Title
Saludaga vs. Far Eastern University
Case
G.R. No. 179337
Decision Date
Apr 30, 2008
A law student shot by a security guard on campus sued FEU for breach of safety obligations. SC ruled FEU liable for damages, holding Galaxy negligent in guard supervision.

Case Summary (G.R. No. 179337)

Factual Background

Joseph Saludaga was a sophomore law student of FEU when a security guard assigned to the university, Alejandro Rosete, shot him inside campus on August 18, 1996. Saludaga was rushed to FEU-Dr. Nicanor Reyes Medical Foundation for treatment and incurred medical expenses. Rosete was taken to the police station, claimed the shooting was accidental, and was released as no complaint was filed. Saludaga thereafter filed a complaint for damages against FEU and Edilberto C. De Jesus, alleging breach of the school-student contractual obligation to provide a safe and secure learning environment.

Procedural History in the Trial Court

Petitioner filed a civil complaint alleging contractual breach and negligence by FEU and De Jesus and prayed for actual, moral, exemplary damages, attorney’s fees, and costs. FEU impleaded Galaxy Development and Management Corporation (Galaxy) and its president Mariano D. Imperial by third-party complaint to indemnify it or to answer for any judgment. Galaxy and Imperial filed a fourth-party complaint against AFP General Insurance. The Regional Trial Court, Manila, rendered judgment on November 10, 2004 in favor of Saludaga, awarding actual damages, moral and exemplary damages, attorney’s fees, and ordering Galaxy and Imperial to indemnify FEU for the amounts awarded to petitioner, while dismissing the fourth-party complaint.

Court of Appeals Decision

FEU and De Jesus appealed to the Court of Appeals which, by Decision dated June 29, 2007, reversed and set aside the trial court judgment and dismissed petitioner’s complaint. The Court of Appeals characterized the shooting as a fortuitous event and held that FEU was not liable because Rosete was not its employee and because FEU had exercised due diligence in selecting Galaxy as its security services provider. The Court of Appeals denied petitioner’s motion for reconsideration by Resolution dated August 23, 2007.

Issues Presented to the Supreme Court

In the petition under Rule 45, Rules of Court, petitioner asserted that the Court of Appeals erred in ruling that the shooting was a fortuitous event, erred in absolving FEU of liability under the school-student contractual obligation to provide a safe learning environment, erred in holding that the security guard was not FEU’s employee, and erred in finding that FEU exercised due diligence in selecting Galaxy.

Parties’ Contentions at Trial and on Appeal

Petitioner contended that enrollment created a student-school contract imposing a built-in obligation on the school to provide an atmosphere conducive to learning and to maintain campus safety, and that being shot by a security guard deployed on campus established a prima facie breach of that obligation. FEU maintained that Rosete was not its employee, that the incident was fortuitous and unforeseeable, and that FEU exercised due diligence in selecting Galaxy, thereby negating liability. Galaxy and Imperial defended against third-party claims and the trial court’s findings of their negligence in selection, supervision, and post-incident conduct.

Supreme Court’s Analysis of the School-Student Contractual Obligation

The Court reaffirmed the principle in Philippine School of Business Administration v. Court of Appeals that enrollment establishes a bilateral contract and imposes upon the school an implicit obligation to provide an atmosphere that promotes learning and to take adequate steps to maintain peace and order within the campus. The Court found that the shooting by a security guard on campus created a prima facie showing of breach of that obligation by FEU.

Supreme Court’s Evaluation of the “Fortuitous Event” Defense and Due Diligence

The Court examined FEU’s defense that the shooting was a fortuitous event and that it had exercised due diligence in selecting Galaxy. The Court held that FEU failed to prove that it ensured the guards assigned met the qualifications in the Security Service Agreement and failed to show that it verified clearances, psychiatric test results, and employment records for the guards including Rosete. The Court reasoned that complete reliance on the security agency without verification constituted negligence, and that a school must not abdicate its inherent duty to secure the campus merely by contracting security services. The Court concluded that the defense of force majeure could not avail FEU where its negligence contributed to the occurrence.

Supreme Court’s Assessment of Vicarious Liability under Article 2180

The Court addressed petitioner’s alternative theory of vicarious liability under Article 2180 of the Civil Code and agreed with the Court of Appeals that FEU was not the employer of Rosete. The Court recognized that where a security agency recruits, hires, and assigns its guards, the agency remains the employer and the client ordinarily is not liable as employer. The Court found that the instructions given by FEU’s security consultant were consistent with ordinary contractual requests and did not establish the element of employer control necessary to render FEU vicariously liable under Article 2180.

Liability of Galaxy and Mariano D. Imperial to FEU

With respect to the third-party claims, the Court explained the nature of the third-party complaint as a procedural device to enforce rights of contribution or indemnity and observed that FEU and Galaxy litigated their respective claims during trial. The Court found evidence supporting the trial court’s findings that Galaxy was negligent in the selection and supervision of Rosete, failed to impose administrative sanctions, and failed to fulfill promises to reimburse petitioner’s medical expenses. The Court held that Galaxy and its president Mariano D. Imperial were liable to FEU to indemnify the amounts awarded to petitioner, and that Imperial was solidarily liable with Galaxy for gross negligence in directing the security agency’s affairs.

Damages and Modifications to Trial Court Award

The Supreme Court affirmed FEU’s liability to petitioner but modified the damages award. The Court ordered FEU to pay actual damages of P35,298.25 with six pe

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