G.R. No. 159636 - Victory Liner, Inc. vs. Gammad

On March 14, 1996, Marie Grace Pagulayan-Gammad, wife of respondent Rosalito Gammad, was a passenger on an air-conditioned Victory Liner bus traveling from Manila to Tuguegarao, Cagayan.
At around 3:00 a.m., the bus, running at high speed, 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, the heirs of the deceased filed a complaint for damages against petitioner Victory Liner, Inc., alleging breach of contract of carriage.

Victory Liner answered, claiming the accident was purely accidental and that it exercised extraordinary diligence.
Several pre-trial dates were set and reset. The petitioner was declared in default for failing to appear at pre-trial set on April 10, 1997 but was later relieved from default upon motion.
Petitioner refused to admit stipulations that the deceased was a passenger on the Victory Liner bus and was issued Passenger Ticket No. 977785, while respondents rejected petitioner’s settlement offer to pay P50,000.00.
Respondent Rosalito Gammad completed direct testimony. Petitioner’s counsel failed to appear for cross-examination and was deemed to have waived the right.
Petitioner’s motion to reset evidence presentation was granted but a last-minute telegram requesting postponement was received after the court had considered the case submitted for decision.

On November 6, 1998, the Regional Trial Court rendered a decision ordering Victory Liner to pay actual damages, death indemnity, exemplary and moral damages, compensatory damages, attorney’s fees, and costs of suit.
Petitioner appealed; the Court of Appeals affirmed but modified the amounts of damages awarded, maintaining the order for payment of costs and attorney's fees at 10% of total damages.
Petitioner filed a motion for reconsideration at the Court of Appeals, praying for remand or dismissal, invoking counsel’s alleged negligence. The motion was denied on August 21, 2003.
Petitioner then filed this petition for review before the Supreme Court, principally arguing deprivation of due process due to counsel's gross negligence and contesting the award of damages.

Whether petitioner’s counsel was guilty of gross negligence leading to deprivation of petitioner’s right to due process.
Whether petitioner Victory Liner, Inc. should be held liable for breach of contract of carriage arising from the fatal accident.
Whether the awards of damages by the trial court and Court of Appeals were proper and correctly computed.