Professional Documents
Culture Documents
CA rejected the FGUs appeal & ruled in favor of GPS. It also denied petitioners
motion for reconsideration.
ISSUES:
1. WON GPS may be considered a common carrier as defined under the law &
existing jurisprudence.
2. WON GPS, either as a common carrier or a private carrier, may be presumed
to have been negligent when the goods it undertook to transport safely were
subsequently damaged while in its protective custody & possession.
3. Whether the doctrine of Res ipsa loquitur is applicable in the instant case.
HELD:
1. The SC finds the conclusion of the RTC and the CA to be amply justified. GPS,
being an exclusive contractor & hauler of Concepcion Industries, Inc.,
rendering/offering its services to no other individual or entity, cannot be
considered a common carrier. Common carriers are persons, corporations, firms
or associations engaged in the business of carrying or transporting passengers
or goods or both, by land, water, or air, for hire or compensation, offering their
services to the public, whether to the public in general or to a limited clientele in
particular, but never on an exclusive basis. The true test of a common carrier is
the carriage of passengers/goods, providing space for those who opt to avail
themselves of its transportation service for a fee. Given accepted standards,
GPS scarcely falls within the term common carrier.
2. GPS cannot escape from liability. In culpa contractual, the mere proof of the
existence of the contract & the failure of its compliance justify, prima facie, a
corresponding right of relief. The law will not permit a party to be set free from
liability for any kind of misperformance of the contractual undertaking or a
contravention of the tenor thereof. A breach upon the contract confers upon the
injured party a valid cause for recovering that which may have been
lost/suffered. The remedy serves to preserve the interests of the promisee that
may include his:
3. Res ipsa loquitur holds a defendant liable where the thing which caused the
injury complained of is shown to be under the latters management and the
accident is such that, in the ordinary course of things, cannot be expected to
happen if those who have its management/control use proper care. In the
absence of the defendants explanation, it affords reasonable evidence that the
accident arose from want of care. It is not a rule of substantive law and does not
create an independent ground of liability. Instead, it is regarded as a mode of
proof, or a mere procedural convenience since it furnishes a substitute for, and
relieves the plaintiff of, the burden of producing specific proof of negligence. The
maxim simply places the burden of going forward with the proof on the
defendant.
However, resort to the doctrine may only be allowed when:
(a) the event is of a kind which does not ordinarily occur in the absence of
negligence;
(b) other responsible causes are sufficiently eliminated by the evidence
(includes the conduct of the plaintiff and third persons); and
(c) the indicated negligence is within the scope of the defendants duty to the
plaintiff.
Thus, it is not applicable when an unexplained accident may be attributable to
one of several causes, for some of which the defendant could not be
responsible.
Res ipsa loquitur generally finds relevance whether or not a contractual
relationship exists between the plaintiff and the defendant, for the inference of
negligence arises from the circumstances and nature of the occurrence and not
from the nature of the relation of the parties. Nevertheless,for the doctrine to
apply, the requirement that responsible causes (other than those due to
defendants conduct) must first be eliminated should be understood as being
confined only to cases of pure (non-contractual) tort since obviously the
presumption of negligence in culpa contractual immediately attaches by a
failure of the covenant or its tenor.
On the other hand, while the truck driver, whose civil liability is predicated on
culpa acquiliana, can be said to have been in control & management of the
vehicle, it is not equally shown that the accident has been exclusively due to his
negligence. If it were so, the negligence could allow res ipsa loquitur to properly
work against him. However, clearly this is not the case.
HELD:
Petitioner argues that the RTC admitted that De los Santos made a turn along White Plains Road
without exercising the necessary care which could have prevented the accident from
happening. According to petitioner, the sudden turn of the vehicle used by the victims should
also be considered as negligence on the part of the driver of that same vehicle, thus, mitigating, if
not absolving petitioners liability. However, the said argument deserves scant consideration.
It was well established that Mejia was driving at a speed beyond the rate of speed required by
law, specifically Section 35 of Republic Act No. (RA) 4136. Under the New Civil Code, unless
there is proof to the contrary, it is presumed that a person driving a motor vehicle has been
negligent if at the time of the mishap, he was violating any traffic regulation. Apparently, in the
present case, Mejias violation of the traffic rules does not erase the presumption that he was the
one negligent at the time of the collision. Even apart from statutory regulations as to speed, a
motorist is nevertheless expected to exercise ordinary care and drive at a reasonable rate of speed
commensurate with all the conditions encountered which will enable him to keep the vehicle
under control and, whenever necessary, to put the vehicle to a full stop to avoid injury to others
using the highway.
A closer study of the Police Accident Report, Investigation Report and the sketch of the accident
would reveal nothing but that the shuttle bus was traveling at such a reckless speed that it
collided with the car bearing the deceased.
WHEREFORE, the Petition for Review is hereby DENIED. Consequently, the Decision of
the Court of Appeals, dated August 15, 2001, is hereby AFFIRMED with
theMODIFICATION that the moral damages be reduced to P50,000.00.
Conciliation before the barangay failed, so Albayda filed a complaint for physical injuries through reckless
imprudence against Completo before the Office of the City Prosecutor of Pasay. Completo filed a counter-charge of
damage to property through reckless imprudence against Albayda. The Office of the City Prosecutor recommended
the filing of an information for Albaydas complaint, and Completos complaint [against Albayda] was dismissed.
Albayda manifested his reservation to file a separate civil action for damages against Completo and Abiad.
Albayda alleged that Completos negligence is the proximate cause of the incident. He demanded the following
damages and their respective amounts: Actual damages 276,550; Moral damages 600,000; Exemplary damages
200,000; Attorneys fees 25,000 + 1,000 per court appearance.
On the other hand, Completo alleged that he was carefully driving the taxicab when he heard a strange sound
from the taxicabs rear right side. He found Albayda lying on the road, holding his left leg, so he brought Albayda to
PH Air Force General Hospital. Completo asserted that he was an experienced driver, and that he already reduced
his speed to 20km even before reaching the intersection. In contrast, Albayda rode his bicycle at high speed, causing
him to lose control of the bicycle. Completo said that Albayda had no cause of action.
Several people testified for each side, but here are some notes on the testimony of the owner of the taxi driver,
Abiad. Abiad said that aside from being a soldier, he also held franchises of taxicabs and passenger jeepneys, and
being a taxicab operator, he would wake up early to personally check the taxicabs. When Completo applied as a
taxicab driver, Abiad required him to show his bio-data, NBI clearance, and drivers license. Completo never figured in
a vehicular accident since he was employed, and according to Abiad, he [Completo] was a good driver and good
man.
RTC rendered judgment in favor of Albayda, and the defendants are ordered to pay actual [46k] and moral [400k]
damages, and attorneys fees [25k]. Upon appeal at the CA, the court affirmed RTCs decision with modifications [no
more actual damages; awarded temperate damages [40k]; moral damages only 200k; Completo and Abiad are
solidarily liable to pay Albayda; added legal interest].
Issues and Holding
1.
WON CA erred in finding that Completo was the one who caused the collision. NO
2.
WON Abiad failed to prove that he observed the diligence of a good father of the family. YES
3.
WON the award of moral and temperate damages and attorneys fees for Albayda had no basis. NO / NO /
YES
Ratio
On Negligence
It is a rule in negligence suits that the plaintiff has the burden of proving by a preponderance of evidence the
motorists breach in his duty of care owed to the plaintiff, that the motorist was negligent in failing to exercise the
diligence required to avoid injury to the plaintiff, and that such negligence was the proximate cause of the injury
suffered. NCC 2176 quoted, and said that the question of the motorists negligence is a question of fact. Usually, more
will be required of a motorist [25mi/hr = 37ft/sec] than a bicyclist [10mi/hr = 15ft/sec] in discharging the duty of care
because of the physical advantages the former has over the latter.
It was proven by a preponderance of evidence that Completo failed to exercise reasonable diligence.
He was overspeeding at the time he hit Albaydas bicycle; he did not slow down even when he approached
the intersection
Such negligence was the sole and proximate cause of the injuries sustained by Albayda
It was proven that Albayda had the right of way since he reached the intersection ahead of Completo
NCC 2180 cited obligation imposed by NCC 2176 is demandable also for those persons for whom one is
responsible. Employers are liable for damage caused by employees, but the responsibility ceases upon proof that
employers observed the diligence of the good father of the family in the selection and supervision of employees. The
burden of proof is on the employer. The responsibility of two or more persons who are liable for QD is solidary. The
employers civil liability for his employees negligent acts is also primary and direct, owing to his own negligence in
selecting and supervising them, and this liability attaches even if the employer is not in the vehicle at the time of
collision.
In the selection of employees, employers are required to examine them as to their qualifications, experience, and
service records. With respect to supervision, employers should formulate SOPs and monitor their implementation,
and impose disciplinary measures for breaches. To establish these factors in a trial involving the issue of vicarious
[secondary] liability, employers must submit concrete proof, including documentary evidence.
ABIADS EVIDENCE CONSISTED ENTIRELY OF TESTIMONIAL EVIDENCE, AND THIS IS INSUFFICIENT TO
OVERCOME THE LEGAL PRESUMPTION THAT HE WAS NEGLIGENT IN THE SELECTION AND SUPERVISION
OF COMPLETO.
On Damages
CA rightfully deleted the award of actual damages because Albayda failed to present documentary evidence to
establish the amount incurred. Temperate damages may be recovered when the court finds that some pecuniary loss
has been suffered but its amount cannot be proved with certainty. Moral damages are awarded in QDs causing
physical injuries, so the award is proper. The award of attorneys fees is deleted for failure to prove that petitioners
acted in bad faith in refusing to satisfy respondents just and valid claim.
A criminal case for homicide was filed against Matibag. Matibag, however, was
acquitted of the charge against him because of the exempting circumstance of
accident under Art. 12, par. 4 of the RPC.
By agreement of the parties, the evidence adduced in the criminal case for
homicide against Matibag was reproduced and adopted by them as part of
their evidence in the instant case.
The trial court rendered its decision in favor of petitioners, ordering the
defendant to pay plaintiffs indemnity for the death of Alfred, actual damages
for the hospitalization and burial, expenses incurred by the plaintiffs,
compensatory damages, MD and AF.
Respondent appealed to the CA, which reversed the trial courts Decision and
absolved respondent from civil liability under Article 2180 of the Civil Code.
MR denied, hence this petition.
ISSUE: Was Morales negligent?
HELD: Petition granted. The CA decision is set aside and the trial courts
Decision reinstated.
YES
This case for damages arose out of the accidental shooting of petitioners son.
Under Article 1161 of the Civil Code, petitioners may enforce their claim for
damages based on the civil liability arising from the crime under Article 100 of
the RPC or they may opt to file an independent civil action for damages under
the Civil Code. In this case, instead of enforcing their claim for damages in the
homicide case filed against Matibag, petitioners opted to file an independent
civil action for damages against respondent whom they alleged was Matibags
employer. Petitioners based their claim for damages under Articles 2176 and
2180 of the Civil Code.
**
Unlike the subsidiary liability of the employer under Article 103 of the RPC,
the liability of the employer, or any person for that matter, under Article 2176
of the Civil Code is primary and direct, based on a persons own negligence.
Article 2176 states:
Art. 2176. Whoever by act or omission causes damage to another, there being
fault or negligence, is obliged to pay for the damage done. Such fault or
negligence, if there is no pre-existing contractual relation between the parties,
is called quasi-delict and is governed by the provisions of this Chapter.
This case involves the accidental discharge of a firearm inside a gun store.
Under PNP Circular No. 9, entitled the Policy on Firearms and Ammunition
Dealership/Repair, a person who is in the business of purchasing and selling
of firearms and ammunition must maintain basic security and safety
requirements of a gun dealer, otherwise his License to Operate Dealership will
be suspended or canceled.
Indeed, a higher degree of care is required of someone who has in his
possession or under his control an instrumentality extremely dangerous in
character, such as dangerous weapons or substances. Such person in
possession or control of dangerous instrumentalities has the duty to take
exceptional precautions to prevent any injury being done thereby. Unlike the
ordinary affairs of life or business which involve little or no risk, a business
dealing with dangerous weapons requires the exercise of a higher degree of
care.
Present:
- versus -
PEREZ, and
MENDOZA,** JJ.
Promulgated:
September 7, 2011
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DECISION
CARPIO, J.:
The Case
This is a petition for review1 of the 31 May 2010 Decision2 and 31 August 2010
Resolution3 of the Court of Appeals in CA G.R. CV No. 63591. In its 31 May 2010
Decision, the Court of Appeals set aside the 21 August 1998 Decision 4 of the Regional
Trial of Pasig City, Branch 71 (trial court), and ordered petitioner Antonio Francisco
(Francisco) to pay respondent Chemical Bulk Carriers, Incorporated
(CBCI) P1,119,905 as actual damages. In its 31 August 2010 Resolution, the Court of
Appeals denied Franciscos motion for reconsideration.
The Facts
Since 1965, Francisco was the owner and manager of a Caltex station in Teresa, Rizal.
Sometime in March 1993, four persons, including Gregorio Bacsa (Bacsa), came to
Franciscos Caltex station and introduced themselves as employees of
CBCI. Bacsaoffered to sell to Francisco a certain quantity of CBCIs diesel fuel.
After checking Bacsas identification card, Francisco agreed to purchase CBCIs diesel
fuel. Francisco imposed the following conditions for the purchase: (1) that Petron
Corporation (Petron) should deliver the diesel fuel to Francisco at his business address
which should be properly indicated in Petrons invoice; (2) that the delivery tank is
sealed; and (3) that Bacsa should issue a separate receipt to Francisco.
The deliveries started on 5 April 1993 and lasted for ten months, or up to 25 January
1994.5 There were 17 deliveries to Francisco and all his conditions were complied
with.
In February 1996, CBCI sent a demand letter to Francisco regarding the diesel fuel
delivered to him but which had been paid for by CBCI. 6 CBCI demanded that
Francisco pay CBCI P1,053,527 for the diesel fuel or CBCI would file a complaint
against him in court. Francisco rejected CBCIs demand.
On 16 April 1996, CBCI filed a complaint for sum of money and damages against
Francisco and other unnamed defendants.7According to CBCI, Petron, on various
dates, sold diesel fuel to CBCI but these were delivered to and received by Francisco.
Francisco then sold the diesel fuel to third persons from whom he received payment.
CBCI alleged that Francisco acquired possession of the diesel fuel without authority
from CBCI and deprived CBCI of the use of the diesel fuel it had paid for. CBCI
demanded payment from Francisco but he refused to pay. CBCI argued that Francisco
should have known that since only Petron, Shell and Caltex are authorized to sell and
distribute petroleum products in the Philippines, the diesel fuel came from
illegitimate, if not illegal or criminal, acts. CBCI asserted that Francisco violated
Articles 19,8 20,9 21,10 and 2211 of the Civil Code and that he should be held liable. In
the alternative, CBCI claimed that Francisco, in receiving CBCIs diesel fuel, entered
into an innominate contract of do ut des (I give and you give) with CBCI for which
Francisco is obligated to pay CBCIP1,119,905, the value of the diesel fuel. CBCI also
prayed for exemplary damages, attorneys fees and other expenses of litigation.
During the first delivery on 5 April 1993, Francisco asked one of his sons to verify
whether the delivery trucks tank was properly sealed and whether Petron issued the
invoice. Francisco said all his conditions were complied with. There were 17
deliveries made from 5 April 1993 to 25 January 1994 and each delivery was for
10,000 liters of diesel fuel at P65,865.17 Francisco maintained that he acquired the
diesel fuel in good faith and for value. Francisco also filed a counterclaim for
exemplary damages, moral damages and attorneys fees.
In its 21 August 1998 Decision, the trial court ruled in Franciscos favor and dismissed
CBCIs complaint. The dispositive portion of the trial courts 21 August 1998 Decision
reads:
WHEREFORE, Judgment is hereby rendered:
1. Dismissing the complaint dated March 13, 1996 with costs.
2. Ordering plaintiff (CBCI), on the counterclaim, to pay
defendant the amount of P100,000.00 as moral damages
and P50,000.00 as and by way of attorneys fees.
SO ORDERED.18
CBCI appealed to the Court of Appeals.19 CBCI argued that Francisco acquired the
diesel fuel from Petron without legal ground because Bacsa was not authorized to
deliver and sell CBCIs diesel fuel. CBCI added that Francisco acted in bad faith
because he should have inquired further whether Bacsas sale of CBCIs diesel fuel was
legitimate.
In its 31 May 2010 Decision, the Court of Appeals set aside the trial courts 21 August
1998 Decision and ruled in CBCIs favor. The dispositive portion of the Court of
Appeals 31 May 2010 Decision reads:
IN VIEW OF THE FOREGOING, the assailed decision is hereby REVERSED
and SET ASIDE. Antonio Francisco is ordered to pay Chemical Bulk Carriers,
Incorporated the amount of P1,119,905.00 as actual damages.
SO ORDERED.20
On 15 January 2001, Francisco died.21 Franciscos heirs, namely: Nelia E.S. Francisco,
Emilia F. Bertiz, Rebecca E.S. Francisco, Antonio E.S. Francisco, Jr., Socorro
F. Fontanilla, and Jovito E.S. Francisco (heirs of Francisco) filed a motion for
substitution.22The heirs of Francisco also filed a motion for reconsideration. 23 In its 31
August 2010 Resolution, the Court of Appeals granted the motion for substitution but
denied the motion for reconsideration.
Hence, this petition.
The Ruling of the Trial Court
The trial court ruled that Francisco was not liable for damages in favor of CBCI
because the 17 deliveries were covered by original and genuine invoices. The trial
court declared that Bacsa, as confidential secretary of Inawat, was CBCIs authorized
representative who received Franciscos full payment for the diesel fuel. The trial court
stated that if Bacsa was not authorized, CBCI should have sued Bacsa and not
Francisco. The trial court also considered Francisco a buyer in good faith who paid in
full for the merchandise without notice that some other person had a right to or
interest in such diesel fuel. The trial court pointed out that good faith affords
protection to a purchaser for value. Finally, since CBCI was bound by the acts
of Bacsa, the trial court ruled that CBCI is liable to pay damages to Francisco.
The Court of Appeals set aside the trial courts 21 August 1998 Decision and ruled
that Bacsas act of selling the diesel fuel to Francisco was his personal act and, even
if Bacsa connived with Inawat, the sale does not bind CBCI.
The Court of Appeals declared that since Francisco had been in the business of selling
petroleum products for a considerable number of years, his blindness was not a
hindrance for him to transact business with other people. With his condition and
experience, Francisco should have verified whether CBCI was indeed selling diesel
fuel and if it had given Bacsa authority to do so. Moreover, the Court of Appeals
stated that Francisco cannot feign good faith since he had doubts as to the authority
of Bacsayet he did not seek confirmation from CBCI and contented himself with an
improvised receipt. Franciscos failure to verify Bacsasauthority showed that he had an
ulterior motive. The receipts issued by Bacsa also showed his lack of authority
because it was on a plain sheet of bond paper with no letterhead or any indication that
it came from CBCI. The Court of Appeals ruled that Francisco cannot
invoke estoppel because he was at fault for choosing to ignore the tell-tale signs of
petroleum diversion and for not exercising prudence.
The Court of Appeals also ruled that CBCI was unlawfully deprived of the diesel fuel
which, as indicated in the invoices, CBCI had already paid for. Therefore, CBCI had
the right to recover the diesel fuel or its value from Francisco. Since the diesel fuel
can no longer be returned, the Court of Appeals ordered Francisco to give back the
actual amount paid by CBCI for the diesel fuel.
The Issues
The heirs of Francisco argue that the Court of Appeals erred when it ruled that
Francisco was liable to CBCI because he failed to exercise the diligence of a good
father of a family when he bought the diesel fuel. They argue that since Francisco was
blind, the standard of conduct that was required of him was that of a reasonable
person under like disability. Moreover, they insist that Francisco exercised due care in
purchasing the diesel fuel by doing the following: (1) Francisco asked his son to check
the identity of Bacsa; (2) Francisco required direct delivery from Petron; (3) Francisco
required that he be named as the consignee in the invoice; and (4) Francisco required
separate receipts from Bacsa to evidence actual payment.
Standard of conduct is the level of expected conduct that is required by the nature of
the obligation and corresponding to the circumstances of the person, time and
place.25 The most common standard of conduct is that of a good father of a family or
that of a reasonably prudent person.26 To determine the diligence which must be
required of all persons, we use as basis the abstract average standard corresponding to
a normal orderly person.27
However, one who is physically disabled is required to use the same degree of care
that a reasonably careful person who has the same physical disability would
use.28 Physical handicaps and infirmities, such as blindness or deafness, are treated as
part of the circumstances under which a reasonable person must act. Thus, the
standard of conduct for a blind person becomes that of a reasonable person who is
blind.
We note that Francisco, despite being blind, had been managing and operating the
Caltex station for 15 years and this was not a hindrance for him to transact business
until this time. In this instance, however, we rule that Francisco failed to exercise the
standard of conduct expected of a reasonable person who is blind. First, Francisco
merely relied on the identification card ofBacsa to determine if he was authorized by
CBCI. Francisco did not do any other background check on the identity and authority
of Bacsa. Second, Francisco already expressed his misgivings about the diesel fuel,
fearing that they might be stolen property,29yet he did not verify with CBCI the
authority of Bacsa to sell the diesel fuel. Third, Francisco relied on the receipts issued
byBacsa which were typewritten on a half sheet of plain bond paper.30 If Francisco
exercised reasonable diligence, he should have asked for an official receipt issued by
CBCI. Fourth, the delivery to Francisco, as indicated in Petrons invoice, does not
show that CBCI authorized Bacsa to sell the diesel fuel to Francisco. Clearly,
Francisco failed to exercise the standard of conduct expected of a reasonable person
who is blind.
The heirs of Francisco argue that CBCI approved expressly or tacitly the transactions.
According to them, there was apparent authority for Bacsa to enter into the
transactions. They argue that even if the agent has exceeded his authority, the
principal issolidarily liable with the agent if the former allowed the later to act as
though he had full powers.31 They insist CBCI was not unlawfully deprived of its
property because Inawat gave Bacsa the authority to sell the diesel fuel and that CBCI
is bound by such action. Lastly, they argue that CBCI should be considered
in estoppel for failure to act during the ten month period that deliveries were being
made to Francisco.
The general principle is that a seller without title cannot transfer a better title than he
has.32 Only the owner of the goods or one authorized by the owner to sell can transfer
title to the buyer.33 Therefore, a person can sell only what he owns or is authorized to
sell and the buyer can, as a consequence, acquire no more than what the seller can
legally transfer.34
Moreover, the owner of the goods who has been unlawfully deprived of it may
recover it even from a purchaser in good faith. 35Thus, the purchaser of property which
has been stolen from the owner has been held to acquire no title to it even though he
purchased for value and in good faith.
The exception from the general principle is the doctrine of estoppel where the owner
of the goods is precluded from denying the sellers authority to sell. 36 But in order that
there may be estoppel, the owner must, by word or conduct, have caused or allowed it
to appear that title or authority to sell is with the seller and the buyer must have been
misled to his damage.37
In this case, it is clear that Bacsa was not the owner of the diesel fuel. Francisco was
aware of this but he claimed that Bacsa was authorized by CBCI to sell the diesel fuel.
However, Franciscos claim that Bacsa was authorized is not supported by any
evidence except his self-serving testimony. First, Francisco did not even confirm with
CBCI if it was indeed selling its diesel fuel since it is not one of the oil companies
known in the market to be selling petroleum products. This fact alone should have put
Francisco on guard. Second, it does not appear that CBCI, by some direct and
equivocal act, has clothed Bacsa with the indicia of ownership or apparent authority to
sell CBCIs diesel fuel. Francisco did not state if the identification card presented
by Bacsaindicated that he was CBCIs agent or a mere employee. Third, the receipt
issued by Bacsa was typewritten on a half sheet of plain bond paper. There was no
letterhead or any indication that it came from CBCI. We agree with the Court of
Appeals that this was a personal receipt issued by Bacsa and not an official receipt
issued by CBCI. Consequently, CBCI is not precluded by its conduct from
denying Bacsas authority to sell. CBCI did not hold out Bacsa or allow Bacsa to
appear as the owner or one with apparent authority to dispose of the diesel fuel.
Clearly, Bacsa cannot transfer title to Francisco as Bacsa was not the owner of the
diesel fuel nor was he authorized by CBCI to sell its diesel fuel. CBCI did not commit
any act to clothe Bacsa with apparent authority to sell the diesel fuel that would have
misled Francisco. Francisco, therefore, did not acquire any title over the diesel fuel.
Since CBCI was unlawfully deprived of its property, it may recover from Francisco,
even if Francisco pleads good faith.
WHEREFORE, we DENY the petition. We AFFIRM the 31 May 2010 Decision
and 31 August 2010 Resolution of the Court of Appeals.
FACTS:
Herein petitioner, conducted an enrollment drive for the school year 1995-1996
They visited schools from where prospective enrollees were studying. Sherwin
Carpitanos joined the campaign. Along with the other high school students,
they rode a Mitsubishi jeep owned by Vivencio Villanueva on their way to
Larayan Elementary School. Such jeep was driven by James Daniel II, a 15 year
old student of the same school. It was alleged that he drove the jeep in a
reckless manner which resulted for it to turned turtle. Sherwin died due to this
accident.
HELD:
CA held petitioner liable for the death of Sherwin under Article 218 and 219 of
the Family Code where it was pointed that they were negligent in allowing a
minor to drive and not having a teacher accompany the minor students in the
jeep. However, for them to be held liable, the act or omission to be considered
negligent must be the proximate cause of the injury caused thus, negligence
needs to have a causal connection to the accident. It must be direct and natural
sequence of events, unbroken by any efficient intervening causes. The parents
of the victim failed to show such negligence on the part of the petitioner. The
spouses Villanueva admitted that the immediate cause of the accident was not
the reckless driving of James but the detachment of the steering wheel guide of
the jeep. Futhermore, there was no evidence that petitioner allowed the minor
to drive the jeep of Villanueva. The mechanical defect was an event over which
the school has no control hence they may not be held liable for the death
resulting from such accident.
The registered owner of any vehicle, even if not used for public service, would
primarily be responsible to the public or to 3rd persons for injuries caused while it
is being driven on the road. It is not the school, but the registered owner of the
vehicle who shall be held responsible for damages for the death of Sherwin.
Case was remanded to the trial court for determination of the liability of the
defendants excluding herein petitioner.
- versus-
ARCELITO B. TAN,
August 23, 2010
Respondent.
x--------------------------------------------------x
DECISION
PERALTA, J.:
Before this Court is a petition for review on certiorari under Rule 45 of the Rules
of Court seeking to set aside the Decision [1] and the Resolution[2] of the Court of
Appeals (CA) in CA-G.R. CV No. 41928.
The antecedents are as follows:
Anent the first issue, petitioner submits that the CA defied Office Order No. 82-04CG dated April 5, 2004 issued by then CA Presiding Justice Cancio C. Garcia
when it failed to unload CA-G.R. CV No. 41928 so that it may be re-raffled among
the Divisions in Cebu City.
Office Order No. 82-04-CG[7] provides:
xxxx
In view of the reorganization of the different Divisions due to the
appointment of eighteen (18) new Justices to the additional divisions in the cities
of Cebu and Cagayan de Oro, the raffle of civil, criminal and special cases
submitted for decision and falling within the jurisdiction of the additional
divisions shall commence on April 6, 2004.
The raffle of newly-filed cases and those for completion likewise falling
within the jurisdiction of the additional divisions, shall start on April 12, 2004.
xxxx
Petitioner alleged that since the aforementioned Office Order directed the raffle of
civil, criminal and special cases submitted for decision and falling within the
jurisdiction of the additional divisions on April 6, 2004, CA-G.R. CV No. 41928
should have been unloaded by the CA's Fourth Division and re-raffled to the CA's
Division in Cebu City instead of deciding the case on May 31, 2004.
Respondent argued that the CA's Fourth Division correctly acted in taking
cognizance of the case. The CA defended its jurisdiction by ruling that cases
already submitted for decision as of the effectivity of Republic Act (R.A.)
8246[8] on February 1, 1997 were no longer included for re-raffle to the newly-
Although CA-G.R. CV No. 41928 originated from Cebu City and is thus referable
to the CA's Divisions in Cebu City, the said case was already submitted for
decision as of July 25, 1994.[10] Hence, CA-G.R. CV No. 41928, which was already
submitted for decision as of the effectivity of R.A. 8246, i.e., February 1, 1997, can
no longer be referred to the CA's Division in Cebu City. Thus, the CA's Former
Fourth Division correctly ruled that CA-G.R. CV No. 41928 pending in its division
was not among those cases that had to be re-raffled to the newly-created CA
Divisions in the Visayas Region.
Further, administrative issuances must not override, supplant or modify the law,
but must remain consistent with the law they intend to carry out. [11] Thus, Office
Order No. 82-04-CG cannot defeat the provisions of R.A. 8246.
As to the second issue, petitioner maintains that the CA erred in reversing the
finding of the RTC that Check No. 275100 was dated May 3, 1992. Petitioner
argued that in arriving at the conclusion that Check No. 275100 was postdated May
30, 1992, the CA just made a visual examination of the check, unlike the RTC
which verified the truth of respondent's testimony relative to the issuance of Check
No. 275100. Respondent argued that the check was carefully examined by the CA
which correctly found that Check No. 275100 was postdated to May 30, 1992 and
not May 3, 1992.
The principle is well established that this Court is not a trier of facts. Therefore, in
an appeal by certiorari under Rule 45 of the Rules of Court, only questions of law
may be raised. The resolution of factual issues is the function of the lower courts
whose findings on these matters are received with respect and are, as a rule,
binding on this Court. However, this rule is subject to certain exceptions. One of
these is when the findings of the appellate court are contrary to those of the trial
court.[12] Due to the divergence of the findings of the CA and the RTC, We shall reexamine the facts and evidence presented before the lower courts.
The RTC ruled that:
xxxx
The issue to be resolved in this case is whether or not the date of PCIB Check No.
275100 is May 3, 1992 as contended by the defendant, or May 30, 1992 as
claimed by the plaintiff. The date of the check is written as follows 5/3/0/92.
From the manner by which the date of the check is written, the Court cannot
really make a pronouncement as to whether the true date of the check is May 3 or
May 30, 1992, without inquiring into the background facts leading to the issuance
of said check.
According to the plaintiff, the check was issued to Sulpicio Lines in payment of
bill of lading nos. 15, 16 and 17. An examination of bill of lading no. 15,
however, shows that the same was issued, not in favor of plaintiff but in favor of
Coca Cola Bottlers Philippines, Inc. Bill of Lading No. 16 is issued in favor of
Suson Lumber and not to plaintiff. Likewise, Bill of Lading No. 17 shows that it
was issued to Jazz Cola and not to plaintiff. Furthermore, the receipt for the
payment of the freight for the shipments reflected in these three bills of lading
shows that the freight was paid by Coca Cola Bottlers Philippines, Inc. and not by
plaintiff.
Moreover, the said receipt shows that it was paid in cash and not by check. From
the foregoing, the evidence on record does not support the claim of the plaintiff
that Check No. 275100 was issued in payment of bills of lading nos. 15, 16 and
17.
Hence, the conclusion of the Court is that the date of the check was May 3, 1992
and not May 30, 1992.[13]
xxxx
In fine, the RTC concluded that the check was dated May 3, 1992 and not May 30,
1992, because the same check was not issued to pay for Bills of Lading Nos. 15, 16
and 17, as respondent claims. The trial court's conclusion is preposterous and
illogical. The purpose for the issuance of the check has no logical connection with
the date of the check. Besides, the trial court need not look into the purpose for
which the check was issued. A reading of Check No. 275100[14] would readily show
that it was dated May 30, 1992. As correctly observed by the CA:
On the first issue, we agree with appellant that appellee Bank apparently
erred in misappreciating the date of Check No. 275100.We have carefully
examined the check in question (Exh. DDDD) and we are convinced that it was
indeed postdated to May 30, 1992 and not May 3, 1992 as urged by appellee. The
date written on the check clearly appears as 5/30/1992 (Exh. DDDD-4). The first
bar (/) which separates the numbers 5 and 30 and the second bar (/) which further
separates the number 30 from the year 1992 appear to have been done in heavy,
well-defined and bold strokes, clearly indicating the date of the check as
5/30/1992 which obviously means May 30, 1992. On the other hand, the alleged
bar (/) which appellee points out as allegedly separating the numbers 3 and 0,
thereby leading it to read the date as May 3, 1992, is not actually a bar or a slant
but appears to be more of an unintentional marking or line done with a very light
stroke. The presence of the figure 0 after the number 3 is quite significant. In fact,
a close examination thereof would unerringly show that the said number zero or 0
is connected to the preceeding number 3. In other words, the drawer of the check
wrote the figures 30 in one continuous stroke, thereby contradicting appellees
theory that the number 3 is separated from the figure 0 by a bar. Besides,
appellees theory that the date of the check is May 3, 1992 is clearly untenable
considering the presence of the figure 0 after 3 and another bar before the year
1992. And if we were to accept appellees theory that what we find to be an
unintentional mark or line between the figures 3 and 0 is a bar separating the two
numbers, the date of the check would then appear as 5/3/0/1992, which is simply
absurd. Hence, we cannot go along with appellees theory which will lead us to an
absurd result. It is therefore our conclusion that the check was postdated to May
30, 1992 and appellee Bank or its personnel erred in debiting the amount of the
check from appellants account even before the checks due date. Undoubtedly, had
not appellee bank prematurely debited the amount of the check from appellants
account before its due date, the two other checks (Exhs. LLLL and GGGG)
successively dated May 9, 1992 and May 16, 1992 which were paid by appellant
to ASELCO and ANECO, respectively, would not have been dishonored and the
said payees would not have disconnected their supply of electric power to
appellants sawmills, and the latter would not have suffered losses.
The law imposes on banks high standards in view of the fiduciary nature of
banking. Section 2 of R.A. 8791[15] decrees:
Declaration of Policy. The State recognizes the vital role of banks in providing an
environment conducive to the sustained development of the national economy and
the fiduciary nature of banking that requires high standards of integrity and
performance. In furtherance thereof, the State shall promote and maintain a stable
and efficient banking and financial system that is globally competitive, dynamic
and responsive to the demands of a developing economy.
Although R.A. 8791 took effect only in the year 2000, the Court had already
imposed on banks the same high standard of diligence required under R.A. 8791 at
the time of the untimely debiting of respondent's account by petitioner in May
1992. InSimex International (Manila), Inc. v. Court of Appeals,[16] which was
decided in 1990, the Court held that as a business affected with public interest and
because of the nature of its functions, the bank is under obligation to treat the
accounts of its depositors with meticulous care, always having in mind the
fiduciary nature of their relationship.
The diligence required of banks, therefore, is more than that of a good father of a
family.[17] In every case, the depositor expects the bank to treat his account with the
utmost fidelity, whether such account consists only of a few hundred pesos or of
millions. The bank must record every single transaction accurately, down to the last
centavo, and as promptly as possible. This has to be done if the account is to reflect
at any given time the amount of money the depositor can dispose of as he sees fit,
confident that the bank will deliver it as and to whomever he directs. [18] From the
foregoing, it is clear that petitioner bank did not exercise the degree of diligence
that it ought to have exercised in dealing with its client.
With respect to the third issue, petitioner submits that respondent's way of writing
the date on Check No. 275100 was the proximate cause of the dishonor of his three
other checks. Contrary to petitioners view, the Court finds that its negligence is
the proximate cause of respondents loss.
Proximate cause is that cause which, in a natural and continuous sequence,
unbroken by any efficient intervening cause, produces the injury, and without
which the result would not have occurred.[19] The proximate cause of the loss is not
respondent's manner of writing the date of the check, as it was very clear that he
intended Check No. 275100 to be dated May 30, 1992 and not May 3, 1992.
The proximate cause is petitioners own negligence in debiting the account of the
respondent prior to the date as appearing in the check, which resulted in the
subsequent dishonor of several checks issued by the respondent and the
disconnection by ASELCO and ANECO of his electric supply.
The bank on which the check is drawn, known as the drawee bank, is under strict
liability to pay to the order of the payee in accordance with the drawers
instructions as reflected on the face and by the terms of the check. [20] Thus,
payment made before the date specified by the drawer is clearly against the drawee
bank's duty to its client.
In its memorandum[21] filed before the RTC, petitioner submits that respondent
caused confusion on the true date of the check by writing the date of the check as
5/3/0/92. If, indeed, petitioner was confused on whether the check was dated May
3 or May 30 because of the / which allegedly separated the number 3 from the 0,
petitioner should have required respondent drawer to countersign the said / in order
to ascertain the true intent of the drawer before honoring the check. As a matter of
practice, bank tellers would not receive nor honor such checks which they believe
Although petitioner failed to specify in the letter the other details of this postdated
check, which passed undetected from the eyes of the payee down to the petitioner
drawee bank, the Court finds that petitioner was evidently referring to no other
than Check No. 275100 which was deposited to Solidbank, and was postdated May
30, 1992. As correctly found by the CA:
In the aforequoted letter of its Manager, appellee Bank expressly
acknowledged that Check No. 275097 (Exh. GGGG) which appellant paid to
ANECO was sufficiently funded at the time it was negotiated, but it was
dishonored as a result of an earlier negotiation to PCIB-Mandaue Branch through
a deposit made on May 14, 1992 with SOLIDBANK xxx xxx xxx of a postdated
check which xxx xxx passed undetected. He further admitted that Mr. Arcelito B.
Tan was in no way responsible for the dishonor of said PCIB Check No. 275097.
Needless to state, since appellee's Manager has cleared appellant of any fault in
the dishonor of the ANECO check, it [necessarily] follows that responsibility
therefor or fault for the dishonor of the check should fall on appellee bank.
Appellee's attempt to extricate itself from its inadvertence must therefore fail in
the face of its Manager's explicit acknowledgment of responsibility for the
inadvertent dishonor of the ANECO check.[23]
Evidently, the bank's negligence was the result of lack of due care required of its
managers and employees in handling the accounts of its clients. Petitioner was
negligent in the selection and supervision of its employees. In Citibank, N.A. v.
Cabamongan,[24] the Court ruled:
x x x Banks handle daily transactions involving millions of pesos. By the
very nature
of
their
works
the degree
of responsibility, care
and trustworthiness expected of their employees and officials is far greater than
those of ordinary clerks and employees. Banks are expected to exercise the
highest degree of diligence in the selection and supervision of their employees.
We now resolve the question on the award of actual, moral and exemplary
damages, as well as attorney's fees by the CA to the respondent.
The CA based the award of actual damages in the amount of P1,864,500.00 on the
purchase orders[25] submitted by respondent. The CA ruled that:
disconnection of his electricity during the period May 28, 1992 to August 24, 1992
could not possibly affect his sawmill operations and prior orders therefrom.
Given the dearth of respondent's evidence on the matter, the Court resolves to
delete the award of actual damages rendered by the CA in favor of respondent for
his unrealized income.
Nonetheless, in the absence of competent proof on the actual damages suffered,
respondent is entitled to temperate damages.Under Article 2224 of the Civil Code
of the Philippines, temperate or moderate damages, which are more than nominal
but less than compensatory damages, may be recovered when the court finds that
some pecuniary loss has been suffered but its amount cannot, from the nature of
the case, be proved with certainty.[34] The allowance of temperate damages when
actual damages were not adequately proven is ultimately a rule drawn from equity,
the principle affording relief to those definitely injured who are unable to prove
how definite the injury.[35]
It is apparent that respondent suffered pecuniary loss. The negligence of petitioner
triggered the disconnection of his electrical supply, which temporarily halted his
business operations and the consequent loss of business opportunity. However, due
to the insufficiency of evidence before Us, We cannot place its amount with
certainty. Article 2216[36] of the Civil Code instructs that assessment of damages is
left to the discretion of the court according to the circumstances of each
case. Under the circumstances, the sum of P50,000.00 as temperate damages is
reasonable.
Anent the award of moral damages, it is settled that moral damages are meant to
compensate the claimant for any physical suffering, mental anguish, fright, serious
anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation
and similar injuries unjustly caused.[37] In Philippine National Bank v. Court of
Appeals,[38] the Court held that a bank is under obligation to treat the accounts of its
depositors with meticulous care whether such account consists only of a few
hundred pesos or of millions of pesos. Responsibility arising from negligence in
the performance of every kind of obligation is demandable. While petitioner's
negligence in that case may not have been attended with malice and bad faith, the
banks' negligence caused respondent to suffer mental anguish, serious anxiety,
embarrassment and humiliation. In said case, We ruled that respondent therein was
entitled to recover reasonable moral damages.
In this case, the unexpected cutting off of respondent's electricity, which resulted in
the stoppage of his business operations, had caused him to suffer humiliation,
mental anguish and serious anxiety. The award of P50,000.00 is reasonable,
considering the reputation and social standing of respondent. As found by the CA,
as an accredited supplier, respondent had been reposed with a certain degree of
trust by various reputable and well- established corporations.
On the award of exemplary damages, Article 2229 of the Civil Code states:
Art. 2229. Exemplary or corrective damages are imposed, by way of
example or correction for the public good, in addition to themoral, temperate,
liquidated or compensatory damages.
The law allows the grant of exemplary damages to set an example for the public
good. The banking system has become an indispensable institution in the modern
world and plays a vital role in the economic life of every civilized society. Whether
as mere passive entities for the safekeeping and saving of money or as active
instruments of business and commerce, banks have attained an ubiquitous presence
among the people, who have come to regard them with respect and even gratitude
and most of all, confidence. For this reason, banks should guard against injury
attributable to negligence or bad faith on its part. Without a doubt, it has been
repeatedly emphasized that since the banking business is impressed with public
interest, of paramount importance thereto is the trust and confidence of the public
in general. Consequently, the highest degree of diligence is expected, and high
standards of integrity and performance are even required of it. [39] Petitioner, having
failed in this respect, the award of exemplary damages in the
amount of P50,000.00 is in order.
As to the award of attorney's fees, Article 2208 [40] of the Civil Code provides,
among others, that attorney's fees may be recovered when exemplary damages are
awarded or when the defendant's act or omission has compelled the plaintiff to
litigate with third persons or to incur expenses to protect his interest. [41] Respondent
has been forced to undergo unnecessary trouble and expense to protect his interest.
The Court affirms the appellate courts award of attorneys fees in the amount
of P30,000.00.
G.R.2011
No.
173259 July
25,
Bank,
petitioner
vs.
respondent,
PHILIPPINE NATIONAL BANK,
Petitioner,
- versus -
BERSAMIN,
DEL CASTILLO, and
VILLARAMA, JR., JJ.
F.F. CRUZ and CO., INC.
Promulgated:
Respondent.
July 25, 2011
x----------------------------------------------------------x
DECISION
DEL CASTILLO, J.:
As between a bank and its depositor, where the banks negligence is the proximate
cause of the loss and the depositor is guilty of contributory negligence, the greater
proportion of the loss shall be borne by the bank.
This Petition for Review on Certiorari seeks to reverse and set aside the Court of
Appeals January 31, 2006 Decision[1] in CA-G.R. CV No. 81349, which modified the
January 30, 2004 Decision[2] of the Regional Trial Court of Manila City, Branch 46 in
Civil Case No. 97-84010, and the June 26, 2006 Resolution[3] denying petitioners motion
for reconsideration.
Factual Antecedents
The antecedents are aptly summarized by the appellate court:
In its complaint, it is alleged that [respondent F.F. Cruz & Co., Inc.]
(hereinafter FFCCI) opened savings/current or so-called combo account No.
0219-830-146 and dollar savings account No. 0219-0502-458-6 with
[petitioner Philippine National Bank] (hereinafter PNB) at its Timog Avenue
Branch. Its President Felipe Cruz (or Felipe) and Secretary-Treasurer Angelita
A. Cruz (or Angelita) were the named signatories for the said accounts.
The said signatories on separate but coeval dates left for and returned
from the Unites States of America, Felipe on March 18, 1995 until June 10,
1995 while Angelita followed him on March 29, 1995 and returned ahead on
May 9, 1995.
While they were thus out of the country, applications for cashiers and
managers [checks] bearing Felipes [signature] were presented to and both
approved by the PNB. The first was on March 27, 1995 for P9,950,000.00
payable to a certain Gene B. Sangalang and the other one was on April 24,
1995 for P3,260,500.31 payable to one Paul Bautista. The amounts of these
checks were then debited by the PNB against the combo account of [FFCCI].
When Angelita returned to the country, she had occasion to examine
the PNB statements of account of [FFCCI] for the months of February to
August 1995 and she noticed the deductions of P9,950,000.00
and P3,260,500.31. Claiming that these were unauthorized and fraudulently
made, [FFCCI] requested PNB to credit back and restore to its account the
value of the checks. PNB refused, and thus constrained [FFCCI] filed the
instant suit for damages against the PNB and its own accountant Aurea
Caparas (or Caparas).
In its traverse, PNB averred lack of cause of action. It alleged that it
exercised due diligence in handling the account of [FFCCI]. The applications
for managers check have passed through the standard bank procedures and it
was only after finding no infirmity that these were given due course. In fact, it
was no less than Caparas, the accountant of [FFCCI], who confirmed the
regularity of the transaction. The delay of [FFCCI] in picking up and going
over the bank statements was the proximate cause of its self-proclaimed injury.
Had [FFCCI] been conscientious in this regard, the alleged chicanery would
have been detected early on and Caparas effectively prevented from
absconding with its millions. It prayed for the dismissal of the complaint.[4]
if only the signature of Felipe Cruz appeared thereon; and that FFCCI was negligent in
not immediately informing PNB of the fraud.
On the other hand, the trial court found that PNB was, likewise, negligent in not
calling or personally verifying from the authorized signatories the legitimacy of the
subject withdrawals considering that they were in huge amounts. For this reason, PNB
had the last clear chance to prevent the unauthorized debits from FFCCIs combo
account. Thus, PNB should bear the whole loss
WHEREFORE, judgment is hereby rendered ordering defendant
[PNB] to pay plaintiff [FFCCI] P13,210,500.31 representing the amounts
debited against plaintiffs account, with interest at the legal rate computed from
the filing of the complaint plus costs of suit.
IT IS SO ORDERED.[5]
The appellate court ruled that PNB was negligent in not properly verifying the
genuineness of the signatures appearing on the two applications for managers check as
evidenced by the lack of the signature of the bank verifier thereon. Had this procedure
been followed, the forgery would have been detected.
Nonetheless, the appellate court found FFCCI guilty of contributory negligence
because it clothed its accountant/bookkeeper Caparas with apparent authority to transact
business with PNB. In addition, FFCCI failed to timely examine its monthly statement of
account and report the discrepancy to PNB within a reasonable period of time to prevent
or recover the loss. FFCCIs contributory negligence, thus, mitigated the banks
liability. Pursuant to the rulings in Philippine Bank of Commerce v. Court of
Appeals[7] and The Consolidated Bank & Trust Corporation v. Court of Appeals, [8] the
appellate court allocated the damages on a 60-40 ratio with the bigger share to be borne
by PNB.
From this decision, both FFCCI and PNB sought review before this Court.
On August 17, 2006, FFCCI filed its petition for review on certiorari which was
docketed as G.R. No. 173278.[9] On March 7, 2007, the Court issued a
Resolution[10] denying said petition. On June 13, 2007, the Court issued another
Resolution[11] denying FFCCIs motion for reconsideration. In denying the aforesaid
petition, the Court ruled that FFCCI essentially raises questions of fact which are, as a
rule, not reviewable under a Rule 45 petition; that FFCCI failed to show that its case fell
within the established exceptions to this rule; and that FFCCI was guilty of contributory
negligence. Thus, the appellate court correctly mitigated PNBs liability.
On July 13, 2006, PNB filed its petition for review on certiorari which is the
subject matter of this case.
Issue
Whether the Court of Appeals seriously erred when it found PNB guilty of
negligence.[12]
Our Ruling
We affirm the ruling of the CA.
PNB is guilty of negligence.
Preliminarily, in G.R. No. 173278, we resolved with finality [13] that FFCCI is
guilty of contributory negligence, thus, making it partly liable for the loss (i.e., as to 40%
thereof) arising from the unauthorized withdrawal of P13,210,500.31 from its combo
account. The case before us is, thus, limited to PNBs alleged negligence in the subject
transactions which the appellate court found to be the proximate cause of the loss, thus,
making it liable for the greater part of the loss (i.e., as to 60% thereof) pursuant to our
rulings inPhilippine Bank of Commerce v. Court of Appeals [14] and The Consolidated
Bank & Trust Corporation v. Court of Appeals.[15]
PNB contends that it was not negligent in verifying the genuineness of the
signatures appearing on the subject applications for managers check. It claims that it
followed the standard operating procedure in the verification process and that four bank
officers examined the signatures and found the same to be similar with those found in the
signature cards of FFCCIs authorized signatories on file with the bank.
PNB raises factual issues which are generally not proper for review under a Rule
45 petition. While there are exceptions to this rule, we find none applicable to the present
case. As correctly found by the appellate court, PNB failed to make the proper
verification because the applications for the managers check do not bear the signature of
the bank verifier. PNB concedes the absence[16] of the subject signature but argues that
the same was the result of inadvertence. It posits that the testimonies of Geronimo
Gallego (Gallego), then the branch manager of PNB Timog Branch, and Stella San
Diego (San Diego), then branch cashier, suffice to establish that the signature verification
process was duly followed.
We are not persuaded.
First, oral testimony is not as reliable as documentary evidence. [17] Second, PNBs
own witness, San Diego, testified that in the verification process, the principal duty to
determine the genuineness of the signature devolved upon the account analyst.
[18]
However, PNB did not present the account analyst to explain his or her failure to sign
the box for signature and balance verification of the subject applications for managers
check, thus, casting doubt as to whether he or she did indeed verify the signatures
thereon. Third, we cannot fault the appellate court for not giving weight to the
testimonies of Gallego and San Diego considering that the latter are naturally interested
in exculpating themselves from any liability arising from the failure to detect the
forgeries in the subject transactions. Fourth, Gallego admitted that PNBs employees
received training on detecting forgeries from the National Bureau of Investigation.
[19]
However, Emmanuel Guzman, then NBI senior document examiner, testified, as an
expert witness, that the forged signatures in the subject applications for managers check
contained noticeable and significant differences from the genuine signatures of FFCCIs
authorized signatories and that the forgeries should have been detected or observed by a
trained signature verifier of any bank.[20]
Given the foregoing, we find no reversible error in the findings of the appellate
court that PNB was negligent in the handling of FFCCIs combo account, specifically,
with respect to PNBs failure to detect the forgeries in the subject applications for
managers check which could have prevented the loss. As we have often ruled, the
banking business is impressed with public trust. [21] A higher degree of diligence is
imposed on banks relative to the handling of their affairs than that of an ordinary business
enterprise.[22] Thus, the degree of responsibility, care and trustworthiness expected of their
officials and employees is far greater than those of ordinary officers and employees in
other enterprises.[23] In the case at bar, PNB failed to meet the high standard of diligence
required by the circumstances to prevent the fraud. In Philippine Bank of Commerce v.
Court of Appeals[24] and The Consolidated Bank & Trust Corporation v. Court of
Appeals,[25] where the banks negligence is the proximate cause of the loss and the
depositor is guilty of contributory negligence, we allocated the damages between the
bank and the depositor on a 60-40 ratio. We apply the same ruling in this case
considering that, as shown above, PNBs negligence is the proximate cause of the loss
while the issue as to FFCCIs contributory negligence has been settled with finality in
G.R. No. 173278. Thus, the appellate court properly adjudged PNB to bear the greater
part of the loss consistent with these rulings.
WHEREFORE, the petition is DENIED. The January 31, 2006 Decision and
June 26, 2006 Resolution of the Court of Appeals in CA-G.R. CV No. 81349
are AFFIRMED.
Costs against petitioner.
SO ORDERED.
Gonzales vs PCIB
Facts:
Gonzales was a client of PCIB. He was granted a credit line by the bank
through a Credit-On-Hand-Loan Agreement (COHLA). He drew from the credit
line through a check and said credit line was secured by a collateral in the
form of his accounts with PCIB which was a foreign currency deposit worth
USD 8000.
He obtained below loans from PCIB:
1. obtained with his wife P500K
2. obtained with spouses Panlilio P1M, P300K
the above loans (total: 1.8M) were covered by 3 promissory notes and were
secured by a real estage mortgage on a land co owned by Gonzales and
spouses Panlilio. the promissory notes states the solidary liability of Gonzales
andspouses Panlilio. However, it was the spouses Panlilio who received the
proceeds of 1.8M. The monthly interest dues were paid by the spouses
Panlilio through auto debit from their PCIB account. however, they defaulted
in the payment because their PCIB account had insufficient deposits.
Gonzales issued a check to Rene Unson worth 250K drawn against his credit
line but said check was subsequently dishonored due to termination of
gonzales credit line because of the unpaid period interest dues from the
loans. PCIB also froze the foreign currency deposit account of Gonzales.
Issue: W/N Gonzales is liable for the three promissory notes covering
PHP1.8M loan he made with spouses Panlilio?
Held:
Yes. Gonzales was an accommodation party of the loan. An accommodation
party is one who meets all the three requisites according to Sec 29 of NIL:
1. he must be a party to the instrument, signing as a maker, drawer,
acceptor, or indorser
2. he must not receive value therefor
3. he must sign for the purpose of lending his name or credit to some other
person.
FE CAYAO-LASAM, petitioner,
vs.
SPOUSES CLARO and EDITHA RAMOLETE, respondents.*
DECISION
AUSTRIA-MARTINEZ, J.:
Before the Court is a Petition for Review on Certiorari under Rule 45 of the Rules of Court filed by
Dr. Fe Cayao-Lasam (petitioner) seeking to annul the Decision 1 dated July 4, 2003 of the Court of
Appeals (CA) in CA-G.R. SP No. 62206.
The antecedent facts:
On July 28, 1994, respondent, three months pregnant Editha Ramolete (Editha) was brought to the
Lorma Medical Center (LMC) in San Fernando, La Union due to vaginal bleeding. Upon advice of
petitioner relayed via telephone, Editha was admitted to the LMC on the same day. A pelvic
sonogram2 was then conducted on Editha revealing the fetus weak cardiac pulsation. 3 The following
day, Edithas repeat pelvic sonogram4 showed that aside from the fetus weak cardiac pulsation, no
fetal movement was also appreciated. Due to persistent and profuse vaginal bleeding, petitioner
advised Editha to undergo a Dilatation and Curettage Procedure (D&C) or "raspa."
On July 30, 1994, petitioner performed the D&C procedure. Editha was discharged from the hospital
the following day.
On September 16, 1994, Editha was once again brought at the LMC, as she was suffering from
vomiting and severe abdominal pains. Editha was attended by Dr. Beatriz de la Cruz, Dr. Victor B.
Mayo and Dr. Juan V. Komiya. Dr. Mayo allegedly informed Editha that there was a dead fetus in the
latters womb. After, Editha underwent laparotomy,5 she was found to have a massive intraabdominal hemorrhage and a ruptured uterus. Thus, Editha had to undergo a procedure for
hysterectomy6 and as a result, she has no more chance to bear a child.
On November 7, 1994, Editha and her husband Claro Ramolete (respondents) filed a Complaint 7 for
Gross Negligence and Malpractice against petitioner before the Professional Regulations
Commission (PRC).
Respondents alleged that Edithas hysterectomy was caused by petitioners unmitigated negligence
and professional incompetence in conducting the D&C procedure and the petitioners failure to
remove the fetus inside Edithas womb.8 Among the alleged acts of negligence were: first,
petitioners failure to check up, visit or administer medication on Editha during her first day of
confinement at the LMC;9 second, petitioner recommended that a D&C procedure be performed on
Editha without conducting any internal examination prior to the procedure; 10 third, petitioner
immediately suggested a D&C procedure instead of closely monitoring the state of pregnancy of
Editha.11
In her Answer,12 petitioner denied the allegations of negligence and incompetence with the following
explanations: upon Edithas confirmation that she would seek admission at the LMC, petitioner
immediately called the hospital to anticipate the arrival of Editha and ordered through the telephone
the medicines Editha needed to take, which the nurses carried out; petitioner visited Editha on the
morning of July 28, 1994 during her rounds; on July 29, 1994, she performed an internal
examination on Editha and she discovered that the latters cervix was already open, thus, petitioner
discussed the possible D&C procedure, should the bleeding become more profuse; on July 30 1994,
she conducted another internal examination on Editha, which revealed that the latters cervix was
still open; Editha persistently complained of her vaginal bleeding and her passing out of some meaty
mass in the process of urination and bowel movement; thus, petitioner advised Editha to undergo
D&C procedure which the respondents consented to; petitioner was very vocal in the operating room
about not being able to see an abortus;13 taking the words of Editha to mean that she was passing
out some meaty mass and clotted blood, she assumed that the abortus must have been expelled in
the process of bleeding; it was Editha who insisted that she wanted to be discharged; petitioner
agreed, but she advised Editha to return for check-up on August 5, 1994, which the latter failed to
do.
Petitioner contended that it was Edithas gross negligence and/or omission in insisting to be
discharged on July 31, 1994 against doctors advice and her unjustified failure to return for check-up
as directed by petitioner that contributed to her life-threatening condition on September 16, 1994;
that Edithas hysterectomy was brought about by her very abnormal pregnancy known as placenta
increta, which was an extremely rare and very unusual case of abdominal placental implantation.
Petitioner argued that whether or not a D&C procedure was done by her or any other doctor, there
would be no difference at all because at any stage of gestation before term, the uterus would rupture
just the same.
On March 4, 1999, the Board of Medicine (the Board) of the PRC rendered a Decision, 14 exonerating
petitioner from the charges filed against her. The Board held:
Based on the findings of the doctors who conducted the laparotomy on Editha, hers is a case
of Ectopic Pregnancy Interstitial. This type of ectopic pregnancy is one that is being
protected by the uterine muscles and manifestations may take later than four (4) months and
only attributes to two percent (2%) of ectopic pregnancy cases.
When complainant Editha was admitted at Lorma Medical Center on July 28, 1994 due to
vaginal bleeding, an ultra-sound was performed upon her and the result of the Sonogram
Test reveals a morbid fetus but did not specify where the fetus was located. Obstetricians will
assume that the pregnancy is within the uterus unless so specified by the Sonologist who
conducted the ultra-sound. Respondent (Dr. Lasam) cannot be faulted if she was not able to
determine that complainant Editha is having an ectopic pregnancy interstitial. The D&C
conducted on Editha is necessary considering that her cervix is already open and so as to
stop the profuse bleeding. Simple curettage cannot remove a fetus if the patient is having an
ectopic pregnancy, since ectopic pregnancy is pregnancy conceived outside the uterus and
curettage is done only within the uterus. Therefore, a more extensive operation needed in
this case of pregnancy in order to remove the fetus.15
Feeling aggrieved, respondents went to the PRC on appeal. On November 22, 2000, the PRC
rendered a Decision16 reversing the findings of the Board and revoking petitioners authority or
license to practice her profession as a physician. 17
Petitioner brought the matter to the CA in a Petition for Review under Rule 43 of the Rules of Court.
Petitioner also dubbed her petition as one for certiorari18 under Rule 65 of the Rules of Court.
In the Decision dated July 4, 2003, the CA held that the Petition for Review under Rule 43 of the
Rules of Court was an improper remedy, as the enumeration of the quasi-judicial agencies in Rule
43 is exclusive.19 PRC is not among the quasi-judicial bodies whose judgment or final orders are
subject of a petition for review to the CA, thus, the petition for review of the PRC Decision, filed at
the CA, was improper. The CA further held that should the petition be treated as a petition
for certiorari under Rule 65, the same would still be dismissed for being improper and premature.
Citing Section 2620 of Republic Act (R.A.) No. 2382 or the Medical Act of 1959, the CA held that the
plain, speedy and adequate remedy under the ordinary course of law which petitioner should have
availed herself of was to appeal to the Office of the President. 21
Hence, herein petition, assailing the decision of the CA on the following grounds:
1. THE COURT OF APPEALS ERRED ON A QUESTION OF LAW IN HOLDING THAT THE
PROFESSIONAL REGULATION[S] COMMISSION (PRC) WAS EXCLUDED AMONG THE
QUASI-JUDICIAL AGENCIES CONTEMPLATED UNDER RULE 43 OF THE RULES OF
CIVIL PROCEDURE;
2. EVEN ASSUMING, ARGUENDO, THAT PRC WAS EXCLUDED FROM THE PURVIEW
OF RULE 43 OF THE RULES OF CIVIL PROCEDURE, THE PETITIONER WAS NOT
PRECLUDED FROM FILING A PETITION FOR CERTIORARI WHERE THE DECISION
WAS ALSO ISSUED IN EXCESS OF OR WITHOUT JURISDICTION, OR WHERE THE
DECISION WAS A PATENT NULLITY;
3. HEREIN RESPONDENTS-SPOUSES ARE NOT ALLOWED BY LAW TO APPEAL FROM
THE DECISION OF THE BOARD OF MEDICINE TO THE PROFESSIONAL
REGULATION[S] COMMISSION;
4. THE COURT OF APPEALS COMMITTED GRAVE ABUSE OF DISCRETION IN
DENYING FOR IMPROPER FORUM THE PETITION FOR REVIEW/PETITION FOR
CERTIORARI WITHOUT GOING OVER THE MERITS OF THE GROUNDS RELIED UPON
BY THE PETITIONER;
5. PRCS GRAVE OMISSION TO AFFORD HEREIN PETITONER A CHANCE TO BE
HEARD ON APPEAL IS A CLEAR VIOLATION OF HER CONSTITUTIONAL RIGHT TO DUE
PROCESS AND HAS THE EFFECT OF RENDERING THE JUDGMENT NULL AND VOID;
so is double jeopardy. Petitioner is of the belief that the revocation of license to practice a profession
is penal in nature.24
The Court does not agree.
For one, the principle of double jeopardy finds no application in administrative cases. Double
jeopardy attaches only: (1) upon a valid indictment; (2) before a competent court; (3) after
arraignment; (4) when a valid plea has been entered; and (5) when the defendant was acquitted or
convicted, or the case was dismissed or otherwise terminated without the express consent of the
accused.25 These elements were not present in the proceedings before the Board of Medicine, as the
proceedings involved in the instant case were administrative and not criminal in nature. The Court
has already held that double jeopardy does not lie in administrative cases. 26
Moreover, Section 35 of the Rules and Regulations Governing the Regulation and Practice of
Professionals cited by petitioner was subsequently amended to read:
Sec. 35. The complainant/respondent may appeal the order, the resolution or the decision
of the Board within thirty (30) days from receipt thereof to the Commission whose decision
shall be final and executory. Interlocutory order shall not be appealable to the Commission.
(Amended by Res. 174, Series of 1990).27(Emphasis supplied)
Whatever doubt was created by the previous provision was settled with said amendment. It is
axiomatic that the right to appeal is not a natural right or a part of due process, but a mere statutory
privilege that may be exercised only in the manner prescribed by law.28 In this case, the clear intent
of the amendment is to render the right to appeal from a decision of the Board available to both
complainants and respondents.
Such conclusion is bolstered by the fact that in 2006, the PRC issued Resolution No. 06-342(A), or
the New Rules of Procedure in Administrative Investigations in the Professional Regulations
Commission and the Professional Regulatory Boards, which provides for the method of appeal, to
wit:
Sec. 1. Appeal; Period Non-Extendible.- The decision, order or resolution of the Board
shall be final and executory after the lapse of fifteen (15) days from receipt of the decision,
order or resolution without an appeal being perfected or taken by either the respondent or
the complainant. A party aggrieved by the decision, order or resolution may file a
notice of appeal from the decision, order or resolution of the Board to the
Commission within fifteen (15) days from receipt thereof, and serving upon the adverse
party a notice of appeal together with the appellants brief or memorandum on appeal, and
paying the appeal and legal research fees. x x x29
The above-stated provision does not qualify whether only the complainant or respondent may file an
appeal; rather, the new rules provide that "a party aggrieved" may file a notice of appeal. Thus, either
the complainant or the respondent who has been aggrieved by the decision, order or resolution of
the Board may appeal to the Commission. It is an elementary rule that when the law speaks in clear
and categorical language, there is no need, in the absence of legislative intent to the contrary, for
any interpretation.30 Words and phrases used in the statute should be given their plain, ordinary, and
common usage or meaning.31
Petitioner also submits that appeals from the decisions of the PRC should be with the CA, as Rule
4332 of the Rules of Court was precisely formulated and adopted to provide for a uniform rule of
appellate procedure for quasi-judicial agencies. 33 Petitioner further contends that a quasi-judicial
body is not excluded from the purview of Rule 43 just because it is not mentioned therein. 34
On this point, the Court agrees with the petitioner.
Sec. 1, Rule 43 of the Rules of Court provides:
Section 1. Scope. - This Rule shall apply to appeals from judgments or final orders of the
Court of Tax Appeals, and from awards, judgments, final orders or resolutions of or
authorized by any quasi-judicial agency in the exercise of its quasi-judicial functions.
Among these agencies are the Civil Service Commission, Central Board of Assessment
Appeals, Securities and Exchange Commission, Office of the President, Land Registration
Authority, Social Security Commission, Civil Aeronautics Board, Bureau of Patents,
Trademarks and Technology Transfer, National Electrification Administration, Energy
Regulatory Board, National Telecommunications Commission, Department of Agrarian
Reform under Republic Act No. 6657, Government Service Insurance System, Employees
Compensation Commission, Agricultural Inventions Board, Insurance Commission,
Philippine Atomic Energy Commission, Board of Investments, Construction Industry
Arbitration Commission, and voluntary arbitrators authorized by law. (Emphasis supplied)
Indeed, the PRC is not expressly mentioned as one of the agencies which are expressly enumerated
under Section 1, Rule 43 of the Rules of Court. However, its absence from the enumeration does
not, by this fact alone, imply its exclusion from the coverage of said Rule. 35 The Rule expressly
provides that it should be applied to appeals from awards, judgments final orders or resolutions of
any quasi-judicial agency in the exercise of its quasi-judicial functions. The phrase "among these
agencies" confirms that the enumeration made in the Rule is not exclusive to the agencies therein
listed.36
Specifically, the Court, in Yang v. Court of Appeals,37 ruled
that Batas Pambansa (B.P.) Blg. 12938 conferred upon the CA exclusive appellate jurisdiction over
appeals from decisions of the PRC. The Court held:
The law has since been changed, however, at least in the matter of the particular court to
which appeals from the Commission should be taken. On August 14, 1981, Batas Pambansa
Bilang 129 became effective and in its Section 29, conferred on the Court of Appeals
"exclusive appellate jurisdiction over all final judgments, decisions, resolutions, orders or
awards of Regional Trial Courts and quasi-judicial agencies, instrumentalities, boards or
commissions except those falling under the appellate jurisdiction of the Supreme Court. x x
x." In virtue of BP 129, appeals from the Professional Regulations Commission are
now exclusively cognizable by the Court of Appeals.39 (Emphasis supplied)
Clearly, the enactment of B.P. Blg. 129, the precursor of the present Rules of Civil
Procedure,40 lodged with the CA such jurisdiction over the appeals of decisions made by the PRC.
Anent the substantive merits of the case, petitioner questions the PRC decision for being without an
expert testimony to support its conclusion and to establish the cause of Edithas injury. Petitioner
avers that in cases of medical malpractice, expert testimony is necessary to support the conclusion
as to the cause of the injury.41
Medical malpractice is a particular form of negligence which consists in the failure of a physician or
surgeon to apply to his practice of medicine that degree of care and skill which is ordinarily
employed by the profession generally, under similar conditions, and in like surrounding
circumstances.42 In order to successfully pursue such a claim, a patient must prove that the
physician or surgeon either failed to do something which a reasonably prudent physician or surgeon
would not have done, and that the failure or action caused injury to the patient. 43
There are four elements involved in medical negligence cases: duty, breach, injury and proximate
causation.44
A physician-patient relationship was created when Editha employed the services of the petitioner. As
Edithas physician, petitioner was duty-bound to use at least the same level of care that any
reasonably competent doctor would use to treat a condition under the same circumstances. 45 The
breach of these professional duties of skill and care, or their improper performance by a physician
surgeon, whereby the patient is injured in body or in health, constitutes actionable malpractice. 46 As
to this aspect of medical malpractice, the determination of the reasonable level of care and the
breach thereof, expert testimony is essential.47 Further, inasmuch as the causes of the injuries
involved in malpractice actions are determinable only in the light of scientific knowledge, it has been
recognized that expert testimony is usually necessary to support the conclusion as to causation. 48
In the present case, respondents did not present any expert testimony to support their claim that
petitioner failed to do something which a reasonably prudent physician or surgeon would have done.
Petitioner, on the other hand, presented the testimony of Dr. Augusto M. Manalo, who was clearly an
expert on the subject.
Generally, to qualify as an expert witness, one must have acquired special knowledge of the subject
matter about which he or she is to testify, either by the study of recognized authorities on the subject
or by practical experience.49
Dr. Manalo specializes in gynecology and obstetrics, authored and co-authored various publications
on the subject, and is a professor at the University of the Philippines. 50 According to him, his
diagnosis of Edithas case was "Ectopic Pregnancy Interstitial (also referred to as Cornual),
Ruptured."51 In stating that the D&C procedure was not the proximate cause of the rupture of
Edithas uterus resulting in her hysterectomy, Dr. Manalo testified as follows:
Atty. Hidalgo:
Q: Doctor, we want to be clarified on this matter. The complainant had testified here that
the D&C was the proximate cause of the rupture of the uterus. The condition which she
found herself in on the second admission. Will you please tell us whether that is true or not?
A: Yah, I do not think so for two reasons. One, as I have said earlier, the instrument
cannot reach the site of the pregnancy, for it to further push the pregnancy outside the
uterus. And, No. 2, I was thinking a while ago about another reason- well, why I dont think
so, because it is the triggering factor for the rupture, it could havethe rupture could have
occurred much earlier, right after the D&C or a few days after the D&C.
Q: In this particular case, doctor, the rupture occurred to have happened minutes prior to
the hysterectomy or right upon admission on September 15, 1994 which is about 1
months after the patient was discharged, after the D&C was conducted. Would you tell us
whether there is any relation at all of the D&C and the rupture in this particular instance?
A: I dont think so for the two reasons that I have just mentioned- that it would not
be possible for the instrument to reach the site of pregnancy. And, No. 2, if it is because
of the D&C that rupture could have occurred earlier.52 (Emphases supplied)
Clearly, from the testimony of the expert witness and the reasons given by him, it is evident that the
D&C procedure was not the proximate cause of the rupture of Edithas uterus.
During his cross-examination, Dr. Manalo testified on how he would have addressed Edithas
condition should he be placed in a similar circumstance as the petitioner. He stated:
Atty. Ragonton:
Q: Doctor, as a practicing OB-Gyne, when do you consider that you have done a good,
correct and ideal dilatation and curettage procedure?
A: Well, if the patient recovers. If the patient gets well. Because even after the procedure,
even after the procedure you may feel that you have scraped everything, the patient stops
bleeding, she feels well, I think you should still have some reservations, and wait a little more
time.
Q: If you were the OB-Gyne who performed the procedure on patient Editha Ramolete,
would it be your standard practice to check the fetal parts or fetal tissues that were allegedly
removed?
A: From what I have removed, yes. But in this particular case, I think it was assumed that
it was part of the meaty mass which was expelled at the time she was urinating and flushed
in the toilet. So theres no way.
Q:
There was [sic] some portions of the fetal parts that were removed?
A:
Q:
And you would not mind checking those scant or those little parts that were removed?
A: Well, the fact that it was described means, I assume that it was checked, no. It
was described as scanty and the color also, I think was described. Because it would be
very unusual, even improbable that it would not be examined, because when you
scrape, the specimens are right there before your eyes. Its in front of you. You can
touch it. In fact, some of them will stick to the instrument and therefore to peel it off
from the instrument, you have to touch them. So, automatically they are examined
closely.
Q: As a matter of fact, doctor, you also give telephone orders to your patients through
telephone?
A: Yes, yes, we do that, especially here in Manila because you know, sometimes a doctor
can also be tied-up somewhere and if you have to wait until he arrive at a certain place
before you give the order, then it would be a lot of time wasted. Because if you know your
patient, if you have handled your patient, some of the symptoms you can interpret that
comes with practice. And, I see no reason for not allowing telephone orders unless it is
the first time that you will be encountering the patient. That you have no idea what the
problem is.
Q:
A: Sometimes yes, depending on how familiar I am with the patient. We are on the
question of telephone orders. I am not saying that that is the idle [sic] thing to do, but I think
the reality of present day practice somehow justifies telephone orders. I have patients
whom I have justified and then all of a sudden, late in the afternoon or late in the evening,
would suddenly call they have decided that they will go home inasmuch as they anticipated
that I will discharge them the following day. So, I just call and ask our resident on duty or the
nurse to allow them to go because I have seen that patient and I think I have full grasp of her
problems. So, thats when I make this telephone orders. And, of course before giving that
order I ask about how she feels.53 (Emphases supplied)
From the foregoing testimony, it is clear that the D&C procedure was conducted in accordance with
the standard practice, with the same level of care that any reasonably competent doctor would use
to treat a condition under the same circumstances, and that there was nothing irregular in the way
the petitioner dealt with Editha.
Medical malpractice, in our jurisdiction, is often brought as a civil action for damages under Article
217654 of the Civil Code. The defenses in an action for damages, provided for under Article 2179 of
the Civil Code are:
Art. 2179. When the plaintiffs own negligence was the immediate and proximate cause
of his injury, he cannot recover damages. But if his negligence was only contributory, the
immediate and proximate cause of the injury being the defendants lack of due care, the
plaintiff may recover damages, but the courts shall mitigate the damages to be awarded.
Proximate cause has been defined as that which, in natural and continuous sequence, unbroken by
any efficient intervening cause, produces injury, and without which the result would not have
occurred.55 An injury or damage is proximately caused by an act or a failure to act, whenever it
appears from the evidence in the case that the act or omission played a substantial part in bringing
about or actually causing the injury or damage; and that the injury or damage was either a direct
result or a reasonably probable consequence of the act or omission. 56
In the present case, the Court notes the findings of the Board of Medicine:
When complainant was discharged on July 31, 1994, herein respondent advised her to
return on August 4, 1994 or four (4) days after the D&C. This advise was clear in
complainants Discharge Sheet. However, complainant failed to do so. This being the
case, the chain of continuity as required in order that the doctrine of proximate cause can be
validly invoked was interrupted. Had she returned, the respondent could have examined
her thoroughly.57 x x x (Emphases supplied)
Also, in the testimony of Dr. Manalo, he stated further that assuming that there was in fact a
misdiagnosis, the same would have been rectified if Editha followed the petitioners order to return
for a check-up on August 4, 1994. Dr. Manalo stated:
Granting that the obstetrician-gynecologist has been misled (justifiably) up to thus
point that there would have been ample opportunity to rectify the misdiagnosis, had
the patient returned, as instructed for her follow-up evaluation. It was one and a half
months later that the patient sought consultation with another doctor. The continued
growth of an ectopic pregnancy, until its eventual rupture, is a dynamic process. Much
change in physical findings could be expected in 1 months, including the emergence of
suggestive ones.58
It is undisputed that Editha did not return for a follow-up evaluation, in defiance of the petitioners
advise. Editha omitted the diligence required by the circumstances which could have avoided the
injury. The omission in not returning for a follow-up evaluation played a substantial part in bringing
about Edithas own injury. Had Editha returned, petitioner could have conducted the proper medical
tests and procedure necessary to determine Edithas health condition and applied the corresponding
treatment which could have prevented the rupture of Edithas uterus. The D&C procedure having
been conducted in accordance with the standard medical practice, it is clear that Edithas omission
was the proximate cause of her own injury and not merely a contributory negligence on her part.
Contributory negligence is the act or omission amounting to want of ordinary care on the part of the
person injured, which, concurring with the defendants negligence, is the proximate cause of the
injury.59 Difficulty seems to be apprehended in deciding which acts of the injured party shall be
considered immediate causes of the accident.60 Where the immediate cause of an accident resulting
in an injury is the plaintiffs own act, which contributed to the principal occurrence as one of its
determining factors, he cannot recover damages for the injury.61 Again, based on the evidence
presented in the present case under review, in which no negligence can be attributed to the
petitioner, the immediate cause of the accident resulting in Edithas injury was her own
omission when she did not return for a follow-up check up, in defiance of petitioners orders.
The immediate cause of Edithas injury was her own act; thus, she cannot recover damages
from the injury.
Lastly, petitioner asserts that her right to due process was violated because she was never informed
by either respondents or by the PRC that an appeal was pending before the PRC. 62 Petitioner claims
that a verification with the records section of the PRC revealed that on April 15, 1999, respondents
filed a Memorandum on Appeal before the PRC, which did not attach the actual registry receipt but
was merely indicated therein.63
Respondents, on the other hand avers that if the original registry receipt was not attached to the
Memorandum on Appeal, PRC would not have entertained the appeal or accepted such pleading for
lack of notice or proof of service on the other party.64 Also, the registry receipt could not be appended
to the copy furnished to petitioners former counsel, because the registry receipt was already
appended to the original copy of the Memorandum of Appeal filed with PRC. 65
It is a well-settled rule that when service of notice is an issue, the rule is that the person alleging that
the notice was served must prove the fact of service. The burden of proving notice rests upon the
party asserting its existence.66 In the present case, respondents did not present any proof that
petitioner was served a copy of the Memorandum on Appeal. Thus, respondents were not able to
satisfy the burden of proving that they had in fact informed the petitioner of the appeal proceedings
before the PRC.
In EDI-Staffbuilders International, Inc. v. National Labor Relations Commission,67 in which the
National Labor Relations Commission failed to order the private respondent to furnish the petitioner
a copy of the Appeal Memorandum, the Court held that said failure deprived the petitioner of
procedural due process guaranteed by the Constitution, which could have served as basis for the
nullification of the proceedings in the appeal. The same holds true in the case at bar. The Court finds
that the failure of the respondents to furnish the petitioner a copy of the Memorandum of Appeal
submitted to the PRC constitutes a violation of due process. Thus, the proceedings before the PRC
were null and void.
All told, doctors are protected by a special rule of law. They are not guarantors of care. They are not
insurers against mishaps or unusual consequences68 specially so if the patient herself did not
exercise the proper diligence required to avoid the injury.
WHEREFORE, the petition is GRANTED. The assailed Decision of the Court of Appeals dated July
4, 2003 in CA-GR SP No. 62206 is hereby REVERSED and SET ASIDE. The Decision of the Board
of Medicine dated March 4, 1999 exonerating petitioner is AFFIRMED. No pronouncement as to
costs.
SO ORDERED.
At about 1:30 a.m. on November 15, 1975, private respondent Leonardo Dionisio
was on his way home from cocktails and dinner meeting with his boss. He was
proceeding down General Lacuna Street when he saw a Ford dump truck parked
askew, partly blocking the way of oncoming traffic, with no lights or early warning
reflector devices. The truck was driven earlier by Armando Carbonel, a regular
driver of the petitioner company. Dionisio tried to swerve his car to the left, but it
was too late. He suffered some physical injuries and nervous breakdown. Dionision
filed an action for damages against Carbonel and Phoenix Insurance. Petitioners
countered the claim by imputing the accident to respondents own negligence in
driving at high speed without curfew pass and headlights, and while intoxicated.
The trial court and the Court of Appeals ruled in favor of private respondent.
Issue:
Whether the collision was brought about by the way the truck was parked, or by
respondents own negligence
Held:
We find that private respondent Dionisio was unable to prove possession of a valid
curfew pass during the night of the accident and that the preponderance of
evidence shows that he did not have such a pass during that night. It is the
petitioners' contention that Dionisio purposely shut off his headlights even before he
reached the intersection so as not to be detected by the police in the police precinct
which he (being a resident in the area) knew was not far away from the intersection.
We believe that the petitioners' theory is a more credible explanation than that
offered by private respondent Dionisio, i.e., that he had his headlights on but that,
at the crucial moment, these had in some mysterious if convenient way
malfunctioned and gone off, although he succeeded in switching his lights on again
at "bright" split seconds before contact with the dump truck. We do not believe that
this evidence is sufficient to show that Dionisio was so heavily under the influence
of liquor as to constitute his driving a motor vehicle per se an act of reckless
imprudence. The conclusion we draw from the factual circumstances outlined above
is that private respondent Dionisio was negligent the night of the accident. He was
hurrying home that night and driving faster than he should have been. Worse, he
extinguished his headlights at or near the intersection of General Lacuna and
General Santos Streets and thus did not see the dump truck that was parked askew
and sticking out onto the road lane.
Nonetheless, we agree with the Court of First Instance and the Intermediate
Appellate Court that the legal and proximate cause of the accident and of Dionisio's
injuries was the wrongful or negligent manner in which the dump truck was parked
in other words, the negligence of petitioner Carbonel. The collision of Dionisio's car
with the dump truck was a natural and foreseeable consequence of the truck
driver's negligence.
The distinctions between "cause" and "condition" which the 'petitioners would have
us adopt have already been "almost entirely discredited. If the defendant has
created only a passive static condition which made the damage possible, the
defendant is said not to be liable. But so far as the fact of causation is concerned, in
the sense of necessary antecedents which have played an important part in
producing the result it is quite impossible to distinguish between active forces and
passive situations, particularly since, as is invariably the case, the latter are the
result of other active forces which have gone before. Even the lapse of a
considerable time during which the "condition" remains static will not necessarily
affect liability. "Cause" and "condition" still find occasional mention in the decisions;
but the distinction is now almost entirely discredited. So far as it has any validity at
all, it must refer to the type of case where the forces set in operation by the
defendant have come to rest in a position of apparent safety, and some new force
intervenes. But even in such cases, it is not the distinction between "cause" and
"condition" which is important but the nature of the risk and the character of the
intervening cause.
We believe, secondly, that the truck driver's negligence far from being a "passive
and static condition" was rather an indispensable and efficient cause. The improper
parking of the dump truck created an unreasonable risk of injury for anyone driving
down General Lacuna Street and for having so created this risk, the truck driver
must be held responsible. In our view, Dionisio's negligence, although later in point
of time than the truck driver's negligence and therefore closer to the accident, was
not an efficient intervening or independent cause.
The defendant cannot be relieved from liability by the fact that the risk or a
substantial and important part of the risk, to which the defendant has subjected the
plaintiff has indeed come to pass. Foreseeable intervening forces are within the
scope original risk, and hence of the defendant's negligence. The courts are quite
generally agreed that intervening causes which fall fairly in this category will not
supersede the defendant's responsibility. Thus, a defendant who blocks the sidewalk
and forces the plaintiff to walk in a street where the plaintiff will be exposed to the
risks of heavy traffic becomes liable when the plaintiff is run down by a car, even
though the car is negligently driven; and one who parks an automobile on the
highway without lights at night is not relieved of responsibility when another
negligently drives into it. We hold that private respondent Dionisio's negligence was
"only contributory," that the "immediate and proximate cause" of the injury
remained the truck driver's "lack of due care" and that consequently respondent
Dionisio may recover damages though such damages are subject to mitigation by
the courts.
Petitioners also ask us to apply what they refer to as the "last clear chance"
doctrine. The common law notion of last clear chance permitted courts to grant
recovery to a plaintiff who had also been negligent provided that the defendant had
the last clear chance to avoid the casualty and failed to do so. Accordingly, it is
difficult to see what role, if any, the common law last clear chance doctrine has to
play in a jurisdiction where the common law concept of contributory negligence as
an absolute bar to recovery by the plaintiff, has itself been rejected, as it has been
in Article 2179 of the Civil Code of the Philippines. Under Article 2179, the task of a
court, in technical terms, is to determine whose negligence - the plaintiff's or the
defendant's - was the legal or proximate cause of the injury. The relative location in
the continuum of time of the plaintiff's and the defendant's negligent acts or
omissions, is only one of the relevant factors that may be taken into account. Of
more fundamental importance are the nature of the negligent act or omission of
each party and the character and gravity of the risks created by such act or
omission for the rest of the community. Our law on quasi-delicts seeks to reduce the
risks and burdens of living in society and to allocate them among the members of
society. To accept the petitioners' pro-position must tend to weaken the very bonds
of society.
We believe that the demands of substantial justice are satisfied by allocating most
of the damages on a 20-80 ratio. Thus, 20% of the damages awarded by the
respondent appellate court, except the award of P10,000.00 as exemplary damages
and P4,500.00 as attorney's fees and costs, shall be borne by private respondent
Dionisio; only the balance of 80% needs to be paid by petitioners Carbonel and
Phoenix who shall be solidarity liable therefor to the former. The award of exemplary
damages and attorney's fees and costs shall be borne exclusively by the petitioners.
Phoenix is of course entitled to reimbursement from Carbonel. 18 We see no
sufficient reason for disturbing the reduced award of damages made by the
respondent appellate court.
the said vehicle. He maintains that the alleged sale of the vehicle to Jalipa
was tainted with irregularity, which indicated collusion between the petitioner
and Jalipa.16
After a careful consideration of the parties' submissions, we find the petition
without merit.
Article 2179 of the Civil Code provides:
When the plaintiff's own negligence was the immediate and proximate
cause of his injury, he cannot recover damages. But if his negligence
was only contributory, the immediate and proximate cause of the injury
being the defendant's lack of due care, the plaintiff may recover
damages, but the courts shall mitigate the damages to be awarded.
The underlying precept on contributory negligence is that a plaintiff who is
partly responsible for his own injury should not be entitled to recover damages
in full, but must proportionately bear the consequences of his own negligence.
The defendant is thus held liable only for the damages actually caused by his
negligence.17
In this case, records show that when the accident happened, the victim was
standing on the shoulder, which was the uncemented portion of the highway.
As noted by the trial court, the shoulder was intended for pedestrian use
alone. Only stationary vehicles, such as those loading or unloading
passengers may use the shoulder. Running vehicles are not supposed to pass
through the said uncemented portion of the highway. However, the Ford Fiera
in this case, without so much as slowing down, took off from the cemented
part of the highway, inexplicably swerved to the shoulder, and recklessly
bumped and ran over an innocent victim. The victim was just where he should
be when the unfortunate event transpired.
Cimafranca, on the other hand, had no rightful business driving as recklessly
as she did. The respondent cannot be expected to have foreseen that the
Ford Fiera, erstwhile speeding along the cemented part of the highway would
suddenly swerve to the shoulder, then bump and run him over. Thus, we are
unable to accept the petitioner's contention that the respondent was negligent.
Coming now to the second and third issues, this Court has recently reiterated
in PCI Leasing and Finance, Inc. v. UCPB General Insurance Co., Inc.,18 that
the registered owner of any vehicle, even if he had already sold it to someone
else, is primarily responsible to the public for whatever damage or injury the
vehicle may cause. We explained,
Were a registered owner allowed to evade responsibility by proving
who the supposed transferee or owner is, it would be easy for him, by
collusion with others or otherwise, to escape said responsibility and
transfer the same to an indefinite person, or to one who possesses no
property with which to respond financially for the damage or injury done.
A victim of recklessness on the public highways is usually without
means to discover or identify the person actually causing the injury or
damage. He has no means other than by a recourse to the registration
in the Motor Vehicles Office to determine who is the owner. The
protection that the law aims to extend to him would become illusory
were the registered owner given the opportunity to escape liability by
disproving his ownership.19
In the case of Villanueva v. Domingo,20 we said that the policy behind vehicle
registration is the easy identification of the owner who can be held responsible
in case of accident, damage or injury caused by the vehicle. This is so as not
to inconvenience or prejudice a third party injured by one whose identity
cannot be secured.21
Therefore, since the Ford Fiera was still registered in the petitioner's name at
the time when the misfortune took place, the petitioner cannot escape liability
for the permanent injury it caused the respondent, who had since stopped
schooling and is now forced to face life with nary but two remaining limbs.
WHEREFORE, the petition is DENIED for lack of merit. The assailed Decision
dated September 16, 2002 and Resolution dated December 18, 2003 of the
Court of Appeals in CA-G.R. CV No. 64103 are hereby AFFIRMED. Costs
against the petitioner.
SO ORDERED.