G.R. No. 151038 - Petron Corporation vs. Spouses Cesar Jovero, et al.

On April 25, 1984, Rubin Uy leased a property located at E. Reyes Ave., Estancia, Iloilo, from Cesar J. Jovero for operating a gasoline station for five years.
On April 30, 1984, Petron Corporation entered into a Retail Dealer Contract with Rubin Uy from May 1, 1984 to April 30, 1989, obliging the dealer to exclusively maintain PetronAs trademarks and brand names at the gasoline station.
Petron contracted Jose Villaruz (doing business as Gale Freight Services) in March 1988 for hauling services for three years, renewable; Villaruz assigned three specified tank trucks exclusively for PetronAs deliveries.
The hauling contract obligated Villaruz to indemnify Petron against third-party claims and be liable for damages caused by his negligence.
On October 27, 1988, Rubin Uy gave a Special Power of Attorney (SPA) to Chiong Uy to manage the gasoline station; subsequently, Chiong Uy left in November 1990 leaving Dortina M. Uy as manager.

On January 3, 1991, Ronnie Allanaraiz, an employee of the gasoline station, ordered petroleum products from Petron.
Petron requested Villaruz for delivery; Villaruz used a tank truck not listed in the hauling contract, driven by Pepito Igdanis.
During unloading, a fire ignited in the fill pipe and spread to the rubber hose connected to the tank truck.
Igdanis disappeared during the fire, later returned and aggravated the fire by driving the truck while dragging the burning hose.
The conflagration caused damages to properties of spouses Cesar Jovero and Erma Cudilla (P1,500,000); Leonito Tan and Luzvilla Samson (P800,000); and Rogelio and Lucia Josue Limpoco (P4,112,000).

Respondents filed separate suits against Petron, Villaruz, Rubin Uy, and Dortina Uy.
The cases were consolidated and the RTC ruled that all defendants were negligent and jointly liable for damages.
Petron alleged it had sold the petroleum products and transferred ownership to Rubin Uy and that Villaruz was responsible for safe delivery.
Appeals were filed; the CA affirmed the RTC decision, holding Petron liable due to the lack of a valid dealership contract and allowing use of an unaccredited truck.
CA also held Villaruz liable for negligence and Dortina Uy liable as an operator who failed to exercise due diligence.

Whether Petron was at fault for continuing business with Rubin Uy without renewing the dealership contract.
Whether a causal connection exists between Petron's failure to renew the dealership contract and the fire.
Whether Petron is liable for the fire during unloading by an independent hauler delivering fuel to an independent dealer.
Whether a supplier of fuel can be held liable for the negligence of others in distributing and storing such fuel.