Title
F.F. CRUZ vs. COURT OF APPEALS
Case
G.R. No. 52732
Decision Date
Aug 29, 1988
A fire from petitioner's shop destroyed respondents' home; *res ipsa loquitur* applied, proving negligence. Damages reduced by insurance payout; insurer granted subrogation rights.

Case Summary (G.R. No. 52732)

Case Background

The contention originated when Gregorio Mable initially approached Eric Cruz, the petitioner’s plant manager, to request the construction of a firewall between the shop and the Mable residence. Despite repeated requests, the petitioner did not comply. The subsequent fire destroyed both the shop and the Mable home, with no clear cause of the fire established. The National Bureau of Investigation found no evidence of improper substances that could have ignited the blaze. The Mables subsequently received an insurance claim of P35,000.00 for their losses and filed a lawsuit on January 23, 1975, seeking damages totaling P250,000.00.

Trial Court Decision

The Court of First Instance ruled in favor of the Mables, awarding them P80,000.00 for damages to their house, P50,000.00 for personal property lost, P5,000.00 as moral damages, and P2,000.00 in exemplary damages. The court also ordered attorney’s fees of P5,000.00 while dismissing the petitioner's counterclaim due to lack of merit.

Court of Appeals Ruling

Upon appeal, the Court of Appeals affirmed the trial court's decision on November 19, 1979, albeit with a reduction in damages to P70,000.00 for the house and P50,000.00 for furniture and other fixtures, with interest accruing from the filing date of the complaint. The petitioner filed a motion for reconsideration, which was denied.

Legal Issues Raised by the Petitioner

The petitioner contended that the Court of Appeals erred (1) by not deducting the P35,000.00 collected from insurance from the awarded damages, (2) by awarding excessive or unproven damages, and (3) by applying the doctrine of res ipsa loquitur to the case.

Res Ipsa Loquitur Doctrine

The principal issue revolves around the application of the common law doctrine of res ipsa loquitur, which allows presumptions of negligence under specific conditions. The doctrine applies when the object causing harm was under the control of the defendant, and accidents of such nature do not typically occur without negligence. The Court referenced prior cases, affirming that negligence arises from the petitioner’s failure to adhere to city safety ordinances and manage potentially combustible materials.

Findings on Negligence and Liability

The Court of Appeals determined that the petitioner’s negligence not only included the failure to construct a required firewall but extended to the inadequate height of the concrete wall surrounding the shop, which failed to contain potential fire hazards. The Court affirmed that these omissions directly contributed to the spread of the fire to the neighboring residence.

Damages Assessment

Regarding damages, the Court noted that the loss amounts constituted findings of fact which should not be disturbed on appeal. The award reduction by the Court of Appeals for the house was viewed as reasonable, considering historical construction

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