Title
Philippine Hawk Corporation vs. Lee
Case
G.R. No. 166869
Decision Date
Feb 16, 2010
A 1991 vehicular accident involving a motorcycle and a bus resulted in a fatality and injuries. The Supreme Court upheld the bus driver’s negligence and employer liability, awarding modified damages to the victim’s family.
A

Case Digest (G.R. No. 166869)

Facts:

  • Background and parties
    • PHILIPPINE HAWK CORPORATION, petitioner, owner of a bus with Body No. 119, and MARGARITO AVILA, its bus driver, were sued by VIVIAN TAN LEE, respondent, for damages based on *quasi-delict* arising from a vehicular accident.
    • The vehicular accident occurred on March 17, 1991 in Barangay Buensoceso, Gumaca, Quezon and involved a motorcycle (Plate No. DA-5480), a passenger jeep, and petitioner’s bus (Plate No. NXR-262).
  • Procedural history
    • On March 15, 2005, respondent filed a Complaint before the Regional Trial Court (RTC) of Quezon City, Civil Case No. Q-91-9191; on June 18, 1992 she filed an Amended Complaint in her own behalf and on behalf of her children seeking indemnity for death, moral and exemplary damages, funeral and interment expenses, medical and hospitalization expenses, cost of motorcycle repair, attorney’s fees, and other reliefs.
    • Petitioner answered, denying liability and alleging recklessness of the deceased Silvino Tan and that it exercised the diligence of a good father of the family in selecting and supervising its employee-driver.
    • On March 25, 1993, the trial court issued a Pre-trial Order containing stipulated facts and framed issues for trial.
  • Stipulated facts and core factual findings
    • The parties stipulated that on March 17, 1991 plaintiff and her husband were on their motorcycle and a Metro Bus driven by Avila were involved in an accident; the husband died on the spot; plaintiff suffered physical injuries requiring hospitalization; the deceased is survived by his wife and four children; and Avila was an employee of Philippine Hawk.
    • Stipulated issues included which party’s negligence—Avila’s or the deceased’s—was the proximate cause and whether petitioner exercised due diligence in selection and supervision of Avila.
  • Testimonies and evidence at trial
    • VIVIAN TAN LEE testified that while on the motorcycle and about to make a turn after a Caltex station, she saw a fast bus coming, which hit a passenger jeep parked roadside and their motorcycle; she lost consciousness, was hospitalized in Gumaca for one week and later at St. Luke’s Hospital; she suffered fractures and other injuries.
    • Death Certificate (Exhibit "B") showed the husband died of massive cerebral hemorrhage.
    • She testified the husband leased and operated a Caltex gasoline station yielding one million pesos a year and had a copra business allegedly producing P3,000 monthly; she offered a Certificate of Creditable Income Tax Withheld at Source for 1990 showing gross income of P950,988.43 (Exhibit "J").
    • Driver of the passenger jeep, Ernest Ovial, testified his parked jeep was hit by the bus which dragged the motorcycle and then sped away.
    • MARGARITO AVILA testified he was driving at about 60 kph, that the motorcycle ran from his left and crossed the bus’s path causing him to turn right and thereafter he saw the motorcycle overturn; he denied hitting the motorcycle and said he surrendered to police.
    • Bus conductor Rodolfo Ilagan testified the motorcycle bumped the left side of the bus which was running at 40 kph.
    • Operations officer Domingo S. Sisperes described petitioner’s driver requirements: NBI clearance, certification from prior employer, physical exam, driving ability test (defensive skill), and semi-annual reviews.
    • Barangay Kagawad Efren Delantar testified the bus ran straight when a motorcycle suddenly emerged from the left side, crossed the highway in zigzag fashion and hit the bus.
  • Trial court decision
    • In its March 16, 2001 Decision the trial court found MARGARITO AVILA guilty of simple negligence, and ordered PHILIPPINE HAWK CORPORATION and Avila to pay jointly and solidarily P745,575.00 representing loss of earnings and actual damages plus P50,000.00 as moral damages.
    • The trial court reasoned the bus must have veered from the right lane to the left lane, hitting both the parked jeep and the motorcycle, and that Avila, having seen the motorcycle, should have slowed down but did not.
    • The trial court held petitioner liable for failing to exercise the ...(Subscriber-Only)

Issues:

  • Primary legal and factual issues presented
    • Whether MARGARITO AVILA was negligent and whether his negligence was the proximate cause of Silvino Tan’s death and respondent’s injuries.
    • Whether PHILIPPINE HAWK CORPORATION is vicariously liable for Avila’s negligence for failing to exercise the diligence of a good father of the family in selection and supervision.
    • Whether the awards of damages by the Court of Appeals are proper in nature and amount.
  • Procedural and appellate authority issues
    • Whether the Court of Appeals committed grave abuse by deciding issues not assigned as errors on appeal and th...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

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