G.R. No.
124922 June 22, 1998  CA reversed = issue is negligence not delay and it is due to fortuitous events
JIMMY CO, doing business under the name & style DRAGON METAL
MANUFACTURING, petitioner,
vs.COURT OF APPEALS and BROADWAY MOTOR SALES
CORPORATION, respondents.
FACTS
 July 18, 1990 petitioner entrusted his Nissan pick-up car 1988 model to private
respondent which is engaged in the sale, distribution and repair of motor
vehiclesfor the following job repair services and supply of parts
o Bleed injection pump and all nozzles;
o Adjust valve tappet;
o Change oil and filter;
o Open up and service four wheel brakes, clean and adjust;
o Lubricate accelerator linkages;
o Replace aircon belt; and
o REPLACE BATTERY
 respondent undertook to return the vehicle, fully serviced and supplied in
accordance with the job contract
 petitioner paid in full the repair bill in the amount of P1,397.00
 respondent issued to him a gate pass for the release of the vehicle on said date,
BUT petitioner could not release the vehicle as its battery was weak and was
not yet replaced
 petitioner then bought a new battery nearby and delivered it to private
respondent for installation on the same day
 However, the battery was not installed and the delivery of the car was
rescheduled three (3) days later.
 When petitioner sought to reclaim his car, he was told that it was carnapped
earlier that morning while being road-tested by private respondent's employee
along Pedro Gil and Perez Streets in Paco, Manila
 Thus, petitioner filed a suit for damages against private respondent anchoring
his claim on the latter's alleged negligence
 respondent contended that it has no liability because the car was lost as result
of a fortuitous event — the carnapping
 During pre-trial, the parties agreed on the cost of the car when it was bought
2.5 years ago, the cost of the parts and repairs and the present value of the car
 They also agree that the sole issue for trial was who between the parties shall
bear the loss of the vehicle which necessitates the resolution of whether
respondent was indeed negligent
 After trial, the court found respondent guilty of delay in the performance of its
obligation and held it liable to petitioner for the value of the lost vehicle and its
accessories plus interest and attorney's fees
ISSUE
Whether a repair shop (respondent) can be held liable for the loss of a customer's
vehicle while the same is in its custody for repair or other job services?
HELD/ RULING
 YES. The respondent can be held liable
 It is a not defense for a repair shop of motor vehicles to escape liability simply
because the damage or loss of a thing lawfully placed in its possession was due
to carnapping
 The fact that a thing was unlawfully and forcefully taken from another's rightful
possession, as in cases of carnapping, does not automatically give rise to a
fortuitous event.
 To be considered as such, carnapping entails more than the mere forceful
taking of another's property. It must be proved and established that the event
was an act of God or was done solely by third parties and that neither the
claimant nor the person alleged to be negligent has any participation.
 A police report of an alleged crime, to which only private respondent is privy,
does not suffice to establish the carnapping
 Even assuming arguendo that carnapping was duly established as a fortuitous
event, still private respondent cannot escape liability. Article 1165 of the New
Civil Code makes an obligor who is guilty of delay responsible even for a
fortuitous event until he has effected the delivery.
 In this case, private respondent was already in delay as it was supposed to
deliver petitioner's car three (3) days before it was lost. Petitioner's
agreement to the rescheduled delivery does not defeat his claim as private
respondent had already breached its obligation. Moreover, such accession
cannot be construed as waiver of petitioner's right to hold private respondent
liable because the car was unusable and thus, petitioner had no option but to
leave it.
 It must likewise be emphasized that pursuant to Articles 1174 and 1262 of the
New Civil Code, liability attaches even if the loss was due to a fortuitous event if
"the nature of the obligation requires the assumption of risk
 Having taken custody of the vehicle private respondent is obliged not only to
repair the vehicle but must also provide the customer with some form of
security for his property over which he loses immediate control.
 WHEREFORE, premises considered, the decision of the Court Appeals is
REVERSED and SET ASIDE and the decision of the court a quo is REINSTATED.