Facts:

The case revolves around Benigno C. Gutierrez and Domingo N. Balisalisa, who are the petitioners, and Eliseo G. Baloyo and Soledad Ramos de Baloyo, the respondents. The tragic incident took place on March 21, 1964, at the A. Mabini Elementary School located on Severino Street in Manila. The respondents' nine-year-old daughter, Edna Baloyo, died due to the gross negligence of the petitioners and their crane operators during the construction of a drainage project.

Petitioner Gutierrez was the contractor, and petitioner Balisalisa served as the project engineer tasked with the execution of a contract with the Bureau of Public Works for the N. Reyes-Severino Drainage Main project. During the construction, workers began to excavate Severino Street. Initially, this was done manually, but subsequently, a crane was employed to expedite the process. The excavated earth and mud were piled up against the exterior wall of the school, a fragile adobe stone fence.

At around 2:30 PM to 3

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Facts:

Background of the Case

• Respondents Eliseo G. Baloyo and Soledad Ramos de Baloyo initiated a suit for actual, moral, and exemplary damages due to the tragic death of their nine-year-old daughter, Edna Baloyo.
• The incident occurred on March 21, 1964, at the A. Mabini Elementary School in Manila, where Edna was playing with other children.

Involvement of the Petitioners

• Petitioners Benigno C. Gutierrez (contractor) and Domingo N. Balisalisa (project engineer) were engaged for the construction of the N. Reyes-Severino Drainage Main, part of the Manila Flood Control and Drainage Project.
• Their work involved excavation activities along Severino Street, Manila, which led to the accumulation of earth and mud against the exterior side of the school’s adobe stone fence.

Sequence of Events Leading to the Incident

• Initially, workers manually dug at the site and later used a crane to expedite the excavation process.
• The excavated earth and mud were dumped against the school’s fence.
• To compact the dumped material, the crane’s steel scooper was employed, resulting in heavy pressure on the fence.
• The pressure caused a portion of the fragile adobe fence (constructed without reinforcements) to collapse between 2:30 and 3:00 o’clock in the afternoon on the day of the incident.
• As the wall collapsed, Edna Baloyo was struck, pinned, and subsequently buried under the accumulated earth and mud, which led to her death shortly after being taken to the hospital.

Proceedings and Awards

• At trial, the lower court rendered a judgment in favor of respondents, awarding:
• P50,000.00 as moral and exemplary damages.
• P6,000.00 as actual damages or expenses.
• P5,000.00 for attorney’s fees.
• Costs of suit were also imposed.
• The Court of Appeals modified the award by itemizing damages as follows:
• P12,000.00 for indemnity over the death of Edna Baloyo.
• P12,000.00 for mental anguish suffered by the plaintiffs.
• P6,000.00 for the physical pains Edna Baloyo experienced before her death.
• P10,000.00 each for exemplary damages awarded to the plaintiffs.
• The appellate judgment was confirmed and became the basis of the final decision, with double costs imposed against the petitioners.

Alleged Issue on Employer-Employee Relationship

• Petitioners attempted on appeal to argue that there was no employer-employee relationship between them and their crane operators.
• However, the defense was neither raised at trial nor was it sufficient to overcome the presumption and evidence of such a relationship, particularly as indicated by the contract stipulation that the contractor must supply his own labor.

Issue:

Procedural Issues

• Whether the defense regarding the non-existence of an employer-employee relationship with the crane operators, being raised for the first time on appeal, could be considered or entertained.
• The adequacy and effect of petitioners’ specific denial regarding the existence of the employer-employee relationship in their answer, especially when they claimed "lack of sufficient knowledge or information."

Substantive Issues on Damages

• Whether the trial and appellate courts erred in awarding the total amount of damages, including the breakdown of moral, exemplary, and actual damages.
• Whether the specific itemization of damages, such as the P6,000.00 for the physical pains suffered by the child before death, was properly supported by evidence.

Causation and Negligence

• The extent of petitioners' negligence in the excavation process that led to the collapse of the school’s fence.
• Whether the actions by petitioners in speeding up the construction work using the crane amounted to gross negligence, given the foreseeable risks to the school environment.

Ruling:

• (Subscriber-Only)

Ratio:

• (Subscriber-Only)

Doctrine:

• (Subscriber-Only)