Title
Philippine School of Business Administration vs. Court of Appeals
Case
G.R. No. 84698
Decision Date
Feb 4, 1992
Parents sued PSBA for negligence after their son was stabbed by outsiders on campus; SC ruled liability hinges on contractual duty to ensure student safety, not quasi-delict.

Case Summary (G.R. No. 84698)

Petitioner

Philippine School of Business Administration and its corporate officers

Respondents

Parents of Carlitos Bautista–Segunda R. Bautista and Arsenia D. Bautista–and the Court of Appeals and RTC Judge Regina Ordoñez-Benitez

Key Dates

  • Incident: August 30, 1985
  • RTC Denial of Motion to Dismiss: December 8, 1987; January 25, 1988 (reconsideration)
  • Court of Appeals Decision: June 10, 1988; Reconsideration denied August 22, 1988
  • Supreme Court Decision: February 4, 1992

Applicable Law

  • 1987 Constitution of the Philippines
  • Civil Code Articles 2176 (quasi-delict), 2180 (in loco parentis), 21 (acts contrary to morals, good customs or public policy), 1173 (degree of diligence)

Background

Carlitos Bautista was stabbed dead on PSBA’s second-floor premises by individuals unconnected to the school. His parents sued PSBA and its officers for negligence, recklessness, and lack of security measures under the theory of quasi-delict and in loco parentis liability.

Trial Court Proceedings

PSBA and its officers moved to dismiss, arguing that academic institutions fall outside Article 2180’s ambit regarding acts of non-students. The Regional Trial Court denied the motion and its reconsideration, finding that the complaint states a cause of action and merits trial.

Appellate Court Ruling

The Court of Appeals affirmed, holding that:

  1. Article 2180 adapts to modern educational systems and is not limited to vocational schools.
  2. Academic institutions and their heads are liable for acts causing damage unless they prove they exercised diligence akin to a “good father of a family.”
  3. The complaint should proceed to trial on the merits.

Issue on Appeal

Whether PSBA and its officers can be held liable under Articles 2176 and 2180 for injuries inflicted by third parties who are not their students.

Supreme Court Analysis

  • In Loco Parentis Doctrine: Article 2180 imposes liability only for acts of pupils or students in the school’s custody; here, assailants were outsiders, so traditional in loco parentis does not apply.
  • Contractual Relationship: Enrollment creates a contract imposing reciprocal obligations—PSBA must provide education and a conducive environment; students must observe rules.
  • Obligation to Provide Security: Implicit in the contractual obligation is the duty to maintain peace and order on campus. Failure to do so may breach the contract.
  • Quasi-Delict Versus Contract: Article 2176 governs extra-contractual obligations where no contract exists. However, tortious liability may arise alongside contractual liability if the same wrongful act violates Article 21 (acts contrary to morals or public policy).
  • Jurisprudence:
    • Air France vs. Carrascoso held that tort liability can coexist with contractual relations.
    • Cangco vs. Manila Railroad established that breach of contract may also constitute a quasi-delict if the act independently causes

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