Title
Philippine National Construction Corp. vs. Superlines Transportation Co., Inc.
Case
G.R. No. 216569
Decision Date
Jun 3, 2019
Bus impounded by PNCC after crash; Superlines sued for replevin. SC ruled impoundment unconstitutional, remanded for damages. Awards adjusted: lost income denied, exemplary damages and attorney's fees reduced.

Case Summary (G.R. No. 216569)

Relevant Antecedents

The incident commenced when a bus operated by Superlines crashed into PNCC's radio room, causing damage. Following the accident, the bus was placed in the custody of the Alabang Traffic Bureau and subsequently towed to PNCC's compound on the request of Patrolman Cesar Lopera, who was involved in the investigation. Efforts by Superlines to retrieve the bus were obstructed by PNCC's head of traffic control and security, Pedro Balubal, who demanded nearly P40,000,000 as collateral for the damages.

Initial Rulings and Trial Court Decision

Superlines filed a complaint for replevin and damages against PNCC and Balubal in the Regional Trial Court (RTC). The RTC dismissed Superlines' complaint, ruling that PNCC was merely acting under police instructions for safekeeping, and ordered Superlines to pay PNCC for damages instead. Superlines appealed the ruling to the Court of Appeals (CA), which found that the storage of the bus constituted a deposit; hence, PNCC was not in a position to release the bus without further police directive.

Supreme Court Ruling in G.R. No. 169596

Upon reaching the Supreme Court, the Court held that the seizure of the bus violated Superlines' constitutional right against unreasonable seizure. The Court emphasized the necessity to include Patrolman Lopera as a party in any claims for damages, directing that the case be remanded to the RTC for further proceedings.

Amended Complaint and RTC's Subsequent Findings

Following remand, Superlines amended its complaint to include Lopera as an additional defendant. Despite this, a conflicting narrative emerged regarding the bus's whereabouts, leading to difficulties in executing the Supreme Court's decision. The RTC subsequently ruled that PNCC and Balubal were liable for the damages due to their inability to return the bus, ordering significant monetary penalties against them.

Court of Appeals Decision and Arguments on Appeal

PNCC appealed the RTC's decision, arguing that its exclusion of Lopera from liability was improper, claiming it did not comply with the Supreme Court's directive. The CA modified the RTC’s decision, affirming the liability of PNCC and Balubal but reducing the amount of exemplary damages awarded.

Supreme Court's Ruling on the Recent Appeal

In addressing the appeal from PNCC, the Supreme Court reiterated the importance of the doctrine of law of the case, which dictates that previous rulings on legal issues remain binding. The Court clarified that the failure to include parties deemed indispensable could affect the effectiveness of judgments. It reinforced the necessity of Lopera’s inclusion in the replevin action due to the established

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