Title
Spouses Herdez vs. Spouses Dolor
Case
G.R. No. 160286
Decision Date
Jul 30, 2004
A 1986 jeepney collision in Batangas resulted in fatalities and injuries. Courts held Hernandez spouses solidarily liable with driver Gonzales, affirmed damages, but deleted attorney’s fees.

Case Summary (G.R. No. 160286)

Factual Background

At about three in the afternoon of December 19, 1986, Lorenzo Menard Boyet Dolor, Jr. was driving an owner-type jeepney bearing plate no. DEB 804, which was owned by Margarita Dolor, heading toward Anilao, Batangas. While traversing the road at Barangay Anilao East, Mabini, Batangas, the owner-type jeep collided with a passenger jeepney bearing plate no. DEG 648. The passenger jeepney was driven by Juan Gonzales, and it was owned by Francisco Hernandez, one of the petitioners.

As a result of the collision, Boyet Dolor and Oscar Valmocina died. On the passenger jeepney, Fred Panopio, Rene Castillo, and Joseph Sandoval suffered physical injuries. The collision also damaged the passenger jeepney of Francisco Hernandez and caused injuries to its passengers, namely Virgie Cadavida, Fiscal Artemio Reyes, and Francisca Corona.

Claims and Counter-Theory in the Civil Action for Damages

Following the incident, respondents instituted an action for damages against petitioners before the Regional Trial Court of Batangas City. They alleged that driver Juan Gonzales was negligent and lacked due care, and that the Hernandez spouses were likewise negligent in the selection and supervision of their employees.

Petitioners denied liability on two connected theories. First, they asserted that the proximate cause of the deaths and injuries was the recklessness of Boyet Dolor, who was allegedly driving in a zigzagging manner and while under the influence of alcohol. Second, they argued that Juan Gonzales was not the Hernandez spouses’ driver-employee because he merely leased the passenger jeepney on a daily basis.

The Hernandez spouses additionally contended that even if an employer-employee relationship were established, they exercised due diligence in selection and supervision; hence, they should not be held liable.

Evidence and Trial Findings

During trial, it was established that the drivers of both vehicles were duly licensed to drive. The road where the collision occurred was asphalted and in fairly good condition. The owner-type jeep was traveling uphill while the passenger jeepney was going downhill. The evidence also indicated that the owner-type jeep was moderately moving and had just passed a road bend. The passengers Joseph Sandoval and Rene Castillo saw the passenger jeepney at a distance of about three meters. The passenger jeepney was traveling fast when it bumped the owner-type jeep.

With respect to Gonzales’s driving status, respondents presented evidence showing that Juan Gonzales obtained his professional driver’s license only on September 24, 1986, approximately three months before the accident. Before that, he held only a student driver’s permit issued on April 10, 1986.

RTC Decision

On November 24, 1997, the trial court rendered judgment in favor of respondents. It directed petitioners to pay jointly and severally specified sums for: (a) death of the Dolor spouses’ son Lorenzo Menard Boyet Dolor, Jr. and for funeral expenses, moral damages, and litigation expenses and attorneys fees; (b) death of the Valmocina spouses’ son Oscar Valmocina and related damages; (c) medical and related expenses and damages for injured persons, including Fred Panopio (including loss of his right leg and moral damages) and Joseph Sandoval (including medical treatment costs). The RTC also imposed costs of the proceedings against defendants.

Court of Appeals Ruling on Appeal

Petitioners appealed. The Court of Appeals affirmed the RTC decision but modified the awards regarding damages, actual expenses, and attorneys fees. It adjusted the characterization of awards in favor of different respondents, including substitution of civil indemnity, temperate damages, and revised amounts of moral damages, actual hospitalization and medical expenses, litigation expenses and attorneys fees, and the amounts assigned to each injured party.

Issues Raised in the Petition

In the present Rule 45 petition, petitioners raised four main issues: first, whether the Court of Appeals properly held the Hernandez spouses solidarily liable with Juan Gonzales despite their alleged absence from the passenger jeepney at the time of the accident; second, whether it was correct to award temperate damages even though the trial court’s decision allegedly did not provide for such awards; third, whether it was correct to increase moral damages awarded to respondents; and fourth, whether the Court of Appeals properly affirmed the award of attorneys fees to the Dolor and Valmocina spouses despite the trial court’s failure to specify the factual and legal basis.

Parties’ Arguments on Solidary Liability and Employment Relationship

Petitioners argued that the Hernandez spouses could not be held solidarily liable because they were not inside the passenger jeepney when the collision occurred, and they invoked Article 2184 of the Civil Code. They maintained that because Article 2184 applied only when the owner is in the vehicle, and because the owners were not in the vehicle, Article 2180 should control. They further asserted that Article 2180 does not impose solidary liability between employers and employees.

In response, the Court of Appeals and respondents’ legal position rested on a reading of the Civil Code that permits solidary liability in quasi-delict situations and on the determination that Juan Gonzales was effectively an employee of the Hernandez spouses despite the alleged lease arrangement.

Legal Basis for Employer Solidary Liability in Quasi-Delict

The Court rejected petitioners’ reliance on the absence of the Hernandez spouses from the vehicle. It held that Article 2180 imposes liability not only for one’s own acts but also for those of persons for whom one is responsible, including owners and managers of an establishment for damages caused by their employees acting in the service of their branches or on the occasion of their functions. While Article 2180 does not expressly use the term “solidary,” the Court ruled that solidary liability may be inferred from the provision’s wording that the obligation under Article 2176 is demandable for acts of those for whom one is responsible. The Court further held that Article 2180 should be read together with Article 2194, which provides that the responsibility of two or more persons liable for quasi-delict is solidary. The effect was that the liability of joint tortfeasors in quasi-delict is solidary, including employer liability under Article 2180.

Establishment of the Employer-Employee Relationship Despite the Alleged Lease

The Court addressed whether Juan Gonzales was an employee of the Hernandez spouses. Petitioners maintained that the arrangement between them and Gonzales was merely a lessor-lessee relationship, under a boundary system, with Gonzales paying P150.00 daily rental.

The Court held otherwise. It ruled that the boundary system of jeepney operation could not be exempted from liability by disguising the arrangement as a lease agreement. It reasoned that to absolve the operator on the theory that he is merely a lessor would abet public service violations and would place the riding public at the mercy of drivers whose earnings depend largely on trip frequency and therefore speed, while drivers would often lack resources to pay damages. Accordingly, the Court held that an employer-employee relationship existed between the Hernandez spouses and Juan Gonzales.

Temperate Damages: Legal Standards and Application

On the question of temperate damages, the Court held that the Court of Appeals committed no reversible error in awarding them. The Court reiterated that temperate or moderate damages are recoverable when the court finds pecuniary loss has been suffered but the amount cannot, from the nature of the case, be proved with certainty. The Court explained that temperate damages are meant to allow the court to compute a reasonable amount rather than permit plaintiffs to be left without redress due to defendants’ wrongful acts. It further stated that the assessment is within the trial court’s discretion, provided the amount is reasonable under the circumstances.

Applying these principles, the Court found in the records that respondents suffered losses that could not be quantified monetarily. The losses included damage to the owner-type jeep of the Dolor spouses, the internment and burial of Oscar Valmocina, hospitalization of Joseph Sandoval due to collision injuries, and the artificial leg and crutches used by Fred Panopio because of the amputation of his right leg. It concluded that the amounts of temperate damages awarded were reasonable under the circumstances.

Moral Damages: Principles and Review of the Amounts Awarded

The Court likewise sustained the appellate court’s award and increase of moral damages. It grounded the entitlement of the deceased’s relatives on Article 2206, which authorizes spouses, legitimate and illegitimate descendants, and ascendants to demand moral damages for mental anguish due to death. The Court emphasized that the award aims to restore, within possible limits, the spiritual status quo ante, and must be proportionate to the suffering inflicted. It stressed that moral damages are not intended to enrich a plaintiff at the defendant’s expense. They are in

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