People’s Car vs.

Commando Security

FACTS
- People’s car acquired the services of Commando Security Agency to "to safeguard and protect the
business premises of (plaintiff) from theft, pilferage, robbery, vandalism and all other unlawful acts of any
person or persons prejudicial to the interest of (plaintiff).
- 1am of April 5, 1970, the security guard on duty left the plaintiff’s premises and drove the client’s car
without the consent of the plaintiff abandoning his post as the security guard
- the guard lost control of the car causing the same to fall into a ditch
- the car of the plaintiff’s customer (Luy) incurred a damage of P7k which the plaintiff had to service or
provide for the maintenance in addition to the P1,4k for the car rental value for a car that plaintiff had to
rent and make available to its said customer to enable him to pursue his business and occupation for the
period of 47 days

- plaintiff claimed that the defendant was liable for the entire amount under paragraph 5 of their contract
which says that Commando Security has the “sole responsibility of all acts done during watch hours”

- Commando argues that the amount for actual damages incurred by plaintiff, that its liability shall not
exceed P1000 per guard post (Paragraph 4 of the contract)

ISSUE
- WoN Commando Security should be liable for the P8,5K damages incurred

HELD
- YES. CS contention of paragraph 4 only pertains if there is loss or damage through the negligence of the
guards during watch hours
- Guard was not negligent but acted unlawfully and wrongfully drove out the car
- under par. 5, it ‘assumed the responsibility for the proper performance by the guards employed of their
duties and (contracted to) be solely responsible for the acts done during their watch hours”
- Since Commando presumes that their guards act in good faith, they have contracted to be liable if the
guards did not do their part
- Art 1159: Obligations arising from contracts have the force of the law between the contracting parties and
should be complied with in good faith.”
- People’s car had a contract with Commando, not with the security guard