Title
Baritua vs. Court of Appeals
Case
G.R. No. 82233
Decision Date
Mar 22, 1990
A tricycle-bus collision led to a widow's settlement, releasing liability. Parents sued for damages, but the Supreme Court ruled payment to the widow extinguished obligations, dismissing their claim.

Case Summary (G.R. No. 82233)

Factual Background

JOSE BARITUA AND EDGAR BITANCOR, PETITIONERS, operated and drove respectively JB Bus No. 80 which on the evening of November 7, 1979 collided with a tricycle driven by Bienvenido Nacario along the national highway at Barangay San Cayetano, Baao, Camarines Sur. Bienvenido Nacario and his passenger died as a result of the accident, and the tricycle was damaged. No criminal prosecution ensued.

Extrajudicial Settlement and Release

On March 27, 1980 the petitioners and the bus insurer, Philippine First Insurance Company, Inc., effected an extrajudicial settlement with Alicia Baracena Vda. de Nacario, the widow of the deceased. Alicia received P18,500.00 and executed a Release Of Claim in favor of the petitioners and the insurer, releasing them from all actions, claims, and demands arising from the accident; she also executed an affidavit of desistance declaring lack of interest to institute civil or criminal proceedings.

Trial Court Proceedings

On September 2, 1981 NICOLAS NACARIO AND VICTORIA RONDA NACARIO, RESPONDENTS (the parents of the deceased) filed a complaint for damages in their personal capacity with the Court of First Instance of Camarines Sur. They alleged that the petitioners had promised to indemnify them for their son’s death, for funeral expenses, and for the damage to the tricycle, but that the petitioners instead negotiated with the estranged widow. The parents sought P25,000.00 for death, P10,000.00 for the tricycle, P25,000.00 for compensatory and exemplary damages, P5,000.00 for attorneys’ fees, and moral damages. The trial court dismissed the complaint, holding that payment by the petitioners to the widow and child, as preferred heirs and successors-in-interest, extinguished any claim against the petitioners.

Court of Appeals Ruling

The Court of Appeals reversed. It held that the widow’s release did not discharge the petitioners’ liability to the parents because the parents sued in their own capacity, not as heirs or successors of the widow, and because the widow could not validly waive damages claimed by the parents for harms she did not personally suffer. The appellate court found that the parents proved purchase of the tricycle and payment of funeral expenses and therefore awarded in their favor P10,000.00 for the tricycle, P5,000.00 for funeral services, P450.00 for a cemetery lot, P55.00 for oracion adulto, and P5,000.00 for attorneys’ fees, totaling P20,505.00. A motion for reconsideration was denied.

Issue on Review

Whether the Court of Appeals erred in holding that the petitioners remained liable to the parents in the aggregate amount of P20,505.00 despite the extrajudicial settlement and signed release executed by the widow and successor-in-interest.

Supreme Court Ruling and Disposition

The Supreme Court granted the petition. It reversed and set aside the decision of the Court of Appeals and reinstated the decision of the Regional Trial Court dismissing the complaint. Costs were assessed against the private respondents.

Legal Basis and Reasoning

The Court applied Article 1231 of the Civil Code that obligations are extinguished by payment. It found that the petitioners had paid their obligation arising from the accident by the payment made to the widow and the insurer. The Court then examined Article 1240, which provides that payment shall be made to the person in whose favor the obligation has been constituted, or to his successor in interest, or any person authorized to receive it. The Court concluded that the widow and her child were the successors in interest entitled to receive payment. The Court relied on Article 887 to show that the widow is a compulsory heir and on Article 985 to show that parents inherit only in default of legitimate children and descendants. Because Bienvenido left a surviving spouse and a child, the parents were not compulsory heirs or successors in interest of the deceased. The Court further held that mere estrangement did not disqualify the surviving spouse from inheriting. Consequently, payment to the wido

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