Title
R Transport Corp. vs. Yu
Case
G.R. No. 174161
Decision Date
Feb 18, 2015
A bus driver's negligence caused a fatal accident; employer R Transport and registered owner MMTC were held solidarily liable for damages due to lack of due diligence in supervision.

Case Summary (A.M. No. 96-5-169-RTC)

Facts of the Incident

On December 12, 1993, shortly after Loreta J. Yu alighted from a bus along EDSA at Robinsons Galleria, she was struck and run over by a bus driven by Antonio P. Gimena. The victim was declared dead on arrival at The Medical City Hospital.

Procedural Posture in the Regional Trial Court

On February 3, 1994, respondent filed a complaint for damages against R Transport Corporation, Antonio Gimena, and Metro Manila Transport Corporation (MMTC). MMTC denied operational and employment ties, asserting mere registered ownership under a government resale program. R Transport invoked due diligence in employee selection and supervision; Gimena defaulted.

Findings and Ruling of the Regional Trial Court

The RTC held R Transport liable for failing to prove due diligence as “a good father of a family” in supervising Gimena. It also imposed solidary liability on MMTC to protect the tort victim from proving actual ownership. Damages awarded included actual, moral, exemplary, and loss of income, plus attorney’s fees and costs.

Court of Appeals’ Decision and Modification

The CA affirmed the RTC’s liability ruling, modifying the liability of Gimena from subsidiary to solidary alongside R Transport and MMTC. It found proven negligence by Gimena and no evidence of R Transport’s due diligence defense. The CA rejected argument that non-registered ownership absolved R Transport.

Issues Raised in the Petition for Review

R Transport contends the CA and RTC erred in finding its driver negligent, arguing lack of corroborating evidence and attributing proximate cause to the bus from which the victim alighted. It further asserts non-registered ownership precludes its liability.

Standard of Review and Jurisdictional Limitation

Under Rule 45, the Supreme Court’s review is confined to errors of law; factual findings of both lower courts are binding unless one of eight exceptional circumstances (e.g., findings based on conjecture, grave abuse of discretion) is shown. No such circumstances exist here.

Negligence and Proximate Cause

Negligence requires failure to exercise reasonable care under circumstances. Eyewitness and autopsy evidence of catastrophic injuries, coupled with reckless speed in a busy loading/unloading zone, establish Gimena’s negligence as the proximate cause of Loreta’s death.

Employer Liability under Article 2180, New Civil Code

An employer is presumed negligent for torts of employees acting within assigned tasks; to rebut, the employer must prove care equiva

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