Title
Oceanmarine Resources Corp. vs. Nedic
Case
G.R. No. 236263
Decision Date
Jul 19, 2022
A company driver's death during work led to a claim for lost income under Article 1711 of the Civil Code, but the Supreme Court ruled the Labor Code supersedes it, allowing heirs to choose between remedies without double recovery.

Case Digest (G.R. No. 236263)
Expanded Legal Reasoning Model

Facts:

  • Parties and Employment
    • Petitioner: Oceanmarine Resources Corporation, employer of Romeo S. Ellao.
    • Respondent: Jenny Rose G. Nedic, on behalf of her minor son Jerome Nedic Ellao, heir of deceased Romeo.
  • Circumstances of Death
    • On 02 November 2011, Romeo was instructed by petitioner to drive company personnel to various bank transactions in Pasay City and Parañaque City.
    • While driving along Bayview Drive, two motorcycle-riding assailants stopped the vehicle, shot Romeo to death, and fled with a bag of company money.
  • Pre-trial Correspondence
    • Respondent’s counsel demanded P3,382,560.00 for loss of future income; petitioner denied liability as claimant was not yet guardian.
    • Respondent filed suit under Article 1711, Civil Code, claiming P3,383,640.00 for lost future income of Romeo.
  • Proceedings Below
    • Regional Trial Court (Parañaque City, 22 Sep 2014): Dismissed complaint for failure to prove employer negligence and causal connection.
    • Court of Appeals (19 Dec 2017): Reversed RTC, held Article 1711 still valid under Candano, awarded P1,409,850.00 for loss of earning capacity plus attorney’s fees, costs, and interest.
    • Petitioner elevated case to the Supreme Court via Petition for Review on Certiorari (G.R. No. 236263).

Issues:

  • Repeal and Prevalence
    • Has Article 1711 of the Civil Code been impliedly repealed by Title II, Book IV of the Labor Code?
    • If not repealed, does the later special compensation scheme of the Labor Code prevail over the general Civil Code provision?
  • Application of Candano
    • Did the Court of Appeals correctly apply Candano Shipping Lines, Inc. v. Sugata-on to uphold actions under Article 1711?
    • Should Candano’s endorsement of Article 1711 and the Villa Rey formula be retained or abandoned?
  • Election of Remedies and Exclusivity
    • Is the remedy of compensation under the Labor Code exclusive, or may an employee choose a civil suit for damages under the Civil Code?
    • Does receipt of Social Security System (SSS) death benefits bar a subsequent Civil Code claim?
  • Distribution of Award
    • Should an illegitimate minor heir’s award for loss of future income be shared with the deceased’s legitimate ascendants under Article 991, Civil Code?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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