Case Digest (G.R. No. 138123) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In MINDEX Resources Development v. Morillo, G.R. No. 138123, decided March 12, 2002 under the 1987 Constitution, petitioner Mindex Resources Development Corporation (“MINDEX”) and respondent Ephraim Morillo entered into a verbal lease in February 1991 for a 6 × 6 cargo truck at P300 per hour for a minimum of eight hours daily. MINDEX paid rentals until April 10, 1991, when the truck suffered mechanical trouble and was left at Sitio Aras, Bigaan, San Teodoro, Oriental Mindoro. On the night of April 11, 1991, unidentified persons burned the parked truck, burning all but the engine. Morillo offered to sell the damaged vehicle to MINDEX for P275,000 and to waive P76,800 in rental if paid in four installments; MINDEX countered by offering P76,000 as unpaid rentals and undertaking repairs at its expense before returning the truck in good running order. Morillo remained firm on his sale price but accepted the P76,000 rental offer. In August 1991, after MINDEX failed to complete repairs... Case Digest (G.R. No. 138123) Expanded Legal Reasoning Model
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)