Case Summary (G.R. No. 71049)
Petitioner and Respondents
The petitioner sued both the City of Manila and Asiatic Integrated Corporation under theories of quasi-delict and statutory liability, seeking joint and several liability for injuries sustained in a market accident.
Key Dates
– August 15, 1974: Accident date.
– Civil Case No. 96390 (CI Manila, Branch XXII): Initial decision dismissing petitioner’s complaint.
– AC-G.R. No. 013887-C (Intermediate Appellate Court): Decision reversing lower court and holding only Asiatic Integrated Corporation liable.
– May 29, 1987: Supreme Court decision.
Applicable Law
Under the 1987 Constitution, the courts exercise judicial power to settle actual controversies. Statutes and codes applied:
• Civil Code of the Philippines (Articles 2176 on quasi-delicts; 2189 on liability for defective public works; 2194 on solidary liability).
• Republic Act No. 409, § 1(4) (liability of City of Manila for failure to enforce laws).
• Local Tax Code, § 30(g) (City treasurer’s supervision over public markets).
• Management and Operating Contract between City and Asiatic Integrated Corporation.
Facts
While purchasing goods in a flooded corridor of Sta. Ana Public Market, petitioner stepped on an uncovered drainage opening and suffered a puncture wound from a rusty nail. He received first aid, was confined twenty days at Veterans Memorial Hospital, and used crutches for fifteen days thereafter. His business operations were disrupted, necessitating payment of P900 to a substitute manager.
Lower Court Ruling
The Court of First Instance dismissed the complaint against both defendants for lack of sufficient evidence. Counterclaims were also dismissed.
Intermediate Appellate Court Ruling
The Intermediate Appellate Court reversed the lower decision, holding Asiatic Integrated Corporation liable for P221.90 in medical expenses, P900 for business management, P20,000 in moral damages, and P10,000 in attorney’s fees. The City of Manila was absolved, the court finding that the operating contract shifted all responsibility to the Corporation.
Issue
Whether the City of Manila, alongside Asiatic Integrated Corporation, should be held jointly and severally liable for petitioner’s injuries under applicable law.
Supreme Court Analysis
Liability Under RA 409 vs. Civil Code Article 2189
– RA 409, § 1(4) creates a general exemption for the City from liability arising from negligence of its officers in enforcing law.
– Civil Code Article 2189 imposes specific liability on provinces, cities, and municipalities for injuries resulting from defective public works under their control or supervision. The specific provision prevails over the general exemption.Control and Supervision by the City
– The Management and Operating Contract expressly retained “control and supervision” of public markets with the City’s approval of repairs, personnel decisions, and facility improvements.
– Official correspondence from Manila’s mayor and testimony of the market division’s deputy administrator confirmed the City’s supervisory role.
– The Local Tax Code further vested direct and immediate supervision of public markets in the City treasurer.Absence of Contri
Case Syllabus (G.R. No. 71049)
Facts of the Case
- On the morning of August 15, 1974, petitioner Bernardino Jimenez and his neighbors visited the Sta. Ana Public Market in Manila, which was flooded with ankle-deep rainwater.
- While returning from purchasing bagoong, petitioner stepped on an uncovered opening obscured by dirty rainwater; a rusty four-inch nail within the opening pierced his left leg to a depth of about one and a half inches.
- After first aid at a nearby drug store, petitioner’s companions assisted him home; he developed fever and severe pain, and consulted Dr. Juanita Mascardo without relief.
- Petitioner was confined at Veterans Memorial Hospital for twenty days due to high fever and intense pain; upon discharge, he used crutches for fifteen days.
- His injury prevented him from operating his school-bus business, forcing him to hire a supervisor at a total cost of ₱900.
Parties and Contractual Arrangement
- Petitioner sued the City of Manila and Asiatic Integrated Corporation (AIC), the latter having entered into a Management and Operating Contract with the City to administer the Sta. Ana Public Market.
- Under the contract, AIC was to paint, clean, sanitize, repair and propose improvements; the City retained prior approval rights, ongoing supervision and control, and reporting requirements over market operations.
Procedural History
- Court of First Instance, Manila (Civil Case No. 96390): Dismissed petitioner’s complaint for lack of evidence; counterclaims by defendants also dismissed.
- Intermediate Appellate Court (AC-G.R. No. 013887-CV): Reversed the trial court, held AIC solely liable, awarded petitioner ₱221.90 (medical expenses), ₱900 (bus operation), ₱20,000 (moral damages), and ₱10,000 (attorney’s fees); absolved City of Manila.
- Intermediate Appellate Court denied petitioner’s motion for reconsideration.
- Petitioner elevated the case by petition for certiorari to the Supreme Court.
Issue
- Whether the City of