Baliwag v.

CA (1989)

Facts:

On December 17, 1984, George, who was a paying passenger on a Baliwag bus
was thrown off by the bus driven in a careless and negligent manner by Leonardo
Cruz, authorized bus driver, along Barangay Patubig, Marilao, Bulacan. He
suffered from multiple serious physical injuries resulting to his confinement in the
hospital for treatment. His parents incurred costs amounting to more than
Php200,000.

George and his parents filed a complaint against the bus company for breach of
contract of carriage. In its Answer, Baliwag attributed the whole incident to
George because the bus company claimed that he stood up from his seat and
proceeded to jump off from the bus without provocation from anyone and despite
the protestations of the driver. Baliwag then filed a third-party complaint against
Fortune Insurance & Surety Company for 50,000.

However, in November 1985, Fortune Insurance and Baliwag both filed their
motions to dismiss on the ground that there was already a settlement with George
for Php8020 and that George has signed a "Release of Claims." George's parents
opposed the said motions, claiming that George is still a student and fully
dependent on them for support. The RTC ruled in favor of Baliwag and Fortune
Insurance because George is of legal age. The CA reversed the decision, holding
that the Release of Claims is invalid since it does not have the conformity of all
parties.

Issue: Whether or not the Release of Claims signed by George is valid.

Held:

Yes. George is of legal age and has the capacity to do acts with legal effects. Aside
from this, George is the only real party-in-interest since a contract of carriage can
only be between the passenger and the carrier. It does not involve George's parents
who were not passengers on the said bus. Being valid, the Release of Claims has
the effect of a compromise agreement since it was entered into for the purpose of
making a full and final compromise adjustment and settlement of the cause of
action involved.