Title
Ramos vs. Pepsi-Cola Bottling Co. of the Philippines
Case
G.R. No. L-22533
Decision Date
Feb 9, 1967
Collision between Ramos' car and Pepsi-Cola's truck; Court ruled driver negligent but absolved Pepsi-Cola due to proven diligence in driver selection.

Case Digest (G.R. No. 258791)
Expanded Legal Reasoning Model

Facts:

  • Incident and Parties Involved
    • On May 10, 1958, a collision occurred involving two vehicles: the car of Placido Ramos (driven by his son, Augusto Ramos) and a tractor-truck with trailer belonging to PEPSI-COLA BOTTLING CO. of the P.I., driven by Andres Bonifacio.
    • Plaintiffs, Placido C. Ramos and Augusto L. Ramos, initiated the suit on June 30, 1958 against PEPSI-COLA and Andres Bonifacio in the Court of First Instance of Manila due to the accident.
  • Lower Court Proceedings
    • After trial, on April 15, 1961, the Court of First Instance rendered judgment, wherein:
      • Andres Bonifacio was found negligent.
      • PEPSI-COLA was held responsible for not exercising the due diligence required of a "good father of a family" as regards preventing the damage.
    • The judgment ordered that PEPSI-COLA and Bonifacio were to pay:
      • P2,638.50 in actual damages.
      • P2,000.00 in moral damages.
      • P2,000.00 in exemplary damages.
      • P1,000.00 for attorney’s fees, along with costs.
  • Appeal to the Court of Appeals
    • The defendants, dissatisfied with the trial court’s decision, appealed the case.
    • On January 15, 1964, the Court of Appeals:
      • Affirmed the trial court’s ruling regarding the negligence of Andres Bonifacio.
      • Modified the decision by absolving PEPSI-COLA from liability on the ground that the company had demonstrated due diligence in the selection of its driver.
  • Evidence of Due Diligence
    • The key testimonial evidence came from Juan T. Anasco, the personnel manager for PEPSI-COLA.
      • Anasco described the rigorous process undertaken by the company in selecting its driver, including:
        • An examination of the applicant’s background and experience.
ii. A requirement for clearances. iii. A physical examination. iv. A full driver's examination – comprising both a theoretical and practical test.
  • It was also noted that the company maintained membership in the Safety Council, further evidencing its commitment to safety.
  • Plaintiffs contended that Anasco was biased since he was an employee of PEPSI-COLA, thereby questioning the credibility of his testimony.
  • Final Events
    • The appellants (Ramoses) sought to challenge the portion of the Court of Appeals’ decision that upheld the evidence of due diligence based on Anasco’s testimony.
    • The Supreme Court review addressed whether such testimony could be re-examined for its credibility or showed any lack of due diligence on PEPSI-COLA’s part.

Issues:

  • Whether PEPSI-COLA exercised the due diligence required in the selection of its driver, Andres Bonifacio.
    • Appellants questioned if the company’s process in hiring met the standard of a “good father of a family.”
    • The credibility of Juan T. Anasco’s testimony was challenged on grounds of potential bias as an employed witness for PEPSI-COLA.
  • Whether the Supreme Court could re-examine the findings on the credibility of the defense’s witness made by the Court of Appeals.
    • The distinction between questions of fact (such as credibility) and questions of law was a matter of contention.
    • Appellants raised the issue as to whether the appellate findings on due diligence, based on witness testimony, were susceptible to re-evaluation in a petition for review.
  • The proper scope of judicial review in cases involving:
    • The determination of factual findings regarding the selection and supervision of an employee.
    • Whether any new issues, such as alleged violations of the Revised Motor Vehicle Law, could be raised for the first time before the Supreme Court.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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