Title
Algarra vs. Sandejas
Case
G.R. No. 8385
Decision Date
Mar 24, 1914
Plaintiff injured in car accident due to defendant’s negligence; awarded damages for medical expenses, lost income, and business loss, as the interruption of his business was a foreseeable consequence.

Case Summary (G.R. No. 161366)

Court Findings on Negligence

The case establishes that the negligence of the defendant, Sixto Sandejas, is undisputed. The only matter for determination is the amount of damages due to the plaintiff as a result of the incident. Following the accident, the plaintiff required hospitalization for ten days, with the first few days rendering him unable to leave his bed. Algarrra subsequently sought medical attention from a private practitioner, incurring additional medical expenses.

Plaintiff’s Claim for Damages

The plaintiff testified regarding the negative impact of the accident on his work capabilities and business. Algarrra claimed he was unable to work following the accident and was not fully recovered during the proceedings, which occurred on September 19, 1912. His earning capacity was estimated at P50 per month. Although the precise duration of his recovery was not established, it was inferred that he lost income for a period, leading to a claim for damages for lost earnings during this time.

Medical Expenses and Business Impact

The plaintiff detailed his incurred medical expenses totaling P10 for medical fees and medicines. Additionally, he described the impact on his business, which was primarily driven by commissions from product sales to regular customers, severely affected during his absence. Algarrra lost significant business volume as customers turned to other suppliers in his absence and was unable to fully reclaim his customer base after returning to the occupation.

Lower Court's Ruling on Damages

The trial court, despite recognizing the validity of Algarrra’s damages claim, denied compensation for losses incurred due to his inability to conduct his business, citing precedent from Marcelo vs. Velasco that limited compensatory damages to the time during which the injured party was incapacitated. The court relied on a quotation from Viada regarding civil liability in cases of personal injuries, asserting that damages should typically be confined to lost time.

Analysis of Legal Precedents

Contrary to the trial court's position, the appellate court assessed the broader implications of the damages that a plaintiff could recover under Article 1902 of the Civil Code, which holds that a person who causes damage through fault or negligence is liable for the losses incurred. The Supreme Court of Spain’s interpretation of indemnity within these frameworks supports a more comprehensive range of recoverable damages, including lost profits resulting from business disruption.

Determination of Loss of Profits

The court acknowledged the importance of Algarrra’s established business ties prior to the accident. Post-accident, he was significantly limited in regaining his customer base. The evidence presented was deemed sufficient to establish that the loss of regular clientele directly resulted from the defendant’s wrongful act, granti

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