Title
F.F. CRUZ vs. COURT OF APPEALS
Case
G.R. No. 52732
Decision Date
Aug 29, 1988
A fire from petitioner's shop destroyed respondents' home; *res ipsa loquitur* applied, proving negligence. Damages reduced by insurance payout; insurer granted subrogation rights.

Case Digest (G.R. No. 52732)
Expanded Legal Reasoning Model

Facts:

  • Background and Parties
    • F.F. CRUZ AND CO., INC. (petitioner) operated a furniture manufacturing shop in Caloocan City.
    • Private respondents, represented by Gregorio Mable (substituted by his wife and children), resided adjacent to the petitioner’s shop.
  • Requests and Negligence
    • In August 1971, private respondent Gregorio Mable repeatedly requested that a firewall be constructed between the petitioner’s shop and his residence.
    • The petitioner’s plant manager, Eric Cruz, received these requests, but no action was taken to comply with the demand or the applicable city ordinance requiring such a firewall.
  • The Fire Incident
    • On the early morning of September 6, 1974, a fire broke out in the petitioner’s shop.
    • Petitioner’s employees, who were sleeping on the premises, attempted to extinguish the fire, but their efforts proved ineffective.
    • The conflagration spread from the shop to the neighboring house of the private respondents, resulting in both structures being completely razed.
    • The exact cause of the fire was never determined, and evidence from the National Bureau of Investigation was negative for the presence of inflammable substances.
  • Insurance and Initial Claim for Damages
    • Private respondents received an insurance indemnity of P35,000.00 for their damaged house and its contents.
    • On January 23, 1975, respondents filed an action for damages against petitioner, seeking:
      • Actual damages (P150,000.00 for the loss of the house, furniture, and other valuables);
      • Moral damages (P50,000.00);
      • Exemplary damages (P25,000.00);
      • Attorney’s fees and costs.
  • Procedural History
    • Trial Court (CFI):
      • Found petitioner liable and awarded P80,000.00 for the house and P50,000.00 for furniture and fixtures, along with additional sums for moral damages, exemplary damages, and attorney’s fees;
      • Dismissed the petitioner’s counterclaim due to lack of merit.
    • Court of Appeals (CA):
      • Affirmed the trial court’s decision but reduced the awarded damages for the house to P70,000.00 while maintaining the P50,000.00 for furniture and other losses;
      • Denied a motion for reconsideration filed on December 3, 1979, in a subsequent resolution dated February 18, 1980.
    • Petition for Review:
      • Filed by petitioner on February 22, 1980, challenging:
        • The failure to deduct the P35,000.00 indemnity from the damage award;
        • The excessiveness and unproven nature of the damages;
        • The application of the common law doctrine of res ipsa loquitur.
      • After motions for reconsideration and subsequent proceedings, the petition for review was eventually given due course and resolved with a decision on January 21, 1981.

Issues:

  • Whether the application of the common law doctrine of res ipsa loquitur was appropriate in this case, considering the circumstances of the fire and the petitioner’s negligence.
  • Whether the petitioner should have been relieved, in part, by deducting the P35,000.00 indemnity received by private respondents from the insurance for the evaluation of damages.
  • Whether the amounts awarded as damages were excessive or unsubstantiated given the evidentiary findings regarding the loss of the house and other property.
  • Whether the petitioner’s failure to erect a firewall in compliance with city ordinances constitutes sufficient negligence to warrant the imposition of liability for the damages sustained by the respondents.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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