Title
Supreme Court
Mindex Resources Development vs. Morillo
Case
G.R. No. 138123
Decision Date
Mar 12, 2002
A leased truck burned due to negligence; lessee MINDEX held liable for unpaid rentals and repair costs, but attorney’s fees denied.

Case Digest (G.R. No. 138123)
Expanded Legal Reasoning Model

Facts:

  • Lease Agreement
    • In February 1991, Ephraim Morillo (respondent) verbally leased his 6×6 ten-wheeler cargo truck to Mindex Resources Development Corporation (petitioner) for use in mining operations in Oriental Mindoro at P300/hour, eight-hour minimum (P2,400/day).
    • Mindex paid rentals until April 10, 1991.
  • Burning Incident and Correspondence
    • On April 11, 1991, the truck, parked unattended at Sitio Aras for engine trouble, was burned by unidentified persons using coconut leaves; the engine was partially damaged.
    • April 15, 1991: Morillo proposed to sell the truck for P275,000, offered to waive P76,800 of rentals, and requested payment in four installments (Apr 25 P50,000; May 15 P50,000; Jun 15 P50,000; Jul 15 P25,000).
    • April 17, 1991: Mindex counter-offered to pay P76,000 in rentals, repair and overhaul the truck at its expense, and return it in good running condition.
    • April 18, 1991: Morillo accepted the P76,000 rental payment but remained firm on the P275,000 sale price; parties remained intransigent.
  • Repair and Litigation
    • August 1991: Morillo removed the truck from Mindex’s repair shop, had it repaired elsewhere at a cost of P132,750.
    • Morillo filed suit for (a) unpaid rentals of P76,000 with 12% interest, (b) repair costs of P132,750 with 12% interest, and (c) attorney’s fees of P20,000.
    • RTC found Mindex liable for negligence, ordered payment of (a) P76,000 + 12% interest, (b) P132,750 + 12% interest, (c) P20,000 attorney’s fees.
    • CA affirmed negligence, modified interest to 6% from June 22, 1994 to finality, then 12% thereafter, and affirmed attorney’s fees.

Issues:

  • Did petitioner overcome the presumption of negligence by proving the burning was a fortuitous event?
  • Is petitioner liable for unpaid rentals (P76,000) and repair costs (P132,750)?
  • Was the award of P20,000 attorney’s fees proper?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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