Common Provisions (Articles 1764 to 1766 of the NCC)

[G.R. Nos. 66102-04. August 30, 1990.]

PHILIPPINE RABBIT BUS LINES, INC., petitioner, vs. THE HONORABLE
INTERMEDIATE APPELLATE COURT AND CASIANO PASCUA, ET
AL. * , respondents.
MEDIALDEA, J p:

FACTS:
Catalina Pascua, Caridad Pascua, Adelaida Estomo, Erlinda Meriales, Mercedes Lorenzo,
Alejandro Morales and Zenaida Parejas boarded the jeepney owned by spouses Isidro Mangune
and Guillerma Carreon and driven by Tranquilino Manalo at Dau, Mabalacat, Pampanga bound
for Carmen, Rosales, Pangasinan to spend Christmas at their respective homes. Although they
usually ride in buses, they had to ride in a jeepney that day because the buses were full. Their
contract with Manalo was for them to pay P24.00 for the trip.

Upon reaching barrio Sinayoan, San Manuel, Tarlac, the right rear wheel of the jeepney was
detached, so it was running in an unbalanced position. The jeepney practically occupied and
blocked the greater portion of the western lane, which is the right of way of vehicles coming
from the north, among which Philippine Rabbit Bus Lines, Inc. (Rabbit) driven by delos Reyes.
Almost at the time when the jeepney made a sudden U-turn and encroached on the western lane
of the highway or after stopping for a couple of minutes, the bus bumped from behind the right
rear portion of the jeepney. As a result of the collision, three passengers of the jeepney (Catalina
Pascua, Erlinda Meriales and Adelaida Estomo) died while the other jeepney passengers
sustained physical injuries.

Complaints for recovery of damages were then filed before the Court of First Instance of
Pangasinan. In Civil Case No. 1136, spouses Casiano Pascua and Juana Valdez sued as heirs of
Catalina Pascua while Caridad Pascua sued in her behalf. In Civil Case No. 1139, spouses
Manuel Millares and Fidencia Arcica sued as heirs of Erlinda Meriales. In Civil Case No. 1140,
spouses Mariano Estomo and Dionisia Sarmiento also sued as heirs of Adelaida Estomo.
For the death of Catalina Pascua, plaintiffs in Civil Case No. 1136 sought to collect the aggregate
amount of P70,060.00 in damages, itemized as follows: P500.00 for burial expenses; P12,000.00
for loss of wages for 24 years; P10,000.00 for exemplary damages; P10,000.00 for moral
damages; and P3,000.00 for attorney's fees. In the same case, plaintiff Caridad Pascua claimed
P550.00 for medical expenses; P240.00 for loss of wages for two months; P2,000.00 for
disfigurement of her face; P3,000.00 for physical pain and suffering; P2,500.00 as exemplary
damages and P2,000.00 for attorney's fees and expenses of litigation.
In Civil Case No. 1139, plaintiffs demanded P500.00 for burial expenses; P6,000.00 for the
death of Erlinda, P63,000.00 for loss of income; P10,000.00 for moral damages and P3,000.00
for attorney's fees or total of P80,000.00.
In Civil Case No. 1140, plaintiffs claimed P500.00 for burial expenses; P6,000.00 for the death
of Adelaida, P56,160.00 for loss of her income or earning capacity; P10,000.00 for moral
damages; and P3,000.00 for attorney's fees.
Rabbit filed a cross-claim in the amount of P15,000.00 for attorney's fees and expenses of
litigation. On the other hand, spouses Mangune and Carreon filed a cross-claim in the amount of
P6,168.00 for the repair of the jeepney and P3,000.00 for its non-use during the period of repairs.
The trial court rendered its decision finding Mangune negligent and ordering said defendants,
jointly and severally, to pay the plaintiffs —
'a) In Civil Case No. 1136, for the death of Catalina Pascua, to pay her
heirs the amounts of P12,000.00 for indemnity for loss of her life; P41,760.00
for loss of earnings; P324.40 for actual expenses and P2,000.00 for moral
damages;
'b) In the same Civil Case No. 1136 for the injuries of Caridad Pascua, to
pay her the amounts of P240.00 for loss of wages, P328.20 for actual expenses
and P500.00 for moral damages;
'c) In Civil Case No. 1139 for the death of Erlinda Meriales, to pay her
heirs (the plaintiffs) the amount of P12,000.00 — for indemnity for loss of her
life; P622.00 for actual expenses, P60,480.00 for loss of wages or income and
P2,000.00 for moral damages;
'd) In Civil Case No. 1140, for the death of Erlinda (also called Florida
or Adelaida Estomo), to pay her heirs (the plaintiffs) the amount of P12,000.00
for indemnity for the loss of her life; P580.00 for actual expenses; P53,160.00
for loss of wages or income and P2,000.00 for moral damages.'
The Intermediate Appellate Court reversed the above-quoted decision by finding delos Reyes
negligent.

ISSUE:

RULING:
We affirm the amount of damages adjudged by the trial court, except with respect to the
indemnity for loss of life. Under Article 1764 in relation to Article 2206 of the New Civil Code,
the amount of damages for the death of a passenger is at least three thousand pesos (P3,000.00).
The prevailing jurisprudence has increased the amount of P3,000.00 to P30,000.00 (see Heirs of
Amparo delos Santos, et al. v. Honorable Court of Appeals, et al., G.R. No. 51165, June 21,
1990 citing De Lima v. Laguna Tayabas Co., G.R. Nos. L-35697-99, April 15, 1988, 160 SCRA
70).
[G.R. No. L-30309. November 25, 1983.]
CLEMENTE BRIÑAS, petitioner, vs. THE PEOPLE OF THE PHILIPPINES, and
HONORABLE COURT OF APPEALS, respondents.
GUTIERREZ, JR., J p:

FACTS:
Juanito Gesmundo bought a train ticket at the railroad station in Tagkawayan, Quezon for
his 55-year old mother Martina Bool and his 3-year old daughter Emelita Gesmundo,
who were bound for Barrio Lusacan, Tiaong, same province. Upon approaching Barrio
Lagalag in Tiaong at about 8:00 p.m. of that same night, the train slowed down and the
conductor shouted 'Lusacan', 'Lusacan'. , the old woman walked towards the left front
door facing the direction of Tiaong, carrying the child with one hand and holding her
baggage with the other. When Martina and Emelita were near the door, the train suddenly
picked up speed. As a result the old woman and the child stumbled and they were
seen no more. It took three minutes more before the train stopped at the next barrio,
Lusacan, and the victims were not among the passengers who disembarked thereat. The
Tiaong police received a report that two corpses were found along the railroad tracks at
Barrio Lagalag. Later, the bodies were identified as those of Martina Bool and Emelita
Gesmundo.
The Court of First Instance of Quezon convicted defendant-appellant Clemente Briñas for
double homicide thru reckless imprudence but acquitted Hermogenes Buencamino and Victor
Millan. On appeal, the respondent Court of Appeals affirmed the judgment of the lower court.
The separate civil action was filed for the recovery of P30,350.00 from the Manila Railroad
Company as damages resulting from the accident.

ISSUE:
Whether or not the trial court erred in awarding death indemnity in its judgment of conviction
since the information did not allege the existence of any kind of damages whatsoever coupled
by the fact that no private prosecutors appeared and the prosecution witnesses were not
interrogated on the issue of damages.

RULING:
It is well-settled that when death occurs as a result of the commission of a crime, the following
items of damages may be recovered: (1) an indemnity for the death of the victim; (2) an
indemnity for loss of earning capacity of the deceased; (3) moral damages; (4) exemplary
damages; (5) attorney's fees and expenses of litigation, and (6) interest in proper cases.
The indemnity for loss of earning capacity, moral damages, exemplary damages, attorney's
fees, and interests are recoverable separately from and in addition to the fixed sum of
P12,000.00 corresponding to the indemnity for the sole fact of death. This indemnity arising
from the fact of death due to a crime is fixed whereas the others are still subject to the
determination of the court based on the evidence presented. The fact that the witnesses were
not interrogated on the issue of damages is of no moment because the death indemnity fixed
for death is separate and distinct from the other forms of indemnity for damages. Cdphil
[G.R. Nos. L-20916-17. December 23, 1964.]
PANGASINAN TRANSPORTATION CO., INC. (PANTRANCO), petitioner, vs. HON.
GREGORIO A. LEGASPI, Judge of the Court of First Instance of Pangasinan, PUA
PIAN, ROLLY PUA, AIDA PUA, GLORIA PUA, CHUA TECK and CRISPINA
BREGUERA, respondents.
REGALA, J p:

FACTS:

ISSUE:
Whether or not defendant's financial standing in an action for breach of contract of carriage is a
material evidence.

RULING:
Article 2206 of the Civil Code states:
"The amount of damages for death caused by a crime or quasi-
delict shall be at least three thousand pesos, even though there may have
been mitigating circumstances. . . ."
Article 2206 applies in case of death caused by the breach of contract by the common carrier
(Art. 1764). It fixes the minimum indemnity for death at P3,000, which the courts may increase
according to the circumstances. It is in fixing a greater amount of indemnity that courts may
consider the financial capacity of the common carrier, along with such other factors as (1) the
life expectancy of the deceased or of the beneficiary, whichever is shorter, (2) pecuniary loss to
the plaintiff or beneficiary, (3) loss of support, (4) loss of service, (5) loss of society, (6) mental
suffering of beneficiaries and (7) medical and funeral expenses.

[G.R. No. L-21438. September 28, 1966.]

AIR FRANCE, petitioner, vs. RAFAEL CARRASCOSO and THE HONORABLE COURT
OF APPEALS, respondents.
SANCHEZ, J p:
FACTS:
Carrascoso, a civil engineer, was a member of a group of 48 Filipino pilgrims that left Manila for
Lourdes. Air France, through its authorized agent, Philippine Air Lines, Inc., issued to plaintiff a
'first class' round trip airplane ticket from Manila to Rome. From Manila to Bangkok, Carrascoso
traveled in 'first class', but at Bangkok, the Manager of the Air France forced plaintiff to vacate
the 'first class' seat that he was occupying because, there was a 'white man', who, the Manager
alleged, had a 'better right to the seat. When asked to vacate his 'first class' seat, the plaintiff, as
was to be expected, refused, and told the Manager that his seat would be taken over his dead
body; a commotion ensued, and many of the Filipino passengers got nervous in the tourist class;
when they found out that Mr. Carrascoso was having a hot discussion with the white man
[manager], they came all across to Mr. Carrascoso and pacified Mr. Carrascoso to give his seat to
the 'white man' and Carrascos reluctantly gave his 'first class' seat in the plane."
The CFI of Manila sentenced Air France to pay P25,000.00 by way of moral damages;
P10,000.00 as exemplary damages; P393.20 representing the difference in fare between first
class and tourist class for the 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
attorneys' fees; and the costs of suit. On appeal, the 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. Hence, this petition

ISSUE:
1. Whether or not the award of moral damages is proper.
2. Whether or not the award of exemplary damages is proper.
3. Whether or not the award of attorney’s fees is proper.

RULING:
1. The responsibility of an employer for the tortuous act of its employees-need not be essayed. It
is well settled in law. For the willful malevolent act of petitioner's manager, petitioner's his
employer, must answer. Article 21 of the Civil Code says:
"Art. 21. Any person who willfully causes loss or injury to another in a manner
that is contrary to morals, good customs or public policy shall compensate the latter for
the damage."
In parallel circumstances, we applied the foregoing legal precept; and, we held that upon the
provisions of Article 2219 (10), Civil Code, moral damages are recoverable.

2. Exemplary damages are well awarded. The Civil Code gives the Court ample power to grant
exemplary damages — in contracts and quasi-contracts. The only condition is that defendant
should have "acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner". 53 The
manner of ejectment of respondent Carrascoso from his first class seat fits into this legal precept.
And this, in addition to moral damages.

3. The right to attorneys' fees is fully established. The grant of exemplary damages justifies a
similar judgment for attorneys' fees. The least that can be said is that the courts below felt that it
is but just and equitable that attorneys' fees be given. We do not intend to break faith with the
tradition that discretion well exercised — as it was here —should not be disturbed.

[G.R. No. 70462. August 11, 1988.]

PAN AMERICAN WORLD AIRWAYS,
INC., petitioner, vs. INTERMEDIATE APPELLATE COURT, RENE V. PANGAN,
SOTANG BASTOS PRODUCTIONS and ARCHER PRODUCTIONS, respondents.
CORTES, J p:

FACTS:

ISSUE:
RULING:

Thus, applying the foregoing ruling to the facts of the instant case, in the absence of a showing
that petitioner's attention was called to the special circumstances requiring prompt delivery of
private respondent Pangan's luggages, petitioner cannot be held liable for the cancellation of
private respondents' contracts as it could not have foreseen such an eventuality when it accepted
the luggages for transit.

[G.R. No. 119756. March 18, 1999.]

FORTUNE EXPRESS, INC., petitioner, vs. COURT OF APPEALS, PAULIE U.
CAORONG, and minor children YASSER KING CAORONG, ROSE HEINNI and
PRINCE ALEXANDER, all surnamed CAORONG, and represented by their
mother PAULIE U. CAORONG, respondents.
MENDOZA, J p:

FACTS:
Petitioner is a bus company in northern Mindanao. Private respondent Paulie Caorong is the
widow of Atty. Caorong, while private respondents Yasser King, Rose Heinni, and Prince
Alexander are their minor children.
One of the buses of Fortune Express collided with a jeepney owned by a Maranao which resulted
in the death of several passengers of the jeepney including two Maranaos. In relation thereto, the
Philippine Constabulary of Cagayan de Oro warned the petitioner, through its operations
manager Diosdado Bravo, that the Maranaos were planning to take revenge on the petitioner by
burning some of its buses. Bravo assured them that the necessary precautions to ensure the safety
of lives and properties of the passengers would be taken. On November 22, 1989, three armed
Maranaos who pretended to be passengers, seized and burned the bus of the petitioner at
Linamon, Lanao del Norte while on its way to Iligan City which resulted in the death one of its
passengers, Atty. Talib Caorong. Thus the heirs of Atty. Caorong filed before the Regional Trial
Court, Branch VI, Iligan City a complaint for damages for breach of contract of carriage against
the petitioner. The trial court dismissed the complaint. However, the Court of Appeals reversed
the decision of the trial court.

ISSUE:
Whether or not petitioner is liable to private respondents for damages.

RULING:
Yes, Petitioner Liable to Private Respondents for Damages

We now consider the question of damages that the heirs of Atty. Caorong, private respondents
herein, are entitled to recover from the petitioner.
 Indemnity for Death. Art. 1764 of the Civil Code, in relation to Art. 2206 thereof,
provides for the payment of indemnity for the death of passengers caused by the breach of
contract of carriage by a common carrier. Initially fixed in Art. 2206 at P3,000.00, the amount of
the said indemnity for death has through the years been gradually increased in view of the
declining value of the peso. It is presently fixed at P50,000.00. Private respondents are entitled to
this amount.
Actual Damages. Art. 2199 provides that "except as provided by law or by stipulation,
one is entitled to an adequate compensation only for such pecuniary loss suffered by him as he
has duly proved." The trial court found that the private respondents spent P30,000.00 for the
wake and burial of Atty. Caorong. Since petitioner does not question this finding of the trial
court, it is liable to private respondents in the said amount as actual damages.
Moral Damages. Under Art. 2206, the "spouse, legitimate and illegitimate descendants
and ascendants of the deceased may demand moral damages for mental anguish by reason of the
death of the deceased." The trial court found that private respondent Paulie Caorong suffered
pain from the death of her husband and worry on how to provide support for their minor
children, private respondents Yasser King, Rose Heinni, and Prince Alexander. The petitioner
likewise does not question this finding of the trial court. Thus, in accordance with recent
decisions of this Court, we hold that the petitioner is liable to the private respondents in the
amount of P100,000.00 as moral damages for the death of Atty. Caorong.
Exemplary Damages. Art. 2232 provides that "in contracts and quasi-contracts, the court
may award exemplary damages if the defendant acted in a wanton, fraudulent, reckless,
oppressive, or malevolent manner." In the present case, the petitioner acted in a wanton and
reckless manner. Despite warning that the Maranaos were planning to take revenge against the
petitioner by burning some of its buses, and contrary to the assurance made by its operations
manager that the necessary precautions would be taken, the petitioner and its employees did
nothing to protect the safety of passengers. Under the circumstances, we deem it reasonable to
award private respondents exemplary damages in the amount of P100,000.00. dll
Attorney's Fees. Pursuant to Art. 2208, attorney's fees may be recovered when, as in the
instant case, exemplary damages are awarded. In the recent case of Sulpicio Lines, Inc. v. Court
of Appeals, we held an award of P50,000.00 as attorney's fees to be reasonable. Hence, the
private respondents are entitled to attorney's fees in that amount.
Compensation for Loss of Earning Capacity. Art. 1764 of the Civil Code, in relation to
Art. 2206 thereof, provides that in addition to the indemnity for death arising from the breach of
contract of carriage by a common carrier, the "defendant shall be liable for the loss of the earning
capacity of the deceased, and the indemnity shall be paid to the heirs of the latter." The formula
established in decided cases for computing net earning capacity is as follows:

Life expectancy is equivalent to two thirds (2/3) multiplied by the difference of eighty (80) and
the age of the deceased. Since Atty. Caorong was 37 years old at the time of his death, he had a
life expectancy of 28 2/3 more years. His projected gross annual income, computed based on his
monthly salary of P11,385.00 as a lawyer in the Department of Agrarian Reform at the time of
his death, was P148,005.00. Allowing for necessary living expenses of fifty percent (50%) of his
projected gross annual income, his total earning capacity amounts to P2,121,404.90. Hence, the
petitioner is liable to the private respondents in the said amount as compensation for loss of
earning capacity.

WHEREFORE, the decision, dated July 29, 1994, of the Court of Appeals is hereby
AFFIRMED with the MODIFICATION that petitioner Fortune Express, Inc. is ordered to pay
the following amounts to private respondents Paulie, Yasser King, Rose Heinni, and Prince
Alexander Caorong:
1. death indemnity in the amount of fifty thousand pesos (P50,000.00);
2. actual damages in the amount of thirty thousand pesos (P30,000.00);
3. moral damages in the amount of one hundred thousand pesos (P100,000.00);
4. exemplary damages in the amount of one hundred thousand pesos (P100,000.00);
5. attorney's fees in the amount of fifty thousand pesos (P50,000.00);
6. compensation for loss of earning capacity in the amount of two million one hundred
twenty-one thousand four hundred four pesos and ninety centavos (P2,121,404.90); and
7. costs of suits.