Fortune Express, Inc. vs. Court of Appeals GR No. 119756.

March 18, 1999 Facts: A bus owned by Fortune Express, Inc. (Fortune) figured in an accident with a jeepney in Lanao del Norte. o Several passengers died from the accident including 2 Maranaos Crisanto Generalao investigated the accident o He found out that the jeepney was owned by a Maranao and that certain Maranaos were planning to take revenge on the petitioner by burning some of its buses Generalao informed the operations manager of Fortune Express of his findings and he was assured that Fortune will take the necessary precautions to insure the safety of the lives and property of its passengers A few days later, three armed Maranaos carrying gasoline boarded a bus owned by Fortune o They intended to set the bus on fire with its driver o Before burning the bus they ordered all the passengers to get off One of the passengers, Atty. Caorong, went back to the bus to retrieve his belongings from the overhead rack. o He then saw that the armed men were pouring gasoline over the drivers body, which was slumped on the steering wheel o He pleaded with the armed men to spare the driver o The driver managed to escape but Atty. Caorong was shot in the bus o He was rushed to the hospital but eventually died. His wife, Paulie Caorong, brought a suit for breach of contract of carriage. TC absolved Fortune Express of any liability. CA reversed and awarded loss of earnings, attorneys fee, and actual damages. Issue: 1. W/N Fortune Express is liable to the victim for the acts of the armed men 2. W/N the CA correctly awarded damages to the plaintiff. Held: 1. Yes. Art. 1763 common carrier is responsible for injuries suffered by a passenger caused by the willful acts of other passengers, if the employees of the common carrier could have prevented the act through the exercise of the diligence of a good father of a family. The employees, specifically the operations manager, despite having knowledge of the Maranaos planned revenge, did nothing to protect the passengers. Had they been vigilant they would have seen that the armed men were carrying large quantities of gasoline. 2. Damages: a. Indemnity for death: PhP 50,000.00

b. Actual Damages: Art. 2199 entitled to compensation for pecuniary loss proven. Expense of PhP 30,000 for the wake and burial was duly proven. c. Moral Damages Spouse, legitimate or illegitimate descendants are entitled to moral damages for mental anguish i. Wife, Paulie, suffered pain from the death of her husband and worry on how to provide support their minor children d. Exemplary damages awarded if contracts and quasi-contracts are breached in a wanton, fraudulent, reckless, oppressive, or malevolent manner. i. Fortune acted in a wanton and reckless manner by not acting despite the warning that the Maranaos were planning to take revenge. e. Attorneys fees May be recovered when exemplary damages are awarded. f. Compensation for Loss of Earning Capacity i. Formula:
Net Earning Capacity = Life Expectancy x [Gross Annual Income Necessary Living Expenses] Life Expectancy = 2/3 x [80 Age of deceased] Necessary Living Expenses = (Gross Annual Income)