Professional Documents
Culture Documents
Victory Liner, Inc. vs. Gammad
Victory Liner, Inc. vs. Gammad
GAMMAD
G.R. No. 159636 | November 25, 2004
FACTS:
Marie Grace Gammad was a passenger of petitioners bus when it fell on a
ravine, which resulted to her death. Hence, heirs of the deceased Marie
Grace filed a case for damages against Victory Liner, Inc. for breach of
contract of carriage. Rosalito Gammad, husband of deceased, completed his
testimony and was scheduled for cross-examination. However, counsel of
peritioner failed to appear even after a reschedule, and thus the court
deemed the petitioner to have waived cross-examination. The petitioners
counsel also failed to appear at the presentation of evidence. The court
already deemed the case submitted for resolution when it received belatedly
the telegram of petitioners counsel requesting for postponement.
ISSUE:
(1) Is the petitioner bound by the negligence of the counsel?
(2) Is the petitioner liable for breach of contract of carriage?
(3) Is the award of damages proper?
RULING:
(1) Yes. As a general rule, client is bound by negligence of counsel. Any
act performed by a counsel within the scope of his general or implied
authority is regarded as an act of his client. Consequently, the mistake or
negligence of counsel may result in the rendition of an unfavorable judgment
against the client. However, exceptions have been recognized by the court
in cases where reckless or gross negligence of counsel deprives the
client of due process of law, or when its application will result in
outright deprivation of the clients liberty or property or where the
interests of justice so require, and accord relief to the client who
suffered by reason of the lawyers gross or palpable mistake or negligence.
The exceptions, however, are not present in this case. Petitioners claim that
it was denied due process lacks basis. Petitioner too is not entirely
blameless.
(2) Petitioner was correctly found liable for breach of contract of carriage. A
common carrier is bound to carry its passengers safely as far as human care
and foresight can provide, using the utmost diligence of very cautious
persons, with due regard to all the circumstances. In a contract of carriage, it
is presumed that the common carrier was at fault or was negligent when a
passenger dies or is injured. Unless the presumption is rebutted, the
court need not even make an express finding of fault or negligence on
the part of the common carrier. This statutory presumption may only be
overcome by evidence that the carrier exercised extraordinary diligence.
Furthermore, the interest due shall itself earn legal interest from the
time it is judicially demanded. In the absence of stipulation, the rate
of interest shall be 12% per annum to be computed from default, i.e.,
from judicial or extrajudicial demand under and subject to the
provisions of Article 1169, Civil Code.
2. When an obligation, not constituting a loan or forbearance of money,
is breached, an interest on the amount of damages awarded may be
imposed at the discretion of the court at the rate of 6% per annum.
No interest, however, shall be adjudged on unliquidated claims or
damages except when or until the demand can be established with
reasonable certainty. Accordingly, where the demand is established
with reasonable certainty, the interest shall begin to run from the time
the claim is made judicially or extrajudicially (Art. 1169, Civil Code)
but when such certainty cannot be so reasonably established at the
time the demand is made, the interest shall begin to run only from
the date the judgment of the court is made (at which time the
quantification of damages may be deemed to have been reasonably
ascertained). The actual base for the computation of legal
interest shall, in any case, be on the amount finally adjudged.
3. When the judgment of the court awarding a sum of money
becomes final and executory, the rate of legal interest, whether
the case falls under paragraph 1 or paragraph 2, above, shall be
12% per annum from such finality until its satisfaction, this
interim period being deemed to be by then an equivalent to a
forbearance of credit.
In the instant case, petitioner should also be held liable for payment of
interest as damages for breach of contract of carriage. Considering that the
amounts payable by petitioner has been determined with certainty only in the
instant petition, the interest due shall be computed upon the finality of this
decision at the rate of 12% per annum until satisfaction.
NOTE: Legal interest rate is now fixed at 6%.