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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
October-2003 Jurisprudence                 

  • A.M. No. P-02-1548 October 1, 2003 - ROBERT E. VILLAROS v. RODOLFO ORPIANO

  • A.M. Nos. P-03-1697 & P-03-1699 October 1, 2003 - JOCELYN S. PAISTE v. APRONIANO V. MAMENTA

  • G.R. Nos. 133066-67 October 1, 2003 - PEOPLE OF THE PHIL. v. ROMEO H. LAMBID

  • G.R. No. 137554 October 1, 2003 - PEOPLE OF THE PHIL. v. JOHN MAMARION, ET AL.

  • G.R. No. 148198 October 1, 2003 - PEOPLE OF THE PHIL. v. ELIZABETH CORPUZ

  • G.R. Nos. 150630-31 October 1, 2003 - PEOPLE OF THE PHIL. v. JAIME OLAYBAR

  • G.R. No. 152176 October 1, 2003 - PEOPLE OF THE PHIL. v. ROGER D. DELA CRUZ

  • G.R. No. 154130 October 1, 2003 - BENITO ASTORGA v. PEOPLE OF THE PHIL.

  • G.R. No. 156034 October 1, 2003 - DELSAN TRANSPORT LINES, INC. v. C & A CONSTRUCTION, INC.

  • A.M. No. RTJ-03-1803 October 2, 2003 - VICTOR A. ASLARONA v. ANTONIO T. ECHAVEZ

  • G.R. No. 128882 October 2, 2003 - PEOPLE OF THE PHIL. v. JOEL AYUDA

  • G.R. No. 145337 October 2, 2003 - PEOPLE OF THE PHIL. v. LEE HOI MING

  • G.R. No. 150382 October 2, 2003 - PEOPLE OF THE PHIL. v. EDDIE BASITE

  • A.C. No. 6061 October 3, 2003 - RAUL C. SANCHEZ v. SALUSTINO SOMOSO

  • A.M. MTJ-00-1311 October 3, 2003 - SILVESTRE H. BELLO III v. AUGUSTUS C. DIAZ, ET AL.

  • A.M. No. P-02-1547 October 3, 2003 - LEOPOLDO V. CAÑETE v. NELSON MANLOSA

  • A.M. No. P-02-1550 October 3, 2003 - AMELIA L. AVELLANOSA v. JOSE Z. CAMASO

  • G.R. No. 118375 October 3, 2003 - CELESTINA T. NAGUIAT v. COURT OF APPEALS, ET AL.

  • G.R. No. 122134 October 3, 2003 - ROMANA LOCQUIAO VALENCIA, ET AL. v. BENITO A. LOCQUIAO, ET AL.

  • G.R. No. 143388 October 6, 2003 - SPS. ROLANDO and ROSITA CRUZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 146569 October 6, 2003 - PEOPLE OF THE PHIL. v. JOHN NEQUIA

  • A.M. Nos. P-03-1744–45 October 7, 2003 - FE ALBANO MADRID v. ANTONIO T. QUEBRAL

  • G.R. No. 135377 October 7, 2003 - DSR-SENATOR LINES, ET AL. v. FEDERAL PHOENIX ASSURANCE CO., INC.

  • G.R. No. 149453 October 7, 2003 - PEOPLE OF THE PHIL., ET AL. v. PANFILO M. LACSON

  • G.R. No. 149717 October 7, 2003 - EASTERN ASSURANCE & SURETY CORP. v. LTFRB

  • G.R. No. 155258 October 7, 2003 - CONRADO S. CANO v. PEOPLE OF THE PHIL.

  • A.C. No. 4881 October 8, 2003 - RAU SHENG MAO v. ANGELES A. VELASCO

  • G.R. No. 120864 October 8, 2003 - MANUEL T. DE GUIA v. COURT OF APPEALS, ET AL.

  • G.R. No. 136845 October 8, 2003 - PEOPLE OF THE PHIL. v. GUILLERMO FLORENDO

  • G.R. No. 145166 October 8, 2003 - PEOPLE OF THE PHIL. v. ALBERTO ROMERO, ET AL.

  • G.R. No. 146118 October 8, 2003 - SAMUEL SAMARCA v. ARC-MEN INDUSTRIES, INC.

  • G.R. Nos. 148056-61 October 8, 2003 - PEOPLE OF THE PHIL. v. JOSE DE CASTRO

  • G.R. No. 149420 October 8, 2003 - SONNY LO v. KJS ECO-FORMWORK SYSTEM PHIL., INC.

  • G.R. No. 152776 October 8, 2003 - HENRY S. OAMINAL v. PABLITO M. CASTILLO, ET AL.

  • G.R. No. 153751 October 8, 2003 - MID PASIG LAND DEVELOPMENT CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 154579 October 8, 2003 - MA. LOURDES R. DE GUZMAN v. PEOPLE OF THE PHIL.

  • A.M. No. P-96-1179 October 10, 2003 - WINSTON C. CASTELO v. CRISTOBAL C. FLORENDO

  • G.R. No. 110604 October 10, 2003 - BUENAVENTURA S. TENORIO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 140917 October 10, 2003 - MENELIETO A. OLANDA v. LEONARDO G. BUGAYONG, ET AL.

  • A.M. No. P-02-1640 October 13, 2003 - SAAD ANJUM v. CESAR L. ABACAHIN, ET AL.

  • G.R. No. 122765 October 13, 2003 - PEOPLE OF THE PHIL. v. EDGARDO L. VARGAS

  • G.R. No. 141942 October 13, 2003 - PEOPLE OF THE PHIL. v. JIMMY PONCE JAMON

  • G.R. No. 143842 October 13, 2003 - PEOPLE OF THE PHIL. v. MANGI L. ADAM

  • G.R. No. 144662 October 13, 2003 - SPS. EFREN AND DIGNA MASON, ET AL. v. COURT OF APPEALS, ET AL.

  • A.M. No. MTJ-02-1459 October 14, 2003 - IMELDA Y. MADERADA v. ERNESTO H. MEDIODEA

  • A.M. No. P-03-1674 October 14, 2003 - PABLO B. FRANCISCO v. OLIVIA M. LAUREL

  • A.M. No. RTJ-03-1805 October 14, 2003 - TEODORA A. RUIZ v. ROLANDO G. HOW

  • G.R. No. 153157 October 14, 2003 - PHILIPPINE AIRLINES v. ARTHUR B. TONGSON

  • A.M. No. RTJ-02-1697 October 15, 2003 - EUGENIO K. CHAN v. JOSE S. MAJADUCON

  • A.M. No. RTJ-02-1699 October 15, 2003 - VERNETTE UMALI-PACO, ET AL. v. REINATO G. QUILALA, ET AL.

  • A.M. No. RTJ-03-1808 October 15, 2003 - RADELIA SY, ET AL. v. ANTONIO FINEZA

  • G.R. Nos. 123144, 123207 & 123536 October 15, 2003 - PABLO P. BURGOS, ET AL. v. SANDIGANBAYAN, ET AL.

  • G.R. No. 126119 October 15, 2003 - PEOPLE OF THE PHIL v. GILDO B. PELOPERO PNP

  • G.R. No. 130662 October 15, 2003 - PEOPLE OF THE PHIL. v. SERGIO ABON

  • G.R. No. 138364 October 15, 2003 - PEOPLE OF THE PHIL. v. ROGELIO VILLANUEVA

  • G.R. No. 142381 October 15, 2003 - PHILIPPINE BLOOMING MILLS, INC., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 142595 October 15, 2003 - RACHEL C. CELESTIAL v. JESSE CACHOPERO

  • G.R. Nos. 148139-43 October 15, 2003 - PEOPLE OF THE PHIL. v. HERMENIO CANOY

  • G.R. No. 156273 October 15, 2003 - HEIRS OF TIMOTEO MORENO, ET AL. v. MACTAN-CEBU INT’L. AIRPORT AUTHORITY

  • A.M. No. SCC-00-6-P October 16, 2003 - RE: Ma. Corazon M. Molo

  • A.M. No. P-02-1592 October 16, 2003 - LUZITA ALPECHE v. EXPEDITO B. BATO

  • G.R. No. 141074 October 16, 2003 - PEOPLE OF THE PHIL. v. NORLY LIBRADO

  • G.R. No. 144881 October 16, 2003 - BETTY T. CHUA v. ABSOLUTE MNGT. CORP., ET AL.

  • G.R. Nos. 147650-52 October 16, 2003 - PEOPLE OF THE PHIL. v. RODOLFO S. PEPITO

  • G.R. No. 152492 October 16, 2003 - PALMA DEVELOPMENT CORP. v. MUN. OF MALANGAS

  • G.R. Nos. 153991-92 October 16, 2003 - ANWAR BERUA BALINDONG v. COMELEC, ET AL.

  • A.M. No. P-01-1475 October 17, 2003 - MANUEL R. AQUINO v. JOCELYN C. FERNANDEZ

  • G.R. No. 131399 October 17, 2003 - ANGELITA AMPARO GO v. OFFICE OF THE OMBUDSMAN, ET AL.

  • G.R. Nos. 133759-60 October 17, 2003 - PEOPLE OF THE PHIL. v. LEONITO LORENZO

  • G.R. Nos. 148673-75 October 17, 2003 - PEOPLE OF THE PHIL. v. FLORENCIO R. ABANILLA

  • G.R. No. 150286 October 17, 2003 - ELCEE FARMS, INC., ET AL. v. PAMPILO SEMILLANO, ET AL.

  • G.R. No. 142885 October 22, 2003 - PEOPLE OF THE PHIL. v. WILLIAM TIU, ET AL.

  • A.M. No. MTJ-01-1368 October 23, 2003 - JOSE GODOFREDO M. NAUI v. MARCIANO C. MAURICIO, SR.

  • G.R. No. 120409 October 23, 2003 - PEOPLE OF THE PHIL. v. WILLIAMSON PICKRELL, ET AL.

  • G.R. No. 120670 October 23, 2003 - PEOPLE OF THE PHIL. v. HEDISHI SUZUKI

  • G.R. No. 125689 October 23, 2003 - PEOPLE OF THE PHIL. v. ANTONIO SATIOQUIA

  • G.R. No. 127153 October 23, 2003 - PEOPLE OF THE PHIL. v. SATUR G. APOSAGA

  • G.R. No. 132788 October 23, 2003 - PEOPLE OF THE PHIL. v. ISAIAS FERNANDEZ, ET AL.

  • G.R. No. 134485 October 23, 2003 - PEOPLE OF THE PHIL. v. OSCAR PEREZ

  • G.R. Nos. 134573-75 October 23, 2003 - PEOPLE OF THE PHIL. v. VICENTE BINARAO, ET AL.

  • G.R. No. 136849 October 23, 2003 - PEOPLE OF THE PHIL. v. NESTOR A. CODERES

  • G.R. No. 138456 October 23, 2003 - PEOPLE OF THE PHIL. v. ROLANDO P. DEDUYO

  • G.R. No. 140247 October 23, 2003 - ALEX ASUNCION, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 143252 October 23, 2003 - CEBU MARINE BEACH RESORT, ET AL. v. NLRC, ET AL.

  • G.R. Nos. 146368-69 October 23, 2003 - MADELEINE MENDOZA-ONG v. SANDIGANBAYAN, ET AL.

  • G.R. No. 146608 October 23, 2003 - SPS. CONSTANTE & AZUCENA FIRME v. BUKAL ENTERPRISES AND DEV’T. CORP.

  • G.R. No. 147369 October 23, 2003 - SPS. PATRICK and RAFAELA JOSE v. SPS. HELEN and ROMEO BOYON

  • G.R. No. 147549 October 23, 2003 - JESUS DELA ROSA, ET AL. v. SANTIAGO CARLOS, ET AL.

  • G.R. No. 149149 October 23, 2003 - ERNESTO SYKI v. SALVADOR BEGASA

  • G.R. No. 149725 October 23, 2003 - OSCAR MAGNO v. PEOPLE OF THE PHIL.

  • G.R. Nos. 150493-95 October 23, 2003 - PEOPLE OF THE PHIL. v. CIRILO MACABATA

  • G.R. No. 150946 October 23, 2003 - MUNICIPAL BOARD OF CANVASSERS OF GLAN, ET AL. v. COMELEC, ET AL.

  • G.R. No. 152135 October 23, 2003 - PEOPLE OF THE PHIL. v. MARCOS GIALOLO, ET AL.

  • G.R. No. 152716 October 23, 2003 - ELNA MERCADO-FEHR v. BRUNO FEHR

  • G.R. Nos. 154796-97 October 23, 2003 - RAYMUNDO A. BAUTISTA v. COMELEC, ET AL.

  • G.R. No. 155692 October 23, 2003 - PHIVIDEC INDUSTRIAL AUTHORITY, ET AL. v. CAPITOL STEEL CORP., ET AL.

  • G.R. No. 155717 October 23, 2003 - ALBERTO JARAMILLA v. COMELEC, ET AL.

  • A.M. No. RTJ-00-1586 October 24, 2003 - THELMA C. BALDADO v. ARNULFO O. BUGTAS

  • G.R. No. 119775 October 24, 2003 - JOHN HAY PEOPLES ALTERNATIVE COALITION, ET AL. v. VICTOR LIM, ET AL.

  • G.R. No. 119847 October 24, 2003 - JENNY ZACARIAS v. NATIONAL POLICE COMMISSION, ET AL.

  • G.R. No. 137597 October 24, 2003 - PEOPLE OF THE PHIL. v. JASON S. NAVARRO, ET AL.

  • G.R. No. 141615 October 24, 2003 - MAC ADAMS METAL ENGINEERING WORKERS UNION-INDEPENDENT, ET AL. v. MAC ADAMS METAL ENGINEERING, ET AL.

  • G.R. No. 144439 October 24, 2003 - SOUTHEAST ASIA SHIPPING CORP. v. SEAGULL MARITIME CORP., ET AL.

  • G.R. No. 148120 October 24, 2003 - RODRIGO QUIRAO, ET AL. v. LYDIA QUIRAO, ET AL.

  • G.R. No. 148597 October 24, 2003 - GRACE F. MUNSAYAC-DE VILLA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 152285 October 24, 2003 - PEOPLE OF THE PHIL. v. JOSE OBESO

  • G.R. Nos. 152589 and 152758 October 24, 2003 - PEOPLE OF THE PHIL. v. ANTONIO MENDOZA

  • G.R. No. 153828 October 24, 2003 - LINCOLN L. YAO v. NORMA C. PERELLO, ET AL.

  • G.R. No. 139181 October 27, 2003 - PEOPLE OF THE PHIL. v. JIMMY AQUINO

  • G.R. No. 143817 October 27, 2003 - PEOPLE OF THE PHIL. v. ALEJANDRO BAJAR

  • A.C. No. 5829 October 28, 2003 - DANIEL LEMOINE v. AMADEO E. BALON, JR.

  • A.M. No. P-02-1581 October 28, 2003 - MA. CORAZON M. ANDAL v. NICOLAS A. TONGA

  • G.R. No. 134563 October 28, 2003 - PEOPLE OF THE PHIL. v. FRANCISCO DALA

  • G.R. No. 138933 October 28, 2003 - PEOPLE OF THE PHIL. v. JERRYVIE D. GUMAYAO

  • G.R. No. 150540 October 28, 2003 - DIMALUB P. NAMIL, ET AL. v. COMELEC, ET AL

  • G.R. No. 155206 October 28, 2003 - GSIS v. EDUARDO M. SANTIAGO

  •  





     
     

    G.R. No. 156034   October 1, 2003 - DELSAN TRANSPORT LINES, INC. v. C & A CONSTRUCTION, INC.

     
    PHILIPPINE SUPREME COURT DECISIONS

    FIRST DIVISION

    [G.R. No. 156034. October 1, 2003.]

    DELSAN TRANSPORT LINES, INC., Petitioner, v. C & A CONSTRUCTION, INC., Respondent.

    D E C I S I O N


    YNARES-SANTIAGO, J.:


    Assailed in this petition for review under Rule 45 of the Revised Rules of Court are the June 14, 2002 decision 1 of the Court of Appeals in CA-G.R. CV No. 59034, which reversed the decision 2 of the Regional Trial Court of Manila, Branch 46, in Civil Case No. 95-75565, and its November 7, 2002 resolution 3 denying petitioner’s motion for reconsideration.chanrob1es virtua1 1aw 1ibrary

    The undisputed facts reveal that respondent C & A Construction, Inc. was engaged by the National Housing Authority (NHA) to construct a deflector wall at the Vitas Reclamation Area in Vitas, Tondo, Manila. 4 The project was completed in 1994 but it was not formally turned over to NHA.

    On October 9, 1994, M/V Delsan Express, a ship owned and operated by petitioner Delsan Transport Lines, Inc., anchored at the Navotas Fish Port for the purpose of installing a cargo pump and clearing the cargo oil tank. At around 12:00 midnight of October 20, 1994, Captain Demetrio T. Jusep of M/V Delsan Express received a report from his radio head operator in Japan 5 that a typhoon was going to hit Manila 6 in about eight (8) hours. 7 At approximately 8:35 in the morning of October 21, 1994, Capt. Jusep tried to seek shelter at the North Harbor but could not enter the area because it was already congested. 8 At 10:00 a.m., Capt. Jusep decided to drop anchor at the vicinity of Vitas mouth, 4 miles away from a Napocor power barge. At that time, the waves were already reaching 8 to 10 feet high. Capt. Jusep ordered his crew to go full ahead to counter the wind which was dragging the ship towards the Napocor power barge. To avoid collision, Capt. Jusep ordered a full stop of the vessel. 9 He succeeded in avoiding the power barge, but when the engine was re-started and the ship was maneuvered full astern, it hit the deflector wall constructed by Respondent. 10 The damage caused by the incident amounted to P456,198.24. 11

    Respondent demanded payment of the damage from petitioner but the latter refused to pay. Consequently, respondent filed a complaint for damages with the Regional Trial Court of Manila, Branch 46, which was docketed as Civil Case No. 95-75565. In its answer, petitioner claimed that the damage was caused by a fortuitous event. 12

    On February 13, 1998, the complaint filed by respondent was dismissed. The trial court ruled that petitioner was not guilty of negligence because it had taken all the necessary precautions to avoid the accident. Applying the "emergency rule", it absolved petitioner of liability because the latter had no opportunity to adequately weigh the best solution to a threatening situation. It further held that even if the maneuver chosen by petitioner was a wrong move, it cannot be held liable as the cause of the damage sustained by respondent was typhoon "Katring", which is an act of God. 13

    On appeal to the Court of Appeals, the decision of the trial court was reversed and set aside. 14 It found Capt. Jusep guilty of negligence in deciding to transfer the vessel to the North Harbor only at 8:35 a.m. of October 21, 1994 and thus held petitioner liable for damages.

    Hence, petitioner filed the instant petition contending that Capt. Jusep was not negligent in waiting until 8:35 in the morning of October 21, 1994 before transferring the vessel to the North Harbor inasmuch as it was not shown that had the transfer been made earlier, the vessel could have sought shelter. 15 It further claimed that it cannot be held vicariously liable under Article 2180 of the Civil Code because respondent failed to allege in the complaint that petitioner was negligent in the selection and supervision of its employees. 16 Granting that Capt. Jusep was indeed guilty of negligence, petitioner is not liable because it exercised due diligence in the selection of Capt. Jusep who is a duly licensed and competent Master Mariner. 17

    The issues to be resolved in this petition are as follows — (1) Whether or not Capt. Jusep was negligent; (2) If yes, whether or not petitioner is solidarily liable under Article 2180 of the Civil Code for the quasi-delict committed by Capt. Jusep?

    Article 2176 of the Civil Code provides that 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 a quasi-delict. The test for determining the existence of negligence in a particular case may be stated as follows: Did the defendant in doing the alleged negligent act use the reasonable care and caution which an ordinary prudent person would have used in the same situation? If not, then he is guilty of negligence. 18

    In the case at bar, the Court of Appeals was correct in holding that Capt. Jusep was negligent in deciding to transfer the vessel only at 8:35 in the morning of October 21, 1994. As early as 12:00 midnight of October 20, 1994, he received a report from his radio head operator in Japan 19 that a typhoon was going to hit Manila 20 after 8 hours. 21 This, notwithstanding, he did nothing, until 8:35 in the morning of October 21, 1994, when he decided to seek shelter at the North Harbor, which unfortunately was already congested. The finding of negligence cannot be rebutted upon proof that the ship could not have sought refuge at the North Harbor even if the transfer was done earlier. It is not the speculative success or failure of a decision that determines the existence of negligence in the present case, but the failure to take immediate and appropriate action under the circumstances. Capt. Jusep, despite knowledge that the typhoon was to hit Manila in 8 hours, complacently waited for the lapse of more than 8 hours thinking that the typhoon might change direction. 22 He cannot claim that he waited for the sun to rise instead of moving the vessel at midnight immediately after receiving; the report because of the difficulty of traveling at night. The hour of 8:35 a.m. is way past sunrise. Furthermore, he did not transfer as soon as the sun rose because, according to him, it was not very cloudy 23 and there was no weather disturbance yet. 24

    When he ignored the weather report notwithstanding reasonable foresight of harm, Capt. Jusep showed an inexcusable lack of care and caution which an ordinary prudent person would have observed in the same situation. 25 Had he moved the vessel earlier, he could have had greater chances of finding a space at the North Harbor considering that the Navotas Port where they docked was very near North Harbor. 26 Even if the latter was already congested, he would still have time to seek refuge in other ports.

    The trial court erred in applying the emergency rule. Under this rule, one who suddenly finds himself in a place of danger, and is required to act without time to consider the best means that may be adopted to avoid the impending danger, is not guilty of negligence, if he fails to adopt what subsequently and upon reflection may appear to have been a better method, unless the danger in which he finds himself is brought about by his own negligence. 27 Clearly, the emergency rule is not applicable to the instant case because the danger where Capt. Jusep found himself was caused by his own negligence.

    Anent the second issue, we find petitioner vicariously liable for the negligent act of Capt. Jusep. Under Article 2180 of the Civil Code an employer may be held solidarily liable for the negligent act of his employee. Thus —

    Art. 2180. The obligation imposed in Article 2176 is demandable not only for one’s own acts or omissions, but also for those of persons for whom one is responsible.

    x       x       x


    Employers shall be liable for the damages caused by their employees and household helpers acting within the scope of their assigned tasks, even though the former are not engaged in any business or industry.

    x       x       x


    The responsibility treated of in this article shall cease when the persons herein mentioned prove that they observed all the diligence of a good father of a family to prevent damage.

    Whenever an employee’s negligence causes damage or injury to another, there instantly arises a presumption juris tantum that the employer failed to exercise diligentissimi patris families in the selection (culpa in eligiendo) or supervision (culpa in vigilando) of its employees. To avoid liability or a quasi-delict committed by his employee, an employer must overcome the presumption by presenting convincing proof that he exercised the care and diligence of a good father of a family in the selection and supervision of his employee. 28

    There is no question that petitioner, who is the owner/operator of M/V Delsan Express, is also the employer of Capt. Jusep who at the time of the incident acted within the scope of his duty. The defense raised by petitioner was that it exercised due diligence in the selection of Capt. Jusep because the latter is a licensed and competent Master Mariner. It should be stressed, however, that the required diligence of a good father of a family pertains not only to the selection, but also to the supervision of employees. It is not enough that the employees chosen be competent and qualified, inasmuch as the employer is still required to exercise due diligence in supervising its employees.

    In Fabre, Jr. v. Court of Appeals, 29 it was held that due diligence in supervision requires the formulation of rules and regulations for the guidance of employees and the issuance of proper instructions as well as actual implementation and monitoring of consistent compliance with the rules. Corollarily, in Ramos v. Court of Appeals, 30 the Court stressed that once negligence on the part of the employees is shown, the burden of proving that he observed the diligence in the selection and supervision of its employees shifts to the employer.

    In the case at bar, however, petitioner presented no evidence that it formulated rules/guidelines for the proper performance of functions of its employees and that it strictly implemented and monitored compliance therewith. Failing to discharge the burden, petitioner should therefore be held liable for the negligent act of Capt. Jusep.

    So also, petitioner cannot disclaim liability on the basis of respondent’s failure to allege in its complaint that the former did not exercise due diligence in the selection and supervision of its employees. In Viron Transportation Co., Inc. v. Delos Santos, 31 it was held that it is not necessary to state that petitioner was negligent in the supervision or selection of its employees, inasmuch as its negligence is presumed by operation of law. Allegations of negligence against the employee and that of an employer-employee relation in the complaint are enough to make out a case of quasi-delict under Article 2180 of the Civil Code. 32

    Considering that petitioner did not assail the damages awarded by the trial court, we find no reason to alter the same. The interest imposed should, however, be modified. In Eastern Shipping Lines, Inc. v. Court of Appeals, 33 it was held that the rate of interest on obligations not constituting a loan or forbearance of money is six percent (6%) per annum. If the purchase price can be established with certainty at the time of the filing of the complaint, the six percent (6%) interest should be computed from the date the complaint was filed until finality of the decision. After the judgment becomes final and executory until the obligation is satisfied, the amount due shall earn interest at 12% per year, the interim period being deemed equivalent to a forbearance of credit. 34

    Accordingly, the amount of P456,198.27 due the respondent shall earn 6% interest per annum from October 3, 1995 until the finality of this decision. If the adjudged principal and the interest (or any part thereof) remain unpaid thereafter, the interest rate shall be twelve percent (12%) per annum computed from the time the judgment becomes final and executory until it is fully satisfied.chanrob1es virtua1 1aw 1ibrary

    WHEREFORE, in view of all the foregoing, the instant petition is DENIED. The June 14, 2002 decision of the Court of Appeals in CA-G.R. CV No. 59034 ordering petitioner Delsan Transport Lines, Inc., to pay respondent C & A Construction, Inc., damages in the amount of P456,198.27, plus P30,000.00 as attorney’s fees, is AFFIRMED with the MODIFICATION that the award of P456,198.27 shall earn interest at the rate of 6% per annum from October 3, 1995, until finality of this decision, and 12% per annum thereafter on the principal and interest (or any part thereof) until full payment.

    SO ORDERED.

    Vitug and Carpio, JJ., concur.

    Azcuna, J., is on leave.

    Davide, Jr., C.J., took no part; was former counsel of a party.

    Endnotes:



    1. Rollo, p. 20, penned by Associate Justice Eloy R. Bello, Jr., and concurred in by Associate Justices Godardo A. Jacinto and Rebecca De Guia-Salvador.

    2. Rollo, p. 39, penned by Judge Artemio S. Tipon.

    3. Rollo, p. 28.

    4. Memorandum of Agreement between NHA and respondent, Annex "A", Records, p. 81.

    5. TSN, 9 July 1997, pp. 8–9.

    6. Id., pp. 6–7, 25 and 43.

    7. Id., pp. 43–44.

    8. Id., pp. 5–6; 23 May 1997, p. 12.

    9. TSN, 23 May 1997, pp. 13–19.

    10. Id., pp. 18–19.

    11. Exhibit "D", Records, p. 98.

    12. Answer, Records, p. 7.

    13. Rollo, p. 44.

    14. Rollo, p. 25.

    15. Petition, Rollo, p. 14.

    16. Reply, Rollo, pp. 72–73.

    17. Petition, Rollo, p. 14.

    18. Evangelista v. People, 374 Phil. 129, 143 (1999).

    19. TSN, 9 July 1997, pp. 8–9.

    20. TSN, 9 July 1997, pp. 6–7, 25 and 43.

    21. Id., pp. 43–44.

    22. Id., pp. 11–12 and 42–43.

    23. Id., p. 42.

    24. Id., pp. 14–16.

    25. People v. De los Santos, G.R. No. 131588, 27 March 2001, 355 SCRA 415, 430, citing Picart v. Smith, 37 Phil. 809 (1918).

    26. Id., pp. 15–16.

    27. Mckee v. Intermediate Appellate Court, G.R. No. 68102, 16 July 1992, 517 SCRA 517, 540.

    28. Light Rail Transit Authority v. Navidad, G.R. No. 145804, 6 February 2003; Metro Manila Transit Corporation v. Court of Appeals, G.R. No. 141089, 1 August 2002, citing Pantranco North Express, Inc. v. Baesa, G.R. Nos. 79050-51, 14 November 1989, 179 SCRA 384 Umali v. Bacani, G.R. No. L-40570, 30 January 1976, 69 SCRA 263.

    29. 328 Phil. 774, 786 (1996), citing Filamer Christian Institute v. Intermediate Appellate Court, G.R. No. 75112, 17 August 1992, 212 SCRA 637.

    30. 378 Phil. 1198, 1242 (1999).

    31. G.R. No. 138296, 22 November 2000, 345 SCRA 509, 517.

    32. Jose v. Court of Appeals, 379 Phil. 30, 46 (2000).

    33. Eastern Shipping Lines, Inc. v. Court of Appeals, G.R. No. 97412, 12 July 1994, 234 SCRA 78, 96.

    34. Eastern Shipping Lines, Inc. v. Court of Appeals, supra, at p. 97.

    G.R. No. 156034   October 1, 2003 - DELSAN TRANSPORT LINES, INC. v. C & A CONSTRUCTION, INC.


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