Title
Lao vs. Standard Insurance Co., Inc.
Case
G.R. No. 140023
Decision Date
Aug 14, 2003
Insured truck collision claim denied due to unauthorized driver; police blotter upheld as evidence; awards for damages and fees deleted by Supreme Court.
A

Case Summary (G.R. No. 140023)

Factual Background

Petitioner owned a Fuso truck bearing Plate No. FCG-538 insured under Policy No. CV-21074 for P200,000 with an additional P50,000 coverage for goods. At around 8:00 p.m. on April 24, 1985, the insured truck collided with another truck bearing Plate No. FBS-917, also owned by Petitioner, in Barangay Buhang, Jaro, Iloilo City. The insured truck's damage was estimated at approximately P110,692, while damage to the other truck and nearby property was placed at about P35,000. Petitioner submitted a claim to Respondent, which denied the claim on the ground that the driver of the insured truck, Leonardo Anit, lacked an appropriate license for the vehicle's weight and thus violated the policy's "AUTHORIZED DRIVER" clause.

Trial Court Proceedings

Petitioner filed Civil Case No. 17045 in the RTC for breach of contract and damages. The trial court received and gave weight to an entry in the police blotter indicating that Leonardo Anit was the driver of the insured truck. The trial court dismissed Petitioner's complaint for lack of sufficient cause of action and ordered Petitioner to pay Respondent P20,000 as attorney's fees plus P500 appearance fee and P50,000 as exemplary damages.

Court of Appeals Proceedings

On appeal, the Court of Appeals affirmed the RTC decision and dismissed the complaint for lack of merit. The appellate court denied Petitioner's motion for reconsideration, and Petitioner then sought review before the Supreme Court.

Issues Presented

The Supreme Court identified three principal issues: the admissibility and probative value of the police blotter entry; the assessment of witness credibility and the factual question whether Leonardo Anit, an unauthorized driver, was operating the insured truck at the time of the accident; and the propriety and legal basis for the awards of exemplary damages and attorney's fees.

Parties' Contentions

Petitioner argued that the police blotter entry was only prima facie evidence under Rule 130, Section 44 and was nullified by the Motor Vehicle Accident Report and the testimony of the investigating officer, both of which, he maintained, identified Giddie Boy Coyel as the driver of the insured truck. Petitioner further contended that the award of exemplary damages and attorney's fees was improper under Articles 2229, 2234 and related Civil Code provisions because there was no award for moral, temperate, liquidated, or compensatory damages. Respondent maintained that the police blotter formed part of the official records and that the later report and testimony were dubious, noting that the Motor Vehicle Accident Report was prepared three days after the accident and was not part of official police records.

Admissibility and Probative Value of the Police Blotter

The Court reviewed Rule 130, Section 44, which deems entries in official records made by public officers in the performance of duty to be prima facie evidence of the facts stated. The Court agreed with the lower courts that the police blotter was properly admitted as part of the official records. The Court explained that although entries in police records are of limited probative value, they are admissible and may be substantiated or nullified by other competent evidence. The Court distinguished this case from People v. Mejia, noting that the blotter here was identified, formally offered, and validated by the person who made the entries, and that the investigating officer did not protest inaccuracies or explain any interchange of names when the blotter was presented.

Credibility and Findings of Fact

The Court observed the settled doctrine that great weight and even finality attach to factual findings of the Court of Appeals that affirm those of the trial court. The Court found no reason to overturn the trial court's and appellate court's factual conclusions. The Court noted that the Motor Vehicle Accident Report dated April 27, 1985, and the testimony supporting Petitioner's version were insufficient to displace the police blotter entry and the corroborating testimony presented by Respondent.

Damages and Attorney's Fees

The Court held that the awards of exemplary damages and attorney's fees were improper. Citing Tiongco v. Atty. Deguma, the Court reiterated that exemplary damages are not recoverable as of right

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