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1.

Whether or not the Government waive


STATE LIABILITY its immunity from suit or did it also
Tuesday, September 25, 2018
concede its liability to the plaintiff.
3:51PM
2. Whether or not the Government is
 State cannot be sued without its legally-liable for the damages resulting
consent. therefrom
 Consent of the State to be sued can be Ruling:
manifested through a special law or
general law allowing the State to be The plaintiff was authorized to bring the said
sued. action against the Government in order to fix the
responsibility for the collision. The court have
Article 2180, Civil Code decided that the accident was due solely to the
The State is responsible in like manner when it negligence of the chauffeur who was at that time
acts through a special agent; but not when the an employee of the defendant.
damage has been caused by the official to whom In the United States the rule that the state is not
the task done properly pertains, in which case liable for the torts committed by its officers or
what is provided in Article 2176 shall be agents whom it employs, except when expressly
applicable made so by legislative enactment is well settled.
Special Agent - one who receives definite and As to the scope of legislative enactments
fixed order or commission, foreign to the permitting individuals to sue the state where the
exercise of the duties of his office if he is a special cause of action arises out of either fort or
official. contract, the rule is that by consenting to be
E. Meritt v. Government of Philippine Islands sued, a state simply waives its immunity from
suit. It does not thereby concede its liability to
Facts: plaintiff or create any cause of action in his favor
or extend its liability to any cause not previously
A collision happened between the General
recognized. It merely gives a remedy to enforce
Hospital ambulance and plaintiff who was riding
a preexisting liability and submits itself to the
a motorcycle when the ambulance took a
jurisdiction of the court subject to its right to
sudden turn without having sounded any whistle
interpose any lawful defense.
or horn. Because of the collision, plaintiff was
severely injured. Act No. 2457 does not operate to extend the
Government’s liability to any cause not
The trial court maintained that the collision
previously recognized.
between the plaintiff’s motorcycle and the
ambulance of the General Hospital was due As to the defendant’s liability for the negligent
solely to the negligence of the chauffeur. acts of its officers, agents and employees, Article
1903 par. 5 of the Civil Code reads:
Act No. 2457 was enacted by the Philippine
Legislature authorizing the plaintiff to bring suit The state is liable in this sense when it
in the Court of First Instance against the acts through a special agent, but not
Government of the Philippine Islands. when the damage should have been
caused by the official to whom properly
Issue:
it pertained to do the act performed, in

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which case the provisions of the responsibility in the manner laid down by the law
preceding article shall be applicable. of civil responsibility.

The state is not responsible for the damages It is therefore, evidence that the State is only
suffered by private individuals in consequence of liable for the acts of its agents, officers and
acts performed by its employees in the discharge employees when they act as special agents
of the functions pertaining to their office, within the meaning of Article 1903 par. 5 and
because neither fault nor negligence can be that the chauffeur of the ambulance of the
presumed on the part of the state in the General Hospital was not such an agent.
organization of branches of public service and in
Government Owned and Controlled
the appointment of its agents; on the contrary,
Corporations:
we must presuppose all foresight humanly
possible on its part in order that each branch of Philippine National Railways v. IAC
service serves the general weal and that of
private persons interested in its operation. Facts:
Between these latter and the state, therefore, no PNR train who is a purely government owned
relations of a private nature governed by the civil and controlled corporation collided with a
law can arise except in a case where the state passenger bus of Baliwag Transit. It was alleged
acts as a judicial person capable of acquiring by the defendant alleged that the proximate
rights and contracting obligations. cause of the collision was the negligence and
The responsibility of the state is limited by Article imprudence of the plaintiff PNR and its
1903 to the case wherein it acts through a special locomotive engineer in operating its passenger
agent who is defined as one who receives a train in a busy intersection without any bars,
definite and fixed order or commission, foreign semaphores, signal lights, flagman or switchman
to the exercise of the duties of his office if he is a to warn the public of approaching train that
special official so that in representation of the would pass through the crossing. The plaintiff
state and being bound to act as an agent thereof, avers that the collision was caused by the
he executes the trust confided to him. This negligence, imprudence and lack of foresight of
concept does not apply to any executive agent defendant’s bus driver.
who is an employee of the acting administration On the appeal the issue as to whether or not the
and who on his own responsibility performs the plaintiff enjoys immunity from suit was raised for
functions which are inherent in and naturally the first time. Apart from the fact that the lawyer
pertain to his office and which are regulated by of the petitioner agreed to stipulate that the
law and the regulations. railroad company had capacity to sue and be
That according to Article 1903 par. 5 of the Civil sued.
Code, in a damage case, the responsibility of the Respondent court maintained that the laws
state is limited to that which it contracts through governing the creation and rehabilitation of the
a special agent duly empowered by a definite PNR were entirely mute on its power to sue and
order or commission to perform some act or sued nonetheless such prerogative was implied
charged with some definite purpose which gives from the general power to transact business
rise to the claim, and not where the claim is pertinent or indispensable to the attainment of
based on acts or omissions imputable to a public the goals of railroad company under Section 4 of
official charged with some administrative or Republic Act No. 4156 as amended by Republic
technical office who can be held to the proper

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Act No 6366. The respondent court determined by the character of the objects for
characterized the railroad company as a private which the entity was organized."
entity created not to discharge a governmental
Suits against State agencies with respect to
function but among other things to operate a
matters in which they have assumed to act in a
transport service which is essentially a business
private or nongovernmental capacity are not
concern and thus barred from invoking immunity
suits against the State.
from suit.
Suits against State agencies with relation to
Issue:
matters in which they have assumed to act in a
Whether or not the plaintiff enjoys immunity private or nongovernmental capacity, and
from suit. various suits against certain corporations
created by the State for public purposes, but to
Ruling:
engage in matters partaking more of the nature
The State, by virtue of its sovereign nature and of ordinary business rather than functions of a
as reaffirmed by constitutional precept, is governmental or political character, are not
insulated from suits without its consent. regarded as suits against the State.
However, equally conceded is the legal
The latter is true, although the State may own
proposition that the acquiescence of the State to
the stock or property of such a corporation, for
be sued can be manifested expressly through a
by engaging in business operations through a
general or special law, or indicated implicitly, as
corporation the State divests itself so far of its
when the State commences litigation for
sovereign character, and by implicating consents
asserting an affirmative relief or when it enters
to suits against the corporation.
into a contract. When the State participates in a
covenant, it is deemed to have descended from The point is that when the government enters a
its superior position to the level of an ordinary commercial business it abandons its sovereign
citizen and thus virtually opens itself to judicial capacity and is to be treated like any other
process. private corporation.

The Court qualified this form of consent only to Municipal Corporations


those contracts concluded in a proprietary
Article 2189, Civil Code
capacity and therefore immunity will attach for
those contracts entered in a governmental Article 2189. Provinces, cities and municipalities
capacity. shall be liable for damages for the death of, or
injuries suffered by, any person by reason of the
The State divested itself of its sovereign capacity
defective condition of roads, streets, bridges,
when it organized the PNR which is no different
public buildings, and other public works under
from its predecessor, the Manila Railroad
their control or supervision.
Company. The PNR did not become immune
from suit. It did not remove itself from the Republic Act 7160
operation of Articles 1732 to 1766 of the Civil
Code on common carriers. Section 24: Liability for Damages. - Local
government units and their officials are not
The correct rule is that "not all government exempt from liability for death or injury to
entities, whether corporate or noncorporate, are persons or damage to property.
immune from suits. Immunity from suit is

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Guilatco v. City of Dagupan Ruling:

Facts: Yes. The liability of public corporations for


damages arising from injuries suffered by
Plaintiff while she was about to board a
pedestrians from the defective condition of
motorized tricycle at a sidewalk located at Perez
roads is expressed in the Civil Code as follows:
Blvd. (a National Road, under the control and
supervision of the City of Dagupan) accidentally Article 2189. Provinces, cities and municipalities
fell into a manhole located on said sidewalk, shall be liable for damages for the death of, or
thereby causing her right leg to be fractured. As injuries suffered by, any person by reason of the
a result, thereof, she had to be hospitalized, defective condition of roads, streets, bridges,
operated on and confined. Defendant admitted public buildings, and other public works under
the existence of said manhole along the sidewalk their control or supervision.
in Perez Blvd., admittedly a National Road in
It is not even necessary for the defective road or
front of the Luzon Colleges. He also admitted
street to belong to the province, city or
that said manhole is owned by the National
municipality for liability to attach. The article
Government and the sidewalk on which they are
only requires that either control or supervision is
found along Perez Blvd. are also owned by the
exercised over the defective road or street.
National Government.
In the case at bar, this control or supervision is
Plaintiff filed a case against City of Dagupan.
provided for in the charter of Dagupan and is
Lower court maintained that no evidence was
exercised through the City Engineer.
presented by the plaintiff to prove that the City
of Dagupan had control or supervision over the The same charter of Dagupan also provides that
Perez Boulevard. The appellate court reversed the laying out, construction and improvement of
the lower court findings. streets, avenues and alleys and sidewalks, and
regulation of the use thereof, may be legislated
The city contends that Perez Boulevard, where
by the Municipal Board. Thus, the charter clearly
the fatal drainage hole is located, is a national
indicates that the city indeed has supervision
road that is not under the control or supervision
and control over the sidewalk where the open
of the City of Dagupan. Hence, no liability should
drainage hole is located.
attach to the city. It submits that it is actually the
Ministry of Public Highways that has control or The express provision in the charter holding the
supervision through the Highway Engineer city not liable for damages or injuries sustained
which, by mere coincidence, is held concurrently by persons or property due to the failure of any
by the same person who is also the City Engineer city officer to enforce the provisions of the
of Dagupan. charter, cannot be used to exempt the city, as in
the case at bar.
Issue:
The charter only lays down general rules
Whether or not control or supervision over a
regulating the liability of the city. On the other
national road by the City of Dagupan exists, in
hand, article 2189 applies in particular to the
effect binding the city to answer for damages in
liability arising from "defective streets, public
accordance with Article 2189 of the Civil Code.
buildings and other public works."

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Municipality of San Juan v. CA Issue:

Facts: Whether or not petitioner is liable for the injuries


sustained by Biglang-awa.
Under a “Contract For Water Service
Connections” entered into by and between the Ruling:
Metropolitan Waterworks and Sewerage System
Jurisprudence7 teaches that for liability to arise
(MWSS) and Kwok Cheung as sole proprietor of
under Article 2189 of the Civil Code, ownership
K.C. Waterworks System Construction (KC, for
of the roads, streets, bridges, public buildings
short), the former engaged the services of the
and other public works, is not a controlling
latter to install water service connections.
factor, it being sufficient that a province, city or
KC was given a Job Order by the South Sector municipality has control or supervision thereof.
Office of MWSS to conduct and effect
At any rate, under Article 2189 of the Civil Code,
excavations at the corner of M. Paterno and
it is not necessary for the liability therein
Santolan Road, San Juan, Metro Manila, a
established to attach that the defective roads or
national road, for the laying of water pipes and
streets belong to the province, city or
tapping of water to the respective houses of
municipality from which responsibility is
water concessionaires.
exacted. What said article requires is that the
That same day, KC dispatched five (5) of its province, city or municipality have either
workers to conduct the digging operations in the “control or supervision” over said street or road.
specified place. At that time, only 3/4 of the job
Petitioner contends that under Section 149(1)(z)
was finished in view of the fact that the workers
of the Local Government Code, petitioner has
were still required to re-excavate that particular
control or supervision only over municipal and
portion for the tapping of pipes for the water
not national roads, like Santolan Road. Sadly,
connections to the concessionaires.
petitioner failed to take note of the other
One Priscilla Chan was driving her car on the said provisions of Section 149 of the same Code,
road. Suddenly, the left front wheel of the car fell more particularly the following: Section 149.
on a manhole where the workers of KC had Powers and Duties.—(1) The sangguniang bayan
earlier made excavations. As a result, the shall:
humerus on the right arm of Prosecutor Biglang-
(bb) Regulate the drilling and excavation of the
awa, passenger of Priscilla Chan, was fractured.
ground for the laying of gas, water, sewer, and
According to the police officer who conducted an
other pipes; the building and repair of tunnels,
investigation, he did not see any barricades at
sewers, drains and other similar structures;
the scene when he arrived less than an hour
erecting of poles and the use of crosswalks, curbs
later.
and gutters therein, and adopt measures to
Biglang-awa filed before the RTC a complaint ensure public safety against open canals,
against MWSS, Municipality of San Juan, a manholes, live wires and other similar hazards to
number of San Juan municipal officials and KC. life and property, and provide just compensation
or relief for persons suffering from them;
RTC rendered judgment in favor of Biglang-awa.
The decision was appealed to CA, which affirmed Clear it is from the above that the Municipality
the decision of the lower court. of San Juan can “regulate” the drilling and
excavation of the ground for the laying of gas,

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water, sewer, and other pipes within its to undertake the necessary precautionary
territorial jurisdiction. measures to avert accidents and insure the
safety of pedestrians and commuters: x x x The
Doubtless, the term “regulate” found in the
[petitioner] cannot validly shirk from its
aforequoted provision of Section 149 can only
obligation to maintain and insure the safe
mean that petitioner municipality exercises the
condition of the road merely because the permit
power of control, or, at the very least,
for the excavation may have been issued by a
supervision over all excavations for the laying of
government entity or unit other than the
gas, water, sewer and other pipes within its
Appellant San Juan or that the excavation may
territory.
have been done by a contractor under contract
We must emphasize that under paragraph with a public entity like the Appellee MWSS.
[1][bb] of Section 149, supra, of the Local
Neither is the [petitioner] relieved of liability
Government Code, the phrases “regulate the
based on its purported lack of knowledge of the
drilling and excavation of the ground for the
excavation and the condition of the road during
laying of gas, water, sewer, and other pipes,” and
the period from May 20, 1988 up to May 30,
“adopt measures to ensure public safety against
1988 when the accident occurred. It must be
open canals, manholes, live wires and other
borne in mind that the obligation of the
similar hazards to life and property,” are not
[petitioner] to maintain the safe condition of the
modified by the term “municipal road.” And
road within its territory is a continuing one which
neither can it be fairly inferred from the same
is not suspended while a street is being repaired
provision of Section 149 that petitioner’s power
Knowledge of the condition of the road and the
of regulation vis-à-vis the activities therein
defects and/or obstructions on the road may be
mentioned applies only in cases where such
actual or constructive. It is enough that the
activities are to be performed in municipal roads.
authorities should have known of the aforesaid
To our mind, the municipality’s liability for
circumstances in the exercise of ordinary care. In
injuries caused by its failure to regulate the
the present recourse, Santolan Road and the
drilling and excavation of the ground for the
Greenhills area coming from Ortigas Avenue
laying of gas, water, sewer, and other pipes,
going to Pinaglabanan, San Juan, Metro Manila is
attaches regardless of whether the drilling or
a busy thoroughfare. The gaping hole in the
excavation is made on a national or municipal
middle of the road of Santolan Road could not
road, for as long as the same is within its
have been missed by the authorities concerned.
territorial jurisdiction.
After all, the [petitioner] San Juan is mandated
While it may be true that the Department of to effect a constant and unabated monitoring of
Public Works and Highways may have issued the the conditions of the roads to insure the safety
requisite permit to the Appellee KC and/or of motorists. Persuasive authority has it that:
concessionaires for the excavation on said road,
It is the duty of the municipal authorities to
the Appellant San Juan is not thereby relieved of
exercise an active vigilance over the streets; to
its liability to [Biglang-awa] for its own gross
see that they are kept in a reasonably safe
negligence. Indeed, Evangeline Alfonso, the
condition for public travel. They cannot foldtheir
witness for the Appellant San Juan unabashedly
arms and shut their eyes and say they have no
[sic] admitted, when she testified in the Court a
notice. (Todd versus City of Troy, 61 New York
quo, that even if the Department of Public Works
506). (Words in bracket supplied). Nor can
and Highways failed to effect the requisite
petitioner seek shelter on Section 8 of Ordinance
refilling, the Appellant San Juan was mandated

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82-01 of the Metropolitan Manila Commission. Issue:
Concededly, Section 8 of the Ordinance makes
Whether or not respondent’s son, Fulgencio
the permittee/excavator liable for death, injury
Dacara Jr. was negligent at the time of the
and/or damages caused by the non-completion
incident?
of works and/or failure of the one undertaking
the works to adopt the required precautionary Ruling:
measures for the protection of the general
public. Significantly, however, nowhere can it be As to negligence: QC gov’t was negligent.
found in said Ordinance any provision exempting That the negligence of QC gov’t was the
municipalities in Metro Manila from liabilities proximate cause of the accident. Contrary to the
caused by their own negligent acts. testimony of the witnesses for the defense that
Quezon City Gov’t v. Fulgencio Dacara there were signs, gasera which was buried so
that its light could not be blown off by the wind
Facts: and barricade, none was ever presented to
stress the point that sufficient and adequate
Fulgencio Dacara, Jr., son of Fulgencio P. Dacara,
precautionary signs were placed at Matahimik
Sr. and owner of Toyota Corolla 4-door while
Street. If indeed signs were placed thereat, how
driving the said vehicle, rammed into a pile of
then could it be explained that according to the
earth/street diggings found at Matahimik St.,
report even of the policeman which for clarity is
Quezon City, which was then being repaired by
quoted again, none was found at the scene of
the Quezon City government. As a result,
the accident.
Dacarra, Jr. allegedly sustained bodily injuries
and the vehicle suffered extensive damage for it The provisions of Article 2189 of the New Civil
turned turtle when it hit the pile of earth. Code capsulizes the responsibility of the city
government relative to the maintenance of
Fulgencio P. Dacara, for and in behalf of his
roads and bridges since it exercises the control
minor son, Jr., filed a Complaint for damages
and supervision over the same. Failure of the
against the Quezon City and Engr. Ramir
defendant to comply with the statutory
Tiamzon, as defendants
provision found in the subject-article is
Defendants claimed that they exercised due care tantamount to negligence per se which renders
by providing the area of the diggings all the City government liable. Harsh application of
necessary measures to avoid accident. Hence, the law ensues as a result thereof but the state
the reason why Fulgencio Dacara, Jr. fell into the assumed the responsibility for the maintenance
diggings was precisely because of the latters and repair of the roads and bridges and neither
negligence and failure to exercise due care. They exception nor exculpation from liability would
maintained that they had observed due diligence deem just and equitable.
and care in installing preventive warning devices,
Public Officers
and that it was in fact the plaintiff who had failed
to exercise prudence by driving too fast to avoid Public officers who are guilty of tortious conduct
the diggings. are personally liable for their actions. They
cannot raise the defense that the State is
immune from suits. It is a well settled principle
of law that a public official may be held liable in
his personal private capacity for whatever

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damage he may have caused by his act done with On September 8, 1979, at 4:00 o'clock in the
malice, bad faith or gross negligence or beyond morning, on a Saturday and a non-working day,
the scope of his authority or jurisdiction. while the private respondent was tying a cable to
a pile of scrap iron to be loaded on a truck inside
The Revised Administrative Code of 1987
the premises of the compound, and while the
provides the basic rules on the liability of public
bucket of the payloader was being raised, the
officers and employees:
bucket suddenly fell and hit Adarle on the right
Section 38: Liability of Superior Officers. — back portion of his head just below the nape.
Adarle was rushed to the St. Anthony Hospital,
(1) A public officer shall not be civilly liable for Roxas City. According to the medical certificate
acts done in the performance of his official issued by the attending physician, the private
duties, unless there is a clear showing of bad respondent was reported to be able to defecate
faith, malice or gross negligence. 2 months after surgery. He is paralyzed from the
(2) Any public officer who, without just cause, knee down to his toes. He can only sit on a wheel
neglects to perform a duty within a period fixed chair
by law or regulation, or within a reasonable While still in the hospital, the private respondent
period if none is fixed, shall be liable for damages instituted the action below for damages against
to the private party concerned without prejudice Arbatin, his employer; Buensalido, the payloader
to such other liability as may be prescribed by operator; Candelario Marcelino, the civil
law. engineer; and Jose Genson, the Highway District
(3) A head of a department or a superior officer Engineer.
shall not be civilly liable for the wrongful acts, During the trial on the merits, the petitioner put
omissions of duty, negligence, or misfeasance of up the defense that he had no knowledge of or
his subordinates, unless he has actually participation in the accident and that, when it
authorized by written order the specific act or happened, he was not present in the
misconduct complained of. government compound. Apart from the fact that
Section 39: Liability of Subordinate Officers. — it was a Saturday and a non-working day, he was
No subordinate officer or employee shall be in Iloilo.
civilly liable for acts done by him in good faith in The petitioner contends that the appellate court
the performance of his duties. However, he shall erred in not holding that the suit against the
be liable for willful or negligent acts done by him petitioner was, in effect, a suit against the
which are contrary to law, morals, public policy government and, therefore, should be dismissed
and good customs even if he acted under orders under the principle of non-suability of the state.
or instructions of his superiors.
Issue:
Jose E. Genson v. Sps. Eduardo Adarle
The issue before us is subsidiary liability for tort
Facts: comitted by a government employee who is
Private respondent Eduardo Adarle was hired as moonlighting on a non-working day…
a laborer by Arbatin to gather and take away Ruling:
scrap iron from the said compound of the
Highway District Engineer’s Office of Roxas City. Examining the allegations of the complaint and
reviewing the evidence, it would indeed be

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correct to say that petitioner was sued in his working only under the instructions of his
official capacity, and that the most that was superiors. On May 19, 1959, defendants Lucio
imputed to him is act of culpable neglect, Baldonilo, Felix Balato, Teodoro Balato and
inefficiency and gross indifference in the Todesco Cebuano filed a motion to dismiss on
performance of his official duties. Verily, this is the grounds that the complaint states no cause
not imputation of bad faith or malice, and what of action and that they are not the real parties in
is more was not convincingly proven. interest. On May 20, 1959, defendant Florencio
Brazas filed another motion to dismiss, claiming
Genson and Buensalido divested themselves of
that the plaintiff has no cause of action against
their public positions and privileges to
the defendants because they are being sued in
accomodate an acquaintance or probably for
their official capacities and therefore the claim
inordinate gain.
for damages should be directed against the
There is no showing from the records that State.
Genson received anything which could be called
Acting upon the motions to dismiss, the lower
"inordinate gain." It is possible that he permitted
court on June 6, 1959, dismissed the complaint,
work on a Saturday to accommodate an
and against this order, the plaintiff has
acquaintance but it is more plausible that he
prosecuted this appeal directly to this Court.
simply wanted to clear his compound of junk and
the best time for the winning bidder to do it was Issue:
on a non-working day.
The only issue before this Court is the
At any rate, we see no malice, bad faith, or gross correctness of the order appealed from.
negligence on the part of Genson to hold him
Ruling:
liable for the acts of Buensalido and Arbatin.
Article 2180 of the Civil Code provides for the
Pedro Ty Belizar v. Florencio Brazas, et. al
liability of an employer for the tortuous acts of
Facts: his employees. This, however, does not exempt
the employees from personal liability, especially
On April 21, 1959, Pedro Ty Belizar filed a
if there are no persons having direct supervision
complaint against Florencio Brazas, Felix Hilario,
over them, or if there is proof of the existence of
Lucio Baldonilo alleging that he is operating the
negligence on their part. So the injured party can
Samar Express Transit; that defendants are being
bring an action directly against the author of the
used in their capacity as employees (of the
negligent act or omission, although he may sue
Bureau of Public Highways); that due to their
as joint defendants such author and the person
gross negligence in not providing the ferry boat
responsible for him.
with safety devices, one of his auto-trucks, while
being transported from one bank of the Taft The fact that the duties and positions of the
River, to the other, fell into the river and was defendants are indicated does not mean that
submerged in water for over 30 hours; that as a they are being sued in their official capacities,
consequence thereof, he suffered actual and especially as the present action is not one
moral damages and had to hire counsel to against the Government.
prosecute this action.

On May 14, 1959, defendant Felix Hilario, on his


own behalf, alleged as special defense that he is

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Eduardo Varela v. Ma. Daisy Revalez, et. al and anguish, sleepless nights, wounded feelings,
besmirched reputation and social humiliation.
Facts:
The State can never be the author of illegal acts.
Varela was the mayor of Cadiz City. On 22
The complaint merely identified Varela as the
September 1998, he submitted to the
mayor of Cadiz City. It did not categorically state
Sangguniang Panlungsod of Cadiz City the
that Varela was being sued in his official capacity.
committees Proposed Reorganizational
The identification and mention of Varela as the
Structure and Staffing Pattern of Cadiz City. On
mayor of Cadiz City did not automatically
the same day, the Sangguniang Panlungsod
transform the action into one against Varela in
approved without modification and without
his official capacity. The allegations in the
hearing the proposal. The Sangguniang
complaint determine the nature of the cause of
Panlungsod passed Resolution No. 98-112
action.
authorizing and appropriating funds for the
reorganization of the city government. Alzua vs Johnson
Resolution No. 98-112 declared all positions in
The complaint charges the defendant, an
the city government vacant, except elective
associate justice of the Supreme Court of the
positions and positions in the city and assistant
Philippine Islands, with corruption and
city treasurer. On 15 October 1998, Varela
misconduct in office of the gravest character.
signed Resolution No. 98-112.
The damages which plaintiff Alzua seeks to
On 10 November 1998, Varela gave notices of recover in this section are alleged to have
termination to the city government employees, resulted from the entry by the court of an alleged
informing them that their employment would erroneous judgment in a former action to which
end at the close of business hours on 31 Alzua was a party defendant. The error which is
December 1998. The employees opposed and alleged was committed by the court in entering
questioned the legality of Resolution No. 98-112. that judgment, is attributed to the alleged false
Varela ignored them. and misleading statement of the facts of the case
which is set out in the written opinion upon
Around half of the 101 employees of the city
which the judgment of the court was based. The
health department were laid off. Those laid off
complaint specifically charges the defendant,
were the same ones who filed a case, involving
the writer of that opinion, with having willfully,
the magna carta for health workers, against
maliciously, and in bad faith, perverted and
Varela. They were also perceived not to have
misstated the facts set out therein for the
voted for Varela as mayor.
purpose of deceiving the other members of the
Issue: court to whom the opinion was submitted for
signature; and is further changed, that this was
Varela raises the issue whether or not he was but one of series of malicious and wrongful acts
sued in his official and not in his personal whereby the defendant succeeded in deceiving
capacity. his associates, and induced them to sign the
Ruling: order directing the entry of the alleged
erroneous judgment. As necessary corollary to
Varela was sued in his personal capacity, not in the surmises, conjectures, and specific charges
his official capacity. In the complaint, the of wrongdoing set out in the complaint, if these
employees stated that, due to the illegal acts of surmises, conjectures, and specific charges are
the Defendant, Plaintiffs suffered mental torture well founded, the four members of this court

10
whose signatures are attached to that opinion doctrine a to nonliability of judge therein
together with that of the defendant, must have announced is, if not a step in advance of the
signed the opinion with no personal knowledge doctrine generally recognized in English and
of the contents of the record submitted to them American courts, at least a statement of the
for adjudication, and without having read the doctrine in a form which has not yet received
briefs of counsel, relying wholly upon the alleged universal judicial recognition and acceptance.
false and misleading statement of the facts We prefer, therefore, since the facts in this case
prepared by the defendant as the basis for the permit us to do so, to rest our conclusion upon a
judgment which it is alleged was erroneously much narrower and more restricted proposition
entered by the court. touching the liability of judicial officers, which
have never been seriously questioned by any
In support of the proposition that defendant is
court of last resort in England or the United
not liable to respond in a civil action for the
States; merely observing in passing, that the rule
damages alleged in the complaint, we might,
of judicial liability on which we propose to rely is
perhaps, rely upon the reasoning of the
not in conflict with the doctrine laid down in the
concurring opinion in the case of Forbes vs.
occuring opinion in the Forbes case, but is
Chuoco Tiaco (16 Phil. Rep., 534), wherein the
included therein, so that the grounds of public
writer undertakes to establish that "whenever
policy on which the broader doctrine rests
and wherever a judge of a court of superior
necessarily sustain the more restricted
jurisdiction exercises judicial functions, he will
statement of the rule upon which we purpose to
not personally liable in civil damages for the
rely.
result of the actions," and that "the test of
judicial liability is not jurisdiction, but such We hold that under the law as it now exists in
liability depends wholly upon the nature of the these Islands judges of superior and general
question which is being determined when the jurisdiction are not liable to respond in civil
error complained of is committed by the court. If action for damages for what they may do in the
such question is one of determination of which exercise of their judicial functions when acting
requires the exercise of judicial functions, the within their legal powers and jurisdiction.
judge is not liable, even though there is in reality
The grounds of public policy upon which these
an absolute failure of jurisdiction over the
proposition rests have been held by the very
subject matter." Applying this test to the
highest authority to protect judges, even when
allegations contained in the complaint, there
acting in excess of jurisdiction; and with much
could be no question as to the nonliability of the
reason many authorities have held that upon the
defendant to respond in this action for the
same grounds of public policy the protecting
alleged damages. We shall not, however, rest
mantle of this rule should be thrown around
our decision in this case upon the doctrine thus
judges with inferior jurisdiction as well as those
enunciated, nor shall we in any wise rely upon
of superior jurisdiction. So the writer of the
the reasoning or the conclusions contained in
concurring opinion in the Forbes case, supra, in
the concurring opinion in the Forbes case. The
carrying the reasoning on which this rule rests to
doctrine as to nonliability of judges therein set
what the conceives to be its legal conclusion, lays
forth has not been uniformly and
down the still broader rule above cited. But for
unquestioningly accepted by all the courts which
the purposes of this decision we desire to limit
have been called upon to consider the principles
ourselves to the restricted statement of the rule
involved; and indeed, the writer of that opinion
as just laid down, because as we believe and will
carefully directs attention to the fact that the

11
undertake hereinafter to establish, there can be aggrieved by the action of the judge would be
no question that whatever may have been the inconsistent with the possession of this freedom,
motives of the defendant, the allegation of the and would destroy that independence without
complaint disclose that in doing each and all of which no judiciary can be either respectable or
the acts complained of, he was acting "as a useful. As observed by a distinguished English
judge," in the exercise of the judicial functions, judge, it would establish the weakness of judicial
and that in doing these acts he was clearly and authority in a degrading responsibility.
undoubtedly acting within his legal powers and
The principal, therefore, which exempts judges
jurisdiction.
of courts of superior or general authority from
The exemption of judges of courts of superior or liability in a civil action for acts done by them in
general authority from liability in a civil action for the exercise of their judicial functions, obtains in
acts done by them in the exercise of their judicial all countries where there is any well-ordered
functions is a principle essentially inherent in the system of jurisprudence. It has been the settled
various judicial systems upon which system doctrine of the English courts for many
under organized Act No. 136 is modeled. The centuries, and has never been denied, that we
grounds of Public policy and the reasoning upon are of, in the courts of this country. (Bradley vs.
which the doctrine is based are not less forceful Fisher, supra.)
and imperative in these Islands than in the
We venture to assert, therefore, that the rule of
countries from which the new judicial system
liability of judicial officers, as laid down in the old
was borrowed; and an examination of the
Spanish law, is not in substantial conflict with
reasons assigned by the Supreme Court of the
that recognized by the American authorities
United States and by Mr. Cooley in his work on
upon which we rely. Both judicial systems
Torts for the universal recognition of the rule in
recognize the liability of these officers for
the United States, as set out in the margin (Notes
wrongs committed in the performance of purely
C and D5) leaves no room for doubt that a failure
ministerial functions; and the Spanish rule that
to recognize it as an incident to the new judicial
liability is not incurred unless the act done is so
system would materially impair its usefulness,
manifestly contrary to the law as to negative the
and tend very strongly to defeat the ends for
possibility that it was done in the exercise of
which it was established. Indeed, upon the
judicial functions, though a broader rule than the
authority of the reasoning in the case of Bradley
rule on which we rely, that is to say that "judges
vs. Fisher, it may safely be asserted that an
of courts of superior and general jurisdiction are
attempt to inforce any rule of law in conflict with
not liable for acts done in the exercise of their
the doctrine would be utterly subversive of the
judicial functions and within their legal power
system jurisprudence established in these
and jurisdiction," is manifestly not in conflict
Islands under and by virtue of the authority of
therewith.
Congress of the Unite States:
Furthermore it is to be remembered that in
For it is a general principle of the highest
disposing of this large volume of business, this
importance to the proper administration of
court, unlike the appellate courts of the United
justice that a judicial officer, in exercising the
States generally, is required, in all criminal cases
authority vested in him, shall be free to act upon
and in ninety per cent of the civil cases, to review
his own convictions, without apprehension of
the evidence (which is not required by law to be
personal consequence to himself. Liability to
printed and comes up in the original transcript of
answer to everyone who might fell himself
the stenographer's notes) so as to ascertain

12
whether the judgment of the lower court are IBP Board adopted Commissioner Navarros
"sustained by the weight of the evidence." This findings but increased the recommended
is a consequence of the absence of the jury penalty of six months suspension from the
system in the Philippines. Then, too, an unusual practice of law to disbarment. The IBP Board
number of difficult and doubtful questions then transmitted their report to this Court.
present themselves in this jurisdiction, arising
On September 29, 2004, however, the Court
out of the conflict of laws resulting from the
remanded the case to the IBP Board for further
introduction of new laws and new institutions
proceedings in order to give the parties the
under American sovereignty, which must be
chance to fully present their case.[2] The Court
interpreted and construed with due regard to
said the investigating commissioner should have
the jurisprudence of both the old and the new
subpoenaed and examined the witnesses of the
sovereign. And finally, the mere mechanical
parties considering the gravity of the charge
difficulties, and in some cases the delays,
against Atty. Gacott. Navarro rendered her
involved in the preparation, submission,
report based solely on the position papers and
discussion and publication of the decisions of the
affidavits of the witnesses.
court are notably increased by the fact that the
official language of the courts in the Philippines While the IBP Board was complying with the
is Spanish, while four of the members of this Courts directive, Atty. Gacott filed a complaint
court are Americans, whose knowledge of that for damages against the boards sitting members
language has for the most part been acquired before the Regional Trial Court (RTC) of Puerto
since coming to the Islands. Princesa City, Palawan. Answering the
complaint, the IBP Board raised the affirmative
Cadiz vs Presiding Judge
defense of failure of the complaint to state a
On February 23, 2003 the Integrated Bar of the cause of action and filed a motion to dismiss the
Philippines Board of Governors, then composed case on that ground. On March 9, 2006 the trial
of petitioners Jose Anselmo I. Cadiz, Leonard S. court denied the motion, prompting the IBP
De Vera, Romulo A. Rivera, Dante G. Ilaya, Pura Board to elevate the case to the Court of Appeals
Angelica Y. Santiago, Rosario T. Setias-Reyes, (CA) on special civil action for certiorari.
Jose Vicente B. Salazar, Manuel M. Monzon,
On December 29, 2006 the CA denied the
Immanuel L. Sodusta, and Carlos L. Valdez, Jr.
petition, pointing out that the RTC did not
(the IBP Board), received an administrative
commit grave abuse of discretion. The IBP Board
complaint[1] filed by Lilia T. Ventura and
had other plain and speedy remedy, like
Concepcion Tabang against respondent Atty.
proceeding to trial in the case and appealing in
Glenn C. Gacott for gross misconduct, deceit,
the event of failure of the RTC to dismiss the
and gross dishonesty. The IBP Board designated
action. The CA denied in its Resolution dated July
petitioner Lydia A. Navarro (Navarro) as
12, 2007 the IBP Boards motion for
Commissioner to investigate the case.
reconsideration, thus causing them to file the
Commissioner Navarro summoned the parties present petition.
to a mandatory conference and required them
The key issue in this case is whether or not the
afterwards to submit their position papers.
CA erred in failing to rule that the Supreme
Based on these, Navarro submitted her Report
Courts remand of the disbarment case to the IBP
and Recommendation to the IBP Board for its
Board for examination of the witnesses,
approval. Commissioner Navarro was herself a
considering the gravity of the charge against
member of the IBP Board. After deliberation, the

13
Atty. Gacott, cannot serve as basis for the latters Presumptions:
complaint for damages against the members of
Article 2184
that board.
In motor vehicle mishaps, the owner is solidarily
Atty. Gacott states in his complaint for damages
liable with his driver, if the former who was in
before the RTC that Supreme Courts remand of
the vehicle, could have, by the use of due
his case to the IBP Board is an affirmation of the
diligence, prevented the misfortune. It is
latters arbitrary abuse of its investigatory power.
disputably presumed that a driver was negligent,
The IBP Board recommended his disbarment
if he had been found guilty of reckless driving or
based on the Commissioners report rendered to
violating traffic regulations at least twice within
it without the benefit of exhaustive hearing. This
the next preceding two months.
made its members personally liable for actual,
moral, and corrective damages. Essentially, If the owner was not in the motor vehicle, the
therefore, Atty. Gacott anchored his complaint provisions of Article 2180 are applicable
for damages on the result of the Courts
assessment of the IBP Boards report and Article 2185
recommendation and its remand of the case Unless there is proof to the contrary, it is
against him for further proceedings. presumed that a person driving a motor vehicle
The petitioner IBP Board members are correct in has been negligent if at the time of the mishap,
claiming that Atty. Gacotts complaint states no he was violating any traffic violation
cause of action. The IBP Commissioner and Article 2188
Board of Governors in this case merely exercised
delegated powers to investigate the complaint There is prima facie presumption of negligence
against Atty. Gacott and submit their report and on the part of the defendant if the death or
recommendation to the Court. They cannot be injury results from his possession of dangerous
charged for honest errors committed in the weapons or substances, such as firearms and
performance of their quasi-judicial function. And poison, except when the possession or use
that was what it was in the absence of any thereof is indispensable in his occupation or
allegation of specific factual circumstances business.
indicating that they acted maliciously or upon Marikina Autoline vs People
illicit consideration. If the rule were otherwise, a
great number of lower court justices and judges FACTS:
whose acts the appellate courts have annulled
Erlinda V. Valdellon is the owner of a two-door
on ground of grave abuse of discretion would be
commercial apartment located at No. 31 Kamias
open targets for damage suits.
Road, Quezon City. The Marikina Auto Line
Parenthetically, Atty. Gacott submitted the Transport Corporation (MALTC) is the owner-
disbarment case against him for resolution operator of a passenger bus with Plate Number
based on the position papers that he and the NCV-849. Suelto, its employee, was assigned as
complainants presented, without reservation, to the regular driver of the bus. At around 2:00 p.m.
the IBP along with the affidavits of their on October 3, 1992, Suelto was driving the
witnesses. The IBP Board prepared its report and aforementioned passenger bus along Kamias
recommendation to the Court based on these Road, Kamuning, Quezon City, going towards
papers and documents. Epifanio de los Santos Avenue (EDSA). The bus
suddenly swerved to the right and struck the

14
terrace of the commercial apartment owned by safety and the security of life, person or
Valdellon located along Kamuning Road. property, or because of unreasonable difficulty
Valdellon demanded payment of P148,440.00 to of operation in compliance herewith, every
cover the cost of the damage to the terrace. The person operating a motor vehicle or an animal-
bus company and Suelto offered a P30,000.00 drawn vehicle on a highway shall pass to the
settlement which Valdellon refused. Valdellon right when meeting persons or vehicles coming
filed a criminal complaint for reckless toward him, and to the left when overtaking
imprudence resulting in damage to property persons or vehicles going the same direction,
against Suelto. Valdellon also filed a separate and when turning to the left in going from one
civil complaint against Suelto and the bus highway to another, every vehicle shall be
company for damages. Suelto maintained that, conducted to the right of the center of the
in an emergency case, he was not, in law, intersection of the highway. Section 35 of the
negligent. Both the trial court and the CA ruled law provides, thus: Sec. 35. Restriction as to
in against herein petitioners. speed.—(a) Any person driving a motor vehicle
on a highway shall drive the same at a careful
ISSUE:
and prudent speed, not greater nor less than is
Whether or not the sudden emergency rule reasonable and proper, having due regard for
applies in the case at bar. the traffic, the width of the highway, and of any
other condition then and there existing; and no
RULING: person shall drive any motor vehicle upon a
No. It was the burden of petitioners herein to highway at such a speed as to endanger the life,
prove petitioner Suelto’s defense that he acted limb and property of any person, nor at a speed
on an emergency, that is, he had to swerve the greater than will permit him to bring the vehicle
bus to the right to avoid colliding with a to a stop within the assured clear distance
passenger jeep coming from EDSA that had ahead.In relation thereto, Article 2185 of the
overtaken another vehicle and intruded into the New Civil Code provides that "unless there is
lane of the bus. The sudden emergency rule was proof to the contrary, it is presumed that a
enunciated by this Court in Gan v. Court of person driving a motor vehicle has been
Appeals,23 thus: [O]ne who suddenly finds negligent, if at the time of mishap, he was
himself in a place of danger, and is required to violating any traffic regulation." By his own
act without time to consider the best means that admission, petitioner Suelto violated the Land
may be adopted to avoid the impending danger, Transportation and Traffic Code when he
is not guilty of negligence if he fails to adopt suddenly swerved the bus to the right, thereby
what subsequently and upon reflection may causing damage to the property of private
appear to have been a better method unless the respondent. However, the trial court correctly
emergency in which he finds himself is brought rejected petitioner Suelto’s defense, in light of
about by his own negligence. his contradictory testimony vis-à-vis his Counter-
Affidavit submitted during the preliminary
Under Section 37 of Republic Act No. 4136, as investigation:
amended, otherwise known as the Land
Transportation and Traffic Code, motorists are It is clear from the photographs submitted by the
mandated to drive and operate vehicles on the prosecution (Exhs. C, D, G, H & I) that the
right side of the road or highway: SEC. 37. Driving commercial apartment of Dr. Valdellon
on right side of highway. – Unless a different sustained heavy damage caused by the bus being
course of action is required in the interest of the driven by Suelto. "It seems highly improbable

15
that the said damages were not caused by a make a full stop as he was driving too fast in a
strong impact. And, it is quite reasonable to usually crowded street. Moreover, if the claim of
conclude that, at the time of the impact, the bus petitioners were true, they should have filed a
was traveling at a high speed when Suelto tried third-party complaint against the driver of the
to avoid the passenger jeepney." Such a offending passenger jeepney and the
conclusion finds support in the decision of the owner/operator thereof. Petitioner Suelto’s
Supreme Court in People vs. Ison, 173 SCRA 118, reliance on the sudden emergency rule to escape
where the Court stated that "physical evidence conviction for the crime charged and his civil
is of the highest order. It speaks more eloquently liabilities based thereon is, thus, futile.
than a hundred witnesses." The pictures
Pleyto vs Lomboy
submitted do not lie, having been taken
immediately after the incident. The damages Facts:
could not have been caused except by a
speeding bus. Had the accused not been At approximately 11:30 a.m. of May 16, 1995,
speeding, he could have easily reduced his speed PRBL Bus No. 1539, with Plate No. CVD 556,
and come to a full stop when he noticed the jeep. driven by petitioner Pleyto, was traveling along
Were he more prudent in driving, he could have MacArthur Highway in Gerona, Tarlac bound for
avoided the incident or even if he could not Vigan, Ilocos Sur. It was drizzling that morning
avoid the incident, the damages would have and the macadam road was wet. Right in front of
been les s severe. In addition to this, the accused the bus, headed north, was the tricycle with
has made conflicting statements in his counter- Plate No. CX 7844, owned and driven by one
affidavit and his testimony in court. In the Rodolfo Esguerra. According to Rolly Orpilla, a
former, he stated that the reason why he witness and one of the bus passengers, Pleyto
swerved to the right was because he wanted to tried to overtake Esguerras tricycle but hit it
avoid the passenger jeepney in front of him that instead. Pleyto then swerved into the left
made a sudden stop. But, in his testimony in opposite lane. Coming down the lane, some fifty
court, he said that it was to avoid a passenger meters away, was a southbound Mitsubishi
jeepney coming from EDSA that was overtaking Lancer car, with Plate No. PRS 941, driven by
by occupying his lane. Such glaring Arnulf o Asuncion. The car was headed for
inconsistencies on material points render the Manila with some passengers. Seated beside
testimony of the witness doubtful and shatter Arnulfo was his brother-in-law, Ricardo Lomboy,
his credibility. Furthermore, the variance while in the back seat were Ricardos 18-year old
between testimony and prior statements daughter Carmela and her friend, one Rhino
renders the witness unreliable. Such Daba. PRBL Bus No. 1539 smashed head-on the
inconsistency results in the loss in the credibility car, killing Arnulfo and Ricardo instantly.
of the witness and his testimony as to his Carmela and Rhino suffered injuries, but only
prudence and diligence. As already maintained Carmela required hospitalization. In their
and concluded, the severe damages sustained Answer, petitioners PRBL and Ernesto Pleyto
could not have resulted had the accused acted as both claimed that the bus was running slowly at
a reasonable and prudent man would. The the time of the accident. They pointed out that
accused was not diligent as he claims to be. What Bus No. 1539 had been inspected by driver
is more probable is that the accused had to Pleyto and examined by a mechanic prior to the
swerve to the right and hit the commercial trip, in accordance with the companys standard
apartment of the plaintiff because he could not operating procedure. It was found in good
working condition. Pleyto claimed that while

16
cruising along the highway at Gerona, Tarlac, he ordinary situation has the duty to see to it that
noticed Esguerras tricycle and followed it at a the road is clear and not to proceed if he cannot
safe distance after he was unable to overtake it. do so in safety. When a motor vehicle is
Suddenly and without warning, the tricycle approaching or rounding a curve, there is special
stopped in the middle of the road. Pleyto necessity for keeping to the right side of the road
stepped on the brakes and the bus lost speed. and the driver does not have the right to drive on
But, since it skidded towards the direction of the the left hand side relying upon having time to
tricycle, he swerved the bus to the other lane to turn to the right if a car approaching from the
avoid hitting it, only to collide with the Manila- opposite direction comes into view.
bound Mitsubishi car.
The Court of Appeals found PRBL liable for
At the outset, it appears that petitioners call for Pleyto’s negligence pursuant to Article 2180 in
this Court to review the factual findings and relation to Article 2176 of the Civil Code. Under
conclusions of the Court of Appeals. Petitioners Article 2180, when an injury is caused by the
assail the appellate courts affirmance of the negligence of a servant or an employee, the
finding by the trial court that Pleyto was master or employer is presumed to be negligent
negligent. The issue of negligence is factual and, either in the selection or in the supervision of
in quasi-delicts, crucial in the award of damages. that employee. This presumption may be
But it is well established that under Rule 45 of overcome only by satisfactorily showing that the
the 1997 Rules of Civil Procedure, only questions employer exercised the care and the diligence of
of law, not of fact, may be raised before the a good father of a family in the selection and the
Supreme Court. It must be stressed that this supervision of its employee.
Court is not a trier of facts, and it is not its
In fine, when the employee causes damage due
function to re-examine and weigh anew the
to his own negligence while performing his own
respective evidence of the parties. Factual
duties, there arises the juris tantum presumption
findings of the trial court, especially those
that the employer is negligent, rebuttable only
affirmed by the Court of Appeals, are conclusive
by proof of observance of the diligence of a good
on this Court when supported by the evidence
father of a family. Thus, in the selection of
on record. In the present petition, no compelling
prospective employees, employers are required
reason is shown by petitioners whatsoever for
to examine them as to their qualifications,
this Court to reverse those findings.
experience and service records. With respect to
Indeed, petitioner Pleyto violated traffic rules the supervision of employees, employers must
and regulations when he overtook the tricycle formulate standard operating procedures,
despite the presence of an oncoming car in the monitor their implementation and impose
other lane. Article 2185 of the Civil Code lays disciplinary measures for breaches thereof.
down the presumption that a person driving a These facts must be shown by concrete proof,
motor vehicle has been negligent if at the time including documentary evidence.
of the mishap, he was violating any traffic
In the present case, petitioners presented
regulation. As found by both the Court of
several documents in evidence to show the
Appeals and the trial court, petitioners failed to
various tests and pre-qualification requirements
present any convincing proof rebutting such
imposed upon petitioner Pleyto before his hiring
presumption.
as a driver by PRBL. However, no documentary
A driver abandoning his proper lane for the evidence was presented to prove that petitioner
purpose of overtaking another vehicle in an

17
PRBL exercised due diligence in the supervision
of its employees, including Pleyto.

Indeed, the testimony of the said two witnesses


of the PRBL would impress one to believe that
the PRBL has always exercised the strictest
standard of selecting its employees and of
maintaining its vehicles to avoid injury or
damage to the life and limb of people on the
road whether of its own passengers or
pedestrians or occupants or other vehicles. It has
not however, shown to the satisfaction of the
Court that it has maintained proper supervision
of its employees, especially drivers while in the
actual operation of its buses. While it has a list of
procedures and testing when it comes to
recruitment and another list of what should be
done with its buses before they are allowed to
run on the road, it has no list of procedures and
duties to be followed by a driver while he is
operating a vehicle to prevent injury to persons
and damage to property. Neither has it proved
to the Court that there are people employed by
it to supervise its drivers so that it can be seen to
it that all the safety procedures to prevent
accident or damage to property or injury to
people on the road have been in place. It is in this
aspect of supervising its employees where this
Court has found the defendant PRBL deficient.

18

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