Case Summary (G.R. No. 144672)
Procedural History
The MTCC of Tagbilaran City ruled for the petitioner, awarding P30,000 actual damages, P3,000 moral damages, P5,000 attorney’s fees, and P2,000 litigation expenses. The RTC reversed, finding no breach of contract. The Court of Appeals affirmed, holding that respondents did not assume liability for dismounting the diamonds and that Santos was not their employee.
Issue on Review
Whether the verbal contract to reset the earrings included an obligation to dismount the diamonds, thereby rendering the private respondents liable for damage caused by their goldsmith.
Scope of the Obligation
Evidence showed that Marilou accepted both the measurement and dismounting tasks as integral to the job order. She examined the stones pre-dismounting without reservation, charged a flat fee covering all work, summoned Sarmiento only after the settings were ready, and personally undertook the dismounting before delegating to Santos. These acts established a single, comprehensive contract to reset the earrings.
Negligence and Res Ipsa Loquitur
Under Civil Code Arts. 1170 and 1173, obligors who contravene their obligations through negligence are liable for damages. Santos employed pliers rather than the customary miniature wire saw, directly causing the gem’s breakage. The diamond’s condition post-dismounting spoke for itself (res ipsa loquitur), evidencing negligence.
Employment Relationship
Although respondents attempted to characterize Santos as an independent craftsman, the evidence demonstrated a six-month working arrangement under shop direction and referrals, satisfying Labor Code Art. 280’s definition of regular employment. Consequently, the spouses are vicariously liable for his negligence.
Damages Award
Actual damages of P30,000 were proven by the cost to repl
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Facts of the Case
- In April 1994, petitioner Tomasa Sarmiento’s friend, Dra. Virginia Lao, asked her to have a pair of diamond earrings reset into two gold rings.
- Petitioner sent Tita Payag to Dingdingas Jewelry Shop, owned and managed by spouses Luis and Rose Sun-Cabrido, which accepted the job for P400.
- Petitioner furnished 12 grams of gold for the ring settings.
- After three days, Payag delivered one of the earrings—previously appraised at 0.33 carat with near-perfect cut and clarity—for dismounting and resetting.
- Respondent Maria Lourdes Sun attempted to remove the diamond; failing that, she asked goldsmith Zenon Santos, who twisted the setting with pliers and accidentally broke the gem.
- Petitioner demanded replacement of the diamond; upon refusal by respondents, she purchased a substitute for P30,000.
Procedural Posture
- Efforts to settle before the barangay lupon were unsuccessful.
- June 28, 1994: Petitioner filed Civil Case No. 2339 before the MTCC of Tagbilaran City.
- MTCC rendered judgment awarding P30,000 actual damages, P3,000 moral, P5,000 attorney’s fees, P2,000 litigation expenses, plus interest; dismissed claims as to Maria Lourdes Sun.
- The RTC of Tagbilaran City, Branch 3, on appeal reversed the MTCC, absolving the spouses of liability.
- The Court of Appeals, in CA-G.R. SP No. 47431 (Nov. 26, 1999), affirmed the RTC decision.
- Petitioner filed a petition for review on certiorari before the Supreme Court, assigning errors regarding Santos’s employment status and the scope of the contract.
Issue
- Whether the verbal contract between petitioner (through Payag) and Dingdingas Jewelry Shop (through respondents) included the obligation to dismount the diamonds from their original settings, thereby making respondents