G.R. No. 136913 - Buce vs. Court of Appeals

FILAMER CHRISTIAN INSTITUTE, petitioner, a school which owned and operated a Pinoy jeep used to transport students.
Hon. Intermediate Appellate Court and Hon. Enrique P. Suplico, respondents in the administrative/procedural posture before the Supreme Court.
POTENCIANO KAPUNAN, SR., respondent and injured pedestrian; his heirs pursued damages.

A school jeep owned by petitioner was driven on a late afternoon in Roxas City, at or about 6:30 P.M., with only one functioning headlight.
The jeep was driven initially by Allan Masa, who was the official driver and also a security guard of the school.
Repair or usage practice: Allan routinely drove the school jeep home to the house of his father, the school president Agustin Masa, because he needed the vehicle at home to fetch students the next morning.
The house of Agustin Masa was also the place where student-janitor Funtecha was allowed free board while studying at Filamer Christian Institute.
Funtecha was a working student and part-time janitor who possessed a student driver’s license and sought driving lessons during non-class hours.
At a point while Allan was driving home, Allan requested and allowed Funtecha to take over the steering wheel after Allan had driven down a road, negotiated a sharp curb, and judged the road clear.

While en route, a fast-moving truck with glaring lights nearly collided with the jeep, causing Allan to swerve right; Funtecha followed Allan’s advice to swerve.
They heard a bump but did not stop to check the vehicle.
The jeep swerved toward and struck pedestrian Potenciano Kapunan, who was walking in his lane against vehicular traffic, causing fatal injury.

The trial court found negligence and ordered petitioner to pay damages and declared liability under the Zenith Insurance Corporation policy of P20,000.00, P10,000.00 moral damages, P4,000.00 litigation and actual expenses, and P3,000.00 attorney's fees.
The Court of Appeals affirmed the trial court’s decision, applying Civil Code principles and finding an employer-employee relationship between Funtecha and petitioner.
The Supreme Court initially rendered a decision o...(Subscriber-Only)

Whether an employer-employee relationship existed between FILAMER CHRISTIAN INSTITUTE and Funtecha at the time of the accident.
Whether the acts of Funtecha in taking the steering wheel were done in furtherance of the petitioner’s business, thereby rendering the petitioner liable under Article 2180 of the Civil Code.

Whether Section 14, Rule X, Book III of the Rules Implementing the Labor Code, excluding working scholars from employment coverage, precludes civil liability of the school under Article 2180 for torts committed by a working student.
Whether the petitioner exercised the diligence of a good father of a family in selection and supervision of its employees so as to rebut the presumption of employer negligence.

Ruling:

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Ratio:

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Doctrine:

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