Title
Pantranco North Express Inc. vs. Standard Insurance Co. Inc.
Case
G.R. No. 140746
Decision Date
Mar 16, 2005
A bus negligently overtakes a jeepney, causing damage. Owners demand reimbursement; RTC rules in favor, upheld by higher courts, citing jurisdiction, liability, and due process.

Case Summary (G.R. No. 140746)

Petitioners

Pantranco North Express, Inc. and its driver, Alexander Buncan. They denied the allegations, contested the jurisdiction of the Regional Trial Court (arguing the proper forum was the Metropolitan/Municipal Trial Court), disputed liability, and later raised denial of due process.

Respondents

Standard Insurance Company, Inc. (insurer that paid P8,000.00) and Martina Gicale (owner of the jeepney who paid P13,415.00 and sought reimbursement).

Key Dates and Procedural Posture

Accident: October 28, 1984. Trial court Decision in favor of respondents: June 5, 1992 (awarding P8,000.00 to Standard with interest; P13,415.00 to Martina with interest; P10,000.00 attorney’s fees; litigation expenses and costs). Court of Appeals affirmed: July 23, 1999. Motion for reconsideration denied: November 4, 1999. Supreme Court denied the petition for review on certiorari and affirmed the Court of Appeals decision (decision rendered in 2005).

Applicable Law and Rules (including Constitutional Basis)

  • Applicable Constitution: 1987 Philippine Constitution (decision rendered after 1990).
  • Civil Code: Article 2176 (quasi-delict) — basis for liability for tort/negligence.
  • Rules of Court: Sec. 6, Rule 3 (permissive joinder of parties); Sec. 5(d), Rule 2 (joinder of causes of action — aggregate amount as test of jurisdiction).
  • Batas Pambansa Blg. 129 (Judiciary Reorganization Act of 1980): Sec. 33(1) (totality rule regarding aggregation of claims); Sec. 19 (RTC exclusive original jurisdiction where demand exceeds P20,000.00 at the relevant time).
  • Noted jurisprudence and doctrinal points cited in the record (e.g., Mendoza; Mirasol; Zacarias) concerning identity of cause of action, finality of factual findings, and the essence of due process.

Trial Court Ruling

The Regional Trial Court rendered judgment for the plaintiffs (Standard Insurance Company and Martina Gicale), ordering defendants Pantranco and Alexander Buncan to pay P8,000.00 (to Standard) with interest from November 27, 1984; P13,415.00 (to Martina) with interest from October 22, 1984; attorney’s fees of P10,000.00; and litigation expenses and costs.

Court of Appeals Ruling — Overview of Reasoning

The Court of Appeals affirmed the trial court. Its central holdings: (1) permissive joinder of respondents’ claims was proper because both claims arose out of the same vehicular accident and involved the common question of petitioners’ negligence; (2) under the totality rule, the individual monetary claims (P8,000.00 and P13,415.00) aggregate to P21,415.00, exceeding the P20,000.00 threshold applicable at the time, thereby conferring RTC jurisdiction; (3) any asserted misjoinder did not affect subject-matter jurisdiction and was not ground for dismissal; (4) petitioners had waived presentation of their evidence by repeatedly failing to appear after notice, so the case was properly deemed submitted; (5) evidence preponderantly established petitioners’ liability for quasi-delict under Article 2176.

Issues on Review Presented by Petitioners

I. Whether the trial court had jurisdiction given petitioners’ contention that respondents’ causes of action did not arise from the same transaction nor raise common questions of law or fact.
II. Whether petitioners are liable to respondents based on the evidence and applicable law.
III. Whether petitioners were deprived of due process.

Analysis — Jurisdiction: Permissive Joinder and the Totality Rule

  • Permissive joinder (Sec. 6, Rule 3) requires: (a) the right to relief arises out of the same transaction or series of transactions; (b) a question of law or fact common to all plaintiffs or defendants; and (c) joinder not otherwise proscribed by rules on jurisdiction and venue. The court found a single transaction (the collision) and a common factual question (negligence of petitioners), so the joinder elements were satisfied.
  • Joinder of causes of action test for monetary claims (Sec. 5(d), Rule 2) makes the aggregate amount the test of jurisdiction. The BP 129 totality rule (Sec. 33(1)) reinforces that where several claims or causes of action are embodied in the same complaint, the amount demanded is the total of those claims. Here Standard’s P8,000.00 and Martina’s P13,415.00 aggregate to P21,415.00, exceeding the P20,000.00 jurisdictional threshold for the RTC at the time.
  • The Court of Appeals correctly concluded that the RTC had exclusive original jurisdiction under Sec. 19, B.P. Blg. 129. The court also noted that subsequent statutory changes (R.A. 7691 expanding lower court jurisdiction effective April 15, 1994) were not operative at the time the complaint was filed.

Analysis — Liability (Quasi-delict) and Standard of Review

  • The trial court and Court of Appeals found petitioners negligent and liable under Article 2176 (quasi-delict). The Supreme Court emphasized the well-settled rule that factual findings of the trial court, when affirmed by the Court of Appeals, are binding and conclusiv

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