Title
Lim vs. Court of Appeals
Case
G.R. No. 125817
Decision Date
Jan 16, 2002
A 1990 jeepney-truck collision led to a damages claim by the jeepney's unregistered owner under the kabit system. Courts upheld his right to sue, awarding P236,000 for repairs and lost income, with legal interest from the judgment date.

Case Digest (G.R. No. 125817)
Expanded Legal Reasoning Model

Facts:

  • Acquisition and Registration
    • In 1982, private respondent Donato Gonzales purchased an Isuzu passenger jeepney from Gomercino Vallarta, the registered owner under a Certificate of Public Convenience (CPC) for the Monumento-Bulacan route.
    • Under the “kabit” system, Gonzales operated the jeepney without transferring registration or securing his own CPC; Vallarta remained the registered owner and operator.
  • Collision and Aftermath
    • On 22 July 1990, the jeepney was struck northbound on North Diversion Road by a ten-wheeler truck owned by petitioner Abelardo Lim and driven by Esmadito Gunnaban, whose brakes had failed. The crash also involved a Ferroza vehicle, resulting in one fatality and multiple injuries.
    • Lim compensated hospital expenses, restored the Ferroza, and offered to repair Gonzales’s jeepney for P20,000–P40,000, which Gonzales rejected, instead demanding P236,000 or a new jeepney.
  • Procedural History
    • Trial court (RTC, Malolos) held Gunnaban negligent and Lim vicariously liable for lack of due diligence; awarded Gonzales P236,000 compensatory damages (with legal interest from date of accident) and P30,000 attorney’s fees.
    • Court of Appeals affirmed, acknowledging the kabit system but invoking equity to allow Gonzales to sue as real party in interest.
    • Petitioners elevated the case to the Supreme Court.

Issues:

  • Whether a non-registered owner/operator under the kabit system may sue for damages without joining the registered owner.
  • Whether the award of P236,000 plus legal interest from the date of the accident and P30,000 attorney’s fees is proper.
  • Proper date from which legal interest on unliquidated damages should accrue.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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