G.R. No. 159108 - Gold Line Tours, Inc. vs. Heirs of Lacsa

On August 2, 1993, Ma. Concepcion Lacsa boarded Goldline passenger bus No. NXM-105 (owned by Travel & Tours Advisers, Inc.) bound from Sorsogon to Quezon City. At Barangay San Agustin, Camarines Sur, driver René Abania’s bus collided head-on with a jeepney No. EAV-313 driven by Alejandro Belbis. A detached metal bar pierced Concepcion’s chest, causing her instant death.
On August 23, 1993, Concepcion’s heirs, represented by Teodoro Lacsa, filed Civil Case No. 93-5917 in the Sorsogon RTC against Travel & Tours Advisers, Inc. and Abania for breach of contract of carriage. Plaintiffs presented Miriam Lacsa’s testimony on Abania’s recklessness; defendants offered SPO1 Corporal’s report blaming the jeepney driver and William Cheng’s testimony on diligent hiring and supervision.
On June 30, 1997, the RTC held Travel & Tours Advisers, Inc. liable under Civil Code Article 1786 (disputable presumption of negligence), awarded P266,000 plus costs, and dismissed Abania and the third-party complaint against the jeepney operator.

On June 11, 1998, the Court of Appeals dismissed defendants’ appeal for failure to pay docket fees; the dismissal became final on July 17, 1998.
Plaintiffs secured a writ of execution (granted January 31, 2000; issued February 24, 2000). On May 10, 2000, the sheriff returned service on Travel & Tours through Cheng’s secretary and levied tourist bus No. NWW-883.
Plaintiffs moved to cite Cheng for contempt; the RTC directed filing of an indirect-contempt petition and, on April 20, 2001, Gold Line Tours, Inc. (petitioner) filed a verified third-party claim asserting separate corporate personality and ownership of the bus.

Respondents opposed the third-party claim, alleging failure of notice, identity of Travel & Tours and petitioner, and intent to defraud creditors.
On August 2 and October 22, 2001, the RTC dismissed the third-party claim and denied reconsideration, finding both corporations one and the same under judicially recognized “Goldline” identity and common officers.
Gold Line sought certiorari in the CA; on October 30, 2002, and upon denial of reconsideration on June 25, 2003, the CA dismissed the petition, concurring that the two entities were identical and the levy proper.
On February 23, 2007, the RTC ordered public auction of the bus; Gold Line elevated the issue to the Supreme Court.

Whether the Court of Appeals correctly concluded that the RTC did not commit grave abuse of discretion—i.e., act without or in excess of jurisdiction—in denying petitioner’s third-party claim and piercing its corporate veil to uphold the levy of bus No. NWW-883 under the final judgment against Travel & Tours Advisers, Inc.