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DAY THREE

3.2. DISTINGUISHED FROM CIVIL LIABILITY FROM omission itself which creates the vinculum juris, whereas in contractual relations
the vinculum exists independently of the breach of the voluntary duty assumed by
BREACH OF CONTRACT AND TORT FROM CONTRACT the parties when entering into the contractual relation.

When the source of obligation upon which plaintiff’s cause of action depends is a
CANGCO vs MANILA RAILROAD negligent act or omission, the burden of proof rest upon the plaintiff to prove
negligence. On the other hand, in contractual undertaking, proof of the contract
FACTS:
and of its nonperformance is sufficient prima facie to warrant recovery.
 Cangco, a clerk of the defendant, was on his way home via train. As the train The negligence of employee cannot be invoked to relieve the employer from
was about to stop in the station where Cangco usually deboards, Cangco, liability as it will make juridical persons completely immune from damages arising
alighted from the train as he and other passengers always did. Unfortunately, from breach of their contracts. Defendant was therefore liable for the injury
due to the fact that it was nighttime and that the station was dimly lighted, suffered by plaintiff, whether the breach of the duty were to be regarded as
Cangco was not able to see that there was a sack of watermelons on the constituting culpa aquiliana or contractual. As Manresa discussed, whether
platform. Thus, he landed on said melons and slipped. He was drawn under negligence occurs as an incident in the course of the performance of a contractual
the train and his arm was injured so severely that it had to be amputated. undertaking or is itself the source of an extra-contractual obligation, its essential
 Cangco sued defendant for damages due to negligence of servants & characteristics are identical. There is always an act or omission productive of
employees in placing the sack of melons which obstructed the passenger‘s damage due to carelessness or inattention on the part of the defendant. The
egress. contract of defendant to transport plaintiff carried with it, by implication, the duty
to carry him in safety and to provide safe means of entering and leaving its trains.
ISSUE:
Whether or not Manila Railroad is liable Contributory negligence on the part of petitioner as invoked by defendant is
untenable. In determining the question of contributory negligence in performing
HELD: such act- that is to say, whether the passenger acted prudently or recklessly- age,
Yes. sex, and physical condition of the passenger are circumstances necessarily affecting
the safety of the passenger, and should be considered. It is to be noted that the
It is implied from the contract of carriage of the defendant the duty to carry him place was perfectly familiar to plaintiff as it was his daily routine. Our conclusion is
safely and provide him with a safe means to come in and out of the train. Being there is slightly underway characterized by imprudence and therefore was not
contractual, that duty was direct and immediate. Its non-performance cannot be guilty of contributory negligence.
excused due to the fault of defandant‘s employees.

It cannot be doubted that the employees of defendant were guilty of negligence in


piling these sacks of watermelon on the platform in the manner stated. It AIR FRANCE vs CARRASCOSO
necessarily follows that the defendant company is liable for the damage thereby
occasioned unless recovery is barred by the plaintiff’s own contributory negligence. FACTS:
Plaintiff, a civil engineer, was a member of a group of 48 Filipino pilgrims that left
It is to be noted that the foundation of the legal liability is the contract of carriage. Manila for Lourdes on March 30, 1958.
However Art. 1903 relates only to culpa aquiliana and not to culpa contractual, as
the Court cleared on the case of Rakes v. Atlantic Gulf. It is not accurate to say that On March 28, 1958, the defendant, Air France, through its authorized agent,
proof of diligence and care in the selection and control of the servant relieves the Philippine Air Lines, Inc., issued to plaintiff a "first class" round trip airplane ticket
master from liability for the latter’s act. The fundamental distinction between from Manila to Rome. From Manila to Bangkok, plaintiff travelled in "first class",
obligation of this character and those which arise from contract, rest upon the fact but at Bangkok, the Manager of the defendant airline forced plaintiff to vacate the
that in cases of non-contractual obligations it is the wrongful or negligent act or "first class" seat that he was occupying because, in the words of the witness
Ernesto G. Cuento, there was a "white man", who, the Manager alleged, had a
DAY THREE

"better right" to the seat. When asked to vacate his "first class" seat, the plaintiff,
as was to be expected, refused, and told defendant's Manager that his seat would The contract of air carriage, therefore, generates a relation attended with a public
be taken over his dead body; a commotion ensued, and, according to said Ernesto duty. Neglect or malfeasance of the carrier's employees, naturally, could give
G. Cuento, "many of the Filipino passengers got nervous in the tourist class; when ground for an action for damages.
they found out that Mr. Carrascoso was having a hot discussion with the white man Passengers do not contract merely for transportation. They have a right to be
[manager], they came all across to Mr. Carrascoso and pacified Mr. Carrascoso to treated by the carrier's employees with kindness, respect, courtesy and due
give his seat to the white man"; and plaintiff reluctantly gave his "first class" seat in consideration.
the plane.
Although the relation of passenger and carrier is "contractual both in origin and
DECISION OF LOWER COURTS: nature" nevertheless "the act that breaks the contract may be also a tort". The
1. CFI – Manila: sentenced petitioner to pay respondent Rafael Carrascoso stress of Carrascoso's action as we have said, is placed upon his wrongful expulsion.
P25,000.00 by way of moral damages; P10,000.00 as exemplary damages; P393.20 This is a violation of public duty by the petitioner air carrier — a case of quasi-
representing the difference in fare between first class and tourist class for the delict. Damages are proper.
portion of the trip Bangkok- Rome, these various amounts with interest at the legal
rate, from the date of the filing of the complaint until paid; plus P3,000.00 for The judgment of the lower courts did not suffer reversible error.
attorneys' fees; and the costs of suit.
2. CA: slightly reduced the amount of refund on Carrascoso's plane ticket from
P393.20 to P383.10, and voted to affirm the appealed decision "in all other
respects", with costs against petitioner.
SINGSON vs BPI
Air France contends that respondent knew that he did not have confirmed
FACTS:
reservations for first class on any specific flight, although he had tourist class
protection; that, accordingly, the issuance of a first class ticket was no guarantee  It appears that Singson, was one of the defendants in civil case No. 23906
that he would have a first class ride, but that such would depend upon the of the Court of First Instance, Manila, in which judgment had been
availability of first class seats. rendered sentencing him and his co-defendants. Singson and Lobregat
had seasonably appealed from said judgment, but not Villa-Abrille & Co.,
ISSUE: as against which said judgment, accordingly, became final and executory.
Whether or not Carrascoso is entitled to damages In due course, a writ of garnishment was subsequently served upon the
Bank of the Philippine Islands — in which the Singsons had a current
HELD:
Yes. The manager not only prevented Carrascoso from enjoying his right to a first account — insofar as Villa-Abrille's credits against the Bank were
class seat; worse, he imposed his arbitrary will; he forcibly ejected him from his concerned.
seat, made him suffer the humiliation of having to go to the tourist class  Upon receipt of the said Writ of Garnishment, the clerk of the bank,
compartment - just to give way to another passenger whose right thereto has not without further reading the body of the said garnishment and informing
been established. Certainly, this is bad faith. Unless, of course, bad faith has himself that said garnishment was merely intended for the deposits of
assumed a meaning different from what is understood in law. For, "bad faith"
defendant Villa-Abrille & Co et al, prepared a letter for the signature of
contemplates a "state of mind affirmatively operating with furtive design or with
some motive of self-interest or will or for ulterior purpose." the President of the Bank informing plaintiff Julian C. Singson of the
garnishment of his deposits. Another letter was also prepared and signed
For the willful malevolent act of petitioner's manager, petitioner, his employer, by the said President of the Bank for the Special Sheriff.
must answer. Article 21 of the Civil Code says: ART. 21. Any person who willfully  Subsequently, two checks issued by the plaintiff Julian C. Singson, one in
causes loss or injury to another in a manner that is contrary to morals, good favor of B. M. Glass Service and another in favor of the Lega Corporation,
customs or public policy shall compensate the latter for the damage. were dishonored by the bank. B. M. Glass Service then wrote to Singson
DAY THREE

that the check was not honored by BPI because his account therein had
SO PING BUN vs CA
already been garnished and that they are now constrained to close his
credit account with them. FACTS:
 Singsong commenced the present action against the Bank and its Tek Hua Trading Co, through its managing partner, So Pek Giok, entered into lease
president, Santiago Freixas, for damages in consequence of said illegal agreements with DCCSI. Lease is for one year. It was not renewed but Tek Hua
freezing of plaintiffs' account. Trading continued to occupy the property. Tek Hua was later dissolved and one of
its original partner Manual Tiong formed Tek Hua Enterprising Corp. When So Pek
Giok died, his grandson petitioner So Ping Bun occupied the leased property as his
CFI of Manila held that plaintiffs' claim for damages cannot be based upon a tort or
warehouse for Trendsetter Marketing. DCCSI later sent a letter to Tek Hua
quasi-delict, their relation with the defendants being contractual in nature.
Enterprise, increasing the rent by 30%. The letter was not answered by Tek Hua,
but nevertheless the lease contract was not rescinded.
ISSUE:
Whether or not contractual relation between the parties precludes an action for
Tek Hua sent a separate letter to So Ping Bun demanding the latter to vacate the
torts
premises he was occupying since Tek Hua needs it for his textile business. So Ping
refused and instead negotiated with DCCSI that a contract of lease between him
HELD:
and DCCSI be. So Ping Bun claimed that after the death of his grandfather, So Pek
No. In Air France vs. Carrascoso, involving an airplane passenger who, despite his
Giok, he had been occupying the premises for his textile business and religiously
first-class ticket, had been illegally ousted from his first-class accommodation and
paid rent. DCCSI acceded to petitioner's request. The lease contracts in favor of
compelled to take a seat in the tourist compartment, was held entitled to recover
Trendsetter were executed.
damages from the air-carrier, upon the ground of tort on the latter's part, for,
although the relation between a passenger and a carrier is "contractual both in
Tek Hua thus instituted the case against So Ping Bun for Turtuous Interference of
origin and nature ... the act that breaks the contract may also be a tort".
Contract.
In view, however, of the facts obtaining in the case at bar, and considering,
ISSUE:
particularly, the circumstance, that the wrong done to the plaintiff was remedied
Whether or not So Ping Bun is guilty of tortuous Interference of Contract
as soon as the President of the bank realized the mistake he and his subordinate
employee had committed, the Court finds that an award of nominal damages —
HELD:
the amount of which need not be proven4 — in the sum of P1,000, in addition to
YES.
attorney's fees in the sum of P500, would suffice to vindicate plaintiff's rights.
The elements of tort interference are: (1) existence of a valid contract; (2)
The judgment appealed from is hereby reversed, and another one shall be entered
knowledge on the part of the third person of the existence of contract; and (3)
sentencing the defendant Bank of the Philippine Islands to pay to the plaintiffs said
interference of the third person is without legal justification or excuse.
sums of P1,000, as nominal damages, and P500, as attorney's fees, apart from the
costs.
As early as Gilchrist vs. Cuddy, we held that where there was no malice in the
interference of a contract, and the impulse behind one's conduct lies in a proper
business interest rather than in wrongful motives, a party cannot be a malicious
interferer. Where the alleged interferer is financially interested, and such interest
motivates his conduct, it cannot be said that he is an officious or malicious
intermeddler.

In the instant case, it is clear that petitioner So Ping Bun prevailed upon DCCSI to
lease the warehouse to his enterprise at the expense of respondent corporation.
DAY THREE

Though petitioner took interest in the property of respondent corporation and presented evidence Prudent and Escartin: demurrer contending that
benefited from it, nothing on record imputes deliberate wrongful motives or malice Navidad had failed to prove that Escartin was negligent in his assigned
on him. task
 RTC: In favour of widow and against Prudent and Escartin, complaint
Sec. 1314 of the Civil Code categorically provides also that, "Any third person who against LRT and Roman were dismissed for lack of merit
induces another to violate his contract shall be liable for damages to the other  CA: reversed by exonerating Prudent and held LRTA and Roman liable
contracting party." Petitioner argues that damage is an essential element of tort
interference, and since the trial court and the appellate court ruled that private ISSUE:
respondents were not entitled to actual, moral or exemplary damages, it follows Whether or not LRTA and Roman should be liable according to the contract of
that he ought to be absolved of any liability, including attorney's fees. carriage

While we do not encourage tort interferers seeking their economic interest to HELD:
intrude into existing contracts at the expense of others, however, we find that the  NO. Affirmed with Modification: (a) nominal damages is DELETED
conduct herein complained of did not transcend the limits forbidding an obligatory (CANNOT co-exist w/ compensatory damages) (b) Roman is absolved.
award for damages in the absence of any malice. The business desire is there to  Law and jurisprudence dictate that a common carrier, both from the
make some gain to the detriment of the contracting parties. Lack of malice, nature of its business and for reasons of public policy, is burdened with
however, precludes damages. But it does not relieve petitioner of the legal liability the duty off exercising utmost diligence in ensuring the safety of
for entering into contracts and causing breach of existing ones. The respondent passengers Civil Code:
appellate court correctly confirmed the permanent injunction and nullification of  Art. 1755. A common carrier is bound to carry the passengers safely as
the lease contracts between DCCSI and Trendsetter Marketing, without awarding far as human care and foresight can provide, using the utmost diligence
damages. The injunction saved the respondents from further damage or injury of very cautious persons, with a due regard for all the circumstances.
caused by petitioner's interference.  Art. 1756. In case of death or injuries to passengers, common carriers
are presumed to have been at fault or to have acted negligently, unless
they prove that they observed extraordinary diligence as prescribed in
LRTA vs NAVIDAD articles 1733 and 1755
 Art. 1759. Common carriers are liable for the death of or injuries to
FACTS: passengers through the negligence or wilful acts of the former’s
 October 14, 1993, 7:30 p.m.: Drunk Nicanor Navidad (Nicanor) entered employees, although such employees may have acted beyond the scope
the EDSA LRT station after purchasing a “token”. of their authority or in violation of the orders of the common carriers
 While Nicanor was standing at the platform near the LRT tracks, the  This liability of the common carriers does NOT cease upon proof that
guard Junelito Escartin approached him. they Exercised all the diligence of a good father of a family in the
 Due to misunderstanding, they had a fist fight Nicanor fell on the tracks selection and supervision of their employees
and killed instantaneously upon being hit by a moving train operated by  Art. 1763. A common carrier is responsible for injuries suffered by a
Rodolfo RomanDecember 8, 1994: passenger on account of the wilful acts or negligence of other
 The widow of Nicanor, along with her children, filed a complaint for passengers or of strangers, if the common carrier’s employees through
damages against Escartin, Roman, LRTA, Metro Transit Org. Inc. and the exercise of the diligence of a good father of a family could have
Prudent (agency of security guards) for the death of her husband. prevented or stopped the act or omission.
 LRTA and Roman filed a counter-claim against Nicanor and a cross-claim  Carriers presumed to be at fault or been negligent and by simple proof
against Escartin and Prudent of injury, the passenger is relieaved of the duty to still establish the fault
 Prudent: denied liability – averred that it had exercised due diligence in or negligence of the carrier or of its employees and the burden shifts
the selection and surpervision of its security guards LRTA and Roman: upon the carrier to prove that the injury is due to an unforeseen event or
to force majeure
DAY THREE

 Where it hires its own employees or avail itself of the services of an L.C. Diaz charged its messenger, Emerano Ilagan (“Ilagan”) and one Roscon
outsider or an independent firm to undertake the task, the common Verdazola with Estafa through Falsification of Commercial Document. L.C. Diaz
carrier is NOT relieved of its responsibilities under the contract of through its counsel demanded from Solidbank the return of its money. Solidbank
carriage refused.
 General Rule: Prudent can be liable only for tort under Art. 2176 and In absolving Solidbank, the trial court applied the rules on savings account written
related provisions in conjunction with Art. 2180 of the Civil Code. (Tort on the passbook. The rules state that “possession of this book shall raise the
may arise even under a contract, where tort [quasi-delict liability] is that presumption of ownership and any payment or payments made by the bank upon
which breaches the contract) the production of the said book and entry therein of the withdrawal shall have the
 EX: if employer’s liability is negligence or fault on the part of the same effect as if made to the depositor personally.” The Court of Appeals ruled
employee, employer can be made liable on the basis of the presumption that Solidbank’s negligence was the proximate cause of the unauthorized
juris tantum that the employer failed to exercise diligentissimi patris withdrawal of P300,000 from the savings account of L.C. Diaz.
families in the selection and supervision of its employees.
 EX to the EX: Upon showing due diligence in the selection and ISSUE:
supervision of the employee Whether or not the doctrine of last clear chance applies to Solid bank
 Factual finding of the CA: NO link bet. Prudent and the death of Nicanor
for the reason that the negligence of Escartin was NOT proven NO HELD:
showing that Roman himself is guilty of any culpable act or omission, he NO. We hold that Solidbank is liable for breach of contract due to negligence, or
must also be absolved from liability Contractual tie bet. LRT and Nicanor culpa contractual. The law imposes on banks high standards in view of the fiduciary
is NOT itself a juridical relation bet. Nicanor and Roman. Roman can be nature of banking. The law simply imposes on the bank a higher standard of
liable only for his own fault or negligence integrity and performance in complying with its obligations under the contract of
simple loan, beyond those required of non-bank debtors under a similar contract of
simple loan. Article 1172 of the Civil Code provides that “responsibility arising from
negligence in the performance of every kind of obligation is demandable.” For
CONSOLIDATED BANK vs CA breach of the savings deposit agreement due to negligence, or culpa contractual,
the bank is liable to its depositor. Solidbank’s tellers must exercise a high degree of
FACTS: diligence in insuring that they return the passbook only to the depositor or his
L.C. Diaz through its cashier, Mercedes Macaraya (“Macaraya”), filled up a savings authorized representative.
(cash) deposit slip for P990 and a savings (checks) deposit slip for P50. Macaraya
instructed the messenger of L.C. Diaz, Ismael Calapre (“Calapre”), to deposit the In culpa contractual, once the plaintiff proves a breach of contract, there is a
money with Solidbank. Macaraya also gave Calapre the Solidbank passbook. presumption that the defendant was at fault or negligent. The burden is on the
Calapre went to Solidbank and presented to Teller No. 6 the two deposit slips and defendant to prove that he was not at fault or negligent. In contrast, in culpa
the passbook. The teller acknowledged receipt of the deposit by returning to aquiliana the plaintiff has the burden of proving that the defendant was negligent.
Calapre the duplicate copies of the two deposit slips. Teller No. 6 stamped the In the present case, L.C. Diaz has established that Solidbank breached its
deposit slips with the words “DUPLICATE” and “SAVING TELLER 6 SOLIDBANK HEAD contractual obligation to return the passbook only to the authorized representative
OFFICE.” of L.C. Diaz. There is thus a presumption that Solidbank was at fault and its teller
The following day, 15 August 1991, L.C. Diaz through its Chief Executive Officer, Luis was negligent in not returning the passbook to Calapre. The burden was on
C. Diaz (“Diaz”), called up Solidbank to stop any transaction using the same Solidbank to prove that there was no negligence on its part or its employees.
passbook until L.C. Diaz could open a new account. On the same day, Diaz formally
wrote Solidbank to make the same request. It was also on the same day that L.C. Proximate cause is that cause which, in natural and continuous sequence,
Diaz learned of the unauthorized withdrawal the day before. unbroken by any efficient intervening cause, produces the injury and without which
the result would not have occurred. Proximate cause is determined by the facts of
each case upon mixed considerations of logic, common sense, policy and
DAY THREE

precedent. We do not apply the doctrine of last clear chance to the present case. ISSUE:
Solidbank is liable for breach of contract due to negligence in the performance of Whether or not Crisostomo is entitled to refund for she was more negligent than
its contractual obligation to L.C. Diaz. This is a case of culpa contractual, where the private respondent
neither the contributory negligence of the plaintiff nor his last clear chance to avoid
the loss, would exonerate the defendant from liability. HELD:
Yes Petitioner was more negligent and not entitled to refund.

This is not a contract of carriage contract but an ordinary contract since private
CRISOSTOMO vs CA respondent is not on the business of transporting either passengers or goods thus
neither private nor a common carrier. Respondent’s service is travel agency which
FACTS:
includes ticketing and facilitating travel permits or visa as well as booking
 Petitioner Crisostomo contracted the services of respondent Caravan customers for tours.
Travel and Tours Intl. to arrange and facilitate a tour dubbed as Jewel of
Europe. The standard of care required of respondent is that of a goof father of a family
 Menor who was the respondent's ticketing manager and the niece of the under Article 1173 of the Civil Code.
petitioner delivered to the petitioner her travel document and plane
ticket and told her to be on NAIA on Saturday. In turn petitioner gave Menor’s negligence was not sufficiently proved considering that he only evidence
menor the full payment for the package. presented on this score was petitioner’s uncorroborated narration.
 Without checking her travel documents, petitioner went to NAIA on
Saturday to take the flight but she discovered that the flight she was The evidence on record shows that respondent exercised due diligence in
suppose to take had already departed the previous day and that her performing its obligations under the contract ad followed standard procedure in
plane ticket was for the flight schedule on June 14, 1991 and not June 15, rendering its service to petitioner.
1991.
 Petitioner called Menor. Menor prevailed upon petitioner to take The plane ticket issued to petitioner clearly reflected the departure date and time
another tour called the British Pageant. Petitioner made partial payment contrary to petitioner’s contention. The travel document consist of the itinerary,
and commence with the trip. voucher, instructions which was likewise delivered to petitioner 2 days prior to the
 Upon return she demanded the respondent the reimbursement of the trip. Respondent properly booked petitioner for the tour, prepared the necessary
difference between the amount she paid to the respondent and the documents and procured the plane tickets. It arranged the petitioner’s hotel
amount she owned to the respondent. accommodation as well as food, land transfers and sightseeing excursions in
 Respondent refused to reimburse the amount contending that the same accordance with its avowed undertaking.
was non-refundable.
 Respondent filed a complaint against respondent for breach of contract Had petitioner exercised due diligence in the conduct of her affairs, there would
of carriage and damages. That her failure to join the Jewel of Europe was have been no reason for her to miss the flight. Respondent company performed its
due to the respondent's fault since it did not clearly indicate the duty diligently and did not commit any contractual breach hence petitioner cannot
departure date on the plane ticket. Respondent was also negligent on recover and must bear her own damage.
informing her of a wrong flight schedule and insist that the British
Pageant tour was merely a substitute for the Jewel of Europe tour such
that the cost must be set-off.
 Trial court favored the Petitioner
 CA reverse and set aside the decision of the Trial Court.
DAY THREE

PAL vs SAVILLO Article 19 of the Warsaw Convention provides for liability on the part of a carrier
for "damages occasioned by delay in the transportation by air of passengers,
FACTS:
baggage or goods." Article 24 excludes other remedies by further providing that
 Grino was invited to participate in the 1993 ASEAN Seniors Annual Golf "(1) in the cases covered by articles 18 and 19, any action for damages, however
Tournament held in Jakarta, Indonesia. founded, can only be brought subject to the conditions and limits set out in this
 In 1993, He and several companions decided to purchase their respective convention.". A claim covered by the Warsaw Convention can no longer be
passenger tickets from PAL with the following points of passage: MANILA- recovered under local law, if the statute of limitations of two years has already
SINGAPORE-JAKARTA-SINGAPORE-MANILA. Grino and his companions lapsed. Nevertheless, this Court notes that jurisprudence in the Philippines and the
were made to understand by PAL that its plane would take them from United States also recognizes that the Warsaw Convention does not "exclusively
Manila to Singapore, while Singapore Airlines would take them from regulate" the relationship between passenger and carrier on an international flight.
Singapore to Jakarta.
 Upon landing in SG, Singapore Airlines refused to accept their tickets In United Airlines v. Uy, this Court distinguished between the (1) damage to the
since it was not indorsed by PAL. They contend that without passenger’s baggage and (2) humiliation he suffered at the hands of the airline’s
indorsement, PAL wouldn’t pay them for the passage. Grino tried calling employees. The first cause of action was covered by the Warsaw Convention which
PAL’s office but it was closed. prescribes in two years, while the second was covered by the provisions of the Civil
 Stranded at the airport in SG and left with no recourse, Grino was Code on torts, which prescribes in four years. In Wolgel v. Mexicana Airlines, the
subjected to humiliation, embarrassment, mental anguish, serious court pronounced that actions for damages for the "bumping off" itself, rather
anxiety, fear and distress. Eventually, he and his companions were forced than the incidental damages due to the delay, fall outside the Warsaw Convention
to purchase tickets from Garuda Airlines and board its last flight bound and do not prescribe in two years.
for Jakarta. When they arrived in Jakarta at about 12:00 o’clock midnight,
the party who was supposed to fetch them from the airport had already Grino’s complaint alleged that both PAL and Singapore Airlines were guilty of gross
left and they had to arrange for their transportation to the hotel at a very negligence, which resulted in his being subjected to "humiliation, embarrassment,
late hour. After the series of nerve-wracking experiences, private mental anguish, serious anxiety, fear and distress." The emotional harm suffered by
respondent became ill and was unable to participate in the tournament. the private respondent as a result of having been unreasonably and unjustly
 Grino, upon his return, sent a demand letter to PAL and Singapore prevented from boarding the plane should be distinguished from the actual
Airlines in 1993 and 1994 respectively, but both denied liability and damages which resulted from the same incident. Under the Civil Code provisions
pointed fingers at the other. on tort, such emotional harm gives rise to compensation where gross negligence or
 In 1997, Grino thus filed with the RTC a complaint for damages. malice is proven.
o PAL filed a Motion to Dismiss, arguing that the 2-yr prescriptive
period has lapsed, pursuant to the Warsaw Convention for Singapore Airlines barred private respondent from boarding the Singapore Airlines
international contracts of carriage. flight because PAL allegedly failed to endorse the tickets of private respondent and
o Grino argues that the NCC should apply. his companions, despite PAL’s assurances to respondent that Singapore Airlines
o RTC denied the Motion. had already confirmed their passage. While this fact still needs to be heard and
o CA affirmed the RTC. established by adequate proof before the RTC, an action based on these allegations
will not fall under the Warsaw Convention, since the purported negligence on the
ISSUE: part of PAL did not occur during the performance of the contract of carriage but
Whether or not the Warsaw Convention governs this situation, and if Grino can days before the scheduled flight. Had the present case merely consisted of claims
recover damages incidental to the airlines’ delay in transporting their passengers, the private
respondent’s Complaint would have been time-barred under Article 29 of the
HELD: Warsaw Convention. However, the present case involves a special species of injury
NO. Grino’s action is covered by torts under the NCC, which prescribes in 4 years. resulting from the failure of PAL and/or Singapore Airlines to transport private
DAY THREE

respondent from Singapore to Jakarta – the profound distress, fear, anxiety and necessary that he committed no negligence or misconduct that may have
humiliation that private respondent experienced when, despite PAL’s earlier occasioned the loss.
assurance that Singapore Airlines confirmed his passage, he was prevented from
boarding the plane and he faced the daunting possibility that he would be stranded ISSUE:
in Singapore Airport because the PAL office was already closed. Whether or not G&S Transport is liable for the death of Marcial.

HELD:
YES.
HEIRS OF OCHOA vs G&S TRANSPORT
In a contract of carriage, it is presumed that the common carrier is at fault or is
FACTS:
negligent when a passenger dies or is injured. In fact, there is even no need for the
Jose Marcial boarded Avis Coupon Taxi owned by G&S Transport Corporation from
court to make an express finding of fault or negligence on the part of the common
Manila Domestic Airport to Teachers Village, Diliman Quezon City. The cab was
carrier. This statutory presumption may only be overcome by evidence that the
driven by Babinia Padilla Jr. As the taxi was cruising along EDSA, the driver Padilla,
carrier exercised extraordinary diligence." Unfortunately, G & S miserably failed to
while going up the (Santolan) fly-over, it overtook another cab driven by Pablo
overcome this presumption.
Clave and tried to pass another vehicle, a ten-wheeler cargo truck. Because of the
narrow space between the left side railing of the fly-over and the ten-wheeler
The acquittal of Padilla in the criminal case is immaterial to the instant case for
truck, the Avis cab was unable to pass and because of its speed, its driver (Padilla)
breach of contract. This case, the action filed by the heirs is primarily for the
was unable to control it. To avoid colliding with the truck, Padilla turned the wheel
recovery of damages arising from breach of contract of carriage allegedly
to the left causing his taxicab to ram the railing throwing itself off the fly-over and
committed by G & S. Clearly, it is an independent civil action arising from contract
fell on the middle surface of EDSA below. The forceful drop of the vehicle on the
which is separate and distinct from the criminal action for reckless imprudence
floor of the road broke and split it into two parts. Jose Marcial dies because of the
resulting in homicide filed by the heirs against Padilla by reason of the same
said accident. A complaint for reckless imprudence resulting to homicide was filed
incident. Hence, regardless of Padilla’s acquittal or conviction in said criminal case,
against Padilla but he was acquitted.
same has no bearing in the resolution of the present case.
The heirs of Jose Marcial sent G & S a letter demanding that the latter indemnify
them for Jose Marcial's death. The demands were ignored by the defendant hence
they filed a complaint for damages with the RTC Pasig. The heirs alleged that G &
S, as a common carrier, is under legal obligation to observe and exercise
extraordinary diligence in transporting its passengers to their destination safely and
securely. They averred that G & S is liable to them for having breached the contract
of common carriage. As an alternative cause of action, they asserted that G & S is
likewise liable for damages based on quasi-delict pursuant to Article 21806 in
relation to Article 21767 of the Civil Code.
The defendant then alleged that the e Avis taxicab was bumped by an on-rushing
delivery van at the right portion causing the taxicab to veer to the left, ram through
the left side of the railings of the fly-over and fall to the center of the island below.
They contended that the proximate cause of Jose Marcial's death is a fortuitous
event and/or the fault or negligence of the driver of the delivery van that hit the
taxicab. It likewise claimed that it exercised the diligence required of a good father
of a family in the selection and supervision of its employees including Padilla.
The RTC ruled in favor of the Heirs Jose Marcial. The appellate court gave weight to
their argument that in order for a fortuitous event to exempt one from liability, it is
DAY THREE

QUASI-DELICTS ISSUE:
Is Smith liable for negligence.

1.1. CONCEPT – NCC 1173 HELD:


YES.

PICART vs SMITH The question as to what would constitute the conduct of a prudent man in a given
situation must of course be always determined in the light of human experience
FACTS: and in view of the facts involved in the particular case. Abstract speculations
 On the Carlatan Bridge in La Union. Picart was riding on his pony over cannot here be of much value but this much can be profitably said: Reasonable
said bridge. Before he had gotten half way across, Smith approached men govern their conduct by the circumstances which are before them or known
from the opposite direction in an automobile. As the defendant neared to them. They are not, and are not supposed to be, omniscient of the future. Hence
the bridge he saw a horseman on it and blew his horn to give warning of they can be expected to take care only when there is something before them to
his approach. suggest or warn of danger. Could a prudent man, in the case under consideration,
 He continued his course and after he had taken the bridge he gave two foresee harm as a result of the course actually pursued? If so, it was the duty of
more successive blasts, as it appeared to him that the man on horseback the actor to take precautions to guard against that harm. Reasonable foresight of
before him was not observing the rule of the road. Picart saw the harm, followed by ignoring of the suggestion born of this prevision, is always
automobile coming and heard the warning signals. However, being necessary before negligence can be held to exist. Stated in these terms, the proper
perturbed by the novelty of the apparition or the rapidity of the criterion for determining the existence of negligence in a given case is this:
approach, he pulled the pony closely up against the railing on the right Conduct is said to be negligent when a prudent man in the position of the
side of the bridge instead of going to the left. tortfeasor would have foreseen that an effect harmful to another was sufficiently
 He says that the reason he did this was that he thought he did not have probable to warrant his foregoing conduct or guarding against its consequences.
sufficient time to get over to the other side. As the automobile Applying this test to the conduct of the defendant in the present case we think that
approached, Smith guided it toward his left, that being the proper side of negligence is clearly established. A prudent man, placed in the position of the
the road for the machine. defendant, would in our opinion, have recognized that the course which he was
 In so doing the defendant assumed that the horseman would move to pursuing was fraught with risk, and would therefore have foreseen harm to the
the other side. Seeing that the pony was apparently quiet, the defendant, horse and the rider as reasonable consequence of that course. Under these
instead of veering to the right while yet some distance away or slowing circumstances the law imposed on the defendant the duty to guard against the
down, continued to approach directly toward the horse without threatened harm.
diminution of speed.
 When he had gotten quite near, there being then no possibility of the It goes without saying that the plaintiff himself was not free from fault, for he was
horse getting across to the other side, the defendant quickly turned his guilty of antecedent negligence in planting himself on the wrong side of the road.
car sufficiently to the right to escape hitting the horse; but in so doing the But as we have already stated, the defendant was also negligent; and in such case
automobile passed in such close proximity to the animal that it became the problem always is to discover which agent is immediately and directly
frightened and turned its body across the bridge, got hit by the car and responsible. It will be noted that the negligent acts of the two parties were not
the limb was broken. contemporaneous, since the negligence of the defendant succeeded the
 The horse fell and its rider was thrown off with some violence. As a result negligence of the plaintiff by an appreciable interval. Under these circumstances
of its injuries the horse died. The plaintiff received contusions which the law is that the person who has the last fair chance to avoid the impending
caused temporary unconsciousness and required medical attention for harm and fails to do so is chargeable with the consequences, without reference
several days. to the prior negligence of the other party.
From a judgment of the CFI of La Union absolving Smith from liability Picart has
appealed.
DAY THREE

SMITH BELL DODWELL SHIPPING vs BORJA DELSAN TRANSPORT vs C&A CONSTRUCTION


FACTS: FACTS:
Petitioner’s vessel was carrying a chemical cargo – alkyl benzene and methyl C & A construction, construct a deflector wall at the Vitas reclamation Area in
methacrylate monomer. While knowing that their vessel was carrying dangerous Tondo,
inflammable chemicals, its officers and crew failed to take all the necessary Manila it was not formally turnover to National Housing Authority though it was
precautions to prevent an accident. Petitioner was therefore negligent. completed in 1994. On 12:00 midnight of October 20, 1994 Captain Demetrio T.
Jusep of M/V Delsan Express receive a report that that a typhoon was going to hit
Smith Bell (petitioner) filed a written request with the Bureau of Customs for the Manila after eight (8) hours. At 8:35AM he tried to seek shelter but it was already
attendance of the Latter’s inspection team on vessel M/T king family which was congested. At 10:00 a.m. Capt. Jusep drop the anchor at the vicinity of Vitas mouth,
due to arrive at the port of manila. Said vessel contained 750 metric tons of alkyl the waves were already reaching 8 to 10 feet. The ship was dragged by the wind
benzene and methyl methacrylate monomer. On the same day, supervising customs toward the Napocor power barge Capt. Jusep ordered a full stop of the vessel to
Inspector Manuel Nalgan instructed respondent Catalino Borja to board said vessel avoid the collision but when the engine was re-started, it hit the deflector wall
and perform his duties as inspector upon the vessel’s arrival until its departure. constructed by the respondent. P456,198.24 was the damaged cause by the
While M/T king family was unloading chemical unto 2 barges, a sudden explosion incident. C & A Construction demanded payment of the damages from Capt. Jusep
occurred setting the vessels afire. Upon hearing this, Borja who was inside the but the latter refused to pay due to the cause of the incident was by a fortuitous
cabin preparing reports, ran outside to check. Another explosion was again heard. event. The trial court ruled that Jusep was not guilty of negligence in applying the
Fearing for his life, Borja jumped overboard to save himself. The water howver was “emergency rule: because it had taken necessary precautions to avoid accident. CA
likewise on fire because of the chemicals. Despite this he mange to swam his wasy reversed & set aside the decision. Captain Jusep was found guilty of negligence in
for an hour until he was rescued and sent to the hospital. He was diagnosed to be transferring the vessel only at 8:35 a.m. of October 21,1994 and held liable for
permanently disabled due to the incident. damages in waiting until 8:35 a.m. before transfering the vessel to sought shelter.

ISSUE: ISSUE:
WON Smith bell is not liable as it claims that the explosion occurred outside of its (1) Whether or not Capt. Jusep was negligent.
vessel (2) Whether or not the petitioner is solidarily liable under Art. 2180 of the Civil
Code for Quasi-Delict.
HELD:
No. Smith Bell is liable. The lower court and CA ruled that the fire and explosion HELD:
had originated from the petitioner’s vessel. Knowing fully well that it was carrying (1) The court finds Captain Jusep is guilty of negligence, the failure to take
dangerous chemicals, petitioner was negligent in not taking all the necessary immediate and appropriate action under the circumstances, despite the knowledge
precautions in transporting the cargo. Respondent Borja suffered the following that there is typhoon but he waited for the lapse of eight (8) hours instead. Captain
damage and injuries: (1) chemical burns of the face and arm; (2) inhalation of Jusep showed an inexcusable lack of care and caution which an ordinary prudent
fumes from burning chemicals; (3) exposure to the elements while floating in sea person would have observed in the same situation.
water for about three hours; (4) homonymous hemianopsia or blurring of the right The trial court erred in applying the emergency rule because the danger where
eye; and (5) cerebral infract with neo-vascularization, left occipital region with right Capt. Jusep found himself was caused by his own negligence.
sided headache and the blurring of the vision of right eye. The owner or the person
in possession and control of a vessel and the vessel are liable for all natural and (2) The court finds the petitioner liable for the negligent act of Capt. Jusep.
proximate damage caused to persons and property by reason of negligent Whenever an employee’s negligence causes damage to another, it instantly arise a
navigation or management. presumption that the employer failed to exercise the care and diligence of
supervision of his employee. In Fabre, Jr. vs. Court of Appeals held that due
diligence requires consistent compliance of rules & regulation for the guidance and
actual implementation of rules. But the petitioner fails to give any evidence that its
DAY THREE

rule are strictly implemented and monitored in compliance therewith petitioner is HELD:
therefore liable for the negligent act of Capt. Jusep. The amount of P 456, 198.27 Yes.
due earn 6% interest per annum from October 3, 1995 until the finality of the
decision. Negligence is the omission to do something which a reasonable man, guided by
those considerations which ordinarily regulate the conduct of human affairs, would
do, or the doing of something which a prudent and reasonable man would do. It
also refers to the conduct which creates undue risk of harm to another, the failure
PHIL. NATIONAL CONSTRUCTION vs CA to observe that degree of care, precaution and vigilance that the circumstance
justly demand, whereby that other person suffers injury.
FACTS:
 PASUDECO and TRB entered into a MOA, where the former was allowed to There are three elements of a quasi-delict: (a) damages suffered by the plaintiff; (b)
enter and pass through NLEX under some specified terms and conditions. fault or negligence of the defendant, or some other person for whose acts he must
PNCC, NLEX operator was furnished a copy of the MOA and interposed no respond; and (c) the connection of cause and effect between the fault or
objection. negligence of the defendant and the damages incurred by the plaintiff. Article 2176
 On January 23, 1993 (2:30 a.m.), NLEX Security staffs saw a pile of sugarcane of the New Civil Code provides: Whoever by act or omission causes damage to
in the middle portion of the north and southbound lanes of the road. They another, there being fault or negligence, is obliged to pay for the damage done.
placed lit cans with diesel oil in the north and southbound lanes, including Such fault or negligence, if there is no pre-existing contractual relation between the
lane dividers with reflectorized markings, to warn motorists of the parties, is called a quasi-delict and is governed by the provisions of this Chapter.
obstruction.
 The security staffs requested PASUDECO to clear the area. Further, where the concurrent or successive negligent acts or omissions of two or
 At around 4:00 a.m., five (5) PASUDECO men arrived, and started clearing the more persons, although acting independently, are in combination with the direct
highway of the sugarcane. The men left the area at around 5:40 a.m., leaving a and proximate cause of a single injury to a third person, it is impossible to
few flattened sugarcanes scattered on the road. determine in what proportion each contributed to the injury and either of them is
 As the bulk of the sugarcanes had been piled and transferred along the responsible for the whole injury. Where their concurring negligence resulted in
roadside, Sendin thought there was no longer a need to man the traffic. As injury or damage to a third party, they become joint tortfeasors and are solidarily
dawn was already approaching, Sendin and company removed the lighted liable for the resulting damage under Article 2194 of the Civil Code.
cans and lane dividers.
 At about 6:30 a.m., Rodrigo S. Arnaiz, together with his sister and friend, was In the case at bar, PASUDECO's negligence in transporting sugarcanes without
driving his two-door Toyota Corolla along the NLEX at about 65 kilometers per proper harness/straps, and that of PNCC in removing the emergency warning
hour. As the vehicle ran over the scattered sugarcane, it flew out of control devices, were two successive negligent acts which were the direct and proximate
and turned turtle several times. The accident threw the car about fifteen cause of Latagan's injuries.
paces away from the scattered sugarcane.
 On March 4, 1993, Arnaiz and company filed a complaint for damages against Thus, with PASUDECO's and the petitioner's successive negligent acts, they are joint
PASUDECO and PNCC. They alleged that the combined gross negligence of tortfeasors who are solidarily liable for the resulting damage under Article 2194 of
PASUDECO and PNCC was the direct and proximate cause of the injuries the New Civil Code.
sustained by them.
 RTC – Only PASUDECO is liable IN LIGHT OF ALL THE FOREGOING, the present petition is hereby DENIED for lack of
 CA – PASUDECO and PNCC are jointly and solidarily liable liable merit. The Decision of the Court of Appeals in CA-G.R. CV No. 47699, dated April
29, 2003, is AFFIRMED.
ISSUE:
Was there gross negligence on the part of PASUDECO and PNCC
DAY THREE

upon the circumstances in which a person finds himself. All that the law requires is
PHIL. NATIONAL CONSTRUCTION vs CA that it is perpetually compelling upon a person to use that care and diligence
expected of sensible men under comparable circumstances.
FACTS:
 Amores was traversing the railroad tracks in Manila. Before crossing the We hold that the petitioners were negligent when the collision took place. the train
railroad track, he stopped for a while then proceeded accordingly. was running at a fast speed because notwithstanding the application of the
Unfortunately, just as Amores was at the intersection, a Philippine National ordinary and emergency brakes, the train still dragged the car some distance away
Railways (PNR) train turned up and collided with the car. from the point of impact. Evidence likewise unveils the inadequate precautions
 At the time of the mishap, there was neither a signal nor a crossing bar at the taken by petitioner PNR to forewarn the public of the impending danger. It is the
intersection to warn motorists of an approaching train. Aside from the railroad responsibility of the railroad company to use reasonable care to keep the signal
track, the only visible warning sign at that time was the defective standard devices in working order. Failure to do so would be an indication of negligence.
signboard STOP, LOOK and LISTEN wherein the sign Listen was lacking while
that of Look was bent. No whistle blow from the train was likewise heard Railroad companies owe to the public a duty of exercising a reasonable degree of
before it finally bumped the car of Amores. Amores died. care to avoid injury to persons and property at railroad crossings, which duties
 The heirs of Amores filed a Complaint for Damages against petitioners PNR pertain both to the operation of trains and to the maintenance of the crossings.
and Virgilio J. Borja (Borja), PNRs locomotive driver at the time of the incident. The failure of the PNR to put a cross bar, or signal light, flagman or switchman, or
 RTC rendered judgment in favor of the petitioners, rationalizing that the semaphore is evidence of negligence and disregard of the safety of the public, even
proximate cause of the collision was Amores’ fatal misjudgment and the if there is no law or ordinance requiring it, because public safety demands that said
reckless course of action he took in crossing the railroad track even after device or equipment be installed.
seeing or hearing the oncoming train.
 CA reversed. The petitioners insist that a train has a right-of-way in a railroad crossing under the
existing laws.
ISSUE: However, the obligation to bring to a full stop vehicles moving in public highways
WON CA was correct in ascribing negligence on the part of the petitioners before traversing any through street only accrues from the time the said through
street or crossing is so designated and sign-posted. From the records of the case, it
HELD: can be inferred that Amores exercised all the necessary precautions required of
Yes. him as to avoid injury to himself and to others. The witnesses testimonies showed
that Amores slackened his speed, made a full stop, and then proceeded to cross
As the action is predicated on negligence, the relevant provision is Article 2176 of the tracks when he saw that there was no impending danger to his life. Under
the New Civil Code, which states that: these circumstances, we are convinced that Amores did everything, with absolute
care and caution, to avoid the collision.
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 It is settled that every person or motorist crossing a railroad track should use
negligence, if there was no pre-existing contractual relation between ordinary prudence and alertness to determine the proximity of a train before
the parties, is called quasi-delict and is governed by the provisions of attempting to cross. We are persuaded that the circumstances were beyond the
this chapter. control of Amores for no person would sacrifice his precious life if he had the
slightest opportunity to evade the catastrophe.
Negligence has been defined as the failure to observe for the protection of the
interests of another person that degree of care, precaution, and vigilance which the In view of the foregoing, We will now discuss the liability of petitioner PNR. Article
circumstances justly demand, whereby such other person suffers injury. Using the 2180 of the New Civil Code discusses the liability of the employer once negligence
aforementioned philosophy, it may be reliably concluded that there is no hard and or fault on the part of the employee has been established. The employer is actually
fast rule whereby such degree of care and vigilance is calibrated; it is dependent liable on the assumption of juris tantum that the employer failed to exercise
DAY THREE

diligentissimi patris families in the selection and supervision of its employees. The Under Article 2185 of the Civil Code, unless there is proof to the contrary, a person
liability is primary and can only be negated by showing due diligence in the driving a vehicle is presumed negligent if at the time of the mishap, he was
selection and supervision of the employee, a factual matter that has not been violating any traffic regulation.
demonstrated. Even the existence of hiring procedures and supervisory employees
cannot be incidentally invoked to overturn the presumption of negligence on the In this case, the report showed that the truck, while making the U-turn, failed to
part of the employer. signal, a violation of traffic rules. The police records also stated that, after the
collision, Bedania escaped and abandoned the petitioners and his truck. This is
another violation of a traffic regulation. Therefore, the presumption arises that
Bedania was negligent at the time of the mishap.
GUILLANG vs BEDANIA
The evidence presented in this case also does not support the conclusion of the
FACTS:
Court of Appeals that the truck had already executed the U-turn before the impact
 Genaro Guillang was driving his car along Aguinaldo Highway in Cavite when it occurred. If the truck had fully made the U-turn, it should have been hit on its rear.
was hit by a turning 10-wheeler truck driven by Rodolfo Bedania and owned
by Rodolfo de Silva. The car was a total wreck while the truck sustained minor Moreover, the Court of Appeals said that the point of impact was on the lane
damage. where the car was cruising. Therefore, the car had every right to be on that road
 Antero, one of the car passengers, died due to the injuries he sustained from and the car had the right of way over the truck that was making a U-turn. Clearly,
the collision. the truck encroached upon the cars lane when it suddenly made the U-turn.
 Petitioners Genaro, Llanillo, Dignadice, and the heirs of Antero instituted a
complaint for damages based on quasi-delict against respondents Bedania and Contrary to the conclusion of the Court of Appeals, the sheer size of the truck does
de Silva. not make it improbable for the truck to execute a sudden U-turn. The trial court’s
 The trial court rendered a decision in favor of petitioners. The trial court found decision did not state that the truck was traveling at a fast speed when it made the
Bedania grossly negligent for recklessly maneuvering the truck by making a U-turn. The trial court said the truck made a sudden U-turn, meaning the U-turn
sudden U-turn in the highway without duer egard to traffic rules and the was made unexpectedly and with no warning, as shown by the fact that the trucks
safety of other motorists. The trial court also declared de Silva grossly signal lights were not turned on.
negligent in the selection and supervision of his driver, Bedania.
 On appeal, the CA reversed the decision of the lower court and dismissed the Clearly, Bedanias negligence was the proximate cause of the collision which
civil case for lack of merit. Petitioners then filed a MR but to no avail. claimed the life of Antero and injured the petitioners. Proximate cause is that
which, in the natural and continuous sequence, unbroken by any efficient,
ISSUE: intervening cause, produces the injury, and without which the result would not
Who is liable for the damages suffered by petitioners have occurred. The cause of the collision is traceable to the negligent act of
Bedania for if the U-turn was executed with the proper precaution, the mishap in
HELD: all probability would not have happened. The sudden U-turn of the truck without
Bedanias and de Silva are liable. signal lights posed a serious risk to oncoming motorists. Bedania failed to prevent
or minimize that risk. The trucks sudden U-turn triggered a series of events that led
Negligence is defined as the failure to observe for the protection of the interest of to the collision and, ultimately, to the death of Antero and the injuries of
another person that degree of care, precaution, and vigilance which the petitioners.
circumstances justly demand, whereby such other person suffers injury. In Picart v.
Smith, we held that the test of negligence is whether the defendant in doing the We agree with the trial court that de Silva, as Bedanias employer, is also liable for
alleged negligent act used that reasonable care and caution which an ordinary the damages suffered by petitioners. De Silva failed to prove that he exercised all
person would have used in the same situation. the diligence of a good father of a family in the selection and supervision of his
employees.

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