FE

PEREZ
vs.JOSEFINA
and PANFILO ALAJAR

GUTIERREZ

who, in fact, even assumed responsibility for the

hospitalization of Perez. The court held Alajar liable to
pay Perez hospital expenses, actual and moral
damages, incidental expenses and attorneys fees as
well as payment to Gutierrez of moral damages and
attorneys fees, with cost of suit in both cases.

Appellant Fe Perez, together with 9 co-teachers, was

a passenger of an AC jeepney registered under the
name of Appellee Josefina which met an accident due
to the reckless negligence of its driver

The present appeal questions the correctness of the

dispositive portion of the decision a quo which
adjudged Alajar, instead of Gutierrez, as the party
liable to her for the payment of the damages
adjudicated in her favor. Perez argues that the
registered owner of a motor vehicle should be the one
held liable for damages resulting from breach of
contract of carriage by a common carrier.

FACTS:

Leopoldo Cordero resulting in injuries to herself which

required her hospitalization.

Perez filed a case against Gutierrez for damages in

the Court of First Instance of Davao. The complaint
was later amended for breach of contract of carriage
against Gutierrez.

ISSUE: Whether or not the trial court erred in holding

Alajar liable to answer for damages resulting from
breach of contract of carriage

Gutierrez averred that actual owner of the jeepney,

Panfilo Alajar, should be held responsible for the
accident against whom she filed a third-party
complaint. Her assertion was pursuant to the Deed of
Sale executed bet Gutierrez and Alajar which
provided that the latter binds himself and assumes
responsibility for all actions, claims, demands, and
rights of action, and whatever kind and nature, that
may hereafter develop as a consequence of or in the
course of operation of the vehicle.

RULING: Yes, Gutierrez is the one liable to Perez

for damages, not Alajar.

Alajar disclaimed responsibility alleging that the deed

of sale was null and void for it has not been registered
with the Public Service Commission despite his
demands on vendee Gutierrez; the Gutierrez collects
rentals from him for the use of said vehicle; and that
title to said vehicle remained with Gutierrez pending
approval of the sale by the Public Service
Commission.

If the property covered by the franchise is transferred or

leased to another without obtaining the requisite approval, the
transfer is not binding on the Public Service Commission and,
in contemplation of law, the grantee continues to be
responsible under the franchise in relation to the Commission
and to the public for the consequences incident to the
operation of the vehicle.

RATIO:

In Peralta vs. Mangusang:

In Erezo vs. Jepte:

CFI Davao Ruling: the trial court found Leopoldo
Cordero (driver) guilty of reckless imprudence and
found that Alajar owned and operated the vehicle

... that in dealing with vehicles registered under the Public

Service Law, the public has the right to assume or presume
that the registered owner is the actual owner thereof, for it
would be difficult for the public to enforce the actions that they
may have for injuries caused to them by the vehicles being
negligently operated if the public should be required to prove
who the actual owner is.

In Tamayo vs. Aquino:

The trial court erred in holding Panfilo Alajar, rather

than Josefina Gutierrez, as the one directly liable to
Fe Perez for the latter's injuries and the
corresponding damages incurred. Further, the lower
court inexplicably failed to hold the driver (Leopoldo
Cordero), whom it found guilty of reckless
imprudence, jointly and solidarily liable with Josefina
Gutierrez to Fe Perez in accordance with the
provisions of article 2184 in relation to article 2180 of
the new Civil Code.

But as the transferee, who operated the vehicle when the

passenger died, is the one directly responsible for the accident
and death, he should in turn be made responsible to the
registered owner for what the latter may have been adjudged
to pay. In operating the truck without transfer thereof having
been approved by the Public Service Commission, the
transferee acted merely as agent of the registered owner and
should be responsible to him (the registered owner), for any
damages that he may cause the latter by his negligence.

The judgment is modified in the sense that Josefina

Gutierrez and Leopoldo Cordero are hereby adjudged
directly and jointly and solidarily liable to Fe Perez for
the sums adjudicated in the judgment below in her
(Fe Perez') favor, while Panfilo Alajar is, in turn,
hereby held answerable to Josefina Gutierrez for such
amount as the latter may pay to Fe Perez in
satisfaction of the judgment appealed from.