ObliCon 1st Set of Cases

7/27/2019 ObliCon 1st Set of Cases

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Obligationsand

Contracts

Dean Ulpiano Sarmient

1st

Set of Cases

K. I. D.


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Republic of the PhilippinesSUPREME COURTManila

EN BANC

G.R. Nos. L-!"#$ an% !"#& Ma' "( "#)

SO*RON+O T. BA,LA( ET AL.( petitiones(s.S+LANG TRA**+C CO.( +NC.( espon%ent.S+LANG TRA**+C CO.( petitione( s. SO*RON+O BA,LA( ETAL.( espon%ents.

E. A. Beltan fo petitiones.Cona%o /. Sanche0( Melcho C. Benite0( an% Eni1ue M. *enan%o foespon%ent.

O2AETA( 3.4

Petitiones in G.R. No. !"#$ institute% this action in the Cout of *ist+nstance of Caite a5ainst the espon%ent Silan5 Taf6c Co.( +nc. 7coss-petitione in G.R. No. !"#&8( to ecoe cetain su9s of 9one' :hichthe' ha% pai% seeall' to the copoation on account of shaes of stoc;the' in%ii%uall' a5ee% to ta;e an% pa' fo un%e cetain speci6e% te9san% con%itions( of :hich the follo:in5 efein5 to the petitione 3osefaNaal( is t'pical4

AGREEMENT *OR +NSTALLMENT SALE O* Secution of the contact( the eceipt :heeof is heeb'ac;no:le%5e% an% confesse%( an% the e9ain%e in install9entsof 6e pe cent( pa'able :ithin the 6st 9onth of each an% ee'1uate theeafte( co99encin5 on the "st %a' of 3ul'( "#$( :ithinteest on %efee% pa'9ents at the ate of S+ 7&8 pe cent peannu9 until pai%.

That the sai% subscibe futhe a5ees that if he fails to pa' an' ofsai% install9ent :hen %ue( o to pefo9 an' of the afoesai%con%itions( o if sai% shaes shall be attache% o leie% upon b'ce%itos of the sai% subscibe( then the sai% shaes ae to eetto the selle an% the pa'9ents alea%' 9a%e ae to be fofeite% infao of sai% selle( an% the latte 9a' then ta;e possession(:ithout esotin5 to cout pocee%in5s.

The sai% selle upon eceiin5 full pa'9ent( at the ti9e an%9anne heeinbefoe speci6e%( a5ees to e>ecute an% %elie tosai% subscibe( o to his heis an% assi5ns( the ceti6cate of title ofsai% shaes( fee an% clea of all encu9bances.

+n testi9on' :heeof( the paties hae heeunto set thei han%s inthe Municipalit' of Silan5( Poince of Caite( Philippine +slan%s(this @th %a' of Mach( "#$.

7S5%.8 3OSE*A NA/ALS+LANG TRA**+C COMPAN,( +NC. Subscibe

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B' 7S5%.8 L+NO GOME2 Pesi%ent.

7E>hibit ". Notaial ac;no:le%59ent o9itte%.8

The a5ee9ents si5ne% b' the othe petitiones :ee of the sa9e %ate7Mach @( "#$8 an% in i%entical te9s as the foe5oin5 e>cept as to thenu9be of shaes an% the coespon%in5 puchase pice. The petitionesa5ee% to puchase the follo:in5 nu9be of shaes an%( up to Apil @("#D( ha% pai% the follo:in5 su9s on account theeof4

Sofonio T. Ba'la....... ! shaes P&@

/enancio Tole%o........ ! shaes D$

3osefa Naal.............. "$ shaes &D$

Pa0 Tole%o................ "$ shaes &D$

Petitiones action fo the ecoe' of the su9s aboe 9entione% is base%on a esolution b' the boa% of %iectos of the espon%ent copoation onAu5ust "( "#D( of the follo:in5 teno4

A 9ocion sel S. Macos Capaas ' secun%a%o po el S.AleFan%o Ba'la( 1ue paa el bien %e la copoacion ' la ponta

te9inacion %el asunto ciil No. ")$ titula%o =/icente *./illanuea et al. s. Lino Go9e0 et al.(= en el 3u05a%o %e Pi9ea+nstancia %e Caite( %on%e se 5asto ' se 5astaa no poca canti%a%%e la Copoacion( se esolio ' se apobo po la 3unta iectialos si5uientes4

7a8 Hue se %eFaa sin efecto lo apoba%o po la 3unta iectia el %e 9a0o( "#$( at. ""( sec. "&)( sobe las coban0as 1ue sehaan po el Secetaio Tesoeo %e la Copoacion a losaccionistas 1ue habian to9a%o o suscito nueas acciones ' 1ue

se pe9itia a estos pa5a )@ %el alo %e las acciones suscitasen un aIo( con intees %e & ' el pa5o o Fonal 1ue se haa poti9este.

7b8 Se %eFaa sin efecto( en ista %e 1ue aun no esta pa5a%o to%oel alo %e las ") acciones( to9a%as %e las acciones noe>pe%i%as 7unissue% stoc;8 %e la Copoacion ' 1ue fueonsuscitas po los si5uienes4

Lino Go9e0.... .. .. .. .. .. .. .. .. . "@ Acciones

/enancio Tole%o............. ! Acciones

Melcho P. Benite0........ "D Acciones

+saias /i%eIa................. " Acciones

Esteban /elasco............ "@ Acciones

Nu9eiano S. Al%aba.... "$ Acciones

+nocencio Cu0... .. .. .. .. .. .. .. ! Acciones

3osefa Naal .................. "$ Acciones

Sofonio Ba'la................. ! Acciones

ionisio un5ca............. Acciones

' %eole a las pesonas aiba %escitas to%a la canti%a% 1ue estas

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habian pa5a%o po las ") acciones.

7c8 Hue se %eFaa sin efecto lo apoba%o po la 3unta iectia el 9a0o( "#$( at. /. sec. "&$( sobe el ca9bio o tue1ue %e las" acciones %el Teasu' Stoc;( conta las ) acciones %el S.Nu9eiano Al%aba( en la copoacion Nothen Lu0onTanspotation Co. ' 1ue se %euela al S. Nu9eiano Al%aba las) acciones 9enciona%as %espues 1ue el ha'a %euelto elceti6ca%o %e las " acciones %e la Silan5 Taf6c Co.( +nc.

7%8 Pe9iti al Tesoeo %e la Copoacion paa 1ue %euela a laspesonas aiba in%ica%as( las canti%a%es pa5a%as po las ")acciones. 7E>hibit A-".8

The espon%ent copoation set up the follo:in5 %efenses4 7"8 That theaboe-1uote% esolution is not applicable to the petitiones Sofonio T.Ba'la( 3osefa Naal( an% Pa0 Tole%o because on the %ate theeof =theisubscibe% shaes of stoc; ha% alea%' auto9aticall' eete% to the%efen%ant( an% the install9ents pai% b' the9 ha% alea%' been fofeite%=Jan% 7)8 that sai% esolution of Au5ust "( "#D( :as eo;e% an% cancelle%b' a subse1uent esolution of the boa% of %iectos of the %efen%antcopoation %ate% Au5ust ))( "#D.

The tial cout absole% the %efen%ant fo9 the co9plaint an% %eclae%cancele% 7fofeite%8 in fao of the %efen%ant the shaes of stoc; in1uestion. +t hel% that the esolution of Au5ust "( "#D( :as null an% oi%(citin5/elasco s. Poi0at 7D Phil.( !@)8( :heein this Cout hel% that =acopoation has no le5al capacit' to elease an oi5inal subscibe to itscapital stoc; fo9 the obli5ation to pa' fo shaesJ an% an' a5ee9ent tothis effect is inali%= Plaintiffs belo: appeale% to the Cout of Appeals(

:hich 9o%i6e% of the tial cout as follo:s4That pat of the Fu%59ent %is9issin5 plaintiffs co9plaint isaf69e%( but that pat theeof %eclain5 thei subsciptioncancele% is eese%. efen%ant is %iecte% to 5ant plaintiffs @%a's afte 6nal Fu%59ent :ithin :hich to pa' the aeas on theisubsciption. ?ithout ponounce9ent as to costs.

Both paties appeale% to this Cout b' petition an% coss-petitionfo cetioai. Petitiones insist that the' hae the i5ht to ecoe the

a9ounts inole% un%e the esolution of Au5ust "( "#D( :hile theespon%ent an% coss-petitione on its pat conten%s that sai% a9ountshae been auto9aticall' fofeite% an% the shaes of stoc; hae eete% tothe copoation un%e the a5ee9ent heeinaboe 1uote%.

The paties liti5ant( the tial cout( an% the Cout of Appeals haeintepete% o consi%ee% the sai% a5ee9ent as a contact of subsciptionto the capital stoc; of the espon%ent copoation. +t shoul% be note%(ho:ee( that sai% a5ee9ent is entitle% =A5ee9ent fo +nstall9ent Saleof Shaes in the Silan5 Taf6c Co9pan'( +nc.(=J that :hile the puchase is%esi5nate% as =subscibe(= the copoation is %escibe% as =selle=J that thea5ee9ent :as entee% into on Mach @( "#$( lon5 afte theincopoation an% o5ani0ation of the copoation( :hich too; place in"#)DJ an% that the pice of the stoc; :as pa'able in 1uatel' install9entsspea% oe a peio% of 6e 'eas. +t also appeas that in ciil case No.")$ of the Cout of *ist +nstance of Caite 9entione% in the esolutionof Au5ust "( "#D( the i5ht of the copoation to sell the shaes of stoc;to the peson na9e% in sai% esolution 7inclu%in5 heein petitiones8 :asi9pu5ne% b' the plaintiffs in sai% case( :ho clai9e% a pefee% i5ht tobu' sai% shaes.

?hethe a paticula contact is a subsciption o a sale of stoc; is a9atte of constuction an% %epen%s upon its te9s an% the intention ofthe paties 7 *letche( C'clope%ia of Copoation Kpe9anent e%ition()#( cite% in Sal9on( e>te Co. s. Unson 7D Phil. ( &$)8. +n theUnson case Fust cite%( this Cout hel% that a subsciption to stoc; in ane>istin5 copoation is( as bet:een the subscibe an% the copoation(si9pl' a contact of puchase an% sale.

+t see9s clea fo9 the te9s of the contacts in 1uestion that the' aecontacts of sale an% not of subsciption. The lo:e couts ee% inoeloo;in5 the %istinction bet:een subsciption an% puchase =Asubsciption( popel' spea;in5( is the 9utual a5ee9ent of thesubscibes to ta;e an% pa' fo the stoc; of a copoation( :hile apuchase is an in%epen%ent a5ee9ent bet:een the in%ii%ual an% thecopoation to bu' shaes of stoc; fo9 it at stipulate% pice.= 7"! C. 3. S.(D&@.8 +n so9e paticulas the ules 5oenin5 subsciptions an% sales ofshaes ae %iffeent. *o instance( the poisions of ou Copoation La:

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e5a%in5 calls fo unpai% subsciption an% assess9ent of stoc; 7sectionsD-$@8 %o not appl' to a puchase of stoc;. Li;e:ise the ule thatcopoation has no le5al capacit' to elease an oi5inal subscibe to itscapital stoc; fo9 the obli5ation to pa' fo his shaes( is inapplicable to acontact of puchase of shaes.

The ne>t 1uestion to %ete9ine is :hethe un%e the contact bet:een thepaties the failue of the puchase to pa' an' of the 1uatel' install9entson the puchase pice auto9aticall' 5ae ise to the fofeitue of thea9ounts alea%' pai% an% the eesion of the shaes to the copoation.The contact poi%es fo inteest of the ate of si> pe centu9 pe annu9on %efee% pa'9ents. +t is also poi%es that if the puchase fails to pa'an' of sai% install9ents :hen %ue( the sai% shaes ae to eet to theselle an% the pa'9ents alea%' 9a%e ae to be fofeite% in fao of sai%selle. The espon%ent copoation conten%s that :hen the petitionesfaile% to pa' the install9ent :hich fell %ue on o befoe 3ul' "( "#D(fofeitue auto9aticall' too; place( that is to sa'( :ithout the necessit' ofan' %e9an% fo9 the copoation( an% that theefoe the esolution ofAu5ust "( "#D( authoi0in5 the efun% of the install9ents alea%' pai%:as inapplicable to the petitiones( :ho ha% alea%' lost an' an% alli5hts un%e sai% contact. The contention is( :e thin;( untenable. Thepoision e5a%in5 inteest on %efee% pa'9ents :oul% not hae beeninsete% if it ha% been the intention of the paties to poi%e fo auto9aticfofeitue an% cancelation of the contact. Moeoe( the contact %i% note>pessl' poi%e that the failue of the puchase to pa' an' install9ent:oul% 5ie ise to fofeitue an% cancelation :ithout the necessit' of an'%e9an% fo9 the selleJ an% un%e aticle ""@@ of the Ciil Co%e pesonsobli5e% to %elie o %o so9ethin5 ae not in %efault until the 9o9ent the

ce%ito %e9an%s of the9 Fu%iciall' o e>taFu%iciall' the ful6ll9ent ofthei obli5ation( unless 7"8 the obli5ation o the la: e>pessl' poi%esthat %e9an% shall not be necessa' in o%e that %efault 9a' aise( 7)8 b'eason of the natue an% cicu9stances of the obli5ation it shall appeathat the %esi5nation of the ti9e at :hich that thin5 :as to be %eliee% othe seice en%ee% :as the pincipal in%uce9ent to the ceation of theobli5ation.

+s the esolution of Au5ust "( "#D( ali% The contact in 1uestion bein5one of puchase an% not subsciption as :e hae heetofoe pointe% out(

:e see no le5al i9pe%i9ent to its escission b' a5ee9ent of the paties.Acco%in5 to the esolution of Au5ust "( "#D( the ecission :as 9a%e fothe 5oo% of the copoation an% in o%e to te9inate the then pen%in5ciil case inolin5 the ali%it' of the sale of the shaes in 1uestiona9on5 othes. To that escission the heein petitiones appaentl' a5ee%(as sho:n b' thei %e9an% fo the efun% of the a9ounts the' ha% pai% as

poi%e% in sai% esolution. +t appeas fo9 the eco% that sai% ciil case:as subse1uentl' %is9isse%( an% that the puchases of shaes of stoc;(othe than the heein petitiones( :ho :ee 9entione% in sai% esolution:ee able to bene6t b' sai% esolution. +t :oul% be an unFust%isci9ination to %en' the sa9e bene6t to the heein petitiones.

?e 9a' a%% that thee is no inti9ation in this case that the copoation:as insolent( o that the i5ht of an' ce%ito of the sa9e :as in an' :a'peFu%ice% b' the escission.

The atte9pte% eocation of sai% escission b' the esolution of Au5ust))( "#D( :as inali%( it not hain5 been a5ee% to b' the petitiones.

?heefoe( the Fu%59ent of the cout of appeals is heeb' eese% an%anothe Fu%59ent :ill be entee% a5ainst the %efen%ant Silan5 Taf6c Co.(+nc.( o%ein5 it to pa' to the plaintiffs Sofonio T. Ba'la( /enancio Tole%o(

3osefa Naal( an% Pa0 Tole%o( the su9s of P&@( PD$( P&D$( an% P&D$(espectiel'( :ith le5al inteest on each of sai% su9s fo9 Ma' )!( "#!(the %ate of the 6lin5 of the co9plaint( until the %ate of pa'9ent( an% :ithcosts in the thee instances. So o%ee%.

,ulo( C.3.( Moan( Paas an% Bocobo( 33.( concu.

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EN BANC

G.R. No. L-"))"# Mach "$( "#"!

AMAO P+CART( plaintiff-appellant(s.*RAN SM+T


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othe si%e an% pass suf6cientl' fa a:a' fo9 the hose to aoi% the%an5e of collision. +nstea% of %oin5 this( the %efen%ant an stai5ht onuntil he :as al9ost upon the hose. hibite% fi5ht. But inie: of the ;no:n natue of hoses( thee :as an appeciable is; that( ifthe ani9al in 1uestion :as unac1uainte% :ith auto9obiles( he 9i5ht 5et

e>ite% an% Fu9p un%e the con%itions :hich hee confonte% hi9. ?henthe %efen%ant e>pose% the hose an% i%e to this %an5e he :as( in ouopinion( ne5li5ent in the e'e of the la:.

The test b' :hich to %ete9ine the e>istence of ne5li5ence in a paticulacase 9a' be state% as follo:s4 i% the %efen%ant in %oin5 the alle5e%ne5li5ent act use that peson :oul% hae use% in the sa9e situation +fnot( then he is 5uilt' of ne5li5ence. The la: hee in effect a%opts thestan%a% suppose% to be supplie% b' the i9a5ina' con%uct of the%isceet patefa9ilias of the Ro9an la:. The e>istence of ne5li5ence in a5ien case is not %ete9ine% b' efeence to the pesonal Fu%59ent of theacto in the situation befoe hi9. The la: consi%es :hat :oul% beec;less( bla9e:oth'( o ne5li5ent in the 9an of o%ina' intelli5encean% pu%ence an% %ete9ines liabilit' b' that.

The 1uestion as to :hat :oul% constitute the con%uct of a pu%ent 9an ina 5ien situation 9ust of couse be al:a's %ete9ine% in the li5ht ofhu9an e>peience an% in ie: of the facts inole% in the paticulacase. Abstact speculations cannot hee be of 9uch alue but this 9uchcan be po6tabl' sai%4 Reasonable 9en 5oen thei con%uct b' thecicu9stances :hich ae befoe the9 o ;no:n to the9. The' ae not(an% ae not suppose% to be( o9niscient of the futue.


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:as ne5li5ent in hain5 faile% to epai the be% of the tac; an% also thatthe plaintiff :as( at the 9o9ent of the acci%ent( 5uilt' of contibuto'ne5li5ence in :al;in5 at the si%e of the ca instea% of bein5 in font obehin%. +t :as hel% that :hile the %efen%ant :as liable to the plaintiff b'eason of its ne5li5ence in hain5 faile% to ;eep the tac; in pope epaineetheless the a9ount of the %a9a5es shoul% be e%uce% on account of

the contibuto' ne5li5ence in the plaintiff. As :ill be seen the%efen%ants ne5li5ence in that case consiste% in an o9ission onl'. Theliabilit' of the co9pan' aose fo9 its esponsibilit' fo the %an5eouscon%ition of its tac;. +n a case li;e the one no: befoe us( :hee the%efen%ant :as actuall' pesent an% opeatin5 the auto9obile :hichcause% the %a9a5e( :e %o not feel constaine% to atte9pt to :ei5h thene5li5ence of the espectie paties in o%e to appotion the %a9a5eacco%in5 to the %e5ee of thei elatie fault. +t is enou5h to sa' that thene5li5ence of the %efen%ant :as in this case the i99e%iate an%%ete9inin5 cause of the acci%ent an% that the antece%ent ne5li5ence ofthe plaintiff :as a 9oe e9ote facto in the case.

A point of 9ino i9potance in the case is in%icate% in the special%efense plea%e% in the %efen%ants ans:e( to the effect that the subFect9atte of the action ha% been peiousl' a%Fu%icate% in the cout of aFustice of the peace. +n this connection it appeas that soon afte theacci%ent in 1uestion occue%( the plaintiff cause% ci9inal pocee%in5sto be institute% befoe a Fustice of the peace cha5in5 the %efen%ant :iththe iniction of seious inFuies 7lesiones 5aes8. At the peli9ina'inesti5ation the %efen%ant :as %ischa5e% b' the 9a5istate an% thepocee%in5s :ee %is9isse%. Conce%in5 that the ac1uittal of the%efen%ant at the tial upon the 9eits in a ci9inal posecution fo theoffense 9entione% :oul% be es a%Fu%icata upon the 1uestion of his ciilliabilit' aisin5 fo9 ne5li5ence -- a point upon :hich it is unnecessa' toe>pess an opinion -- the action of the Fustice of the peace in %is9issin5the ci9inal pocee%in5 upon the peli9ina' heain5 can hae no effect.7See U. S. s. Ban0uela an% Ban0uela( " Phil. Rep.( $&.8

*o9 :hat has been sai% it esults that the Fu%59ent of the lo:e cout9ust be eese%( an% Fu%59ent is he en%ee% that the plaintiff ecoeof the %efen%ant the su9 of t:o hun%e% pesos 7P)@@8( :ith costs of otheinstances. The su9 hee a:a%e% is esti9ate% to inclu%e the alue of the

hose( 9e%ical e>penses of the plaintiff( the loss o %a9a5e occasione% toaticles of his appael( an% la:ful inteest on the :hole to the %ate of thisecoe'. The othe %a9a5es clai9e% b' the plaintiff ae e9ote oothe:ise of such chaacte as not to be ecoeable. So o%ee%.

Aellano( C.3.( Toes( Cason( Aaullo( AanceIa( an% *ishe( 33.( concu.3ohnson( 3.( esees his ote.

Sepaate Opinions

MALCOLM( 3.( concuin54

Afte 9atue %elibeation( + hae 6nall' %eci%e% to concu :ith theFu%59ent in this case. + %o so because of 9' un%estan%in5 of the =lastclea chance= ule of the la: of ne5li5ence as paticulal' applie% toauto9obile acci%ents. This ule cannot be ino;e% :hee the ne5li5enceof the plaintiff is concuent :ith that of the %efen%ant. A5ain( if a taele:hen he eaches the point of collision is in a situation to e>ticate hi9selfan% aoi% inFu'( his ne5li5ence at that point :ill peent a ecoe'. But

3ustice Steet 6n%s as a fact that the ne5li5ent act of the inteal of ti9e(an% that at the 9o9ent the plaintiff ha% no oppotunit' to aoi% theacci%ent. Conse1uentl'( the =last clea chance= ule is applicable. +n othe:o%s( :hen a taele has eache% a point :hee he cannot e>ticatehi9self an% i5ilance on his pat :ill not aet the inFu'( his ne5li5encein eachin5 that position beco9es the con%ition an% not the po>i9atecause of the inFu' an% :ill not peclu%e a ecoe'. 7Note especiall'Ai;en s. Metcalf K"#"D( "@) Atl.( @.8

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EN BANC

G.R. No. L-")"#" Octobe "( "#"!

3OSE CANGCO( plaintiff-appellant(s.MAN+LA RA+LROA CO.( %efen%ant-appellee.

Ra9on Sotelo fo appellant.incai% 9etesbefoe it ca9e to a full s top.

The acci%ent occue% bet:een D an% ! ocloc; on a %a; ni5ht(an% as the ailoa% station :as li5hte% %i9l' b' a sin5le li5ht locate%so9e %istance a:a'( obFects on the platfo9 :hee the acci%ent occue%:ee %if6cult to %iscen especiall' to a peson e9e5in5 fo9 a li5hte%ca.

The e>planation of the pesence of a sac; of 9elons on theplatfo9 :hee the plaintiff ali5hte% is foun% in the fact that it :as thecusto9a' season fo haestin5 these 9elons an% a la5e lot ha% beenbou5ht to the station fo the ship9ent to the 9a;et. The' :eecontaine% in nu9eous sac;s :hich has been pile% on the platfo9 in a

o: one upon anothe. The testi9on' sho:s that this o: of sac;s :as soplace% of 9elons an% the e%5e of platfo9J an% it is clea that the fall ofthe plaintiff :as %ue to the fact that his foot ali5hte% upon one of these9elons at the 9o9ent he steppe% upon the platfo9. pen%e% the su9 ofPD#@.)$ in the fo9 of 9e%ical an% su5ical fees an% fo othe e>pensesin connection :ith the pocess of his cuation.

Upon Au5ust "( "#"$( he institute% this pocee%in5 in the Coutof *ist +nstance of the cit' of Manila to ecoe %a9a5es of the %efen%antco9pan'( foun%in5 his action upon the ne5li5ence of the seants an%e9plo'ees of the %efen%ant in placin5 the sac;s of 9elons upon the

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platfo9 an% leain5 the9 so place% as to be a 9enace to the secuit' ofpassen5e ali5htin5 fo9 the co9pan's tains. At the heain5 in the Coutof *ist +nstance( his a9ine%.

+t is i9potant to note that the foun%ation of the le5al liabilit' of the%efen%ant is the contact of caia5e( an% that the obli5ation to espon%fo the %a9a5e :hich plaintiff has suffee% aises( if at all( fo9 thebeach of that contact b' eason of the failue of %efen%ant to e>ecise%ue cae in its pefo9ance. That is to sa'( its liabilit' is %iect an%i99e%iate( %iffein5 essentiall'( in le5al ie:point fo9 that pesu9ptie

esponsibilit' fo the ne5li5ence of its seants( i9pose% b' aticle "#@of the Ciil Co%e( :hich can be ebutte% b' poof of the e>ecise of %uecae in thei selection an% supeision. Aticle "#@ of the Ciil Co%e isnot applicable to obli5ations aisin5 e> contactu( but onl' to e>ta-contactual obli5ations Q o to use the technical fo9 of e>pession( thataticle elates onl' to culpa a1uiliana an% not to culpa contactual.

Manesa 7ol. !( p. &D8 in his co99entaies upon aticles ""@ an%""@ of the Ciil Co%e( cleal' points out this %istinction( :hich :as also

eco5ni0e% b' this Cout in its %ecision in the case of Ra;es s. Atlantic(Gulf an% Paci6c Co. 7D Phil. ep.( $#8. +n co99entin5 upon aticle "@#Manesa cleal' points out the %iffeence bet:een =culpa( substantie an%in%epen%ent( :hich of itself constitutes the souce of an obli5ationbet:een pesons not fo9el' connecte% b' an' le5al tie=an% culpa consi%ee% as an acci%ent in the pefo9ance of an obli5ation

alea%' e>istin5 . . . .= +n the Ra;es case 7supa8 the %ecision of this cout :as 9a%e to ests1uael' upon the poposition that aticle "#@ of the Ciil Co%e is notapplicable to acts of ne5li5ence :hich constitute the beach of a contact.

Upon this point the Cout sai%4

The acts to :hich these aticles K"#@) an% "#@ of the CiilCo%e ae applicable ae un%estoo% to be those not 5o:in5 outof pe-e>istin5 %uties of the paties to one anothe. But :heeelations alea%' fo9e% 5ie ise to %uties( :hethe spin5in5fo9 contact o 1uasi-contact( then beaches of those %uties aesubFect to aticle ""@"( ""@( an% ""@ of the sa9e co%e.7Ra;es s. Atlantic( Gulf an% Paci6c Co.( D Phil. Rep.( $# at &$.8

This %istinction is of the ut9ost i9potance. The liabilit'( :hich(un%e the Spanish la:( is( in cetain cases i9pose% upon e9plo'es :ithespect to %a9a5es occasione% b' the ne5li5ence of thei e9plo'ees topesons to :ho9 the' ae not boun% b' contact( is not base%( as in theEn5lish Co99on La:( upon the pinciple ofespon%eat supeio Q if it:ee( the 9aste :oul% be liable in ee' case an% uncon%itionall' Qbut upon the pinciple announce% in aticle "#@) of the Ciil Co%e(:hich i9poses upon all pesons :ho b' thei fault o ne5li5ence( %o

inFu' to anothe( the obli5ation of 9a;in5 5oo% the %a9a5e cause%. One:ho places a po:eful auto9obile in the han%s of a seant :ho9 he;no:s to be i5noant of the 9etho% of 9ana5in5 such a ehicle( ishi9self 5uilt' of an act of ne5li5ence :hich 9a;es hi9 liable fo all theconse1uences of his i9pu%ence. The obli5ation to 9a;e 5oo% the%a9a5e aises at the e' instant that the uns;illful seant( :hile actin5:ithin the scope of his e9plo'9ent causes the inFu'. The liabilit' of the9aste is pesonal an% %iect. But( if the 9aste has not been 5uilt' of an'ne5li5ence :hatee in the selection an% %iection of the seant( he is

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not liable fo the acts of the latte( :hatee %one :ithin the scope of hise9plo'9ent o not( if the %a9a5e %one b' the seant %oes not a9ountto a beach of the contact bet:een the 9aste an% the peson inFue%.

+t is not accuate to sa' that poof of %ili5ence an% cae in theselection an% contol of the seant eliees the 9aste fo9 liabilit' fothe lattes acts Q on the conta'( that poof sho:s that the esponsibilit'has nee e>iste%. As Manesa sa's 7ol. !( p. &!8 the liabilit' aisin5 fo9e>ta-contactual culpa is al:a's base% upon a olunta' act o o9ission:hich( :ithout :illful intent( but b' 9ee ne5li5ence o inattention( hascause% %a9a5e to anothe. A 9aste :ho e>ecises all possible cae inthe selection of his seant( ta;in5 into consi%eation the 1uali6cationsthe' shoul% possess fo the %ischa5e of the %uties :hich it is his puposeto con6%e to the9( an% %iects the9 :ith e1ual %ili5ence( theeb'pefo9s his %ut' to thi% pesons to :ho9 he is boun% b' no contactualties( an% he incus no liabilit' :hatee if( b' eason of the ne5li5ence ofhis seants( een :ithin the scope of thei e9plo'9ent( such thi%peson suffe %a9a5e. Tue it is that un%e aticle "#@ of the Ciil Co%ethe la: ceates a pesu9ption that he has been ne5li5ent in the selectiono %iection of his seant( but the pesu9ption is ebuttable an% 'iel% topoof of %ue cae an% %ili5ence in this espect.

The supe9e cout of Poto Rico( in intepetin5 i%enticalpoisions( as foun% in the Poto Rico Co%e( has hel% that these aticlesae applicable to cases of e>ta-contactual culpa e>clusiel'.7Ca9ona s. Cuesta( )@ Poto Rico Repots( )"$.8

This %istinction :as a5ain 9a%e patent b' this Cout in its %ecisionin the case of Bahia s. LitonFua an% Le'nes( 7@ Phil. ep.( &)8( :hich:as an action bou5ht upon the theo' of the e>ta-contactual liabilit' ofthe %efen%ant to espon% fo the %a9a5e cause% b' the caelessness of hise9plo'ee :hile actin5 :ithin the scope of his e9plo'9ent. The Cout(afte citin5 the last paa5aph of aticle "#@ of the Ciil Co%e( sai%4

*o9 this aticle t:o thin5s ae appaent4 7"8 That :hen aninFu' is cause% b' the ne5li5ence of a seant o e9plo'ee theeinstantl' aises a pesu9ption of la: that thee :as ne5li5ence onthe pat of the 9aste o e9plo'e eithe in selection of theseant o e9plo'ee( o in supeision oe hi9 afte the

selection( o bothJ an% 7)8 that that pesu9ption is Fuistantu9 an% not Fuis et %e Fue( an% conse1uentl'( 9a' beebutte%. +t follo:s necessail' that if the e9plo'e sho:s to thesatisfaction of the cout that in selection an% supeision he hase>ecise% the cae an% %ili5ence of a 5oo% fathe of a fa9il'( thepesu9ption is oeco9e an% he is eliee% fo9 liabilit'.

This theo' bases the esponsibilit' of the 9aste ulti9atel'on his o:n ne5li5ence an% not on that of his seant. This is thenotable peculiait' of the Spanish la: of ne5li5ence. +t is( ofcouse( in sti;in5 contast to the A9eican %octine that( inelations :ith stan5es( the ne5li5ence of the seant inconclusiel' the ne5li5ence of the 9aste.

The opinion thee e>pesse% b' this Cout( to the effect that in caseof e>ta-contactual culpa base% upon ne5li5ence( it is necessa' thatthee shall hae been so9e fault attibutable to the %efen%ant pesonall'(an% that the last paa5aph of aticle "#@ 9eel' establishes a ebuttable

pesu9ption( is in co9plete acco% :ith the authoitatie opinion ofManesa( :ho sa's 7ol. ")( p. &""8 that the liabilit' ceate% b' aticle"#@ is i9pose% b' eason of the beach of the %uties inheent in thespecial elations of authoit' o supeioit' e>istin5 bet:een the pesoncalle% upon to epai the %a9a5e an% the one :ho( b' his act oo9ission( :as the cause of it.

On the othe han%( the liabilit' of 9astes an% e9plo'es fo thene5li5ent acts o o9issions of thei seants o a5ents( :hen such acts oo9issions cause %a9a5es :hich a9ount to the beach of a contact( is notbase% upon a 9ee pesu9ption of the 9astes ne5li5ence in theiselection o contol( an% poof of e>ecise of the ut9ost %ili5ence an%cae in this e5a% %oes not eliee the 9aste of his liabilit' fo thebeach of his contact.

Ee' le5al obli5ation 9ust of necessit' be e>ta-contactual ocontactual. E>ta-contactual obli5ation has its souce in the beach oo9ission of those 9utual %uties :hich ciili0e% societ' i9poses upon it9e9bes( o :hich aise fo9 these elations( othe than contactual( ofcetain 9e9bes of societ' to othes( 5eneall' e9bace% in the conceptof status. The le5al i5hts of each 9e9be of societ' constitute the

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9easue of the coespon%in5 le5al %uties( 9ainl' ne5atie in chaacte(:hich the e>istence of those i5hts i9poses upon all othe 9e9bes ofsociet'. The beach of these 5eneal %uties :hethe %ue to :illful intent oto 9ee inattention( if po%uctie of inFu'( 5ie ise to an obli5ation toin%e9nif' the inFue% pat'. The fun%a9ental %istinction bet:eenobli5ations of this chaacte an% those :hich aise fo9 contact( ests

upon the fact that in cases of non-contactual obli5ation it is the :on5fulo ne5li5ent act o o9ission itself :hich ceates the inculu9 Fuis(:heeas in contactual elations the inculu9 e>ists in%epen%entl' of thebeach of the olunta' %ut' assu9e% b' the paties :hen entein5 intothe contactual elation.

?ith espect to e>ta-contactual obli5ation aisin5 fo9ne5li5ence( :hethe of act o o9ission( it is co9petent fo the le5islatueto elect Q an% ou Le5islatue has so electe% Q :ho9 such an obli5ationis i9pose% is 9oall' culpable( o( on the conta'( fo easons of publicpolic'( to e>ten% that liabilit'( :ithout e5a% to the lac; of 9oalculpabilit'( so as to inclu%e esponsibilit' fo the ne5li5ence of thosepeson :ho acts o 9ission ae i9putable( b' a le5al 6ction( to othes:ho ae in a position to e>ecise an absolute o li9ite% contol oethe9. The le5islatue :hich a%opte% ou Ciil Co%e has electe% to li9ite>ta-contactual liabilit' Q :ith cetain :ell-%e6ne% e>ceptions Q tocases in :hich 9oal culpabilit' can be %iectl' i9pute% to the pesonsto be cha5e%. This 9oal esponsibilit' 9a' consist in hain5 faile% toe>ecise %ue cae in the selection an% contol of ones a5ents o seants(o in the contol of pesons :ho( b' eason of thei status( occup' aposition of %epen%enc' :ith espect to the peson 9a%e liable fo theicon%uct.

The position of a natual o Fui%ical peson :ho has un%eta;en b'contact to en%e seice to anothe( is :holl' %iffeent fo9 that to:hich aticle "#@ elates. ?hen the souces of the obli5ation upon:hich plaintiffs cause of action %epen%s is a ne5li5ent act o o9ission(the bu%en of poof ests upon plaintiff to poe the ne5li5ence Q if he%oes not his action fails. But :hen the facts aee% sho: a contactualun%eta;in5 b' %efen%ant fo the bene6t of plaintiff( an% it is alle5e% thatplaintiff has faile% o efuse% to pefo9 the contact( it is not necessa'fo plaintiff to specif' in his plea%in5s :hethe the beach of the contact

is %ue to :illful fault o to ne5li5ence on the pat of the %efen%ant( o ofhis seants o a5ents. Poof of the contact an% of its nonpefo9ance issuf6cient pi9a facie to :aant a ecoe'.

As a 5eneal ule . . . it is lo5ical that in case of e>ta-contactual culpa( a suin5 ce%ito shoul% assu9e the bu%en ofpoof of its e>istence( as the onl' fact upon :hich his action isbase%J :hile on the conta'( in a case of ne5li5ence :hichpesupposes the e>istence of a contactual obli5ation( if thece%ito sho:s that it e>ists an% that it has been bo;en( it is notnecessa' fo hi9 to poe ne5li5ence. 7Manesa( ol. !( p. D"K"#@D e%.( p. D&8.

As it is not necessa' fo the plaintiff in an action fo the beach ofa contact to sho: that the beach :as %ue to the ne5li5ent con%uct of%efen%ant o of his seants( een thou5h such be in fact the actual causeof the beach( it is obious that poof on the pat of %efen%ant that thene5li5ence o o9ission of his seants o a5ents cause% the beach of the

contact :oul% not constitute a %efense to the action. +f the ne5li5ence ofseants o a5ents coul% be ino;e% as a 9eans of %ischa5in5 the liabilit'aisin5 fo9 contact( the ano9alous esult :oul% be that peson actin5thou5h the 9e%iu9 of a5ents o seants in the pefo9ance of theicontacts( :oul% be in a bette position than those actin5 in peson. +f one%elies a aluable :atch to :atch9a;e :ho contact to epai it( an%the bailee( b' a pesonal ne5li5ent act causes its %estuction( he isun1uestionabl' liable. ?oul% it be lo5ical to fee hi9 fo9 his liabilit' fothe beach of his contact( :hich inoles the %ut' to e>ecise %ue cae inthe peseation of the :atch( if he sho:s that it :as his seant :hosene5li5ence cause% the inFu' +f such a theo' coul% be accepte%(

Fui%ical pesons :oul% enFo' pacticall' co9plete i99unit' fo9%a9a5es aisin5 fo9 the beach of thei contacts if cause% b' ne5li5entacts as such Fui%ical pesons can of necessit' onl' act thou5h a5ents oseants( an% it :oul% no %oubt be tue in 9ost instances that easonablecae ha% been ta;en in selection an% %iection of such seants. +f one%elies secuities to a ban;in5 copoation as collateal( an% the' ae lostb' eason of the ne5li5ence of so9e cle; e9plo'e% b' the ban;( :oul%it be Fust an% easonable to pe9it the ban; to eliee itself of liabilit' fothe beach of its contact to etun the collateal upon the pa'9ent of the

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%ebt b' poin5 that %ue cae ha% been e>ecise% in the selection an%%iection of the cle;

This %istinction bet:een culpa a1uiliana( as the souce of anobli5ation( an% culpa contactual as a 9ee inci%ent to the pefo9anceof a contact has fe1uentl' been eco5ni0e% b' the supe9e cout ofSpain. 7Sentencias of 3une )D( "!#J Noe9be )@( "!#&J an% ece9be"( "!#&.8 +n the %ecisions of Noe9be )@( "!#&( it appeae% thatplaintiffs action aose e> contactu( but that %efen%ant sou5ht to aailhi9self of the poisions of aticle "#@) of the Ciil Co%e as a %efense.The Spanish Supe9e Cout eFecte% %efen%ants contention( sa'in54

These ae not cases of inFu' cause%( :ithout an' pe-e>istin5 obli5ation( b' fault o ne5li5ence( such as those to :hichaticle "#@) of the Ciil Co%e elates( but of %a9a5es cause% b'the %efen%ants failue to ca' out the un%eta;in5s i9pose% b'the contacts . . . .

A bief eie: of the ealie %ecision of this cout inolin5 theliabilit' of e9plo'es fo %a9a5e %one b' the ne5li5ent acts of theiseants :ill sho: that in no case has the cout ee %eci%e% that thene5li5ence of the %efen%ants seants has been hel% to constitute a%efense to an action fo %a9a5es fo beach of contact.

+n the case of 3ohnson s. ai% 7$ Phil. Rep.( &&8( the cout hel%that the o:ne of a caia5e :as not liable fo the %a9a5es cause% b' thene5li5ence of his %ie. +n that case the cout co99ente% on the fact thatno ei%ence ha% been a%%uce% in the tial cout that the %efen%ant ha%been ne5li5ent in the e9plo'9ent of the %ie( o that he ha% an';no:le%5e of his lac; of s;ill o caefulness.

+n the case of Bae Senio Cos Successos s. Co9paniaMaiti9a 7& Phil. Rep.( )"$8( the plaintiff sue% the %efen%ant fo %a9a5escause% b' the loss of a ba5e belon5in5 to plaintiff :hich :as allo:e% to5et a%ift b' the ne5li5ence of %efen%ants seants in the couse of thepefo9ance of a contact of to:a5e. The cout hel%( citin5 Manesa 7ol.!( pp. )#( that if the =obli5ation of the %efen%ant 5e: out of acontact 9a%e bet:een it an% the plaintiff . . . :e %o not thin; that thepoisions of aticles "#@) an% "#@ ae applicable to the case.=

+n the case of Chap9an s. Un%e:oo% 7)D Phil. Rep.( D8(plaintiff sue% the %efen%ant to ecoe %a9a5es fo the pesonal inFuiescause% b' the ne5li5ence of %efen%ants chauffeu :hile %iin5%efen%ants auto9obile in :hich %efen%ant :as i%in5 at the ti9e. Thecout foun% that the %a9a5es :ee cause% b' the ne5li5ence of the %ieof the auto9obile( but hel% that the 9aste :as not liable( althou5h he

:as pesent at the ti9e( sa'in54 . . . unless the ne5li5ent acts of the %ie ae continue% foa len5th of ti9e as to 5ie the o:ne a easonable oppotunit' toobsee the9 an% to %iect the %ie to %esist theefo9. . . . Theact co9plaine% of 9ust be continue% in the pesence of theo:ne fo such len5th of ti9e that the o:ne b' his ac1uiescence(9a;es the %ies acts his o:n.

+n the case of ,a9a%a s. Manila Railoa% Co. an% BachachGaa5e Ta>icab Co. 7 Phil. Rep.( !8( it is tue that the cout este% itsconclusion as to the liabilit' of the %efen%ant upon aticle "#@( althou5h

the facts %isclose% that the inFu' co9plaint of b' plaintiff constitute% abeach of the %ut' to hi9 aisin5 out of the contact of tanspotation. Thee>pess 5oun% of the %ecision in this case :as that aticle "#@( in%ealin5 :ith the liabilit' of a 9aste fo the ne5li5ent acts of his seants=9a;es the %istinction bet:een piate in%ii%uals an% public entepiseJ=that as to the latte the la: ceates a ebuttable pesu9ption of ne5li5encein the selection o %iection of seantsJ an% that in the paticula case thepesu9ption of ne5li5ence ha% not been oeco9e.

+t is ei%ent( theefoe that in its %ecision ,a9a%a case( the coutteate% plaintiffs action as thou5h foun%e% in tot athe than as base%upon the beach of the contact of caia5e( an% an e>a9ination of theplea%in5s an% of the biefs sho:s that the 1uestions of la: :ee in fact%iscusse% upon this theo'. /ie:e% fo9 the stan%point of the %efen%antthe pactical esult 9ust hae been the sa9e in an' eent. The poof%isclose% be'on% %oubt that the %efen%ants seant :as 5ossl' ne5li5entan% that his ne5li5ence :as the po>i9ate cause of plaintiffs inFu'. +talso af69atiel' appeae% that %efen%ant ha% been 5uilt' of ne5li5encein its failue to e>ecise pope %iscetion in the %iection of the seant.efen%ant :as( theefoe( liable fo the inFu' suffee% b' plaintiff(

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:hethe the beach of the %ut' :ee to be e5a%e% as constitutin5 culpaa1uiliana o culpa contactual. As Manesa points out 7ol. !( pp. )# an% :hethe ne5li5ence occus an inci%ent in the couse of thepefo9ance of a contactual un%eta;in5 o its itself the souce of ane>ta-contactual un%eta;in5 obli5ation( its essential chaacteistics aei%entical. Thee is al:a's an act o o9ission po%uctie of %a9a5e %ue to

caelessness o inattention on the pat of the %efen%ant. Conse1uentl'(:hen the cout hol%s that a %efen%ant is liable in %a9a5es fo hain5faile% to e>ecise %ue cae( eithe %iectl'( o in failin5 to e>ecise popecae in the selection an% %iection of his seants( the pactical esult isi%entical in eithe case. Theefoe( it follo:s that it is not to be infee%(because the cout hel% in the ,a9a%a case that %efen%ant :as liable fothe %a9a5es ne5li5entl' cause% b' its seants to a peson to :ho9 it:as boun% b' contact( an% 9a%e efeence to the fact that the %efen%ant:as ne5li5ent in the selection an% contol of its seants( that in such acase the cout :oul% hae hel% that it :oul% hae been a 5oo% %efense tothe action( if pesente% s1uael' upon the theo' of the beach of the

contact( fo %efen%ant to hae poe% that it %i% in fact e>ecise cae inthe selection an% contol of the seant.

The tue e>planation of such cases is to be foun% b' %iectin5 theattention to the elatie sphees of contactual an% e>ta-contactualobli5ations. The 6el% of non- contactual obli5ation is 9uch 9oeboa%e than that of contactual obli5ations( co9pisin5( as it %oes( the:hole e>tent of Fui%ical hu9an elations. These t:o 6el%s( 65uatiel'spea;in5( concenticJ that is to sa'( the 9ee fact that a peson is boun%to anothe b' contact %oes not eliee hi9 fo9 e>ta-contactualliabilit' to such peson. ?hen such a contactual elation e>ists theobli5o 9a' bea; the contact un%e such con%itions that the sa9e act:hich constitutes the souce of an e>ta-contactual obli5ation ha% nocontact e>iste% bet:een the paties.

The contact of %efen%ant to tanspot plaintiff caie% :ith it( b'i9plication( the %ut' to ca' hi9 in safet' an% to poi%e safe 9eans ofentein5 an% leain5 its tains 7ciil co%e( aticle ")$!8. That %ut'( bein5contactual( :as %iect an% i99e%iate( an% its non-pefo9ance coul%not be e>cuse% b' poof that the fault :as 9oall' i9putable to%efen%ants seants.

The ailoa% co9pan's %efense inoles the assu9ption that een5antin5 that the ne5li5ent con%uct of its seants in placin5 anobstuction upon the platfo9 :as a beach of its contactual obli5ationto 9aintain safe 9eans of appoachin5 an% leain5 its tains( the %iectan% po>i9ate cause of the inFu' suffee% b' plaintiff :as his o:ncontibuto' ne5li5ence in failin5 to :ait until the tain ha% co9e to a

co9plete stop befoe ali5htin5. Un%e the %octine of co9paatiene5li5ence announce% in the Ra;es case 7supa8( if the acci%ent :ascause% b' plaintiffs o:n ne5li5ence( no liabilit' is i9pose% upon%efen%ants ne5li5ence an% plaintiffs ne5li5ence 9eel' contibute% tohis inFu'( the %a9a5es shoul% be appotione%. +t is( theefoe( i9potantto ascetain if %efen%ant :as in fact 5uilt' of ne5li5ence.

+t 9a' be a%9itte% that ha% plaintiff :aite% until the tain ha%co9e to a full stop befoe ali5htin5( the paticula inFu' suffee% b' hi9coul% not hae occue%. efen%ant conten%s( an% cites 9an' authoitiesin suppot of the contention( that it is ne5li5ence pe se fo a passen5e toali5ht fo9 a 9oin5 tain. ?e ae not %ispose% to subscibe to this%octine in its absolute fo9. ?e ae of the opinion that this poposition istoo ba%l' state% an% is at aiance :ith the e>peience of ee'-%a' life.+n this paticula instance( that the tain :as bael' 9oin5 :hen plaintiffali5hte% is sho:n conclusiel' b' the fact that it ca9e to stop :ithin si>9etes fo9 the place :hee he steppe% fo9 it. Thousan%s of pesonali5ht fo9 tains un%e these con%itions ee' %a' of the 'ea( an%sustain no inFu' :hee the co9pan' has ;ept its platfo9 fee fo9%an5eous obstuctions. Thee is no eason to beliee that plaintiff :oul%hae suffee% an' inFu' :hatee in ali5htin5 as he %i% ha% it not beenfo %efen%ants ne5li5ent failue to pefo9 its %ut' to poi%e a safeali5htin5 place.

?e ae of the opinion that the coect %octine elatin5 to thissubFect is that e>pesse% in Tho9psons :o; on Ne5li5ence 7ol. ( sec.@"@8 as follo:s4

The test b' :hich to %ete9ine :hethe the passen5e hasbeen 5uilt' of ne5li5ence in atte9ptin5 to ali5ht fo9 a 9oin5ail:a' tain( is that of o%ina' o easonable cae. +t is to beconsi%ee% :hethe an o%inail' pu%ent peson( of the a5e( se>

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an% con%ition of the passen5e( :oul% hae acte% as thepassen5e acte% un%e the cicu9stances %isclose% b' theei%ence. This cae has been %e6ne% to be( not the cae :hich9a' o shoul% be use% b' the pu%ent 9an 5eneall'( but the cae:hich a 9an of o%ina' pu%ence :oul% use un%e si9ilacicu9stances( to aoi% inFu'.= 7Tho9pson( Co99entaies on

Ne5li5ence( ol. ( sec. @"@.8 O( it :e pefe to a%opt the 9o%e of e>position use% b' this coutin Picat s. S9ith 7D Phil. ep.( !@#8( :e 9a' sa' that the test is thisJ?as thee an'thin5 in the cicu9stances suoun%in5 the plaintiff at theti9e he ali5hte% fo9 the tain :hich :oul% hae a%9onishe% a pesonof aea5e pu%ence that to 5et off the tain un%e the con%itions thene>istin5 :as %an5eous +f so( the plaintiff shoul% hae %esiste% fo9ali5htin5J an% his failue so to %esist :as contibuto' ne5li5ence."a:phl.net

As the case no: befoe us pesents itself( the onl' fact fo9 :hich

a conclusion can be %a:n to the effect that plaintiff :as 5uilt' ofcontibuto' ne5li5ence is that he steppe% off the ca :ithout bein5 ableto %iscen cleal' the con%ition of the platfo9 an% :hile the tain :as'et slo:l' 9oin5. +n consi%ein5 the situation thus pesente%( it shoul%not be oeloo;e% that the plaintiff :as( as :e 6n%( i5noant of the factthat the obstuction :hich :as cause% b' the sac;s of 9elons pile% onthe platfo9 e>iste%J an% as the %efen%ant :as boun% b' eason of its%ut' as a public caie to affo% to its passen5es facilities fo safe e5essfo9 its tains( the plaintiff ha% a i5ht to assu9e( in the absence of so9ecicu9stance to :an hi9 to the conta'( that the platfo9 :as clea. Theplace( as :e hae alea%' state%( :as %a;( o %i9l' li5hte%( an% this also

is poof of a failue upon the pat of the %efen%ant in the pefo9ance ofa %ut' o:in5 b' it to the plaintiffJ fo if it :ee b' an' possibilit' conce%ethat it ha% i5ht to pile these sac;s in the path of ali5htin5 passen5es( theplacin5 of the9 a%e1uatel' so that thei pesence :oul% be eeale%.

As petinent to the 1uestion of contibuto' ne5li5ence on the patof the plaintiff in this case the follo:in5 cicu9stances ae to be note%4The co9pan's platfo9 :as constucte% upon a leel hi5he than that ofthe oa%be% an% the suoun%in5 5oun%. The %istance fo9 the steps of

the ca to the spot :hee the ali5htin5 passen5e :oul% place his feet onthe platfo9 :as thus e%uce%( theeb' %eceasin5 the is; inci%ent tosteppin5 off. The natue of the platfo9( constucte% as it :as of ce9ent9ateial( also assue% to the passen5e a stable an% een suface on:hich to ali5ht. *uthe9oe( the plaintiff :as possesse% of the i5o an%a5ilit' of 'oun5 9anhoo%( an% it :as b' no 9eans so is;' fo hi9 to 5et

off :hile the tain :as 'et 9oin5 as the sa9e act :oul% hae been in ana5e% o feeble peson. +n %ete9inin5 the 1uestion of contibuto'ne5li5ence in pefo9in5 such act Q that is to sa'( :hethe the passen5eacte% pu%entl' o ec;lessl' Q the a5e( se>( an% ph'sical con%ition ofthe passen5e ae cicu9stances necessail' affectin5 the safet' of thepassen5e( an% shoul% be consi%ee%. ?o9en( it has been obsee%( as a5eneal ule ae less capable than 9en of ali5htin5 :ith safet' un%e suchcon%itions( as the natue of thei :eain5 appael obstucts the fee9oe9ent of the li9bs. A5ain( it 9a' be note% that the place :aspefectl' fa9ilia to the plaintiff as it :as his %ail' custo9 to 5et on an%of the tain at this station. Thee coul%( theefoe( be no uncetaint' in his

9in% :ith e5a% eithe to the len5th of the step :hich he :as e1uie% tota;e o the chaacte of the platfo9 :hee he :as ali5htin5. Ouconclusion is that the con%uct of the plaintiff in un%eta;in5 to ali5ht:hile the tain :as 'et sli5htl' un%e :a' :as not chaactei0e% b'i9pu%ence an% that theefoe he :as not 5uilt' of contibuto'ne5li5ence.

The ei%ence sho:s that the plaintiff( at the ti9e of the acci%ent(:as eanin5 P)$ a 9onth as a cop'ist cle;( an% that the inFuies he hassuffee% hae pe9anentl' %isable% hi9 fo9 continuin5 thate9plo'9ent. efen%ant has not sho:n that an' othe 5ainful occupationis open to plaintiff. pectanc' of life( acco%in5 to the stan%a%9otalit' tables( is appo>i9atel' thit'-thee 'eas. ?e ae of the opinionthat a fai co9pensation fo the %a9a5e suffee% b' hi9 fo hispe9anent %isabilit' is the su9 of P)($@@( an% that he is also entitle% toecoe of %efen%ant the a%%itional su9 of PD#@.)$ fo 9e%ical attention(hospital seices( an% othe inci%ental e>pen%itues connecte% :ith theteat9ent of his inFuies.

The %ecision of lo:e cout is eese%( an% Fu%59ent is heeb'en%ee% plaintiff fo the su9 of P()#@.)$( an% fo the costs of both

K. I. D.


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instances. So o%ee%.

Aellano( C.3.( Toes( Steet an% AanceIa( 33.( concu.

Sepaate Opinions

MALCOLM( 3.( %issentin54

?ith one sentence in the 9aFoit' %ecision( :e ae of full acco%(na9el'( =+t 9a' be a%9itte% that ha% plaintiff :aite% until the tain ha%co9e to a full stop befoe ali5htin5( the paticula inFu' suffee% b' hi9coul% not hae occue%.= ?ith the 5eneal ule elatie to a passen5escontibuto' ne5li5ence( :e ae li;e:ise in full acco%( na9el'( =Anatte9pt to ali5ht fo9 a 9oin5 tain is ne5li5ence pe se.= A%%in5 theset:o points to5ethe( shoul% be absole% fo9 the co9plaint( an%Fu%59ent af69e%.

3ohnson( 3.( concu.

K. I. D.


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EN BANC

G.R. No. L-)"D# Septe9be )#( "#&D

REPUBL+C O* T


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G.S.+.S. s. Cloibel( L-)))&( 3une ))( "#&$8. A coneso( a pat' :hoesots to the Cout of Appeals( an% sub9its his case fo %ecision thee( isbae% fo9 conten%in5 late that his clai9 :as be'on% the Fuis%iction ofthe afoesai% Cout. The eason is that a conta' ule :oul% encoua5ethe un%esiable pactice of appellants sub9ittin5 thei cases fo %ecisionto eithe cout in e>pectation of faoable Fu%59ent( but :ith intent of

attac;in5 its Fuis%iction shoul% the %ecision be unfaoable 7T'son Tan( etal. s. *ilipinas Co9paIia %e Se5uos8 et al.( L-"@@#&( Res. on Motion toReconsi%e( Mach )( "#&&8. Conse1uentl'( :e ae li9ite% in this appealto the issues of la: aise% in the appellants bief.

Ta;in5 the afoesai% ules into account( it can be seen that the onl'eie:able issues in this appeal ae e%uce% to t:o4

"8 ?hethe o not the collision of appellants ba5e :ith thesuppots o pies of the Na5tahan bi%5e :as in la: cause% b'fotuitous eent o foce 9aFeue( an%

)8 ?hethe o not it :as eo fo the Cout to hae pe9itte% the

plaintiff-appellee to into%uce a%%itional ei%ence of %a9a5esafte sai% pat' ha% este% its case.

As to the 6st 1uestion( consi%ein5 that the Na5tahan bi%5e :asan i99oable an% stationa' obFect an% uncontoete%l' poi%e% :itha%e1uate openin5s fo the passa5e of :ate caft( inclu%in5 ba5es li;e ofappellants( it is un%eniable that the unusual eent that the ba5e(e>clusiel' contolle% b' appellant( a99e% the bi%5e suppots aises apesu9ption of ne5li5ence on the pat of appellant o its e9plo'ees9annin5 the ba5e o the tu5s that to:e% it. *o in the o%ina' couse ofeents( such a thin5 %oes not happen if pope cae is use%. +n An5lo

A9eican 3uispu%ence( the infeence aises b' :hat is ;no:n as the =esipsa lo1uitu= ule 7Scott s. Lon%on oc;s Co.( ) < C $#&J San 3uanLi5ht Tansit Co. s. Re1uena( )) U.S. !#( $& L. E%.( &!@J ?hit:ell s.?olf( ")D Minn. $)#( "# N.?. )##J B'ne s. Geat Atlantic Paci6cTea Co.( ) Mass. "@J "&! N.E. $@J Gibsb' s. S9ith( "& S.?. )%D"#8.

The appellant ston5l' stesses the pecautions ta;en b' it on the%a' in 1uestion4 that it assi5ne% t:o of its 9ost po:eful tu5boats to to:

%o:n ie its ba5e L-"!#)J that it assi5ne% to the tas; the 9oeco9petent an% e>peience% a9on5 its patons( ha% the to:lines( en5inesan% e1uip9ent %ouble-chec;e% an% inspecte%J that it instucte%its patons to ta;e e>ta pecautionsJ an% conclu%es that it ha% %one all it:as calle% to %o( an% that the acci%ent( theefoe( shoul% be hel% %ueto foce 9aFeue o fotuitous eent.

These e' pecautions( ho:ee( co9pletel' %esto' theappellants %efense. *o caso fotuito o foce 9aFeue 7:hich in la: aei%entical in so fa as the' e>e9pt an obli5o fo9 liabilit'8) b' %e6nition(ae e>tao%ina' eents not foeseeable o aoi%able( =eents that coul%not be foeseen( o :hich( thou5h foeseen( :ee ineitable= 7At. ""D(Ci. Co%e of the Philippines8. +t is( theefoe( not enou5h that the eentshoul% not hae been foeseen o anticipate%( as is co99onl' beliee%(but it 9ust be one i9possible to foesee o to aoi%. The 9ee %if6cult' tofoesee the happenin5 is not i9possibilit' to foesee the sa9e4 =un hechono constitu'e caso fotuito po la sola cicunstancia %e 1ue su e>istenciaha5a 9as %i6cil o 9as oneosa la accion %ili5ente %el pesento ofenso=7Peiano *acio( Responsibili%a% E>ta-contactual( p. &$J Ma0eau% Tait%e la Responsibilite Ciil( /ol. )( sec. "$. The e' 9easues a%opte%b' appellant poe that the possibilit' of %an5e :as not onl' foeseeable(but actuall' foeseen( an% :as not caso fotuito.

Othe:ise state%( the appellant( Lu0on Stee%oin5 Copoation(;no:in5 an% appeciatin5 the peils pose% b' the s:ollen stea9 an% itss:ift cuent( oluntail' entee% into a situation inolin5 obious%an5eJ it theefoe assue% the is;( an% can not she% esponsibilit'9eel' because the pecautions it a%opte% tune% out to be insuf6cient.


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On the secon% point4 appellant cha5es the lo:e cout :ithhain5 abuse% its %iscetion in the a%9ission of plaintiffs a%%itionalei%ence afte the latte ha% este% its case. Thee is an insinuation thatthe %ela' :as %elibeate to enable the 9anipulation of ei%ence topeFu%ice %efen%ant-appellant.

?e 6n% no 9eit in the contention. ?hethe o not futhe

ei%ence :ill be allo:e% afte a pat' offein5 the ei%ence has este% hiscase( lies :ithin the soun% %iscetion of the tial 3u%5e( an% this %iscetion:ill not be eie:e% e>cept in clea case of abuse.

+n the pesent case( no abuse of that %iscetion is sho:n. ?hat :asallo:e% to be into%uce%( afte plaintiff ha% este% its ei%ence in chief(:ee ouches an% papes to suppot an ite9 of P"($$!.@@ alle5e%l'spent fo the einfoce9ent of the panel of the baile' bi%5e( an% :hichite9 alea%' appeae% in E>hibit GG. Appellant( in fact( has no eason tocha5e the tial cout of bein5 unfai( because it :as also able to secue(upon :itten 9otion( a si9ila o%e %ate% Noe9be )( "#&)( allo:in5

eception of a%%itional ei%ence fo the sai% %efen%ant-appellant. ?


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SECON +/+S+ON

G.R. No. ") Mach #( )@@@

ALBERTO AUSTR+A( petitione(s.COURT O* APPEALS AN T


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All conta' to la:."

The facts of the case as su99ai0e% b' the espon%ent cout ae asfollo:s4

On 3ul' #( "#!# at aoun% D4@@ P.M. alon5 the Olon5apo-GapanRoa% in the icinit' of baan5a' Cabetican( Bacolo( Pa9pan5a(

the appellant :as %iin5 his *o% *iea :ith ten 7"@8 passen5es.The' ca9e fo9 the Manila +ntenational Aipot boun% toinalupihan( Bataan.

One of the ehicles tie su%%enl' hit a stone l'in5 in the oa%(:hile thus cuisin5( :hich cause% the appellant to lose contolan% colli%e :ith the ea of an i9popel' pa;e% ca5o tuc;taile %ien b' accuse% Rolan%o M. *loes. As a esult of thecollision( 6e 7$8 passen5es suffee% a'in5 %e5ees inFuies.)

?hile tial ensue%( accuse% tuc; %ie Rolan%o M. *loes e9aine% at-la5e.

On Mach )"( "##( the tial cout po9ul5ate% its %ecision( %isposin5 asfollo:s4

?i9u9.

The accuse% is li;e:ise o%ee% to4

"8 Pa' the heis of /i5inia Lapi% /%a. %e i:a the a9ount of

P$@(@@@.@@ as in%e9nit'J)8 P&()@.@@ as an% fo actual e>penses incue% b' Lu0i9in%ai:a( epesentin5 9e%ical an% funeal e>pensesJ an%

8 Cost of suit.

SO ORERE.

Subse1uentl'( on 3une "@( "##( the cout 9o%i6e% its %ecision afte theaccuse% 6le% his 9otion fo econsi%eation %ate% Apil ( "##. The

9o%i6e% Fu%59ent ea%s4

?


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). Tecise the necessa'pecaution e1uie% of hi9. to that of the

pesent case( :e ae unable to a5ee :ith petitione that the tuc; %ieshoul% be hel% solel' liable :hile the petitione shoul% be e>e9pte% fo9liabilit'. +n Phoeni>( :e ule% that the %ie of the i9popel' pa;e%ehicle :as liable an% the %ie of the colli%in5 ca contibutoil' liable.?e a5ee :ith the espon%ent cout in its obseation on the petitionesculpabilit'4 =That he ha% no oppotunit' to aoi% the collision is of hiso:n 9a;in5 an% Kthis shoul% not eliee hi9 of liabilit'.= "@Patentl'( thene5li5ence of the petitione as %ie of the *o% *iea is the i99e%iatean% po>i9ate cause of the collision.

On the thi% issue( petitione a5ues that thee is no basis fo the a:a% of

%a9a5es since the 9e%ical ceti6cates an% eceipts pesente% %i% not%iectl' eeal the elation of these %ocu9ents to the acci%ent.Petitiones a5u9ent is a:e%. The 9ateialit' of these %ocu9ents isa9pl' suppote% b' ei%ence on eco%( an% :e ae constaine% toa%hee to these factual hol%in5 of the appellate cout( thus4

The a:a% of liabilit' b' the tial cout to Lu0i9in%a i:a an%Ma; i:a :as Fusti6e% because the e>penses fo hospitali0ationan% teat9ents :ee incue% as a %iect esult of the collisioncause% b' the appellants ne5li5ence. The fact that the %octos %i%not testif' on the 9e%ical ceti6cates is of no 9o9ent.Appellants counsel a%9itte% thei %ue e>ecution an% 5enuiness

7sic8 %uin5 the tial.""

Anent the last issue( petitione pa's fo the 9o%i6cation of the penalt'.th paa5aph of the sa9eaticle.


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+t is not 1uite accuate( ho:ee( fo the petitione to state that theespon%ent cout foun% hi9 5uilt' of si9ple ne5li5ence."V:phi" Theassaile% %ecision eeals that the espon%ent cout A**+RME the6n%in5s of the tial cout conictin5 the accuse% be'on% easonable%oubt fo the ci9e of Rec;less +9pu%ence esultin5 in Seious Ph'sical+nFuies. The espon%ent cout onl' MO+*+E the tial couts %ecision

b' i9posin5 the stai5ht penalt' of one 7"8 9onth an% one 7"8 %a'of aesto 9a'o an% %elete% the a:a% in fao of M'lene Gi5ante in thea9ount of P&("##.&). ")

?e 6n% nothin5 obFectionable le5all' in the i9position of a stai5htpenalt' of one 7"8 9onth an% one 7"8 %a' ofaesto 9a'o b' theespon%ent cout a5ainst the petitione. The penalt' i9pose% is :ell:ithin the li9its 6>e% b' la: an% :ithin the soun% %iscetion of theespon%ent cout as :ell. As Aticle &$ petinentl' poi%es4

At. &$. +9pu%ence an% ne5li5ence. Q An' peson :ho( b'ec;less i9pu%ence( shall co99it an' act :hich( ha% it been

intentional( :oul% constitute a 5ae felon'( shall suffe thepenalt' of aesto 9a'o in its 9a>i9u9 peio% to pisioncoeccional in its 9e%iu9 peio%J if it :oul% hae constitute% aless 5ae felon'( the penalt' of aesto 9a'o in its 9ini9u9 an%9e%iu9 peio%s shall be i9pose%J if it :oul% hae constitute% ali5ht felon'( the penalt' of aesto 9eno in its 9a>i9u9 peio%shall be i9pose%.

> > > > > > > > >

+n the i9position of these penalties( the couts shall e>ecise theisoun% %iscetion( :ithout e5a% to the ules pescibe% in aticle

si>t'- fou. 7Reise% Penal Co%e8Since the %ete9ination of the 9ini9u9 an% 9a>i9u9 peio%s of thepenalt' as poi%e% b' la: is left entiel' to the %iscetion of theespon%ent cout( its e>ecise of that %iscetion :ill not be %istube% onappeal( unless thee is a clea abuse. "An% 6n%in5 no such clea abusein this case( :e ae constaine% to sustain the Fu%59ent of espon%entcout.

?


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EN BANC

G.R. No. L-)"!& Ma' "( "#&&

LA MALLORCA an% PAMPANGA BUS COMPAN,( petitione(s./ALENT+N E 3ESUS( MANOLO TOLENT+NO an% COURT O*APPEALS( espon%ents.

Manuel O. Chan fo petitiones.Si>to T. Antonio fo espon%ents.

MAAL+NTAL( 3.4

La Malloca an% Pa9pan5a Bus Co9pan'( +nc.( co99onl' ;no:n as LaMalloca-Pa9busco( 6le% this appeal b'cetioai fo9 the %ecision of the

Cout of Appeals :hich af69e% that en%ee% b' the Cout of *ist+nstance of Bulacan in its ciil case No. )"@@( entitle% =/alentin %e 3esusan% Manolo Tolentino s. La Malloca-Pa9busco.= The cout a1uo sentence% the %efen%ant( no: petitione( =to pa' to plaintiffs thea9ount of P)(").$@ fo actual %a9a5esJ P"(@@.@@ as co9pensato'%a9a5esJ P"@(@@@.@@ to each plaintiff b' :a' of 9oal %a9a5esJ an%P(@@@.@@ as counsel fees.=

T:o eos ae attibute% to the appellate Cout4 7"8 =in sustainin5 the%ecision 7of the cout a 1uo8 hol%in5 that the petitiones :ee liable fothe acci%ent :hich :as cause% b' a blo:-out of one of the ties of thebus an% in not consi%ein5 the sa9e as caso fotuito(= an% 7)8 in hol%in5

petitiones liable fo 9oal %a9a5es.The suit aose b' eason of the %eath of Lolita %e 3esus( )@-'ea ol%%au5hte of /alentin %e 3esus an% :ife of Manolo Tolentino( in a hea%-oncollision bet:een petitiones bus( on :hich she :as a passen5e( an% afei5ht tuc; taelin5 in the opposite %iection( in a baio in MailaoBulacan( in the 9onin5 of Octobe !( "#$#. The i99e%iate cause of thecollision :as the fact that the %ie of the bus lost contol of the :heel:hen its left font tie su%%enl' e>plo%e%.

Petitione 9aintains that a tie blo:-out is a fotuitous eent an% 5ies iseto no liabilit' fo ne5li5ence( citin5 the ulin5s of the Cout of Appealsin Ro%i5ue0 s. Re% Line Tanspotation Co.( CA-G.R. No. !"&(ece9be )#( "#$( an% People s. Palapa%( CA-G.R. No. "!!@( 3une)D( "#$!. These ulin5s( ho:ee( not onl' ae not not bin%in5 on thisCout but :ee base% on consi%eations 1uite %iffeent fo9 those that

obtain in the at ba. The appellate Cout thee 9a%e no 6n%in5s of an'speci6e% acts of ne5li5ence on the pat of the %efen%ants an% con6ne%itself to the 1uestion of :hethe o not a tie blo:-out( b' itself alone an%:ithout a sho:in5 as to the causatie factos( :oul% 5eneate liabilit'. +nthe pesent case( the cause of the blo:-out :as ;no:n. The inne tube ofthe left font tie( acco%in5 to petitiones o:n ei%ence an% as foun% b'the Cout of Appeals =:as pesse% bet:een the inne cicle of the left:heel an% the i9 :hich ha% slippe% out of the :heel.= This :as( sai%Cout coectl' hel%( a 9echanical %efect of the cone'ance o a fault inits e1uip9ent :hich :as easil' %iscoeable if the bus ha% beensubFecte% to a 9oe thoou5h( o i5i% chec;-up befoe it too; to the oa%

that 9onin5.Then a5ain both the tial cout an% the Cout of Appeals foun% as a factthat the bus :as unnin5 1uite fast i99e%iatel' befoe the acci%ent.Consi%ein5 that the tie :hich e>plo%e% :as not ne: Q petitione%escibes it as =hin%i 9as'a%on5 ;albo(= o not so e' :on out Q theplea of caso fotuito cannot be entetaine%."X:phY".IZt

The secon% issue aise% b' petitione is alea%' a settle% one. +n thisFuis%iction 9oal %a9a5es ae ecoeable b' eason of the %eath of apassen5e cause% b' the beach of contact of a co99on caie( aspoi%e% in Aticle "D&( in elation to Aticle ))@&( of the Ciil Co%e.

These aticles hae been applie% b' this Cout in a nu9be of cases(a9on5 the9 Necesito( etc. s. Paas( et al.( L-"@&@$-@&( 3une @("#$!J Meca%o s. Lia( L-")!-)#( Sept. )#( "#&"J /illa-Re' Tansit s.Bello( L-"!#$D( Apil )( "#&.

?heefoe( the Fu%59ent appeale% fo9 is af69e%( :ith costs a5ainstpetitiones.

Ben50on( C.3.( Bautista An5elo( Concepcion( Re'es( 3.B.L.( Baea(i0on( Re5ala( Ben50on( 3.P.( 2al%ia an% Sanche0( 33.( concu.

K. I. D.


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SECON +/+S+ON

G.R. No. L-DDD) Au5ust "( "#D!

+NOCENC+O TUGAE( petitione(s.COURT O* PEALS( an% PEOPLE O* Ti beain5 PlateNo. $$-D"R 7T-HC D"8 an% b' +nocencio KTu5a%e causin5 %a9a5e tothe Kecise of%ue %ili5ence of a 5oo% fathe of a fa9il' cannot hae peente%. As thelo:e cout ha% foun%4 =this :itness 7KTu5a%e8 testi6e% that afte theacci%ent( he a%9itte% that his ta>icab bu9pe% the ca on his fontbecause the ba;es of his ehicle 9alfunctione%J an% that the%ocu9ent( ...( is the han%:itten state9ent he pepae% to thiseffect.= " Respon%ent Cout of Appeals( afte statin5 that upon eie: ofthe eco%( it a5ee% :ith the tial cout( its %ecision af69in5 in toto thei

Fu%59ent appeale% fo9.As note% at the outset( petitione is not entitle% to ac1uittal.


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%ictu9. That is not the case at all. A little 9oe ti9e an% attention in thestu%' of the aboe %ecision coul% hae esulte% in its coect appaisal ecutie o%e( a poce%ual no9 o a 9unicipalo%inance is co99itte% to the Fu%icia'. +t thus %ischa5es a ole no lesscucial than that appetainin5 to the othe t:o %epat9ents in the9aintenance of the ule of la:. To assue stabilit' in le5al elations an%aoi% confusion( it has to spea; :ith one oice. +t %oes so :ith 6nalit'(

lo5icall' an% i5htl'( thou5h the hi5hest Fu%icial o5an( this Cout. ?hatit sa's then shoul% be %e6nitie an% authoitatie( bin%in5 on thoseoccup'in5 the lo:e an;s in the Fu%icial heiach'. The' hae to %efean% to sub9it.= & The ensuin5 paa5aph of the opinion in Baea futhee9phasi0es the point4 =Such a thou5ht :as eiteate% in an opinion of

3ustice 3.B.L. Re'es an% futhe e9phasi0e% in these :o%s4 =3u%5eGau%encio Cloibel nee% not be e9in%e% that the Supe9e Cout( b'ta%ition an% in ou s'ste9 of Fu%icial a%9inistation( has the last :o% on

:hat the la: is it is the 6nal abite of an' Fusti6able contoes'. Thee isonl' one Supe9e Cout fo9 :hose %ecisions all othe couts shoul%ta;e thei beain5s.= D

. The lac; of 9eit in this petition beco9es een 9oe obious :hen it isecalle% that the La Malloca %ecision %i% not enunciate a ne: pinciple.As fa bac; as Lasa9 . S9ith( ! po9ul5ate% 9oe than half a centu'

a5o( in "#) to be e>act( this Cout has been co99itte% to such a%octine. ThusJ =As :ill be seen( these authoities a5ee that so9ee>tao%ina' cicu9stance in%epen%ent of the :ill of the obli5o( o ofhis e9plo'ees( is an essential ele9ent of a caso fotuito. Tunin5 to thepesent case( it is at once appaent that this ele9ent is lac;in5. +t is notsu55este% that the acci%ent in 1uestion :as %ue to an act of Go% o toa%ese oa% con%itions :hich coul% not hae been foeseen. As fa asthe eco% sho:s( the acci%ent :as cause% eithe b' %efects in theauto9obile o else thou5h the ne5li5ence of its %ie. That is not a casofotuito.= # Lasa9 :as cite% :ith appoal in the t:o subse1uent casesof Son . Cebu Autobus Co. "@ an% Necesito . Paas. ""

?


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$ L-"$!#( 3ul' "( "#D@( SCRA #!.

& +bi%( "@D. The opinion of 3ustice Lauel in People ./ea( &$ Phil. $& 7"#D8 :as cite%.

D +bi%. 3ustice 3.B.L. Re'es spo;e thus in Albet . Cout of*ist +nstance of Manila 7B. /+8( L-)&&( Ma' )#( "#&!(

) SCRA #!( #&".! $ Phil. &$D.

# +bi%( &&"-&&).

"@ # Phil. !#) 7"#$8.

"" "@ Phil. D$ 7"#$!8.

K. I. D.


28/210


*+RST +/+S+ON

G.R. No. ""D"#@ 3anua' )( "##D3AC+NTO TANGU+L+G %oin5 business un%e the na9e an% st'le 3.M.T.ENG+NEER+NG AN GENERAL MERC


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inclu%e% the installation of a %eep :ell an%( secon%l'( :hethe petitioneis un%e obli5ation to econstuct the :in%9ill afte it collapse%.

?e eese the appellate cout on the 6st issue but sustain it on thesecon%.

The pepon%eance of ei%ence suppots the 6n%in5 of the tial cout that

the installation of a %eep :ell :as not inclu%e% in the poposals ofpetitione to constuct a :in%9ill s'ste9 fo espon%ent. Thee :ee infact t:o 7)8 poposals4 one %ate% "# Ma' "#!D :hich pe55e% the contactpice at P!D(@@@.@@ 7E>h. ="=8. This :as eFecte% b' espon%ent. The othe:as sub9itte% thee %a's late( i.e.( on )) Ma' "#!D :hich containe%9oe speci6cations but popose% a lo:e contact pice of P&@(@@@.@@7E>h. =A=8. The latte poposal :as accepte% b' espon%ent an% theconstuction i99e%iatel' follo:e%. The petinent potions of the 6stlette-poposal 7E>h. ="=8 ae epo%uce% heeun%e Q

+n connection :ith 'ou ?in%9ill S'ste9 an% +nstallation( :e:oul% li;e to 1uote to 'ou as follo:s4

One 7"8 Set Q ?in%9ill suitable fo ) inches%ia9ete %eep:ell( ) clu%in5c'lin%e pu9p.

UN+T CONTRACT PR+CEP!D(@@@.@@

The secon% lette-poposal 7E>h. =A=8 poi%es as follo:s4

+n connection :ith 'ou ?in%9ill s'ste9( Suppl' of LaboMateials an% +nstallation( opeate% :ate pu9p( :e :oul% li;e to1uote to 'ou asfollo:s Q

One 7"8 set Q ?in%9ill asse9bl' fo ) inches o inches %eep-:ell pu9p( & Sto;e( " feet%ia9ete( "-lot bla%e 9ateials( @ feet To:eco9plete :ith stan%a% apputenances up to

C'lin%e pu9p( shaftin5 U.S. a%Fustable+ntenational Metal.

One 7"8 lot Q An5le ba( G.+. pipe( Re%uceCouplin5( Elbo: Gate ale( coss Tee couplin5.

One 7"8 lot Q *loat ale.

One 7"8 lot Q Concetin5 9ateials foun%ation.*. O. B. La5unaContact Pice P&@(@@@.@@

Notabl'( no:hee in eithe poposal is the installation of a %eep :ell9entione%( een e9otel'. Neithe is thee an ite9i0ation o %esciptionof the 9ateials to be use% in constuctin5 the %eep :ell. Thee isabsolutel' no 9ention in the t:o 7)8 %ocu9ents that a %eep :ell pu9p isa co9ponent of the popose% :in%9ill s'ste9. The contact pices 6>e%in both poposals coe onl' the featues speci6call' %escibe% theeinan% no othe. ?hile the :o%s =%eep :ell= an% =%eep :ell pu9p= ae

9entione% in both( these %o not in%icate that a %eep :ell is pat of the:in%9ill s'ste9. The' 9eel' %escibe the t'pe of %eep :ell pu9p fo:hich the popose% :in%9ill :oul% be suitable. As coectl' pointe% outb' petitione( the :o%s =%eep :ell= pece%e% b' the pepositions =fo=an% =suitable fo= :ee 9eant onl' to cone' the i%ea that the popose%:in%9ill :oul% be appopiate fo a %eep :ell pu9p :ith a %ia9ete of) to inches. *o if the eal intent of petitione :as to inclu%e a %eep:ell in the a5ee9ent to constuct a :in%9ill( he :oul% hae use%instea% the conFunctions =an%= o =:ith.= Since the te9s of theinstu9ents ae clea an% leae no %oubt as to thei 9eanin5 the' shoul%not be %istube%.

Moeoe( it is a ca%inal ule in the intepetation of contacts that theintention of the paties shall be acco%e% pi9o%ial consi%eation $ an%(in caseof %oubt( thei conte9poaneous an% subse1uent acts shall be pincipall'consi%ee%. & An e>a9ination of such conte9poaneous an% subse1uentacts of espon%ent as :ell as the atten%ant cicu9stances %oes notpesua%e us to uphol% hi9.

K. I. D.


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Respon%ent insists that petitione eball' a5ee% that the contact piceof P&@(@@@.@@ coee% the installation of a %eep :ell pu9p. plaine%( athe la9el'( that he %i% it =because hehas 7sic8 the 9one'( so 7he8 Fust pai% the 9one' in his possession.= !

Can espon%ent clai9 that Pili accepte% his pa'9ent on behalf ofpetitione No. ?hile the la: is clea that =pa'9ent shall be 9a%e to thepeson in :hose fao the obli5ation has been constitute%( o hissuccesso in inteest( o an' peson authoi0e% to eceie it(= # it %oes notappea fo9 the eco% that Pili an%[o SPGM+ :as so authoi0e%.

Respon%ent cannot clai9 the bene6t of the la: concenin5 =pa'9ents

9a%e b' a thi% peson.= "@ The Ciil Co%e poisions %o not appl' in theinstant case because no ce%ito-%ebto elationship bet:een petitionean% Guille9o Pili an%[o SPGM+ has been establishe% e5a%in5 theconstuction of the %eep :ell. Speci6call'( :itness Pili %i% not testif' thathe entee% into a contact :ith petitione fo the constuction ofespon%ents %eep :ell. +f SPGM+ :as eall' co99issione% b' petitioneto constuct the %eep :ell( an a5ee9ent paticulal' to this effect shoul%hae been entee% into.

The conte9poaneous an% subse1uent acts of the patiesconcene% effectiel' belie espon%ents assetions. These

cicu9stances onl' sho: that the constuction of the :ell b'SPGM+ :as fo the sole account of espon%ent an% that petitione9eel' supeise% the installation of the :ell because the:in%9ill :as to be connecte% to it. Thee is no le5al no factualbasis b' :hich this Cout can i9pose upon petitione anobli5ation he %i% not e>pessl' assu9e no atif'.

The secon% issue is not a noel one. +n a lon5 line of cases "" thisCout has consistentl' hel% that in o%e fo a pat' to clai9e>e9ption fo9 liabilit' b' eason of fotuitous eent un%e At.""D of the Ciil Co%e the eent shoul% be the sole an%po>i9ate cause of the loss o %estuction of the obFect of the

contact. +nNa;pil s. Cout of Appeals( ") fou 78 e1uisites 9ustconcu4 7a8 the cause of the beach of the obli5ation 9ust bein%epen%ent of the :ill of the %ebtoJ 7b8 the eent 9ust be eitheunfoeseeable o unaoi%ableJ 7c8 the eent 9ust be such as toen%e it i9possible fo the %ebto to ful6ll his obli5ation in ano9al 9anneJ an%( 7%8 the %ebto 9ust be fee fo9 an'paticipation in o a55aation of the inFu' to the ce%ito.

Petitione faile% to sho: that the collapse of the :in%9ill :as %ue

K. I. D.


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solel' to a fotuitous eent. +nteestin5l'( the ei%ence %oes not%isclose that thee :as actuall' a t'phoon on the %a' the:in%9ill collapse%. Petitione 9eel' state% that thee :as a=ston5 :in%.= But a ston5 :in% in this case cannot be fotuitousQ unfoeseeable no unaoi%able. On the conta'( a ston5 :in%shoul% be pesent in places :hee :in%9ills ae constucte%(

othe:ise the :in%9ills :ill not tun.The appellate cout coectl' obsee% that =5ien the ne:l'-constucte% :in%9ill s'ste9( the sa9e :oul% not hae collapse%ha% thee been no inheent %efect in it :hich coul% onl' beattibutable to the appellee.=" +t e9phasi0e% that espon%ent ha%in his fao the pesu9ption that =thin5s hae happene%acco%in5 to the o%ina' couse of natue an% the o%ina' habitsof life.= " This pesu9ption has not been ebutte% b' petitione.

*inall'( petitiones a5u9ent that piate espon%ent :as alea%'in %efault in the pa'9ent of his outstan%in5 balance of

P"$(@@@.@@ an% hence shoul% bea his o:n loss( is untenable. +necipocal obli5ations( neithe pat' incus in %ela' if the othe%oes not co9pl' o is not ea%' to co9pl' in a pope 9anne:ith :hat is incu9bent upon hi9. "$ ?hen the :in%9ill faile%to function popel' it beca9e incu9bent upon petitione toinstitute the pope epais in acco%ance :ith the 5uaant' state%in the contact. Thus( espon%ent cannot be sai% to hae incue%in %ela'J instea%( it is petitione :ho shoul% bea the e>penses fothe econstuction of the :in%9ill. Aticle ""&D of the Ciil Co%eis e>plicit on this point that if a peson obli5e% to %o so9ethin5fails to %o it( the sa9e shall be e>ecute% at his cost.

?


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EN BANC

G.R. No. L-" Noe9be )"( "#"

T


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ban; than he :oul% if he ha% left it in his ho9eJ o :hethe he :as 9oeo less ne5li5ent b' %epositin5 the 9one' in his pesonal account than he:oul% hae been if he ha% %eposite% it in a sepaate account as tustee.?e e5a% such %iscussion as substantiall' fuitless( inas9uch as thepecise 1uestion is not one of ne5li5ence. Thee :as no la: pohibitin5hi9 fo9 %epositin5 it as he %i% an% thee :as no la: :hich chan5e% his

esponsibilit' be eason of the %eposit. ?hile it 9a' be tue that one :hois un%e obli5ation to %o o 5ie a thin5 is in %ut' boun%( :hen he seeseents appoachin5 the esults of :hich :ill be %an5eous to his tust( tota;e all easonable 9eans an% 9easues to escape o( if unaoi%able( tote9pe the effects of those eents( :e %o not feel constaine% to hol% that(in choosin5 bet:een t:o 9eans e1uall' le5al( he is culpabl' ne5li5ent inselectin5 one :heeas he :oul% not hae been if he ha% selecte% theothe.

The cout( theefoe( 6n%s an% %eclaes that the 9one' :hich is thesubFect 9atte of this action :as %eposite% b' *athe e la PeIa in thee% this tust fun% :ith his o:n an%

%eposite% the :hole in the ban; to his pesonal account o ce%it( he b'this act sta9pe% on the sai% fun% his o:n piate 9a;s an% unclothe% itof all the potection it ha%. +f this 9one' ha% been %eposite% in the na9eof e la PeIa as tustee o a5ent of the plaintiff( + thin; that it 9a' bepesu9e% that the 9ilita' authoities :oul% not hae con6scate% it fothe eason that the' :ee loo;in5 fo insu5ent fun%s onl'. A5ain( the

plaintiff ha% no eason to suppose that e la PeIa :oul% atte9pt to stipthe fun% of its i%entit'( no ha% he sai% o %one an'thin5 :hich ten%e% toeliee e la PeIa fo9 the le5al eponsibilit' :hich petains to the caean% custo%' of tust fun%s.

The Supe9e Cout of the Unite% States in the Unite% State s.Tho9as 7!) U. S.( D8( at pa5e ( sai%4 =Tustees ae onl' boun% toe>ecise the sa9e cae an% solicitu%e :ith e5a% to the tust popet':hich the' :oul% e>ecise :ith e5a% to thei o:n. E1uit' :ill not e>act9oe of the9. The' ae not liable fo a loss b' theft :ithout thei fault.But this e>e9ption ceases :hen the' 9i> the tust-9one' :ith thei o:n(:heeb' it loses its i%entit'( an% the' beco9e 9ee %ebtos.=

+f this poposition is soun% an% is applicable to cases aisin5 in thisFuis%iction( an% + entetain no %oubt on this point( the liabilit' of theestate of e la PeIa cannot be %oubte%. But this cout in the 9aFoit'opinion sa's4 =The fact that he 7A5ustin %e la PeIa8 place% the tust fun%in the ban; in his pesonal account %oes not a%% to his esponsibilit'.Such %eposit %i% not 9a;e hi9 a %ebto :ho 9ust espon% at allha0a%s. . . . Thee :as no la: pohibitin5 hi9 fo9 %epositin5 it as he%i%( an% thee :as no la: :hich chan5e% his esponsibilit'( b' eason ofthe %eposit.=

+ assu9e that the cout in usin5 the lan5ua5e :hich appeas in the

latte pat of the aboe 1uotation 9eant to sa' that thee :as no statuto'la: e5ulatin5 the 1uestion. Huestions of this chaacte ae not usuall'5oene% b' statuto' la:. The la: is to be foun% in the e' natue of thetust itself( an%( as a 5eneal ule( the couts sa' :hat facts ae necessa'to hol% the tustee as a %ebto.

+f e la PeIa( afte %epositin5 the tust fun% in his pesonalaccount( ha% use% this 9one' fo speculatie puposes( such as thebu'in5 an% sellin5 of su5a o othe po%ucts of the count'( theeb'

K. I. D.


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beco9in5 a %ebto( thee :oul% hae been no %oubt as to the liabilit' ofhis estate. ?hethe he use% this 9one' fo that pupose the eco% issilent( but it :ill be note% that a consi%eable len5th of ti9e inteene%fo9 the ti9e of the %eposit until the fun%s :ee con6scate% b' the9ilita' authoities. +n fact the eco% sho:s that e la PeIa %eposite% on

3une )D( "!#!( P$()$#( on 3une )! of that 'ea P()!@( an% on Au5ust $

of the sa9e 'ea P&(@@@. The eco% also sho:s that these fun%s :ee:ith%a:n an% a5ain %eposite% all to5ethe on the )#th of Ma'( "#@@(this last %eposit a9ountin5 to P"!(#D@. These facts ston5l' in%icate thate la PeIa ha% as a 9atte of fact been usin5 the 9one' in iolation ofthe tust i9pose% in hi9. la:ph".net

+f the %octine announce% in the 9aFoit' opinion be follo:e% incases heeafte aisin5 in this Fuis%iction tust fun%s :ill be place% inpecaious con%ition. The position of the tustee :ill cease to be one oftust.

K. I. D.


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K G.R. No. D&"( Mach @)( "#@#

GUT+ERRE2 hibit " thee is an ite9 ce%itin5 hi9 :ith this

a9ount( but late on in the sa9e e>hibit the sa9e a9ount is cha5e% to

hi9( so that :hen E>hibit " :as %eliee% to the %efen%ant fo his

e>a9ination +t %i% not appea that he ha%( in fact( been ce%ite% :ith this

%elie'. The %ouble ent' of this a9ount upon E>hibit " is e>plaine% b'

the :itnesses fo the plaintiffs :ho testi6e% that this paticula he9p :as

%eliee% b' one Mi5uel EstelaJ that it :as ce%ite% to the %efen%ant

because it :as at 6st thou5ht that it :as his he9p( an% that it :as

afte:a%s cha5e% bac; to hi9 on the theo' that it :as the he9p of

Estela.

Acco%in5 to the %efen%ants o:n testi9on'( he ha% E>hibit " in his

possession fo seeal %a's.


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e>a9ination he pesente% to the ce%itos a5ent a list of his obFections to

the account. The balance a5ainst hi9( as sho:n b' E>hibit " as it

oi5inall' :as( a9ounte% to )!(&!D.&$ pesos.


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)@th of 3une( "#@( constitute% a 9ecantile loan 9a%e b' the ce%ito to

hi9 an% that( in acco%ance :ith the poisions of the Co%e of

Co99ece( no action coul% be 9aintaine% upon it until a notaial

%e9an% fo its pa'9ent ha% been 9a%e b' the ce%ito( an% no such

%e9an% hain5 been 9a%e( the action :as pe9atuel' bou5ht. The

account bet:een the paties :as an o%ina' cuent account bet:een aco99ecial house in Manila an% a %eale in the poinces an% e9baces

a 5eat aiet' of tansactions. +t is appaent that the balance :hich

esults fo9 the settle9ent of such a cuent account can in no sense be

calle% a 9ecantile loan. 7Gutiee0


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Republic of the Philippines

SUPREME COURT

ManilaEN BANC

G.R. No. L-"#""! 3anua' @( "#&$

MAR+ANO A. ALBERT( plaintiff-appellant(s.UN+/ERS+T, PUBL+Secuto'( shoul% be e>ecute% to its full a9ount( since in 6>in5 it(pa'9ent alea%' 9a%e ha% been consi%ee%.

No: :e ae as;e% :hethe the Fu%59ent 9a' be e>ecute% a5ainst 3oseM. Aue5o( suppose% Pesi%ent of Uniesit' Publishin5 Co.( +nc.( as theeal %efen%ant.

*ifteen 'eas a5o( on Septe9be )( "##( Maiano A. Albet sue%Uniesit' Publishin5 Co.( +nc. Plaintiff alle5e%inte alia that %efen%ant:as a copoation %ul' o5ani0e% an% e>istin5 un%e the la:s of thePhilippinesJ that on 3ul' "#( "#!( %efen%ant( thou5h 3ose M. Aue5o( itsPesi%ent( entee% into a contact :ith plainti6fJ that %efen%ant ha%theeb' a5ee% to pa' plaintiff P@(@@@.@@ fo the e>clusie i5ht topublish his eise% Co99entaies on the Reise% Penal Co%e an% fo hisshae in peious sales of the boo;s 6st e%itionJ that %efen%ant ha%un%eta;en to pa' in ei5ht 1uatel' install9ents of P(D$@.@@ statin5

3ul' "$( "#!J that pe contact failue to pa' one install9ent :oul%

en%e the est %ueJ an% that %efen%ant ha% faile% to pa' the secon%install9ent.

efen%ant a%9itte% plaintiffs alle5ation of %efen%ants copoatee>istenceJ a%9itte% the e>ecution an% te9s of the contact %ate% 3ul' "#("#!J but alle5e% that it :as plaintiff :ho beache% thei contact b'failin5 to %elie his 9anuscipt. *uthe9oe( %efen%ant counteclai9e%

fo %a9a5es."X:phY".IZtPlaintiff %ie% befoe tial an% 3usto R. Albet( his estates a%9inistato(:as substitute% fo hi9.

The Cout of *ist +nstance of Manila( afte tial( en%ee% %ecision onApil )&( "#$( statin5 in the %ispositie potion Q

+N /+E? O* ALL Tecution :it a5ainst Uniesit' Publishin5 Co.( +nc.Plaintiff( ho:ee( on Au5ust "@( "#&"( petitione% fo a :it of e>ecutiona5ainst 3ose M. Aue5o( as the eal %efen%ant( statin5( =plaintiffs counselan% the Sheiff of Manila %iscoee% that thee is no such entit' asUniesit' Publishin5 Co.( +nc.= Plaintiff anne>e% to his petition a

ceti6cation fo9 the secuities an% E>chan5e Co99ission %ate% 3ul' "("#&"( attestin54 =The eco%s of this Co99ission %o not sho: thee5istation of UN+/ERS+T, PUBL+S


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+nc.(= thou5h counsel( :oul% not :ant 3ose M. Aue5o to be consi%ee% apat' to the pesent case4 shoul% a sepaate action be no: institute%a5ainst 3ose M. Aue5o( the plaintiff :ill hae to ec;on :ith the statute ofli9itations.

The cout a 1uo %enie% the petition b' o%e of Septe9be #( "#&"( an%fo9 this( plaintiff has appeale%.

The fact of non-e5istation of Uniesit' Publishin5 Co.( +nc. in theSecuities an% E>chan5e Co99ission has not been %ispute%. efen%ant:oul% onl' aise the point that =Uniesit' Publishin5 Co.( +nc.(= an% not

3ose M. Aue5o( is the pat' %efen%antJ theeb' assu9in5 that =Uniesit'Publishin5 Co.( +nc.= is an e>istin5 copoation :ith an in%epen%entFui%ical pesonalit'. Pecisel'( ho:ee( on account of the non-e5istation it cannot be consi%ee% a copoation( not een acopoation %e facto 7istent entit'an% in%uce% not onl' the plaintiff but een the cout to beliee in suchepesentation. istin5 un%e the la:s of the Philippines(= an% obiousl' 9isle%plaintiff 7Maiano A. Albet8 into beliein5 the sa9e. One :ho hasin%uce% anothe to act upon his :ilful 9isepesentation that acopoation :as %ul' o5ani0e% an% e>istin5 un%e the la:( cannottheeafte set up a5ainst his icti9 the pinciple of copoation b'estoppel 7Salatiea s. Galitos( $& O.G. @.

=Uniesit' Publishin5 Co.( +nc.= pupote% to co9e to cout( ans:ein5the co9plaint an% liti5atin5 upon the 9eits. But as state%( =Uniesit'Publishin5 Co.( +nc.= has no in%epen%ent pesonalit'J it is Fust a na9e.

3ose M. Aue5o :as( in ealit'( the one :ho ans:ee% an% liti5ate%(thou5h his o:n la: 69 as counsel. istence assu9es such piile5es an%obli5ations an% beco9es pesonall' liable fo contacts entee% into ofo othe acts pefo9e% as such a5ent.= a9ine :itnesses( an% to appeal fo9 a %ecision= 7&D C.3.S.!!D8 Q an% Aue5o :as( in ealit'( the peson :ho ha% an% e>ecise%these i5hts. Cleal'( then( Aue5o ha% his %a' in cout as the eal%efen%antJ an% %ue pocess of la: has been substantiall' obsee%.

B' =%ue pocess of la:= :e 9ean = =a la: :hich heas befoe itcon%e9nsJ :hich pocee%s upon in1ui'( an% en%es Fu%59ent onl'afte tial. ... .= 7 ?heaton( U.S. $"!( $!".8=J o( as this Cout has sai%( ==ue pocess of la:= conte9plates notice an% oppotunit' to be hea%befoe Fu%59ent is en%ee%( affectin5 ones peson o popet'= 7Lope0s. iecto of Lan%s( D Phil. )( )8.= 7Sicat s. Re'es( L-""@)( ec."( "#$&.8 An% it 9a' not be a9iss to 9ention hee also that the =%uepocess= clause of the Constitution is %esi5ne% to secue Fustice as a liin5ealit'J not to saci6ce it b' pa'in5 un%ue ho9a5e to fo9alit'.*o substance 9ust peail oe fo9. +t 9a' no: be tite( but none theless apt( to 1uote :hat lon5 a5o :e sai% in Alonso s. /illa9o( "& Phil.

"$( )"-))4A liti5ation is not a 5a9e of technicalities in :hich one( 9oe%eepl' schoole% an% s;ille% in the subtle at of 9oe9ent an%position( entaps an% %esto's the othe. +t is( athe( a contest in:hich each conten%in5 pat' full' an% fail' la's befoe the coutthe facts in issue an% then( bushin5 si%e as :holl' tiial an%in%ecisie all i9pefections of fo9 an% technicalities ofpoce%ue( as;s that 3ustice be %one upon the 9eits. La:suits(

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unli;e %uels( ae not to be :on b' a apies thust. Technicalit'(:hen it %esets its pope of6ce as an ai% to Fustice an% beco9esits 5eat hin%ance an% chief ene9'( %esees scant consi%eationfo9 couts. Thee shoul% be no este% i5hts in technicalities.

The ei%ence is patentl' clea that 3ose M. Aue5o( actin5 asepesentatie of a non-e>istent pincipal( :as the eal pat' to the

contact sue% uponJ that he :as the one :ho eape% the bene6ts esultin5fo9 it( so 9uch so that patial pa'9ents of the consi%eation :ee 9a%eb' hi9J that he iolate% its te9s( theeb' pecipitatin5 the suit in1uestionJ an% that in the liti5ation he :as the eal %efen%ant. Pefoce( inline :ith the en%s of Fustice( esponsibilit' un%e the Fu%59ent falls onhi9.

?e nee% ha%l' state that shoul% thee be pesons :ho un%e the la: aeliable to Aue5o fo ei9buse9ent o contibution :ith espect to thepa'9ent he 9a;es un%e the Fu%59ent in 1uestion( he 9a'( of couse(pocee% a5ainst the9 thou5h pope e9e%ial 9easues.

PREM+SES CONS+ERE( the o%e appeale% fo9 is heeb' set asi%e an%the case e9an%e% o%ein5 the lo:e cout to hol% supple9enta'pocee%in5s fo the pupose of ca'in5 the Fu%59ent into effect a5ainstUniesit' Publishin5 Co.( +nc. an%[o 3ose M. Aue5o. So o%ee%.

Ben50on( C.3.( Concepcion( Re'es( 3.B.L.( Baea( Pae%es( i0on(Re5ala( Ma;alintal an% 2al%ia( 33.( concu.Bautista An5elo( 3.( too; no pat.

*ootnotes

]Anol% s. ?illits Patteson( Lt%.( Phil. &J oppel 7Phil.8(+nc. s. ,atco( DD Phil. #&4 La Ca9pana Coffee *acto'( +nc. s.aisahan n5 95a Man55a5a:a sa La Ca9pana( # Phil. "&@4Mael Buil%in5 Copoation s. ai%( # Phil. D&4 Ma%i5alShippin5 Co.( +nc. s. O5ilie( L-!"( Oct. @( "#$!4 La5unaTanspotation Co.( +nc. s. S.S.S.( L-"&@&( Apil )!( "#&@4McConnel s. C.A.( L-"@$"@( Mach "D( "#&"J Li%%ell Co.( +nc.s. Collecto of +ntenal Reenue( L-#&!D( 3une @( "#&"4 Palacios. *el' Tanspotation Co.( L-"$")"( Au5ust "( "#&).

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SECON +/+S+ON

G.R. No. !! *ebua' ( "##)Pe% an% e>ible 7sic8J it 9ust be %'na9ic. +n fact(the 5eatest alue an% si5ni6cance of la: as a ule ofcon%uct in 7sic8 its e>ibilit' to a%opt to chan5in5 socialcon%itions an% its capacit' to 9eet the ne: challen5es ofpo5ess.

Constue% in the li5ht of 9o%en %a' e%ucational s'ste9(Aticle )"!@ cannot be constue% in its nao: concept as

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hel% in the ol% case of E>con%es. Capuno ) an% Meca%o s. Cout of AppealsJ hence(the ulin5 in the Palisoc case that it shoul% appl' to all;in%s of e%ucational institutions( aca%e9ic o ocational.

At an' ate( the la: hol%s the teaches an% hea%s of theschool staff liable unless the' eliee the9seles of such

liabilit' pusuant to the last paa5aph of Aticle )"!@ b'=poin5 that the' obsee% all the %ili5ence to peent%a9a5e.= This can onl' be %one at a tial on the 9eits ofthe case. $

?hile :e a5ee :ith the espon%ent appellate cout that the 9otion to%is9iss the co9plaint :as coectl' %enie% an% the co9plaint shoul% betie% on the 9eits( :e %o not ho:ee a5ee :ith the pe9ises of theappellate couts ulin5.

Aticle )"!@( in conFunction :ith Aticle )"D& of the Ciil Co%e(establishes the ule of in loco paentis. This Cout %iscusse% this %octine

in the afoe-cite% cases of E>con%e( Men%o0a( Palisoc an%( 9oe ecentl'(in A9a%oa s.Cout of Appeals. & +n all such cases( it ha% been stesse%that the la: 7Aticle )"!@8 plainl' poi%es that the %a9a5e shoul% haebeen cause% o inicte% b' pupils o stu%ents of he e%ucationalinstitution sou5ht to be hel% liable fo the acts of its pupils o stu%ents:hile in i

ObliCon 1st Set of Cases

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