G.R. No. 158995 - L.G. Foods Corp. vs. Pagapong-Agraviador

Accident and Criminal Proceedings
On February 26, 1996, a Ford Fiera van owned by LG Foods Corporation and driven by its employee, Vincent Norman Yeneza y Ferrer, struck and fatally injured 7-year-old Charles Vallejera, son of spouses Florentino and Theresa Vallejera, at Rosario Street, Bacolod City.
An Information for Reckless Imprudence Resulting to Homicide (People v. Yeneza, Crim. Case No. 67787) was filed before the MTCC, Bacolod City. Before trial concluded, the accused driver committed suicide; the MTCC dismissed the criminal case on September 30, 1998.

Civil Suit Against LG Foods
On June 23, 1999, spouses Vallejera filed Civil Case No. 99-10845 before RTC Branch 43, Bacolod City, seeking damages under theories of negligence and failure of due diligence in the selection and supervision of their driver.
LG Foods and its officers denied liability in an Answer with Compulsory Counterclaim, then filed a Motion to Dismiss contending that subsidiary liability under Article 103, RPC, requires prior conviction of the employee. The RTC denied the motion in orders dated September 4 and 26, 2001. The Court of Appeals, in its Decision of April 25, 2003 (affirmed by Resolution of July 10, 2003), denied LG Foods’ petition for certiorari. LG Foods then elevated the case to the Supreme Court via petition for review on certiorari.

Whether spouses Vallejera’s cause of action in Civil Case No. 99-10845 is founded on:
Article 103 of the Revised Penal Code (subsidiary liability of employers, requiring prior conviction and insolvency proof), as argued by petitioners; or
Article 2180 of the Civil Code (direct liability of employers under quasi-delict), as ruled by the lower courts.