Title
Villa Rey Transit, Inc. vs. Court of Appeals
Case
G.R. No. L-25499
Decision Date
Feb 18, 1970
A bus accident caused by driver negligence led to a passenger's death. The court awarded damages based on the deceased's life expectancy and net earnings, affirming liability for breach of contract of carriage.

Case Summary (G.R. No. 182694)

Facts of the Case

The incident transpired around 1:30 am, when the bus departed from Lingayen, Pangasinan, towards Manila. During the journey, the bus collided with a bullcart, causing a bamboo pole to penetrate the bus's windshield and strike Policronio in the face. Despite immediate medical attention, he succumbed to his injuries later that day, dying from traumatic shock due to cerebral injuries. The Quintos sisters, as his only surviving heirs, filed a lawsuit against Villa Rey Transit, Inc., seeking damages for the breach of contract of carriage resulting from the fatal incident.

Legal Proceedings Overview

In the initial trial at the Court of First Instance of Pangasinan, the court ruled against Villa Rey Transit, finding it liable for the death of Policronio due to the negligence of the bus driver. Both the trial court and the Court of Appeals upheld this finding. The trial court ordered the petitioner to pay damages amounting to P63,750.00, which the plaintiffs claimed included costs for medical assistance, burial expenses, and attorney's fees.

Issue on Appeal

The primary issue raised in the Supreme Court was the adequacy of the damages awarded by the lower courts. The determination of the rightful sum hinged on two crucial considerations: (1) the number of years over which damages would be calculated, specifically focusing on Policronio's life expectancy, and (2) the appropriate rate for calculating the financial losses incurred by the respondents.

Life Expectancy and Damage Calculation

The life expectancy of Policronio was calculated at 33-1/3 years given his age of approximately 30 at the time of death. Adopting the formula from American mortality tables, both lower courts found this approach valid. The petitioner contested this calculation, citing an earlier ruling (Alcantara v. Surro) as a standard for assessing damages based on a shorter, four-year period, though this precedent was deemed contextually inapplicable. The Supreme Court reaffirmed that the life expectancy overview is a vital factor and emphasized that damages are not uniform but rather dependent on the specific facts and circumstances of each case.

Determining the Damages to be Awarded

Petitioner argued that damages should account for the timing of the losses, with an assertion that most damages would be incurred in the future, while the award would be immediate. However, the Supreme Court discussed the petitioner's own considerations, noting that the trial courts had only calculated Policronio’s current salary of P2,184.00 annually as a basis. Unlike other cases, potential earnings or raises were not factored into this equation, leading to an underestimation of loss of income suffered by the Quintos sisters as beneficiaries.

Net Earning Capacity and Conclusion on Damages

It was established that the damages should encompass net earnings, as only the support lost by the

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