Case Summary (G.R. No. 114742)
Facts of the Incident
On March 15–16, 1987, a cargo truck owned by Condor and driven by Pedrano suffered a tire blowout, stalled obliquely on a well-lit highway in Compostela, Cebu, and displayed only its tail lights. Early warning devices required by law were absent. At 4:45 a.m., the Da Rough Riders passenger bus, approaching at high speed, struck the truck’s rear, fracturing Arriesgado’s wrist and causing the death of his wife, Felisa.
Contract of Carriage and Claim
Arriesgado had paid P18 for transport from Maya to Cebu City under a passenger contract. He alleged breach of the common-carrier obligation of extraordinary diligence, reckless driving by Te Laspiñas, and owner Tiu’s failure to supervise, seeking damages for death, medical and burial expenses, moral and exemplary damages, attorney’s fees, and litigation costs.
Trial Court Decision
The Regional Trial Court found that Te Laspiñas drove at excessive speed in violation of traffic regulations, that Tiu failed to prove extraordinary diligence, and that Pedrano’s omission of early-warning devices did not excuse carrier negligence. Judgment awarded Arriesgado P38,441.50 in actual damages, P50,000 moral, P50,000 exemplary damages, P20,000 attorney’s fees, and P5,000 costs.
Appellate Court Decision
The Court of Appeals affirmed the trial court, reducing moral and exemplary damages to P25,000 each. It held that Tiu, as common carrier under the 1987 Constitution’s public-service obligations and Articles 1733, 1755–1756 of the Civil Code, bore contractual liability for passenger safety. PPSII was absolved due to lack of evidence.
Issues on Further Review
Petitioners challenged (1) negligence findings against Pedrano and Condor, (2) carrier negligence of Tiu and Te Laspiñas, (3) awards of exemplary damages, attorney’s fees, litigation costs, and (4) PPSII’s liability under the insurance contract.
Supreme Court’s Analysis on Driver Negligence
Factual findings that Te Laspiñas saw the stalled truck 25 m away and failed to brake or swerve safely were upheld as final. At night with no opposing traffic, avoidance was feasible. Speeds of 40–50 kph exceeded the 30 kph bridge limit and breached Section 35, Land Transportation and Traffic Code. Article 2185, Civil Code, presumes negligence when traffic laws are violated.
Contractual Liability of Common Carrier
Under the 1987 Constitution’s public-service norms and Civil Code Articles 1733 and 1755, a common carrier must exercise extraordinary diligence. The collision being a breach of safe carriage, negligence is presumed (Art. 1756). Tiu failed to rebut this by proving utmost diligence or fortuitous cause; driver negligence binds the carrier.
Liability of Third-Party Defendants (Pedrano and Condor)
Pedrano’s violation of Section 34(g), Land Transportation and Traffic Code, in parking without warning devices created an unreasonable hazard. Under Article 2180, Civil Code, an employer’s liability is presumed for an employee’s negligence unless due diligence is shown. Neither Condor nor Pedrano rebutted this presumption.
Insurer’s Liability under CMVLI
The Compulsory Motor Vehicle Liability Insurance contract (Certificate of Cover No. 054940) imposed direct insurer liability to third parties up to P12,000 per person and P50,000 per
Case Syllabus (G.R. No. 114742)
Facts
- On March 15, 1987 at about 10:00 p.m., a cargo truck (plate GBP-675) owned by Benjamin Condor and driven by Sergio Pedrano was loaded with firewood in Bogo, Cebu, and en route to Cebu City.
- At Sitio Aggies, Compostela, Cebu, a rear tire exploded; Pedrano removed it for vulcanizing, leaving the truck stalled on the right side of the highway with its tail lights on and a spare tire six fathoms away as a warning.
- At about 4:45 a.m. on March 16, 1987, the Da Rough Riders passenger bus (plate PBP-724) driven by Virgilio Te Laspiñas approached the stalled truck; upon seeing it 25 meters ahead, the driver attempted to brake and swerve but collided with the truck’s left rear.
- The collision damaged the bus’s right side, injured several passengers, fractured Pedro Arriesgado’s right Colles, and caused the death of his wife, Felisa Pepito Arriesgado.
Procedural History
- May 27, 1987: Pedro Arriesgado filed a complaint for breach of contract of carriage, damages, and attorney’s fees against William Tiu (operator/owner) and Virgilio Te Laspiñas (driver).
- August 21, 1987: Petitioners filed a third-party complaint against Philippine Phoenix Surety and Insurance, Inc. (insurer), Benjamin Condor (truck owner), and Sergio Pedrano (truck driver).
- Trial Court (Branch 20, Cebu City) rendered judgment for Arriesgado, awarding moral damages, exemplary damages, actual expenses, attorney’s fees, and costs.
- Court of Appeals modified awards for moral and exemplary damages from ₱50,000 each to ₱25,000 each and otherwise affirmed.
- Petitioners elevated the case to the Supreme Court via Rule 45 petition for review on certiorari.
Issues Before the Courts
- Whether the bus driver was grossly negligent in speed and maneuvering.
- Whether the truck driver and owner were negligent in parking without warning devices.
- Whether the bus operator exercised due diligence in selecting and supervising its driver.
- Whether Philippine Phoenix Surety and Insurance, Inc. is liable under the motor vehicle liability insurance contract.
- Whether moral, exemplary damages, attorney’s fees, and litigation expenses were properly awarded.
Trial Court Decision
- Found Laspiñas negligent for failing to swerve when he had clear space and visibility.
- Held Tiu liable as common carrier for breach of contract to transpo