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SPOUSES
BERNABE
AFRICA
and
SOLEDAD C. AFRICA and the HEIRS OF
DOMINGA ONG, petitioners-appellants, vs.
CALTEX (PHIL.) INC., MATEO BOQUIREN and
THE COURT OF APPEALS, respondentsappellees.1966 Mar 31
DIGEST
Facts: A fire broke out at a gasoline service station.
It started while gasoline was being hosed from a
tank into the underground storage. The fi re
spread to and burned several neighboring houses
owned by C, etc. The gasoline station as well as
the equipment therein is owned by P (Caltex). It
claims, however, that the business conducted at
the service station in question was owned and
operated by A.
Issue: Whether P should be held liable for the
damages caused to C, etc. This question depends
on whether A was an independent contractor or an
agent of P.
Licensee of a gasoline service station
operates station and its equipment under
the control of the owner. -- P should be held
liable. Under the license agreement, A, as
operator, would pay P purely nominal sum of P1.00
for the use of the premises and all equipment
therein. A could sell only Ps products.
Maintenance of the station and its equipment was
subject to the approval, in other words, control of
P. A could not assign or transfer his rights as
licensee without the consent of P. Termination of
the contract was a right granted only to P but not
to A. These provisions of the contract show that A
was virtually an employee of P, not an
independent contractor.
This case is before us on a petition for review of
the decision of the Court of Appeals, which
affirmed that of the Court of First Instance of
Manila dismissing petitioners' second amended
complaint against respondents.
The action is for damages under Articles 1902 and
1903 of the old Civil Code. It appears that in the
afternoon of March 18, 1948 a fire broke out at the
Caltex service station at the corner of Antipolo
street and Rizal Avenue, Manila. It started while
gasoline was being hosed from a tank truck into
the underground storage, right at the opening of
the receiving tank where the nozzle of the hose
was inserted. The fire spread to and burned
several neighboring houses, including the personal
properties and effects inside them. Their owners,
among them petitioners here, sued respondents
Caltex (Phil.), Inc. and Mateo Boquiren, the first as
alleged owner of the station and the second as its
agent in charge of operation. Negligence on the
part of both of them was attributed as the cause of
the fire.