avoid the occurrence of improper conduct towards the students by SO ORDERED.
their religion teacher.
Fourth, the school pre-approved the content of the course she was to
teach to ensure that she was really catechizing the students.
Sixth. That in the attempt of the Defendant, together with his 2. Whether or Not there is Maza is jointly liable with his co-
companions, to escape from said jail, he inflicted wounds defendants and for what crime/s
upon one Baltazar Ramirez, by means of a revolver which he
then and there took from the possession of one of the guards
in said jail, from which wounds the said Ramirez died.
RULING:
1. No. The evidence adduced during the trial shows beyond DISPOSITIVE PORTION:
peradventure of doubt that the Defendant and his companions
inflicted wounds upon Baltazar Ramirez, from which the said
Ramirez died a few hours later. The evidence fails to disclose, It is the judgment of this court, therefore, that the DEFENDANT BE
however, any of the qualifying circumstances mentioned in IMPRISONED FOR A PERIOD OF SEVENTEEN YEARS FOUR
article 403 of the Penal Code. This act, therefore, cannot be MONTHS AND ONE DAY OF RECLUSION TEMPORAL, to suffer
qualified as assassination, but must be the subsidiary penalties mentioned in article 59 of the Penal Code,
qualified as the crime of homicide. to indemnify the heirs of the said Ramirez in the sum of P1,000, to
pay the said alcalde the sum of P17, and to pay the costs. SO
2. Yes, for Homicide. The general doctrine, both by the ORDERED.
supreme court of Spain and the courts of the United States, is
that "where two or more persons act together in the
commission of a crime, whether they act through the *Note: This was an unpublished decision of the SC.
physical volition of one or of all, proceeding severally or
collectively, each individual whose will contributes to the
wrongdoing is in law responsible for the whole, the same
as though the act or crime done or committed was by
himself alone."
FBNI claims that it has taken all the precaution in the selection of
Rima and Alegre as broadcasters, bearing in mind their
qualifications. However, no clear and convincing evidence shows
FAR EASTERN SHIPPING COMPANY, petitioner, vs. COURT thereafter gave the full-astern code. Before the right anchor and
OF APPELAS and PHILIPPINE PORTS AUTHORITY, additional shackles could be dropped, the bow of the vessel
respondents.G.R. No. 130068. October 1, 1998 and MANILA rammed into the apron of the pier causing considerable damage to
PILOTS ASSOCIATION, petitioner, vs. PHILIPPINE PORTS the pier as well as to the vessel.
AUTHORITY and FAR EASTERN SHIPPING COMPANY,
respondents.G.R. No. 130150. October 1, 1998 On January 10, 1983, the PPA through the Solicitor General, filed
(CONSOLIDATED) before the RTC Manila a complaint for a sum of money against
FESC, Gavino and MPA, praying that the defendants be held
FACTS: jointly and severally liable to pay for actual and exemplary
damages caused by the shipping mishap. In its decision, the trial
On June 20, 1980, the M/V PAVLODAR, flying under the flagship court ordered the petitioners jointly and severally to pay the PPA
of the USSR, owned and operated by the Far Eastern Shipping the amount of P1,053,300.00 representing actual damages and the
Company (FESC), arrived at the Port of Manila from Vancouver, cost of suit. On appeal, the CA affirmed the decision of the trial
British Columbia,Canada. The vessel was assigned Berth 4 of the court.
Manila International Port, as its berthing space. Capt. Roberto
Abellana was tasked by the Philippine Port Authority (PPA) to In its argument, FESC contended that Gavino and MPA should be
supervise the berthing of the vessel whileCapt. SenenGavino was held solely responsible for the damages caused to the pier. It avers
assigned by the Manila Pilots Association (MPA) to conduct that since the vessel was under compulsory pilotage at the time
docking maneuvers for the safe berthing of the vessel. with Capt. Gavino in command and having exclusive control of the
vessel during the docking maneuvers, then the latter should be
Gavino boarded the vessel and stationed himself besideVictor responsible for damages caused to the pier.
Kabankov, the master of the vessel. After a briefing of Gavino by
Kavankov of the particulars of the vessel and its cargo, the vessel ISSUE:
lifted anchor and proceeded to the Manila International Port. When
the vessel reached one-half mile from the pier, Gavino ordered the 1. Whether or not the pilot, in compulsory pilotage, is solely
engine stopped. When the vessel was already about 2,000 feet liable for the damage caused by the vessel to the pier.
from the pier, he ordered the anchor dropped. Kavankov relayed
the orders to the crew of the vessel. The left anchors, with two (2) 2. Whether the owner of the vessel shall also be liable by
shackles were dropped. However, the anchor did not take hold as reason of the damage caused by the concurrent negligence of the
expected. The speed of the vessel did not slacken causing master of the vessel and the pilot under compulsory pilotage
commotion between the crew members. A brief conference ensued
between Kavankov and the crew members and when Gavino
inquired what was all the commotion about, Kavankov assured
Gavino that there was nothing of it. HELD:
After Gavino noticed that the anchor did not take hold, he ordered 1. YES.
the engines half-astern. Abellana, who was then on the pier apron,
noticed that the vessel was approaching the pier fast.Kavankov Under English and American authorities, generally speaking, the
likewise noticed that the anchor did not take hold. Gavino pilot supersedes the master for the time being in the command and
navigation of the ship, and his orders must be obeyed in all matters the master for the time being in the command and navigation of a
connected with her navigation. He becomes the master pro hac ship and that he becomes master pro hac vice of a vessel piloted
vice and should give all directions as to speed, course, stopping by him,there is overwhelming authority to the effect that the master
and reversing, anchoring, towing and the like. And when a licensed does not surrender his vessel to the pilot and the pilot is not the
pilot is employed in a place where pilotage is compulsory, it is his master. The master is still in command of the vessel
duty to insist on having effective control of the vessel, or to decline notwithstanding the presence of a pilot. There are occasions when
to act as pilot. Under certain systems of foreign law, the pilot does the master may and should interfere and even displace the pilot,
not take entire charge of the vessel, but is deemed merely the as when the pilot is obviously incompetent or intoxicated and the
adviser of the master, who retains command and control of the circumstances may require the master to displace a compulsory
navigation even on localities where pilotage is compulsory pilot because of incompetency or physical incapacity. If, however,
the master does not observe that a compulsory pilot is incompetent
It is quite common for states and localities to provide for or physically incapacitated, the master is justified in relying on the
compulsory pilotage, and safety laws have been enacted requiring pilot, but not blindly.
vessels approaching their ports, with certain exceptions, to take on
board pilots duly licensed under local law. The purpose of these The master is not wholly absolved from his duties while a pilot is on
laws is to create a body of seamen thoroughly acquainted with the board his vessel, and may advise with or offer suggestions to him.
harbor, to pilot vessels seeking to enter or depart, and thus protect He is still in command of the vessel, except so far as her
life and property from the dangers of navigation. navigation is concerned, and must cause the ordinary work of the
vessel to be properly carried on and the usual precaution taken.
Upon assuming such office as compulsory pilot, Capt. Gavino is Thus, in particular, he is bound to see that there is sufficient watch
held to the universally accepted high standards of care and on deck, and that the men are attentive to their duties, also that
diligence required of a pilot, whereby he assumes to have skill and engines are stopped, towlines cast off, and the anchors clear and
knowledge in respect to navigation in the particular waters over ready to go at the pilot's order.A perusal of Capt. Kabankov's
which his license extends superior to and more to be trusted than testimony makes it apparent that he was remiss in the discharge of
that of the master. He is not held to the highest possible degree of his duties as master of the ship, leaving the entire docking
skill and care, but must have and exercise the ordinary skill and procedure up to the pilot, instead of maintaining watchful vigilance
care demanded by the circumstances, and usually shown by an over this risky maneuver.
expert in his profession. Under extraordinary circumstances, a pilot
must exercise extraordinary care. In this case, Capt. Gavino failed In sum, where a compulsory pilot is in charge of a ship, the master
to measure up to such strict standard of care and diligence being required to permit him to navigate it, if the master observes
required of pilots in the performance of their duties. that the pilot is incompetent or physically incapable, then it is the
duty of the master to refuse to permit the pilot to act. But if no such
2. YES. reasons are present, then the master is justified in relying upon the
pilot, but not blindly. Under the circumstances of this case, if a
The negligence on the part of Capt. Gavino is evident but Capt. situation arose where the master, exercising that reasonable
Kabankov is no less responsible for the allision. His unconcerned vigilance which the master of a ship should exercise, observed, or
lethargy as master of the ship in the face of troublousexigence should have observed, that the pilot was so navigating the vessel
constitutes negligence.While it is indubitable that in exercising his that she was going, or was likely to go into danger, and there was
functions, a pilot-is in sole command of the shipand supersedes in the exercise of reasonable care and vigilance an opportunity for
the master to intervene so as to save the ship from danger, the owed by them to the injured person was not the same. No actor's
master should have acted accordingly.The master of a vessel must negligence ceases to be a proximate cause merely because it
exercise a degree of vigilance commensurate with the does not exceed the negligence of other actors. Each wrongdoer is
circumstances. responsible for the entire result and is liable as though his acts
were the sole cause of the injury.
A pilot is personally liable for damages caused by his own
negligence or default to the owners of the vessel, and to third There is no contribution between joint tortfeasors whose liability is
parties for damages sustained in a collision. Such negligence of solidary since both of them are liable for the total damage. Where
the pilot in the performance of duty constitutes a maritime tort. At the concurrent or successive negligent acts or omissions of two or
common law, a shipowner is not liable for injuries inflicted more persons, although acting independently, are in combination
exclusively by the negligence of a pilot accepted by a vessel the direct and proximate cause of a single injury to a third person, it
compulsorily. The exemption from liability for such negligence shall is impossible to determine in what proportion each contributed to
apply if the pilot is actually in charge and solely in fault. Since, a the injury and either of them is responsible for the whole injury.
pilot is responsible only for his own personal negligence, he cannot Where their concurring negligence resulted in injury or damage to
be held accountable for damages proximately caused by the a third party, they become joint tortfeasors and are solidarity liable
default of others, or, if there be anything which concurred with the for the resulting damage under Article 2194of the Civil Code.
fault of the pilot in producing the accident, the vessel master and
owners are liable.
TC:In favor of Worcester; Defendants jointly and severallyliable for They are jointly and severally liable for the full amount.
the P60k total damages.
A payment in full of the damage done by one tortfeasor satisfies
ISSUE: WON the defendants’ individual properties can be made any claim which might exist against the others. The release of one
jointly and severally liable for the damages under the civil and of the joint tort feasors by agreement generally operates to
commercial codes, discharge all.The court however may make findings as to which of
the alleged joint tortfeasors are liable and which are not, even if
HELD: Yes. TC modified. Damages reduced, Santos absolved.The they are charged jointly and severally.
present action is a tort.
Universal doctrine:
each joint tortfeasor is not only individually liable for the tort in
which he participates, but is also jointly liable with his tortfeasors.If
several persons commit a tort, the plaintiff or person injured, has
his election to sue all or some of the parties jointly,or one of them
separately,because the TORT IS IN ITS NATURE A SEPARATE
ACT OF EACH INDIVIDUAL
G.R. No. L-20145 November 15, 1923 the plaintiffs from the defendants' counterclaim. From this
judgment both parties appealed.
Now, it appears that when the engine is reversed, a vessel swings Upon the point of responsibility for the collision we have no
to the right or left in accordance with the direction in which the hesitancy in finding that the fault is to be attributed exclusively to
blades of the propeller are set; and as the Ban Yek began to back, the negligence and inattention of the captain and pilot in charge of
her bow was thrown out into the stream, a movement which was the Ban Yek. The Perla undoubtedly had the right of way, since
assisted by the current of the river. By this means the Ban Yek was this vessel was navigating with the current, and the officers in
brought to occupy an oblique position across the stream at the charge of the Perla were correct in assuming, from the failure of
moment the Perla was passing; and the bow of the Ban Yek the Ban Yek to respond to the single blast of the Perla, that the
crashed into the starboard bumpers of the Perla, carrying away officers in charge of the Ban Yek recognized that the Perla had a
external parts of the ship and inflicting material damage on the hull. right of way and acquiesced in her resolution to keep to the right.
To effect the repairs thus made necessary to the Perla cost her The excuse urged for the Ban Yek is that this vessel is somewhat
owners the sum of P17,827, including expenses of survey. larger than the Perla and that it was desirable for the Ban Yek to
keep on the side of the long arc of the curve of the river; and in this
The first legal point presented in the case has reference to the connection it is suggested that the river is deeper on the outer
sufficiency of the protest. In this connection it appears that within edge of the bend than on the inner edge. It is also stated that on a
twenty-four hours after the arrival of the Perla at the port of Naga, certain previous occasion the Ban Yek on coming out from this port
Captain Garrido appeared before Vicente Rodi, the auxiliary justice had gotten stuck in the mud in this bend by keeping too far to the
of the peace of the municipality of Naga, and made before that right. Moreover, it is said to be the practice of ships in navigating
officer the sworn protest which is in evidence as Exhibit B. This this stream to keep nearer the outside than to the inside of the
protest is sufficient in our opinion to answer all the requirements of bend. These suggestions are by no means convincing. It appears
article 835 of the Code of Commerce. A regular justice of the in evidence that the river bottom here is composed of mud and silt,
peace would without doubt be competent to take a marine protest, and as the tide at the time of this incident was nearly at its flood,
and the same authority must be conceded to the auxiliary justice in there was ample depth of water to have accommodated the Ban
the absence of any showing in the record to the effect that the Yek if she had kept to that part of the stream which it was proper
justice of the peace himself was acting at the time in the for her to occupy. We may further observe that the disparity in the
municipality (Adm. Code, sec. 211; sec. 334, Code of Civ. Proc., size of the vessels was not such as to dominate the situation and
subsecs. 14, 15). We note that in his certificate to this protest deprive the Perla of the right of way under the conditions stated.
Vicente Rodi added to the appellation of auxiliary justice of the Blame for the collision must therefore, as already stated, be
peace, following his name, the additional designation "notary public attributed to the Ban Yek.
ex-officio." However, under subsection (c) of section 242 of the
Administrative Code, it is plain that an auxiliary justice of the peace On the other hand no fault can be attributed to the officers
is not an ex-officio notary public. It results that the taking of this navigating the Perla either in maintaining the course which had
protest must be ascribed to the officer in his character as auxiliary been determined upon for that vessel in conformity with the marine
justice of the peace and not in the character of notary public ex- regulations applicable to the case or in deflecting the vessel
officio. It is hardly necessary to add that this court takes judicial towards the middle of the stream after the danger of collision
notice of the fact that Naga is not a port of entry and that no became imminent. The trial judge suggests in his opinion that
when Captain Garrido saw that the Ban Yek was holding her
course to the left, he (Garrido) should have changed the course of article which appears under the word naviero in the Enciclopedia
the Perla to port more promptly. The validity of this criticism cannot Juridica Española tells us that in Spanish it may mean either
be admitted. Among rules applicable to navigation none is better owner, outfitter, charterer, or agent, though he says that the
founded on reason and experience than that which requires the fundamental and correct meaning of the word is that of "owner."
navigating officers of any vessel to assume that an approaching That naviero, as used in the Spanish text of article 826, means
vessel will observe the regulations prescribed for navigation (G. owner is further to be inferred from article 837, which limits the civil
Urrutia & Co. vs. Baco River Plantation Co., 26 Phil., 632, 637). liability expressed in article 826 to the value of the vessel with all
Any other rule would introduce guess work into the control of ships her appurtenances and all the freight earned during the voyage.
and produce uncertainty in the operation of the regulations. There would have been no propriety in limiting liability to the value
of the vessel unless the owner were understood to be the person
Our conclusion is that his Honor, the trial judge, was in error in not liable. It is therefore clear that by special provision of the Code of
awarding damages to the Perla; but no error was committed in Commerce the owner is made responsible for the damage caused
absolving the plaintiffs from the defendants' cross-complaint. by an accident of the kind under consideration in this case; and in
more than one case this court has held the owner liable, when
The sum of P17,827 in our opinion represents the limit of the sued alone (Philippine Shipping Co. vs. Garcia Vergara, 6 Phil.,
plaintiffs' right of recovery. In the original complaint recovery is 281; G. Urrutia & Co. vs. Baco River Plantation Co., 26 Phil., 632).
sought for an additional amount of P18,000, most of which consists
of damages supposed to have been incurred from the inability of But while it is thus demonstrated that Silvino Lim is liable for these
the Perla to maintain her regular schedule while laid up in the dock damages in the character of owner, it does not necessarily follows
undergoing repairs. The damages thus claimed, in addition to that Siy Cong Bieng & Co., as character or agent (casa naviera), is
being somewhat of a speculative nature, are in our opinion not exempt from liability; and we are of the opinion that both the owner
sufficiently proved to warrant the court in allowing the same. and agent can be held responsible where both are impleaded
lawphil.net together. In Philippine Shipping Co., vs. Garcia Vergara (6 Phil.,
281), it seems to have been accepted as a matter of course that
Having determined the amount which the plaintiffs are entitled to both owner and agent of the offending vessel are liable for the
recover, it becomes necessary to consider the person, or persons, damage done; and this must, we think, be true. The liability of the
who must respond for these damages. Upon this point we note that naviero, in the sense of charterer or agent, if not expressed in
Silvino Lim is impleaded as owner; and Siy Cong Bieng & Co. is article 826 of the Code of Commerce, is clearly deducible from the
impleaded as the shipping agent (casa naviera), or person in general doctrine of jurisprudence stated in article 1902 of the Civil
responsible control of the Ban Yek at the time of the accident. We Code, and it is also recognized, but more especially as regards
note further that in article 826 of the Code of Commerce it is contractual obligations, in article 586 of the Code of Commerce.
declared that the owner of any vessel shall be liable for the Moreover, we are of the opinion that both the owner and agent
indemnity due to any other vessel injured by the fault, negligence, (naviero) should be declared to be jointly and severally liable, since
or lack of skill of the captain of the first. We say "owner," which is the obligation which is the subject of this action had its origin in a
the word used in the current translation of this article in the tortious act and did not arise from contract. Article 1137 of the Civil
Spanish Code of Commerce. It is to be observed, however, that Code, declaring that joint obligations shall be apportionable unless
the Spanish text itself uses the word naviero; and there is some otherwise provided, has no application to obligation arising from
ambiguity in the use of said word in this article, owing to the fact tort.
that naviero in Spanish has several meanings. The author of the
For the reasons stated the judgment appealed from will be affirmed
in so far as it absolves the plaintiffs from the defendants' cross-
complaint but will be reversed in so far as it absolves the
defendants from the plaintiffs' complaint; and judgment will be
entered for the plaintiffs to recover jointly and severally from the
defendants Silvino Lim and Siy Cong Bieng & Co. the sum of
seventeen thousand eight hundred and twenty-seven pesos
(P17,827), with interest from the date of the institution of the action,
without special pronouncement as to costs of either instance. So
ordered.
G.R. No. 92594 March 4, 1994 Directors was then composed of private respondents, Rosendo D. Bondoc,
Cesar E. A. Virata, Ruben Ancheta, Jaime C. Laya, Placido Mapa, Jr.,
REPUBLIC OF THE PHILIPPINES, petitioner, Roberto Ongpin, and Cezar Zalamea. Congressman de Venecia's group of
vs. companies was unable to seasonably service these foreign loans and this
HON. SANDIGANBAYAN, FERDINAND E. MARCOS, IMELDA R. compelled PHILGUARANTEE to assume its obligation as guarantor.
MARCOS, ROSENDO D. BONDOC, CESAR E. A. VIRATA, RUBEN
ANCHETA, JAIME C. LAYA, PLACIDO MAPA, JR., ROBERTO ONGPIN The EDSA revolution in February 1986 swept the Marcoses out of power.
and CESAR C. ZALAMEA, respondents. One of the first official acts of then President Corazon C. Aquino was the
creation of the Presidential Commission on Good Government (PCGG)
The Solicitor General for petitioner. under E.O No. 1. It was given the difficult task of recovering the illegal wealth
of the Marcoses, their family, subordinates and close associates. In due time,
Belo, Abiera & Associates for respondent Laya. the Marcoses and their cronies had to face a flurry of cases, both civil and
criminal, all designed to recover the Republic's wealth allegedly plundered by
them while in power. Case No. 0020 for Reconveyance, Reversion,
Ledesma, Saludo & Associates for respondent Laya. Accounting, Restitution and Damages was one of these cases. It was filed by
the petitioner Republic against Jose de Venecia, Jr., Ferdinand E. Marcos,
De Castro & Cagampang Law Offices for C.C. Zalamea. Imelda R. Marcos, Rosendo D. Bondoc, Cesar E. A. Virata, Ruben Ancheta,
Jaime C. Laya, Placido Mapa, Jr., Roberto Ongpin and Cesar C. Zalamea.
Estelito P. Mendoza for respondent Ongpin. We quote its relevant allegations:
Ponce Enrile, Cayetano, Reyes & Manalastas for respondents C.E.A. Virata IV
and P. Mapa, Jr.
GENERAL AVERMENTS
Mario V. Andres and Vicente F. Ruaro for R. Ancheta. OF
DEFENDANTS' ILLEGAL ACTS
9. Among the assets acquired by Defendants in the manner above-described (c) Accordingly, Defendant Jose de Venecia applied for Philippine
and discovered by the Commission in the exercise of its official Government guarantee from the Philippine Export and Foreign Loan
responsibilities are funds and other property listed in Annex "A" hereof and Guarantee Corporation (Philguarantee), a government-owned and controlled
made an integral part of this Complaint. corporation organized to provide Philippine Government guarantees, and,
with the active collaboration of Defendants Rosendo D. Bondoc, who was
then the President of Philguarantee and the members of its Board of
10. Defendants, acting singly or collectively, and/or in unlawful concert with
Directors, Defendants Cesar E. A. Virata, Ruben Ancheta, Jaime C. Laya,
one another, for the purpose of preventing disclosure and avoiding discovery
Placido Mapa, Jr., Roberto Ongpin and Cesar C. Zalamea was granted full
of their unmitigated plunder of the National Treasury and of their other illegal
Philippine Government guarantee coverage;
acts, and employing the services of prominent lawyers, accountants, financial
experts, businessman [sic] and other persons, deposited, kept and invested
funds, securities and other assets in various banks, financial institutions, trust (d) Defendant Jose de Venecia misused the proceeds of the loans by
or investment companies and with persons here and abroad. diverting them to other uses and/or appropriation, then for his own personal
benefit using for this purpose a string of local and overseas banks, such as,
but not limited to, PNB (New York), PNB (Buendia Branch), PCTB (Makati
V
Branch), Swiss Banking Corp. of Hongkong, and the Hongkong and
Shanghai Banking Corp. in Hongkong, and in an effort to hide his complicity
SPECIFIC AVERMENTS OF in the diversion, refused to submit regular accounting and reports, all in
DEFENDANTS' ILLEGAL ACTS violation of the provisions of the loan and guarantee agreements;
11. Defendant Jose de Venecia, Jr. taking undue advantage of his (e) Notwithstanding the aforesaid repeated violations Philguarantee, with the
relationship, influence and connection with Defendants Ferdinand E. Marcos active collaboration of Defendants Rosendo D. Bondoc, Cesar E. A. Virata,
and Imelda R. Marcos, acting by himself and/or in active collaboration with Ruben Ancheta, Jaime C. Laya, Placido Mapa, Jr., Roberto Ongpin and
the other Defendants, embarked upon devices, schemes and strategems to Cesar C. Zalamea, continued to provide financial assistance to the
unjustly enrich themselves at the expense of Plaintiff and the Filipino people, companies owned and controlled by Defendant Jose de Venecia;
among others:
(f) As a result of gross mismanagement and wanton diversion of the loans,
(a) Organized and headed the Land Oil Group, a big business conglomerate the major operations of the Land Oil Group collapsed, Land Oil defaulted in
engaged in a wide range of economic activity, such as petroleum exploration the payment of its maturing principal and interests amortization and, like the
and engineering, port management and operation, and other services. The man holding the proverbial empty bag, Philguarantee had to advance on its
Land Oil Group, more particularly, the Land Oil Resources Corporation, its guarantee using for this purpose multi-millions of pesos in scarce
parent company, and its major subsidiaries, the Philippine-Singapore Ports government and taxpayers' money, resulting in grave and irreparable
Corporation, the Greater Manila Land Corporation, Construction Consortium, damage to Plaintiff and to the entire Filipino people.
Inc. and the Philippine Hospitals and Health Services, had operations in the
Philippines and abroad, particularly, in the Middle East;
12. The acts of Defendants, singly or collectively, and/or in unlawful concert
with one another, constitute gross abuse of official position and authority,
(b) To finance his huge domestic and overseas operations, Defendant Jose flagrant breach of public trust and fiduciary obligations, brazen abuse of right
de Venecia, acting through the Land Oil Group, borrowed enormous amounts
and power, unjust enrichment, violation of the Constitution and laws of the of Plaintiff and are, therefore, impressed with constructive trust in favor of
Republic of the Philippines, to the grave and irreparable damage of Plaintiff Plaintiff and the Filipino people.
and the Filipino people.
16. Fourth Cause of Action: ACCOUNTING — The Commission, acting
VI pursuant to the provisions of applicable law, respectfully maintains that
Defendants, acting singly or collectively, and/or in unlawful concert with one
CAUSE OF ACTION another, acquired funds, assets and property during the incumbency of
Defendant public officers, or while acting in unlawful concert with public
13. First Cause of Action: ABUSE OF RIGHT AND POWER — (a) officers, manifestly out of proportion to their salaries, to their other lawful
income and income from legitimately acquired property. Consequently, they
Defendants, in perpetrating the unlawful acts described above, committed
are required to show to the satisfaction of this Honorable Court that they
abuse of right and power which caused untold misery, suffering and damage
to Plaintiff. Defendants violated, among others, Articles 19, 20 and 21 of the have lawfully acquired all such funds, assets and property which are in
Civil Code of the Philippines; excess of their legal net income, and for this Honorable Court to decree that
the Defendants are under obligation to account to Plaintiff with respect to all
legal or beneficial interests in funds, properties and assets of whatever kind
(b) As a result of the foregoing acts, Defendants acquired title to and and wherever located in excess of their lawful earnings.
beneficial interests in funds and other property and concealed such title,
funds and interests through the use of relatives, business associates,
17. Fifth Cause of Action: LIABILITY FOR DAMAGES — (a) By reason of the
nominees, agents or dummies. Defendants are, therefore, jointly and
unlawful acts set forth above, Plaintiff and the Filipino people have suffered
severally, liable to Plaintiff to return and reconvey all such funds and other
actual damages in an amount representing the pecuniary loss sustained by
property unlawfully acquired; or alternatively, to pay Plaintiff, jointly and
the latter as a result of Defendants' unlawful acts, the approximate value and
severally, by way of indemnity, the damage cause to Plaintiff equivalent to
interest on which, from the time of their wrongful acquisition, plus expenses
the amount of such funds and the value of other property not returned or
restored to Plaintiff, plus interest thereon from the date of unlawful acquisition which Plaintiff has been compelled to incur and shall continue to incur in its
until full payment. effort to recover Defendants' ill-gotten wealth all over the world. Defendants
are, therefore, jointly and severally liable to Plaintiff for actual damages and
for expenses incurred in the recovery of Defendants' ill-gotten wealth.
14. Second Cause of Action: UNJUST ENRICHMENT — Defendants illegally
accumulated funds and other property in violation of the laws of the
Philippines and in breach of their official functions and fiduciary obligations. (b) As a result of Defendants' unlawful, malicious, immoral and wanton acts
Defendants, therefore, have unjustly enriched themselves to the grave and described above, Plaintiff and the Filipino people had painfully endured and
suffered for more than twenty long years, and still continue to endure and
irreparable damage and prejudice of Plaintiff. Defendants have an obligation
suffer anguish, fright, sleepless nights, serious anxiety, wounded feelings
at law, independently of breach of trust and abuse of right and power and; as
and moral shock, as well as besmirched reputation and social humiliation
an alternative, to jointly and severally return to Plaintiff such funds and other
before the international community, for which Defendants are jointly and
property with which Defendants, in gross and evident bad faith, have unjustly
enriched themselves or, in default thereof, restore to Plaintiff the amount of severally liable to Plaintiff and the Filipino people for moral damages.
such funds and the value of the other property including those which may
have been wasted, and/or lost, with interest thereon from the date of unlawful (c) In addition, Plaintiff and the Filipino people are entitled to temperate
acquisition until full payment. damages for their suffering which, by their very nature, are incapable of
pecuniary estimation, but which this Honorable Court may determine in the
15. Third Cause of Action: BREACH OF TRUST — A public office is a public exercise of its sound discretion.
trust. By committing all the acts described above, Defendants repeatedly
breached public trust and the law, making them jointly and severally liable to (d) Defendants, by reason of the above described unlawful acts, have
Plaintiff. The funds and other property acquired by Defendants as a result of violated and invaded the inalienable right of Plaintiff and the Filipino people
their breach of public trust are deemed to have been acquired for the Benefit to a fair and decent way of life befitting a Nation with rich natural and human
resources. This basic, and fundamental right of Plaintiff and the Filipino
people should be recognized and vindicated by awarding nominal damages proceeding which Landoil had caused to be instituted in London against the
in an amount to be determined by the Honorable Court in the exercise of its Lloyd's Syndicate of Insurance Underwriters;
sound discretion.
1.3 Effective immediately, the Assignors hereby assign, transfer and convey
(e) By way of example and correction for the public good and in order to to the PCGG: (a) the entire proceeds of the Assignors' claims in the New
ensure that Defendants' unlawful, malicious, immoral and wanton acts are York case which Landoil has instituted against the insurance brokers,
not repeated, said Defendants are jointly and severally liable to Plaintiff for namely, the firm of Alexander and Alexander, and (b) the entire proceeds of
exemplary damages. the Assignors' contract receivables from all the Assignors' construction and
other projects in the Middle East and elsewhere, net of any amount required
Needless to state, the de Venecia group of companies and for the settlement of any compulsory statutory liens for unpaid wages or
PHILGUARANTEE were sequestered by the petitioner, through the PCGG. salaries and ordinary administrative overhead and costs, and attorney's fees
and expenses of litigation.
The filing of Case No. 0020 notwithstanding, an investigation was conducted
to determine the veracity of the above allegations. The investigation xxx xxx xxx
culminated in the signing of a Deed of Assignment between the petitioner
and de Venecia, Jr., representing seven (7) of the eighteen (18) companies 1.5 The Assignors, and or their respective officers, hereby undertake to fully
of the Land Oil Group. The Deed was premised on the following facts found cooperate with the Philippine Government, acting through the PCGG or any
by the petitioner after its investigation, and recited in its whereas clauses, viz: other governmental agency, in the prosecution of any case which the
Philippine Government may cause to be filed against former President
. . . . As a result of such investigation Philguarantee has satisfied itself (i) that Marcos and his cronies, either by furnishing testimony in any such case, or
such guarantee facility was obtained in the ordinary and regular course of by providing information in any investigation undertaken in the Philippines or
business, and that no favor was accorded to the Landoil officers, in the grant elsewhere, as may be required or directed by the PCGG, or by other
of such guarantee facility; and (ii) that the business reversals experienced by appropriate governmental agency from time to time.
the Landoil Group in connection with its various construction and other
projects in the Middle East and elsewhere were due, firstly, to the inability of In reciprocity, petitioner agreed to cause the dismissal without prejudice of
the Landoil Group to collect its contract receivables from such projects due to the complaint in Civil Case No. 0020 against de Venecia and his group of co-
the reasons specified in the sixth "whereas" clause, and, secondly, due to the signors.
non-payment of its insurance claim under the insurance policy referred to in
the succeeding (ninth), "whereas" clause. Pursuant to this Deed of Assignment, de Venecia, Jr., with the express
conformity of PCGG, moved to dismiss Civil Case No. 0020 against him. On
Certain obligations were then assumed by de Venecia, Jr., and his September 8, 1989, the respondent court granted the motion to dismiss. The
group, viz: dismissal became final and executory. The other private respondents
followed suit with their respective motions to dismiss. The motions were
1.1 Upon the request of the Assignee (referring to petitioner), the Assignors opposed by the petitioner. Nonetheless, on December 4, 1989, the
(being the above-named companies making up Landoil Group) shall respondent court dismissed the Expanded Complaint against herein private
immediately cause to be transferred to the Assignee (or its nominee/s) all the respondents. The dismissal was based on two (2) grounds: (1) removal of an
shares of the capital stock of Landoil (up to 45% of the total outstanding indispensable party in the person of de Venecia, Jr., from the Expanded
issued and subscribed capital stock of Landoil) which have or may hereafter Complaint; and (2) lack of cause of action in view of the facts established and
be identified as belonging to Marcos (whether standing in his name or the admitted by the petitioner in the Deed of Assignment. Petitioner's motion for
name [of] any of his nominee/s). . . . reconsideration and its Supplement were denied by the respondent court on
March 9, 1990. Petitioner then filed the petition at bar, where it is contended:
1.2 Upon the effectiveness of this Agreement, the Assignors shall cause to
be paid to the Assignee, through PCGG, the amount of P13 million, which
amount represents a portion of Landoil's recovery from an arbitration
16. The respondent Court committed grave abuse of discretion amounting to facility; . . ." If after investigation, petitioner has satisfied itself that the
lack or excess of jurisdiction in dismissing the case against defendant de guaranty facility was obtained in the ordinary and regular course of business,
Venecia's co-defendants, on the following grounds: it follows that it can no longer insist it has a cause of action against Bondoc
and company. This admission of lack of cause of action constitutes an
a) The Deed of Assignment executed on July 19, 1989 by Landoil in favor of admission against interest. It binds the petitioner as it is not alleged that it
the petitioner should not be made to benefit de Venecia's co-defendant; was given due to fraud, mistake or inadvertence. The adverse effects of the
admission bind petitioner and it is not material that respondents Bondoc and
b) Defendant de Venecia is not an indispensable party in the prosecution of company were not parties to the Deed or that in executing the said Deed,
petitioner did not receive any consideration from respondents Bondoc and
the case against his co-defendants;
company. An admission against interest is a voluntary act and its effects do
not depend on the concurrence of any other party or consideration of any
c) The liabilities of de Venecia's co-defendants arose not only from their kind.
alleged conspiracy with defendant de Venecia but also by virtue of their
individual or collective actions done in unlawful concert with one another;
Petitioner next contends that the respondent court erred in ruling that it has
only one cause of action against the respondents Bondoc and company —
d) The causes of action against defendants Ferdinand E. Marcos and Imelda i.e., that as members of the Board of Directors of PHILGUARANTEE, they
R. Marcos have nothing to do with the Deed of Assignment executed by continuously extended and maintained unwarranted guarantees to cover the
Landoil in favor of the petitioner; and foreign loans of de Venecia's Land Oil Group of Companies, cronies of the
Marcoses. Petitioner's submission is shared by our brethren who dissented
e) The parties manifestly intended to exclude defendant de Venecia's co- from the majority. They are of the view that petitioner pleaded several causes
defendants from the benefit of the Deed of Assignment in question. of action. They then point to the introductory part of par. 11 of the Expanded
Complaint which used the phrase "among others," viz:
We find partial merit in the petition.
11. Defendant Jose de Venecia, Jr., taking undue advantage of his
The threshold question is whether the subject Deed of Assignment justifies relationship, influence and connection with Defendants Ferdinand E. Marcos
the dismissal of Civil Case No. 0020 against, first, private respondents and Imelda R. Marcos, acting by himself and/or in active collaboration with
Bondoc, Virata, Ancheta, Laya, Mapa, Jr., Ongpin, Zalamea, and second, the other Defendants, embarked upon devices, schemes and strategems to
against the private respondents, Ferdinand and Imelda R. Marcos. unjustly enrich themselves at the expense of plaintiff and the Filipino
People, among others. (Emphasis supplied.)
We shall first determine the effect of the Deed of Assignment on the cause of
action of petitioner against the first group of private respondents — They also cite par. 8 which used the same phrase "among others," viz:
Bondoc, et al. Petitioner submits that the execution of the Deed need not
result in the dismissal of Expanded Complaint against Bondoc, et al. It cites . . . Defendant Ferdinand E. Marcos, together with other Defendants, acting
two (2) reasons: (1) Bondoc, et al. were not parties to the Deed, and (2) singly or collectively, and/or in unlawful concert with one another, in flagrant
petitioner did not receive any consideration or benefit from Bondoc, et al., breach of public trust and of their fiduciary obligations as public officers, with
when it executed the said Deed. gross and scandalous abuse of right and power and in brazen violation of the
Constitution and laws of the Philippines, embarked upon a systematic plan to
Petitioner's submission misses the rationale of the ruling of the respondent accumulate ill-gotten wealth. Among others, in furtherance of said plan and
court. The respondent court ordered the dismissal of the Expanded acting in unlawful concert with one another and with gross abuse of power
Complaint because the Deed contained averments which nullified petitioner's and authority, . . . (Emphasis supplied.)
cause of action. More specifically, the Deed averred ". . . as a result of such
investigation Philguarantee has satisfied itself (1) that such guarantee facility They also refer to par. 9 which also used the word "among," viz:
was obtained in the ordinary and regular course of business, and that no
favor was accorded to the Landoil officers, in the grant of such guarantee
Among the assets acquired by Defendants in the manner above-described described in subparagraphs (a) to (f), paragraph 11 of the Expanded
and discovered by the Commission in the exercise of its official Complaint, but probably through "the other devices, schemes or strategems."
responsibilities are funds and other property listed in Annex "A" hereof and
made an integral part of this Complaint. (Emphasis supplied.) Again, we find the thesis untenable. We need not agonize in search for the
subjective intent of the petitioner in concluding the Deed of Assignment only
They then cite paragraphs 13, 14, 15, 16, 17 and of the Expanded Complaint with the seven (7) corporations of the de Venecia group of companies.
which allegedly enumerated five (5) causes of action. Speculations on intent can be endless for it is the nature of unmanifested
intent to be fugitive. But the effort is superfluous for we need not engage in
This stand cannot be sustained. Par 8 of the Expanded Complaint merely this difficult intellectual jujitsu. For, whether or not it was petitioner's furtive
laid down the "General Averments of Defendants' Illegal Acts." intent to settle amicably with all the corporations of de Venecia and the
The specific allegations of the acts and omissions committed by respondents respondents Bondoc and company, is not decisive of the case at bar. What is
Bondoc and company and constitutive of petitioner's cause of action are determinative is that in the Deed of Assignment, petitioner itself admitted that
recited in par. 11 of the Expanded Complaint. It is for this reason that par. 11 it has no cause of action against these respondents in Civil Case No. 0020.
bears the descriptive title "Specific Averments of Defendants' Illegal Acts." The admission was made when, after conducting its own investigation, it
Needless to stress, the cause of action of the petitioner against the said found out that (1) de Venecia, Jr., was not a crony but a victim of the
respondents is spelled out in par. 11 (a) to (f). A perusal of par. 11 will yield Marcoses; (2) the guarantees extended by the private respondents as
no other conclusion than that there is but one cause of action against these members of the Board of Director of PHILGUARANTEE were given in "the
respondents -- that with conspiracy, they allegedly extended unwarranted ordinary and regular course of business and that no favor was accorded to
guarantees to enable the de Venecia group of companies, all cronies of the the Landoil officers in the grant of such guarantee facility," and (3) that the
Marcoses, to obtain foreign loans. The use of the phrase "among others" in business reversals experienced by the Landoil Group in connection with its
the Expanded Complaint does not in any manner mean that petitioner various construction and other projects in the Middle East and elsewhere
has other concealed causes of action against these respondents. Smart were due, firstly, to the inability of the Landoil Group to collect its contract
pleaders resort to said artful phrase only to gain more leeway in presenting receivables from such projects due to the reasons specified in the sixth
their evidence. By no stretch of the imagination, however, can it be "whereas" clause, and, secondly, due to the non-payment of its insurance
maintained that the opaque phrase "among others" can confer a cause of claim. In light of these specific admissions, there is no need to speculate why
action. Such a ruling cannot be reconciled with substantive due process the other corporations of de Venecia were not made parties to the Deed of
which bars roaming generalities in any kind of complaint, whether civil or Assignment.
criminal. It is for this reason that section 1 of rule 8 of the Rules of Court
requires that "every pleading shall contain in a methodical and logical form, a The dissent likewise posits the highly stretched submission that there is
plain, concise and direct statement of the ultimate facts on which the party a prima facie showing that the "assets of the defendants in the said eleven
pleading relies for his claim or defense, as the case may be . . ." A (11) corporations were not necessarily obtained through or as a
transgression of this rule is fatal. Upon the other hand, paragraphs 13 to 17 consequence of the acts or transactions described in subparagraphs (a) to
of the Expanded Complaint contain mere general averments and do not (f), par. 11 of the Expanded Complaint but probably through "the other
allege petitioner's specific cause of action against these respondents. They devices, schemes or strategems." This submission of a prima facie showing
speak for themselves and they need not undergo the scalpel of judicial self-destructs for the factual basis given for its support is a mere guesswork
scrutiny. — i.e., that probably the aforementioned assets were obtained through other
devices, schemes or strategems. Moreover, we are dealing with a petition
Petitioner and the dissent further forward the thesis: The averments earlier for certiorari, where it may not be proper for this Court, concededly not a trier
mentioned and the deed of assignment, juxtaposed with Annex "A", of fact, to rule about the existence of a prima facie case. To be sure, the facts
show prima facie that (a) the petitioner did not intend to enter into any of the case were not fully developed, for petitioner's Expanded Complaint
amicable settlement with the remaining eleven (11) corporations or regarding was dismissed on the basis of private respondents' motion to dismiss.
the frozen assets listed in said Annex "A", and (b) the assets of the
defendants in the said eleven (11) corporations were not Additionally, the dissent urges that the petitioner's admissions ". . . do not by
necessarily obtained through or as a consequence of the acts or transactions themselves clear the Board of Directors or the officers of the Philguarantee
from any liability which could have arisen from the grant of the guaranty
facility." The given reason is that "private respondents were not sued as Placido Mapa, Jr., Roberto Ongpin and Cesar C. Zalamea was granted full
directors or officers of a private corporation, but as government officials who Philippine government guarantee coverage;
under the Constitution were obliged to serve with the highest degree of
responsibility, integrity, loyalty and efficiency and to remain accountable to (d) Defendant Jose de Venecia misused the proceeds of the loans by
the people." With due deference this view that respondents Bondoc and diverting them to other uses and/or appropriation, then for his own personal
company were not sued as members of the Board of PHILGUARANTEE but benefit using for this purpose a string of local and overseas banks, such as,
as public officials is simply irreconcilable with the allegations in the Expanded but not limited to, PNB (New York), PNB (Buendia Branch), PCTB (Makati
Complaint of the petitioner, viz: Branch), Swiss Banking Corp. of Hongkong, and the Hongkong and
Shanghai Banking Corp. in Hongkong, and in an effect to hide his complicity
xxx xxx xxx in the diversion, refused to submit regular accounting and reports, all in
violation of the provisions of the loan and guarantee agreements;
5. Defendants ROSENDO D. BONDOC was the President of the Philippine
Export and Foreign Loan Guarantee Corporation (Philguarantee) while (e) Notwithstanding the aforesaid repeated violations, Philguarantee, with the
Defendants CESAR E. A. VIRATA, RUBEN ANCHETA, JAIME C. LAYA, active collaboration of Defendants Rosendo D. Bondoc, Cesar E. A. Virata,
PLACIDO MAPA, JR., ROBERTO ONGPIN, and CESAR C. ZALAMEA were Ruben Ancheta, Jaime C. Laya, Placido Mapa, Jr., Roberto Ongpin and
the members of its Board of Directors. Cesar C. Zalamea, continued to provide financial assistance to the
companies and controlled by Defendant Jose de Venecia. (Emphasis
xxx xxx xxx supplied).
V There cannot be any iota of doubt that said respondents were sued as
members of the Board of PHILGUARANTEE and not as public officials.
SPECIFIC AVERMENTS Indeed, if they were able to guaranty the foreign loans of petitioner it was
OF DEFENDANTS' ILLEGAL ACTS because they were members of the Board of PHILGUARANTEE and for no
other reason. But even granting arguendo that these respondents were sued
as public officials, we cannot perceive how they could be charged with
xxx xxx xxx betrayal of their trust considering again petitioner's admission that the
guarantee facilities were extended in the "ordinary and regular course of
(b) To finance his huge domestic and overseas operations, Defendant Jose business."
de Venecia, acting through the Land Oil Group, borrowed enormous amounts
in foreign currency denominated loans from several syndicates of Petitioner further contends that the emerging rule in the United States is that
international banks, such as, but not limited to, Arab Banking Corporation, the release of one tortfeasor does not automatically result in the release of
Ahli Bank of Kuwait, Credit Swisse First of Boston, Saudi Cairo Bank, Mellon the other tortfeasors, hence, the case against the private respondents should
Bank and the Bank of Montreal. In view of the magnitude of the loans and the not be dismissed even if it had consented to the dismissal of the case against
project risks involved, the banks required that their loans be fully covered by de Venecia, Jr. We fail to see how the principles of tort can apply to the case
the absolute and unconditional guarantee of the Government of the Republic at bench. Civil Case No. 0020 can hardly be classified as a tort case for, as
of the Philippines. petitioner itself labels its complaint, it is one for reconveyance, reversion,
accounting, restitution and damages. Petitioner has never taken the stance
(c) Accordingly, Defendant Jose de Venecia applied for Philippine that its cause of action is predicated on tort.
Government guarantee from the Philippine Export and Foreign Loan
Guarantee Corporation (Philguarantee), a government-owned and controlled But even if we apply the principles of tort to the case at bench, we still affirm
corporation organized to provide Philippine Government guarantees, and, the ruling of the respondent court that the complaint against private
with the active collaboration of Defendants Rosendo D. Bondoc, who was respondents as former directors of PHILGUARANTEE should be dismissed.
then the President of the Philguarantee and the members of its Board of It is true that in Zenith Radio Corp. v. Hazeltine Research, Inc., 401 US 321,
Directors, Defendants Cesar E. A. Virata, Ruben Ancheta, Jaime C. Laya, 91 S. Ct. 795, the US Supreme Court held that "a party releases only those
other parties whom he intends to release." Nonetheless, the ruling should be obtained the guarantees to his foreign loans in the regular and ordinary
interpreted in light of the text of the release document executed course of business. In plain language, petitioner was convinced that de
by Zenith, viz: Venecia, Jr., and company did not commit any actionable wrong, including
any tortious act. It ought to follow that the complaint against the respondents
To All To Whom These Presents Shall Come Or May Concern, Greeting: Bondoc and company for extending the said guarantees in favor of de
Know ye, That Zenith Radio Corporation and The Rauland Corporation, each Venecia, Jr., cannot also be pursued any further. The complaint against de
a corporation organized and existing under and by virtue of the laws of the Venecia, Jr., and these respondents are inseparable, especially because
State of Illinois, for and in consideration of the sum of One Dollar ($1.00) petitioner relied on the theory of conspiracy. In any event, the rule with
lawful money of the United States of America and other good and valuable respect to the effect of release of one tortfeasor on other tortfeasors is still in
consideration, to them in hand paid by . . . the receipt whereof is hereby a state of fluctuation even in the United States. Thus, the 2nd Restatement of
acknowledged, have each remised, released and forever discharged, and by the Law on Torts states:
these presents does each for itself and its respective subsidiaries,
successors and assigns remise, release and forever discharge the said . . . Statutes. About half of the states have now passed statutes covering the
and its subsidiaries and their respective successors and assigns of and from matter. They change the early common law with varying positions, but a
all, and all manner of action and actions, cause and causes of action, suits, substantial number provide that neither a release nor a covenant not to sue
debts, dues, sums of money, accounts, reckoning, bonds, bills, specialties, discharges the other tortfeasor unless its terms so provide. This is the
covenants, contracts, controversies, agreements, promises, variances, provision in both the 1955 Uniform Contribution Among Tortfeasors Act and
trespasses, damages, judgments, extents, executions, claims and demands the Uniform Comparative Fault Act.
whatsoever, in law, in admiralty, or in equity, which against
said . . ., its subsidiaries and their respective successors and assigns, said Present status. States may now be classed as follows:
Zenith Radio Corporation and the Rauland Corporation and each of them
ever had, now has or which each of them and their respective subsidiaries,
(1) A release amounts to a complete discharge, no matter what language is
successors and assigns, hereafter can, shall or may have for, upon or by
used.
reason of any matter, cause or thing whatsoever from the beginning of the
world to the day of the date of these presents, not including however, claims,
if any, for unpaid balances on any goods sold and delivered. (2) An instrument in the form of a release discharges all tortfeasors; a
covenant not to sue does not.
"Insert
(3) The intent is controlling, irrespective of the language — sometimes with a
rebuttable presumption either for or against discharge of the other tortfeasor.
"Radio Corporation of America", or
(4) A release of one tortfeasor does not discharge the other unless it so
"General Electric Company," or
provides. There is frequent change in the alignment of the states, usually in
the direction toward classification.
"Western Electric Company."
Next, petitioner argues that the respondent court gravely abused its
"This release may not be changed orally." 1 discretion when it held that de Venecia, Jr., was an indispensable party;
hence, his exclusion in the Expanded Complaint ought to result in the
It is clear from the text of this release document in Zenith that the release dismissal of the same Complaint against the private respondents. The
was made in exchange for a valuable consideration, thus, in satisfaction of argument has merit considering that the case can be decided without
Zenith's claim. In the case at bench, petitioner released de Venecia, Jr. and impleading de Venecia, Jr. Be that as it may, this ruling is not enough reason
some of his companies not because its claim has already been satisfied by a to completely reverse the respondent court. As discussed above, the
sufficient consideration, but because of the fact that it could not establish its petitioner dropped its cause of action in its Expanded Complaint by signing
cause of action against them. Petitioner's investigation showed that de the said Deed of Assignment. It has precluded itself from further pursuing its
Venecia, Jr., was not a crony of former President Marcos and that he
complaint not only against de Venecia, Jr., but also against respondents Feliciano, Bidin, Regalado, Nocon, Bellosillo, Melo, Vitug and Kapunan, JJ.,
Bondoc and company who served as former directors of PHILGUARANTEE. concur.
We now come to the submission of petitioner that the dismissal of the Narvasa, C.J., Cruz, Romero and Quiason, JJ., took no part.
complaint against the respondents Marcoses ordered by the respondent
court is a grave abuse of discretion. We agree that the Marcoses should be
treated differently from de Venecia, Jr., and the respondents Bondoc and
company. For in the aforementioned Deed of Assignment, the petitioner only
recognized the lack of culpability of de Venecia, Jr., and by necessary
inference, the respondents Bondoc and company. In contrast, however, the
said Deed did not exculpate the Marcoses, but on the contrary, inculpated
them. More specifically, the Deed alleged that former President Marcos "by
himself and/or through his designated nominees or cronies, owns
approximately 45% of the outstanding capital stock of Landoil, and through
Landoil, a proportionate portion of the outstanding capital stock of each of the
other companies of the Landoil Group". According to the same Deed, the
former President and his cronies "coveted the Landoil groups and caused the
same to betaken over by his (referring the Marcos) agents and business
associates . . .". It was for this reason that in the same Deed, de Venecia, Jr.,
agreed to surrender to petitioner all the Marcoses' shares in the Landoil
group of companies and to cooperate in the prosecution of any case to be
filed against the Marcoses. In fine, the Deed of Assignment leaves it crystal
clear that petitioner has not surrendered its cause of action against the
Marcoses as it did with respect to the respondents Bondoc and company.
One final point. The dismissal of the Complaint against Bondoc and company
is compelled by the equal protection clause of the Constitution. De Venecia,
Jr., and the respondents Bondoc and company are similarly situated.
Respondent Bondoc, et al. were included in the Complaint only because they
allegedly gave unwarranted favors to de Venecia, Jr., in guaranteeing the
latter's foreign loans. When petitioner admitted that no undue favor was
granted to de Venecia, Jr. in the grant of such guaranty facilities and
dismissed its complaint against him, petitioner cannot avoid its duty of
dismissing its complaint against respondents Bondoc and company. To give
a more favored treatment to de Venecia, Jr., when the parties are equally
situated is to indulge in invidious discrimination.
IN VIEW WHEREOF, the resolutions dated November 29, 1989 and March
9, 1990 of the respondent court are affirmed with the modification that the
Expanded Complaint against the respondents Marcoses in Civil Case
No. 0020 is reinstated and ordered to be remanded to the respondent court
for further proceedings.
SO ORDERED.