Title
Victory Liner, Inc. vs. Gammad
Case
G.R. No. 159636
Decision Date
Nov 25, 2004
Victory Liner bus crash in 1996 led to passenger death; heirs sued for breach of contract. Court found carrier negligent, awarded damages despite counsel’s lapses.

Case Digest (G.R. No. 159636)

Facts:

Victory Liner, Inc., G.R. No. 159636, November 25, 2004, First Division, Ynares‑Santiago, J., writing for the Court. The petition seeks review of the Court of Appeals' April 11, 2003 decision in CA‑G.R. CV No. 63290 affirming with modification the Regional Trial Court (RTC) of Tuguegarao, Branch 5, November 6, 1998 judgment in Civil Case No. 5023. Quisumbing, Carpio, and Azcuna, JJ., concur; Davide, Jr., C.J., was on official leave.

On March 14, 1996, Marie Grace Pagulayan‑Gammad was a passenger on an air‑conditioned Victory Liner bus traveling from Manila to Tuguegarao; at about 3:00 a.m. the bus ran at high speed and fell into a ravine in Barangay Baliling, Sta. Fe, Nueva Vizcaya, resulting in Marie Grace's death and injuries to other passengers. On May 14, 1996, respondents — Marie Grace's heirs represented principally by Rosalito Gammad — filed a complaint for damages based on culpa contractual (breach of contract of carriage) against Victory Liner, Inc.

At the RTC, procedural events included multiple resets of pre‑trial; petitioner was once declared in default for failure to appear on April 10, 1997 but moved successfully to set aside the default. At the May 6, 1997 pre‑trial petitioner declined to admit certain stipulations and proposed a settlement of P50,000 which respondents rejected. After plaintiff's direct testimony, petitioner’s counsel repeatedly failed to appear for scheduled cross‑examinations (notably December 8, 1997), and later sought continuances; a telegram from petitioner's counsel requesting postponement was received after the court had already considered the case submitted on March 25, 1998. The RTC rendered judgment on November 6, 1998 finding Victory Liner liable and awarding various damages totaling P2, etc. (dispositive below).

Petitioner appealed to the Court of Appeals, which on April 11, 2003 modified the RTC award (reducing actual and compensatory damages) but affirmed judgment as to liability and costs. Victory Liner filed a motion for reconsideration in the Court of Appeals (May 21, 2003) urging that its former counsel’s negligence deprived it of due process (invoking APEX Mining, Inc. v. Court of Appeals) and seeking remand for presentation of ...(Pro-only)

Issues:

  • Was petitioner's counsel guilty of gross negligence that deprived petitioner of due process?
  • Should Victory Liner, Inc. be held liable for breach of contract of carriage for the death of Marie Grace Pagulayan‑Gammad?
  • Were the awards of damages by the RTC and modified by the C...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

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