Victory Liner v. Gammad Ynares-Santiago | Nov.

25, 2004 Pet: Victory Liner owner of bus that killed Marie Grace Gammad wife of Resp: Respondent Rosalito Gammad, April Rossan, Rois Rozano and Diana Gammad (children) Facts: 1. 2. 3. 4. 3:00 am, 14 Mar 96: Aircon Victory Liner bus (Tugegarao to Manila). The bus was running at high speed. The bus fell into a ravine at Sta Fe, Nueva Vizcaya. Death of Marir Grace and physical injuries of other passengers. FILED: Damages arising from culpa contractual. ANSWER: Incident was purely accidental. Always exercised extra-ord diligence in 50yr ops. RTC : In favor of Gammad. Awarded: Actual Damages 122K, Death Indemnity 50K, Exemplary and Moral Damages 400K, Compensatory Dam 1.5M, attys fees 10% total, costs of suit. CA: Affirmed but changed amounts, deleting completely the death indemnity and costs of suit. Actual P88K, Compe 1.5M, Moral and Exemp P400, attys fees 10%. 1. w/n the pet. counsel was guilty of gross negligence 2. w/n pet should be held liable for breach of C of Carriage 3. w/n the award of damages was proper.

Issues:

Held: 1. Counsel guilty of negligence, but Pet. also guilty of contributory negligence. a. GN: Negligence counsel binds the client. EXC: where reckless or gross negligence deprives client of due process. Application will result in outright deprivation of liberty. b. The exceptions are not present in this case. Although initially declared in default Atty Paguirigan was able to successfully move for setting aside of the order of default. He also filed a timely appeal. Hence pet was not deprived of DP. Pet also was late in issuing an SPA, only after the order of default. Therefore contributory negligence. 2. Victory liner was correctly found liable for breach of contract of carriage. a. When a passenger dies or id injured, CC presumed at fault. Unless presumption rebutted. Here no evidence was presented to rebut this statutory presumption that the proximate cause of the death of Marie Grace is the negligence of petitioner. The award of damages should be modified. 3. Compensatory damages should be deleted for lack of basis. GN:Docu evi should be presented to substantiate damages for loss of earn capacity. EXC: (1) Deceased was self-employed earning less than min wage. (2) deceased was a daily wage worker earning less than minimum wage. HERE: Only testimony of Resp. was presented that the deceased was 39yo, employed as Section Chief of BIR, earning P83K per annum. No docu evidence was presented and the case fall on neither of the two exception. Therefore the claim for loss of earn capacity was unsubstantiated. 4. Loss having been established, but the amount unsubstantiated, temperate damages may be awarded @P500K, pursuant to NCC 2224, when the court finds that there is a loss but its amount cannot be proved with certainty. a. Pleno v. CA the court awarded P200K temperate damages because the income of the victim was not sufficiently proven. 5. Moral Damages cannot be lumped with exemplary damages. They are based on different jural foundations. (People v. Trapane) In Culpa Contractual, moral damages may be awarded when the defendant acted in bad faith or was guilty of gross negligence (amounting to BF) or in wanton disregard of contractual obli and AS IN THIS CASE when the act of breach of contract itself constitutes the ort that results in physical injuries. By special provision (NCC1764 in relation to NCC 2206) moral damages may also be awarded in case of the death of a passenger results from the breach of carriage. HERE: respondents should be awarded moral damages due to compensate for the grief caused by the death of the deceased. 6. Furthermore Victory failed to prove the exercise the extra ord diligence, and is presumed to have acted recklessly. Thus. The award for exemplary damages is proper. 7. People v. Duban: Only substantiated and proven expenses or those that appear to have been genuinely incurred will be recognized. HERE actual damages will be further reduced to the amount actually supported by receipts in Ex J and F. 8. Attys fees may also be recovered in case at bar where exemplary damages are awarded. 10% WHEREFORE Affirmed with modification. P50K indemnity for death, P100K moral damages, P100K exemplary damages, P78K actual damages, P500K temperate damages, 10% total amount as attys fees.