Facts:

• Parties Involved: Delsan Transport Lines, Inc. (petitioner) and C & A Construction, Inc. (respondent).
• Contract: Respondent was contracted by the National Housing Authority (NHA) to construct a deflector wall at the Vitas Reclamation Area in Vitas, Tondo, Manila.
• Completion: Construction was completed in 1994 but not formally turned over to the NHA.
• Incident Date: On October 9, 1994, the M/V Delsan Express, owned by the petitioner, anchored at the Navotas Fish Port for maintenance.
• Typhoon Warning: On October 20, 1994, Captain Demetrio T. Jusep received a typhoon warning from his radio head operator in Japan, indicating a typhoon would hit Manila in about eight hours.
• Inaction: Despite the warning, Capt. Jusep did not take immediate action.
• Attempt to Seek Shelter: By 8:35 AM on October 21, 1994, Capt. Jusep attempted to seek shelter at the North Harbor but found it congested.
• Collision: He decided to drop anchor near the Vitas mouth, where the ship collided with the deflector wall due to high waves, causing damage amounting to P456,198.24.
• Demand for Payment: Respondent demanded payment for the damages, but petitioner refused, leading to a complaint for damages filed by the respondent in the Regional Trial Court of Manila, Branch 46 (Civil Case No. 95-75565).
• Trial Court Decision: The trial court dismissed the complaint, ruling the petitioner was not negligent and attributing the incident to a fortuitous event (typhoon "Katring").
• Court of Appeals Decision: The Court of Appeals reversed this decision, finding Capt. Jusep negligent and holding the petitioner liable for damages.
• Petition for Review: Petitioner filed the instant petition for review.

Issue:

• (Unlock)

Ruling:

1. Negligence: Yes, Capt. Jusep was found negligent.
2. Vicarious Liability: Yes, Delsan Transport Lines, Inc. ...(Unlock)

Ratio:

• Negligence: The Supreme Court upheld the Court of Appeals' finding that Capt. Jusep was negligent.
  • Typhoon Warning: Despite receiving a typhoon warning at midnight on October 20, 1994, Capt. Jusep did not take immediate action to seek shelter.
  • Delay in Action: He waited until 8:35 AM on October 21, 1994, by which time the North Harbor was already congested.
  • Failure to Act: Negligence is determined by the failure to take immediate and appropriate action under the circumstances, not by the speculative success or failure of a decision.
  • Lack of Care: Capt. Jusep's inaction for over eight hours, despite knowing the typhoon was imminent, demonstrated a lack of reasonable care and caution.
• Vicarious Liability: Regarding the vicarious liability of Delsan Transport Lines, Inc., the Court cited Article 2180 of the Civil Code, which holds employers liable for damages caused by their employees acting within the scope of their duties.
  • Supervision: The petitioner failed to present evidence of due diligence in supervising Capt. Jusep, such as formulating and enforcing rules and regulations for employee conduct.
  • Presumption...continue reading