Facts:

• The case involves Metro Manila Transit Corporation (MMTC), its driver Pedro A. Musa, and spouses Rodolfo V. Rosales and Lily R. Rosales.
• On August 9, 1986, MMTC Bus No. 27, driven by Musa, struck Liza Rosalie, the Rosales couple's daughter, while she was crossing Katipunan Avenue in Quezon City.
• Liza was a third-year high school student at the University of the Philippines Integrated School.
• Witnesses stated she was near the center of the street when the bus hit her, causing her to fall and be run over by the bus's rear tires.
• Liza was pronounced dead upon arrival at the Philippine Heart Center.
• Pedro Musa was found guilty of reckless imprudence resulting in homicide and sentenced to imprisonment by the Regional Trial Court of Quezon City.
• The Rosales couple filed a civil action for damages against MMTC, Musa, and other MMTC officials, including Conrado Tolentino and Feliciana Celebrado.
• The trial court ruled in favor of the Rosales couple, awarding them various damages and attorney's fees.
• The Court of Appeals modified the trial court's decision, reducing actual damages but increasing death indemnity.
• Both parties appealed the decision, leading to the current case.

Issue:

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Ruling:

• The Supreme Court upheld the Court of Appeals' decision affirming the trial court's ruling that MMTC and Musa were liable for damages.
• The Court modified the amounts awarded: death indemnity at P50,000, actual damages at P60,226.65, moral damages at P1,000,000, exemplary damages at P500,000, and attorney's fees at P50,000.
• The Court rul...(Unlock)

Ratio:

• The Supreme Court emphasized vicarious liability under Article 2180 of the Civil Code, holding employers liable for negligent acts of employees within the scope of their duties.
• MMTC failed to prove it exercised due diligence in selecting and supervising Musa, lacking sufficient documentary evidence.
• Testimonies were insuf...continue reading