Professional Documents
Culture Documents
Herman D. Coloma For Petitioner. Glicerio S. Ferrer For Private Respondents
Herman D. Coloma For Petitioner. Glicerio S. Ferrer For Private Respondents
On its part, Intergames asserted that Rommel's In its decision dated May 10, 1991, 18 the RTC ruled
death had been an accident exclusively caused by as follows:
the negligence of the jeepney driver; that it was not
responsible for the accident; that as the marathon WHEREFORE, judgment is hereby rendered in
organizer, it did not assume the responsibilities of favor of plaintiffs-spouses Romulo Abrogar and
an insurer of the safety of the participants; that it Erlinda Abrogar and against defendants Cosmos
nevertheless caused the participants to be covered Bottling Company, Inc. and Intergames, Inc.,
with accident insurance, but the petitioners refused ordering both defendants, jointly and severally, to
to accept the proceeds thereof;11 that there could pay and deliver to the plaintiffs the amounts of
be no cause of action against it because the Twenty Eight Thousand Sixty One Pesos and Sixty
acceptance and approval of Rommel's application Three Centavos (₱28,061.63) as actual damages;
to join the marathon had been conditioned on his One Hundred Thousand Pesos (₱100,000.00) as
waiver of all rights and causes of action arising moral damages; Fifty Thousand Pesos
from his participation in the marathon; 12 that it (₱50,000.00) as exemplary damages and Ten
exercised due diligence in the conduct of the race Percent (10%) of the total amount of One Hundred
that the circumstances called for and was Seventy Eight Thousand Sixty One Pesos and
appropriate, it having availed of all its know-how Sixty Three Centavos (₱178,061,63) or Seventeen
and expertise, including the adoption and Thousand Eight Hundred Six Pesos and Sixteen
implementation of all known and possible safety Centavos (₱17,806.16) as attorney's fees.
and precautionary measures in order to protect the
participants from injuries arising from vehicular and On the cross-claim of defendant Cosmos Bottling
other forms of accidents;13 and, accordingly, the Company, Inc., defendant Intergames, Inc, is
complaint should be dismissed. hereby ordered to reimburse to the former any and
all amounts which may be recovered by the
In their reply and answer to counterclaim, the plaintiffs from it by virtue of this Decision.
petitioners averred that contrary to its claims,
Intergames did not provide adequate measures for SO ORDERED.
the safety and protection of the race participants,
considering that motor vehicles were traversing the The RTC observed that the safeguards allegedly
race route and the participants were made to run instituted by Intergames in conducting the
along the flow of traffic, instead of against it; that marathon had fallen short of the yardstick to satisfy
Intergames did not provide adequate traffic the requirements of due diligence as called for by
marshals to secure the safety and protection of the and appropriate under the circumstances; that the
participants;14 that Intergames could not limit its accident had happened because of inadequate
liability on the basis of the accident insurance preparation and Intergames' failure to exercise due
policies it had secured to cover the race diligence;19 that the respondents could not be
participants; that the waiver signed by Rommel excused from liability by hiding behind the waiver
could not be a basis for denying liability because executed by Rommel and the permission given to
him by his parents because the waiver could only marathon and such negligence was the proximate
be effective for risks inherent in the marathon, such cause of the death of Rommel Abrogar.
a:s stumbling, heat stroke, heart attack during the
race, severe exhaustion and similar 3. Whether or not the appellants Abrogar are
occurrences;20 that the liability of the respondents entitled to be compensated for the "loss of earning
towards the participants and third persons was capacity" of their son Rommel.
solidary, because Cosmos, the sponsor of the
event, had been the principal mover of the event, 4. Whether or not the appellants Abrogar are
and, as such, had derived benefits from the entitled to the actual, moral, and exemplary
marathon that in turn had carried responsibilities damages granted to them by the Trial Court.24
towards the participants and the public; that the
respondents' agreement to free Cosmos from any In its assailed judgment promulgated on March 10,
liability had been an agreement binding only 2004,25 the CA ruled as follows:
between them, and did not bind third persons; and
that Cosmos had a cause of action against As to the first issue, this Court finds that appellant
Intergames for whatever could be recovered by the Intergames was not negligent in organizing the said
petitioners from Cosmos.21 marathon.
Decision of the CA Negligence is the omission to do something which
a reasonable man, guided upon those
All the parties appealed to the CA. considerations which ordinarily regulate the
conduct to human affairs, would do, or doing
The petitioners contended that the RTC erred in not something which a prudent and reasonable man
awarding damages for loss of earning capacity on would not do.
the part of Rommel for the reason that such
damages were not recoverable due to Rommel not The whole theory of negligence presuppose some
yet having finished his schooling; and that it would uniform standard of behavior which must be an
be premature to award such damages upon the external and objective one, rather than the
assumption that he would finish college and be individual judgment good or bad, of the particular
gainfully employed.22 actor; it must be, as far as possible, the same for all
persons; and at the same time make proper
On their part, Cosmos and Intergames separately allowance for the risk apparent to the actor for his
raised essentially similar errors on the part of the capacity to meet it, and for the circumstances under
RTC, to wit: (1) in holding them liable for the death which he must act.
of Rommel; (2) in finding them negligent in
conducting the marathon; (3) in holding that The question as to what would constitute the
Rommel and his parents did not assume the risks conduct of a prudent man in a given situation must
of the marathon; (4) in not holding that the sole and of course be always determined in the light of
proximate cause of the death of Rommel was the human experience and of the acts involved in the
negligence of the jeepney driver; and (5) in making particular case.
them liable, jointly and solidarily, for damages,
attorney's fees and expenses of litigation.23 In the case at bar, the trial court erred in finding that
the appellant Intergames failed to satisfy the
The CA reduced the issues to four, namely: requirements of due diligence in the conduct of the
race.
1. Whether or not appellant Intergames was
negligent in its conduct of the "1 st Pop Cola Junior The trial court in its decision said that the accident
Marathon" held on June 15, 1980 and if so, in question could have been avoided if the route of
whether its negligence was the proximate cause of the marathon was blocked off from the regular
the death of Rommel Abrogar. traffic, instead of allowing the runners to run
together with the flow of traffic. Thus, the said court
2. Whether or not appellant Cosmos can be held considered the appellant Intergames at fault for
jointly and solidarily liable with appellant proceeding with the marathon despite the fact that
Intergames for the death of Rommel Abrogar, the Northern Police District, MPF, Quezon City did
assuming that appellant Intergames is found to not allow the road to be blocked off from traffic.
have been negligent in the conduct of the Pop Cola
This Court finds that the standard of conduct used proving the existence of the same, otherwise his
by the trial court is not the ordinary conduct of a action fails.
prudent man in such a given situation. According to
the said court, the only way to conduct a safe road Here, the appellants-spouses failed to prove that
race is to block off the traffic for the duration of the there was inadequate number of marshals, police
event and direct the cars and public utilities to take officers, and personnel because they failed to prove
alternative routes in the meantime that the what number is considered adequate.
marathon event is being held. Such standard is too
high and is even inapplicable in the case at bar This court considers that seven (7) traffic
because, there is no alternative route from IBP to operatives, five (5) motorcycle policemen, fifteen
Don Mariano Marcos to Quezon City Hall. (15) patrolmen deployed along the route, fifteen
(15) boyscouts, twelve (12) CA Ts, twenty (20)
The Civil Code provides that if the law or contract barangay tanods, three (3) ambulances and three
does not state the diligence which is to be observed (3) medical teams were sufficient to stage a safe
in the performance of an obligation that which is marathon.
expected of a good father of the family shall only be
required. Accordingly, appellant Intergames is only Moreover, the failure of Mr. Jose R. Castro, Jr. to
bound to exercise the degree of care that would be produce records of the lists of those constituting the
exercised by an ordinarily careful and prudent man volunteer help during the marathon is not fatal to
in the same position and circumstances and not the case considering that one of the volunteers,
that of the cautious man of more than average Victor Landingin of the Citizens Traffic Action (CTA)
prudence. Hence, appellant Intergames is only testified in court that CTA fielded five units on June
expected to observe ordinary diligence and not 15, 1980, assigned as follows: (1) at the sphere
extraordinary diligence. head; (2) at the finish line; (3) tail ender; (4) & (5)
roving.
In this case, the marathon was allowed by the
Northern Police District, MPF, Quezon City on the The trial court again erred in concluding that the
condition that the road should not be blocked off admission of P/Lt. Jesus Lipana, head of the traffic
from traffic. Appellant Intergames had no choice. It policemen assigned at the marathon, that he
had to comply with it or else the said marathon showed up only at the finish line means that he did
would not be allowed at all. not bother to check on his men and did not give
them appropriate instructions. P/Lt. Lipana in his
The trial court erred in contending that appellant testimony explained that he did not need to be in
Intergames should have looked for alternative the start of the race because he had predesignated
places in Metro Manila given the condition set by another capable police officer to start the race.
the Northern Police District, MPF, Quezon City;
precisely because as Mr. Jose Castro has testified In addition, this Court finds that the precautionary
the said route was found to be the best route after a measures and preparations adopted by appellant
careful study and consideration of all the factors Intergames were sufficient considering the
involved. Having conducted several marathon circumstances surrounding the case.
events in said route, appellant Intergames as well
as the volunteer groups and the other agencies Appellant Intergames, using its previous
involved were in fact familiar with the said route. experiences in conducting safe and successful road
And assuming that there was an alternative place races, took all the necessary precautions and made
suitable for the said race, the question is would all the preparations for the race. The initial
they be allowed to block off the said road from preparations included: determination of the route to
traffic? be taken; and an ocular inspection of the same to
see if it was well-paved, whether it had less corners
Also, the trial court erred in stating that there was for easy communication and coordination, and
no adequate number of marshals, police officers whether it was wide enough to accommodate
and personnel to man the race so as to prevent runners and transportation. Appellant Intergames
injury to the participants. choose the Don Mariano Marcos Avenue primarily
because it was well-paved; had wide lanes to
The general rule is that the party who relies on accommodate runners and vehicular traffic; had
negligence for his cause of action has the burden of less corners thus facilitating easy communication
and coordination among the organizers and
cooperating agencies; and was familiar to the race because it was not negligent in conducting the
organizers and operating agencies. The race marathon.
covered a ten-kilometer course from the IBP lane to
the Quezon City Hall Compound passing through Given the facts of this case, We believe that no
the Don Mariano Marcos A venue, which amount of precaution can prevent such an
constituted the main stretch of the route. Appellant accident. Even if there were fences or barriers to
Intergames scheduled the marathon on a Sunday separate the lanes for the runners and for the
morning, when traffic along the route was at its vehicles, it would not prevent such an accident in
lightest. Permission was sought from the then the event that a negligent driver loses control of his
Quezon City Mayor Adelina Rodriguez for the use vehicle. And even if the road was blocked off from
of the Quezon City Hall Grandstand and the street traffic, it would still not prevent such an accident, if
fronting it as the finish line. Police assistance was a jeepney driver on the other side of the road races
also obtained to control and supervise the traffic. with another vehicle loses control of his wheel and
The Quezon City Traffic Detachment took charge of as a result hits a person on the other side of the
traffic control by assigning policemen to the traffic road. Another way of saying this is: A defendant's
route. The particular unit assigned during the race tort cannot be considered a legal cause of plaintiffs
underwent extensive training and had been damage if that damage would have occurred just
involved in past marathons, including marathons in the same even though the defendant's tort had not
highly crowded areas. The Philippine Boy Scouts been committed.
tasked to assist the police and monitor the progress
of the race; and Citizens Traffic Action Group This Court also finds the doctrine of
tasked with the monitoring of the race, which assumption of risk applicable in the case at bar.
assigned five units consisting of ten operatives, to As explained by a well-known authority on torts:
provide communication and assistance were
likewise obtained. Finally, medical equipments and "The general principle underlying the defense of
personnel were also requested from Camp assumption of risk is that a plaintiff who voluntarily
Aguinaldo, the Philippine Red Cross and the assumes a risk of harm arising from the negligent
Hospital ng Bagong Lipunan. or reckless conduct of the defendant cannot
recover for such harm. The defense may arise
Neither does this Court find the appellant where a plaintiff, by contract or otherwise,
Intergames' conduct of the marathon the proximate expressly agrees to accept a risk or harm arising
cause of the death of Rommel Abrogar. Proximate from the defendant's conduct, or where a plaintiff
cause has been defined as that which, in who fully understands a risk or harm caused by the
natural and continuous sequence, unbroken by defendant's conduct, or by a condition created by
any efficient intervening cause, produces injury, the defendant, voluntarily chooses to enter or
and without which the result would not have remain, or to permit his property to enter or remain,
occurred. within the area of such risk, under circumstances
manifesting his willingness to accept the risk.
It appears that Rommel Abrogar, while running on
Don Mariano Marcos A venue and after passing the xxxx
Philippine Atomic Energy Commission Building,
was bumped by a jeepney which apparently was "Assumption of the risk in its primary sense arises
racing against a minibus and the two vehicles were by assuming through contract, which may be
trying to crowd each other. In fact, a criminal case implied, the risk of a known danger. Its essence is
was filed against the jeepney driver by reason of venturousness. It implies intentional exposure to a
his having killed Rommel Abrogar. known danger; It embraces a mental state of
willingness; It pertains to the preliminary conduct of
This proves that the death of Rommel Abrogar was getting into a dangerous employment or
caused by the negligence of the jeepney driver. relationship, it means voluntary incurring the risk of
Rommel Abrogar cannot be faulted because he an accident, which may or may not occur, and
was performing a legal act; the marathon was which the person assuming the risk may be careful
conducted with the permission and approval of all to avoid; and it defeats recovery because it is a
the city officials involved. He had the right to be previous abandonment of the right to complain if an
there. Neither can the appellant Intergames be accident occurs.
faulted, as the organizer of the said marathon,
"Of course, if the defense is predicated upon an activity inherent in it and to any open and obvious
express agreement the agreement must be valid, condition of the place where it is carried on. We
and in the light of this qualification the rule has believe that the waiver included vehicular accidents
been stated that a plaintiff who, by contract or for the simple reason that it was a road race run on
otherwise, expressly agreed to accept a risk of public roads used by vehicles. Thus, it cannot be
harm arising from the defendant's negligent or denied that vehicular accidents are involved. It was
reckless conduct, cannot recover for such harm not a track race which is held on an oval and
unless the agreement is invalid as contrary to insulated from vehicular traffic. In a road race, there
public policy. is always the risk of runners being hit by motor
vehicles while they train or compete. That risk is
xxxx inherent in the sport and known to runners. It is a
risk they assume every time they voluntarily
"The defense of assumption of risk presupposes: engage in their sport.
(1) that the plaintiff had actual knowledge of the
danger; (2) that he understood and appreciated the Furthermore, where a person voluntarily
risk from the danger; and (3) that he voluntarily participates in a lawful game or contest, he
exposed himself to such risk. x x x assumes the ordinary risks of such game or contest
so as to preclude recovery from the promoter or
"The term 'risk' as used in this connection applies operator of the game or contest for injury or death
to known dangers, and not to things from which resulting therefrom. Proprietors of amusements or
danger may possibly flow. The risk referred to is the of places where sports and games are played are
particular risk, or one of the risks, which the plaintiff not insurers of safety of the public nor of their
accepted within the context of the situation in which patrons.
he placed himself and the question is whether the
specific conduct or condition which caused the In McLeod Store v. Vinson 213 Ky 667, 281 SW
injury was such a risk." 799 (1926), it was held that a boy, seventeen years
of age, of ordinary intelligence and physique, who
In this case, appellant Romulo Abrogar himself entered a race conducted by a department store,
admitted that his son, Rommel Abrogar, surveyed the purpose of which was to secure guinea fowl
the route of the marathon and even attended a which could be turned in for cash prizes, had
briefing before the race. Consequently, he was assumed the ordinary risks incident thereto and
aware that the marathon would pass through a was barred from recovering against the department
national road and that the said road would not be store for injuries suffered when, within catching
blocked off from traffic. And considering that he distance, he stopped to catch a guinea, and was
was already eighteen years of age, had voluntarily tripped or stumbled and fell to the pavement, six or
participated in the marathon, with his parents' eight others falling upon him. The court further said:
consent, and was well aware of the traffic hazards "In this (the race) he was a voluntary participant.
along the route, he thereby assumed all the risks of xxx The anticipated danger was as obvious to him
the race. This is precisely why permission from the as it was to appellant (the department store). While
participant's parents, submission of a medical not an adult, he was practically 17 years of age, of
certificate and a waiver of all rights and causes of ordinary intelligence, and perfectly able to
action arising from the participation in the marathon determine the risks ordinarily incident to such
which the participant or his heirs may have against games. An ordinary boy of that age is practically as
appellant Intergames were required as conditions in well advised as to the hazards of baseball,
joining the marathon. basketball, football, foot races and other games of
skill and endurance as is an adult
In the decision of the trial court, it stated that the
risk mentioned in the waiver signed by Rommel x x x."
Abrogar only involved risks such as stumbling,
suffering heatstroke, heart attack and other similar In the case at bar, the "1st Pop Cola Junior
risks. It did not consider vehicular accident as one Marathon" held on June 15, 1980 was a race the
of the risks included in the said waiver. winner of which was to represent the country in the
annual Spirit of Pheidippides Marathon Classic in
This Court does not agree. With respect to Greece, if he equals or breaks the 29-minute mark
voluntary participation in a sport, the doctrine of for the 10-km. race. Thus, Rommel Abrogar having
assumption of risk applies to any facet of the
voluntarily participated in the race, with his parents' MARATHON', or for any damages to the property
consent, assumed all the risks of the race. or properties of third parties, which may likewise
arise in the course of the race.
Anent the second issue, this Court finds that
appellant Cosmos must also be absolved from any From the foregoing, it is crystal clear that the role of
liability in the instant case. the appellant Cosmos was limited to providing
financial assistance in the form of sponsorship.
This Court finds that the trial court erred in holding Appellant Cosmos' sponsorship was merely in
appellant Cosmos liable for being the principal pursuance to the company's commitment for spo1is
mover and resultant beneficiary of the event. development of the youth as well as for advertising
purposes. The use of the name Cosmos was done
In its decision it said that in view of the fact that for advertising purposes only; it did not mean that it
appellant Cosmos will be deriving certain benefits was an organizer of the said marathon. As pointed
from the marathon event, it has the responsibility to out by Intergames' President, Jose Castro Jr.,
ensure the safety of all the participants and the appellant Cosmos did not even have the right to
public. It further said that the stipulations in the suggest the location and the number of runners.
contract entered into by the two appellants,
Cosmos and Intergames, relieving the former from To hold a defendant liable for torts, it must be
any liability does not bind third persons. clearly shown that he is the proximate cause of the
harm done to the plaintiff. The nexus or connection
This Court does not agree with the reasoning of the of the cause and effect, between a negligent act
trial court. The sponsorship contract entered and the damage done, must be established by
between appellant Cosmos and appellant competent evidence.
Intergames specifically states that:
In this case, appellant Cosmos was not negligent in
1. COSMOS BOTTLING CORPORATION shall pay entering into a contract with the appellant
INTERGAMES the amount of FIFTY FIVE Intergames considering that the record of the latter
THOUSAND PESOS (₱55,000.00) representing full was clean and that it has conducted at least thirty
sponsorship fee and in consideration thereof, (30) road races.
INTERGAMES shall organize and stage a
marathon race to be called '1st POP COLA Also there is no direct or immediate causal
JUNIOR MARATHON. connection between the financial sponsorship and
the death of Rommel Abrogar. The singular act of
xxxx providing financial assistance without participating
in any manner in the conduct of the marathon
3. INTER GAMES shall draw up all the rules of the cannot be palmed off as such proximate cause. In
marathon race, eligibility requirements of fact, the appellant spouses never relied on any
participants as well as provide all the staff required representation that Cosmos organized the race. It
in the organization and actual staging of the race. It was not even a factor considered by the appellants-
is understood that all said staff shall be considered spouses in allowing their son to join said marathon.
under the direct employ of INTERGAMES which
shall have full control over them. In view of the fact that both defendants are not
liable for the death of Rommel Abrogar, appellants-
xxxx spouses are not entitled to actual, moral, exemplary
damages as well as for the "loss of earning
5. INTERGAMES shall secure all the necessary capacity" of their son. The third and fourth issues
permits, clearances, traffic and police assistance in are thus moot and academic.
all the areas covered by the entire route of the '1st
POP COLA JUNIOR MARATHON. UPON THE VIEW WE TAKE OF THIS CASE,
THUS, the judgment appealed from must be, as it
12. INTERGAMES shall hold COSMOS BOTTLING hereby is, REVERSED and SET ASIDE, and
CORPORATION, completely free and harmless another entered DISMISSING the complaint a quo.
from any claim or action for liability for any injuries The appellants shall bear their respective costs.
or bodily harm which may be sustained by any of
the entries in the '1st POP COLA JUNIOR SO ORDERED.26
Issues Review of factual issues is allowed because of
the conflict between the findings of fact
In this appeal, the petitioners submit that the CA by the RTC and the CA on the issue of
gravely erred: negligence
Based on the foregoing testimony of Castro, Jr., Q You also said that if you block off one side of the
Intergames had full awareness of the higher risks road, it is possible that it would be more convenient
involved in staging the race alongside running to hold the race in that matter. Will you tell the
vehicles, and had the option to hold the race in a Honorable Court if it is possible also to hold a race
route where such risks could be minimized, if not safely if the road is not blocked off?
eliminated. But it did not heed the danger already
foreseen, if not expected, and went ahead with A Yes, sir.
staging the race along the plotted route on Don
Mariano Marcos Highway on the basis of its Q How is it done.
supposedly familiarity with the route. Such
familiarity of the organizer with the route and the A You can still run a race safely even if it is partially
fact that previous races had been conducted blocked off as long as you have the necessary
therein without any untoward incident 56 were not in cooperation with the police authorities, and the
themselves sufficient safeguards. The standards police assigned along the route of the race and the
for avoidance of injury through negligence police assigned would be there, this will contribute
the safety of the participants, and also the vehicular COURT
division, as long as there are substantial publicities
in the newspapers, normally they will take the q Did you have a check list of the activities that
precautions in the use of the particular route of the would have to be entered before the actual
race. marathon some kind of system where you will
indicate this particular activity has to be checked
Q Let me clarify this. Did you say that it is possible etc. You did not have that?
to hold a marathon safely if you have this traffic
assistance or coordination even if the route is WITNESS
blocked or not blocked?
q Are you asking, your honor, as a race director of I
A It is preferable to have the route blocked but in will check this because if I do that, I won't have a
some cases, it would be impossible for the portions race because that is not being done by any race
of the road to be blocked totally. The route of the director anywhere in the world?
race could still be safe for runners if a proper
coordination or the agencies are notified especially COURT
police detailees to man the particular stage.58
I am interested in your planning activities.
Sadly, Intergames' own evidence did not establish
the conduct of proper coordination and instruction. q In other words, what planning activities did you
Castro, Jr. described the action plan adopted by perform before the actual marathon?
Intergames in the preparation for the race, as
follows: a The planning activities we had, your honor, was
to coordinate with the different agencies involved
COURT informing them where they would be more or less
placed.
a Did you have any rehearsal let us say the race
was conducted on June 15, now before June 15 COURT
you call a meeting of all these runners so you can
have more or less a map-up and you would indicate q Let us go to ... Who was supposed to be
or who will be stationed in their places etc. Did you coordinating with you as to the citizens action group
have such a rehearsal? who was your ... you were referring to a person
who was supposed to be manning these people
WITNESS and who was the person whom you coordinate with
the Traffic Action Group?
a It is not being done, your honor, but you have to
specify them. You meet with the group and you tell WITNESS
them that you wanted them to be placed in their
particular areas which we pointed out to them for a I can only remember his name ... his family name
example in the case of the Barangay Tanod, I is Esguerra.
specifically assigned them in the areas and we sat
down and we met.
q How about with the Tanods?
COURT
a With the Tanods his name is Pedring Serrano.
q Did you have any action, plan or brochure which
q And with the Boys Scouts? (sic)
would indicate the assignment of each of the
participating group?
a And with the Boys Scouts of the Phils. (sic) it is
Mr. Greg Panelo.
WITNESS
COURT
a Normally, sir, many of the races don't have that
except when they called them to meeting either as
a whole group or the entire cooperating agency or q When did you last meet rather how many times
meet them per group. did you meet with Esguerra before the marathon on
June 15?
WITNESS q From your house? He went in your house?
a The Citizens Traffic Action Group, your honor, a Yes, your honor.
had been with me m previous races.
q So you did not have let us say a ... you don't have
COURT records of your meetings with these people?
q How about with Mr. Serrano, how many times did COURT
you meet with him before the race?
q Because you are familiar, I was just thinking this
a If my mind does not fail me, your honor, I met him is an activity which requires planning etc., what I
twice because he lives just within our area and we was thinking when you said this was never done in
always see each other. any part of the world but all activities it has to be
planned. There must be some planning, now are
q How about with Panelo, how many times did you you saying that in this particular case you had no
meet him? written plan or check list of activities what activities
have to be implemented on a certain point and
a With Mr. Panelo, I did not meet with them, your time, who are the persons whom you must meet in
honor. a certain point and time.
a I cannot recall at the moment, your honor, since it q Following the question of the Court Mr. Castro,
was already been almost six years ago. did you meet with Lt. Depano of the Police
Department who were supposed to supervise the
g How about Serrano, where did you meet him? police officers assigned to help during the race?
q In fact, ever before or during the race you had no ATTY. LOMBOS
occasion to talk to Lt. Depano. Is that correct?
Q Now, you also responded to a question during
a That is correct, sir. the same hearing and this appears on page 26 of
the transcript that you did not hold any rehearsal or
ATTY. VINLUAN dry run for this particular marathon. Could you tell
the Court why you did not hold any such rehearsal
Based on the question of the Court and your or dry run?
answer to the question of the Court, are you trying
to say that this planning before any race of all these A Because I believe there was no need for us to do
groups who have committed to help in the race, this that since we have been doing this for many years
is not done in any part of the world? and we have been the same people, same
organization with us for so many years conducting
WITNESS several races including some races in that area
consisting of longer distances and consisting of
a In the latter years when your race became bigger more runners, a lot more runners in that areay (sic)
and bigger, this is being done now slowly. so these people, they know exactly what to do and
there was no need for us to have a rehearsal. I
believe this rehearsal would only be applicable if I
ATTY. VINLUAN
am new and these people are new then, we have to
rehearse.
q But for this particular race you will admit that you
failed to do it when you have to coordinate and
ATTY. LOMBOS
even have a dry run of the race you failed to do all
of that in this particular race, yes or no?
q You also stated Mr. Castro that you did not have
any action plan or brochure which you would
a Because there was ...
indicate, an assignment of each of the participating
group as to what to do during the race. Will you
COURT please explain what you meant when you said you
have no action plan or brochure?
It was already answered by him when I asked him.
The Court has ... Everybody has a copy how of this WITNESS
time planner. Any activity or even meeting a
girlfriend or most people plan.
a What I mean of action plan, I did not have any
written action plan but I was fully aware of what to
A TTY. F .M. LOMBOS do. I mean, those people did not just go there out of
nowhere. Obviously, there was an action on my
If your honor please, before we proceed ... part because I have to communicate with them
previously and to tell them exactly what the race is
WITNESS all about; where to start; where it would end, and
that is the reason why we have the ambulances, we
In the latter years, your honor, when your race have the Boy Scouts, we have the CT A, we have
became bigger and bigger, this is being done now the police, so it was very obvious that there was a
slowly. plan of action but not written because I know pretty
well exactly what to do. I was dealing with people
q For this particular race you will admit that you who have been doing this for a long period of
failed to do it? time.60
a Because there was no need, sir.59 While the level of trust Intergames had on its
volunteers was admirable, the coordination among
the cooperating agencies was predicated on
circumstances unilaterally assumed by Intergames.
It was obvious that Intergames' inaction had higher degree of diligence was required given
been impelled by its belief that it did not need that practically all of the participants were
any action plan because it had been dealing children or minors like Rommel; and that the
with people who had been manning similar law imposes a duty of care towards children
races for a long period of time. and minors even if ordinarily there was no such
duty under the same circumstances had the
The evidence presented undoubtedly established persons involved been adults of sufficient
that Intergames' notion of coordination only discretion.61 In that respect, Intergames did not
involved informing the cooperating agencies of the observe the degree of care necessary as the
date of the race, the starting and ending points of organizer, rendering it liable for negligence. As the
the route, and the places along the route to man. Court has emphasized in Corliss v. The Manila
Intergames did not conduct any general assembly Railroad Company,62 where the danger is great, a
with all of them, being content with holding a few high degree of care is necessary, and the failure to
sporadic meetings with the leaders of the observe it is a want of ordinary care under the
coordinating agencies. It held no briefings of any circumstances. 63
kind on the actual duties to be performed by each
group of volunteers prior to the race. It did not The circumstances of the persons, time and place
instruct the volunteers on how to minimize, if not required far more than what Intergames undertook
avert, the risks of danger in manning the race, in staging the race. Due diligence would have made
despite such being precisely why their assistance a reasonably prudent organizer of the race
had been obtained in the first place. participated in by young, inexperienced or beginner
runners to conduct the race in a route suitably
Intergames had no right to assume that the blocked off from vehicular traffic for the safety and
volunteers had already been aware of what exactly security not only of the participants but the motoring
they would be doing during the race. It had the public as well. Since the marathon would be run
responsibility and duty to give to them the proper alongside moving vehicular traffic, at the very least,
instructions despite their experience from the past Intergames ought to have seen to the constant and
races it had organized considering that the closer coordination among the personnel manning
particular race related to runners of a different level the route to prevent the foreseen risks from
of experience, and involved different weather and befalling the participants. But this it sadly failed to
environmental conditions, and traffic situations. It do.
should have remembered that the personnel
manning the race were not its own employees paid II
to perform their tasks, but volunteers whose nature
of work was remotely associated with the safe The negligence of Intergames as the organizer
conduct of road races. Verily, that the volunteers was the proximate cause of the death of
showed up and assumed their proper places or that Rommel
they were sufficient in number was not really
enough. It is worthy to stress that proper As earlier mentioned, the CA found that Rommel,
coordination in the context of the event did not while running the marathon on Don Mariano
consist in the mere presence of the volunteers, Marcos A venue and after passing the Philippine
but included making sure that they had been Atomic Energy Commission Building, was bumped
properly instructed on their duties and tasks in by a passenger jeepney that was racing with a
order to ensure the safety of the young runners. minibus and two other vehicles as if trying to crowd
each other out. As such, the death of Rommel was
It is relevant to note that the participants of the 1st caused by the negligence of the jeepney driver.
Pop Cola Junior Marathon were mostly minors
aged 14 to 18 years joining a race of that kind for Intergames staunchly insists that it was not liable,
the first time. The combined factors of their youth, maintaining that even assuming arguendo that it
eagerness and inexperience ought to have put a was negligent, the negligence of the jeepney driver
reasonably prudent organizer on higher guard as to was the proximate cause of the death of Rommel;
their safety and security needs during the race, hence, it should not be held liable.
especially considering Intergames' awareness of
the risks already foreseen and of other risks Did the negligence of Intergames give rise to its
already known to it as of similar events in the past liability for the death of ommel notwithstanding the
organizer. There was no question at all that a negligence of the jeepney driver?
In order for liability from negligence to arise, continuous chain of events, each having a
there must be not only proof of damage and close causal connection with its immediate
negligence, but also proof that the damage was predecessor, the final event in the chain
the consequence of the negligence. The Court immediately effecting the injury as a natural and
has said in Vda. de Gregorio v. Go Chong Bing:64 probable result of the cause which first acted,
under such circumstances that the person
x x x Negligence as a source of obligation both responsible for the first event should, as an
under the civil law and in American cases was ordinarily prudent and intelligent person, have
carefully considered and it was held: reasonable ground to expect at the moment of his
act or default that an injury to some person might
We agree with counsel for appellant that under the probably result therefrom."68
Civil Code, as under the generally accepted
doctrine in the United States, the plaintiff in an To be considered the proximate cause of the injury,
action such as that under consideration, in order to the negligence need not be the event closest in
establish his right to a recovery, must establish by time to the injury; a cause is still proximate,
competent evidence: although farther in time in relation to the injury, if
the happening of it set other foreseeable events
(1) Damages to the plaintiff. into motion resulting ultimately in the
damage.69 According to an authority on civil
(2) Negligence by act or omission of which law:70"A prior and remote cause cannot be made
defendant personally or some person for whose the basis of an action, if such remote cause did
acts it must respond, was guilty. nothing more than furnish the condition or give rise
to the occasion by which the injury was made
(3) The connection of cause and effect between possible, if there intervened between such prior or
the negligence and the damage." (Taylor vs. Manila remote cause and the injury a distinct, successive,
Electric Railroad and Light Co., supra, p. 15.) unrelated and efficient cause, even though such
injury would not have happened but for such
condition or occasion. If no damage exists in the
In accordance with the decision of the Supreme
condition except because of the independent
Court of Spain, in order that a person may be held
cause, such condition was not the proximate
guilty for damage through negligence, it is
cause. And if an independent negligent act or
necessary that there be an act or omission on the
defective condition sets into operation the
part of the person who is to be charged with the
circumstances which result in injury because of the
liability and that damage is produced by the said
prior defective condition, such act or condition is
act or omission.65 (Emphasis supplied)
the proximate cause."
We hold that the negligence of Intergames was the
Bouvier adds:
proximate cause despite the intervening negligence
of the jeepney driver.
In many cases important questions arise as to
which, in the chain of acts tending to the production
Proximate cause is "that which, in natural and
of a given state of things, is to be considered the
continuous sequence, unbroken by any new
responsible cause. It is not merely distance of place
cause, produces an event, and without which
or of causation that renders a cause remote. The
the event would not have occurred."66 In Vda. de
cause nearest in the order of causation, without any
Bataclan, et al. v. Medina,67 the Court, borrowing
efficient concurring cause to produce the result,
from American Jurisprudence, has more
may be considered the direct cause. In the course
extensively defined proximate cause thusly:
of decisions of cases in which it is necessary to
determine which of several causes is so far
"* * * 'that cause, which, in natural and continuous responsible for the happening of the act or injury
sequence, unbroken by any efficient intervening complained of, what is known as the doctrine of
cause, produces the injury and without which the proximate cause is constantly resorted to in order
result would not have occurred.' And more to ascertain whether the act, omission, or
comprehensively, 'the proximate legal cause is negligence of the person whom it is sought to hold
that acting first and producing the injury, either liable was in law and in fact responsible for the
immediately or by setting other events in result which is the foundation of the action.71
motion, all constituting a natural and
xxxx And, thirdly, the negligence of the jeepney driver,
albeit an intervening cause, was not efficient
The question of proximate cause is said to be enough to break the chain of connection between
determined, not by the existence or non-existence the negligence of Intergames and the injurious
of intervening events, but by their character and the consequence suffered by Rommel. An intervening
natural connection between the original act or cause, to be considered efficient, must be "one
omission and the injurious consequences. When not produced by a wrongful act or omission,
the intervening cause is set in operation by the but independent of it, and adequate to bring the
original negligence, such negligence is still the injurious results. Any cause intervening
proximate cause; x x x If the party guilty of the first between the first wrongful cause and the final
act of negligence might have anticipated the injury which might reasonably have been
intervening cause, the connection is not broken; x x foreseen or anticipated by the original
x. Any number of causes and effects may wrongdoer is not such an efficient intervening
intervene, and if they arc such as might with cause as will relieve the original wrong of its
reasonable diligence have been foreseen, the last character as the proximate cause of the final
result is to be considered as the proximate result. injury."74
But whenever a new cause intervenes, which is not
a consequence of the first wrongful cause, which is In fine, it was the duty of Intergames to guard
not under control of the wrongdoer, which could not Rommel against the foreseen risk, but it failed to do
have been foreseen by the exercise of reasonable so.
diligence, and except for which the final injurious
consequence could not have happened, then such III
injurious consequence must be deemed too
remote; x x x.72 (bold underscoring supplied for The doctrine of assumption of risk
emphasis) had no application to Rommel
An examination of the records in accordance Unlike the R TC, the CA ruled that the doctrine of
with the foregoing concepts supports the assumption of risk applied herein; hence, it
conclusions that the negligence of Intergames declared Intergames and Cosmos not liable. The
was the proximate cause of the death of CA rendered the following rationalization to buttress
Rommel; and that the negligence of the jeepney its ruling, to wit:
driver was not an efficient intervening cause.
In this case, appellant Romulo Abrogar himself
First of all, Intergames' negligence in not admitted that his son, Rommel Abrogar, surveyed
conducting the race in a road blocked off from the route of the marathon and even attended a
vehicular traffic, and in not properly coordinating briefing before the race. Consequently, he was
the volunteer personnel manning the marathon aware that the marathon would pass through a
route effectively set the stage for the injury national road and that the said road would not be
complained of. The submission that Intergames blocked off from traffic. And considering that he
had previously conducted numerous safe races did was already eighteen years of age, had voluntarily
not persuasively demonstrate that it had exercised participated in the marathon, with his parents'
due diligence because, as the trial court pointedly consent, and was well aware of the traffic hazards
observed, "[t]hey were only lucky that no accident along the route, he thereby assumed all the risks of
occurred during the previous marathon races but the race. This is precisely why permission from the
still the danger was there."73 participant's parents, submission of a medical
certificate and a waiver of all rights and causes of
Secondly, injury to the participants arising from action arising from the participation in the marathon
an unfortunate vehicular accident on the route which the participant or his heirs may have against
was an event known to and foreseeable by appellant Intergames were required as conditions in
Intergames, which could then have been joining the marathon.
avoided if only Intergames had acted with due
diligence by undertaking the race on a blocked- In the decision of the trial court, it stated that the
off road, and if only Intergames had enforced and risk mentioned in the waiver signed by Rommel
adopted more efficient supervision of the race Abrogar only involved risks such as stumbling,
through its volunteers. suffering heatstroke, heart attack and other similar
risks. It did not consider vehicular accident as one In the case at bar, the "1st Pop Cola Junior
of the risks included in the said waiver. Marathon" held on June 15, 1980 was a race the
winner of which was to represent the country in the
This Court does not agree. With respect to annual Spirit of Pheidippides Marathon Classic in
voluntary participation in a sport, the doctrine of Greece, if he equals or breaks the 29-minute mark
assumption of risk applies to any facet of the for the 19-km. race. Thus, Rommel Abrogar
activity inherent in it and to any open and having voluntarily participated in the race, with
obvious condition of the place where it is his parents' consent, assumed all the risks of
carried on. We believe that the waiver included the race.75
vehicular accidents for the simple reason that it
was a road race run on public roads used by The doctrine of assumption of risk
vehicles. Thus, it cannot be denied that vehicular means that one who voluntarily exposes
accidents are involved. It was not a track race
which is held on an oval and insulated from
himself to an obvious, known and
vehicular traffic. In a road race, there is always the appreciated danger assumes the risk of
risk of runners being hit by motor vehicles while injury that may result therefrom.76 It rests
they train or compete. That risk is inherent in on the fact that the person injured has consented to
the sport and known to runners. It is a risk relieve the defendant of an obligation of conduct
they assume every time they voluntarily toward him and to take his chance of injury from a
engage in their sport. known risk, and whether the former has exercised
proper caution or not is immaterial. 77 In other
words, it is based on voluntary consent, express or
Furthermore, where a person voluntarily
implied, to accept danger of a known and
participates in a lawful game or contest, he
appreciated risk; it may sometimes include
assumes the ordinary risks of such game or contest
acceptance of risk arising from the defendant's
so as to preclude recovery from the promoter or
negligence, but one does not ordinarily
operator of the game or contest for injury or death
resulting therefrom. Proprietors of amusements or assume risk of any negligence which he
of places where sports and games are played are does not know and appreciate.78
not insurers of safety of the public nor of their
patrons. As a defense in negligence cases, therefore, the
doctrine requires the concurrence of three
In Mc Leod Store v. Vinson 213 Ky 667, 281 SW elements, namely:
799 (1926), it was held that a boy, seventeen years
of age, of ordinary intelligence and physique, who (1) the plaintiff must know that the risk is
entered a race conducted by a department store, present; (2) he must further understand its
the purpose of which was to secure guinea fowl nature; and
which could be turned in for cash prizes, had
assumed the ordinary risks incident thereto and (3) his choice to incur it must be free and
was barred from recovering against the department voluntary.79 According to
store for injuries suffered when, within catching Prosser:80 "Knowledge of the risk is the
distance, he stopped to catch a guinea, and was watchword of assumption of risk."
tripped or stumbled and fell to the pavement, six or
eight others falling upon him. The comi further said: Contrary to the notion of the CA, the concurrence of
"In this (the race) he was a voluntary participant. x the three elements was not shown to exist. Rommel
x x The anticipated danger was as obvious to him could not have assumed the risk of death when he
as it was to appellant (the department store). While participated in the race because death was neither
not an adult, he was practically 17 years of age, of a known nor normal risk incident to running a race.
ordinary intelligence, and perfectly able to Although he had surveyed the route prior to the
determine the risks ordinarily incident to such race and should be presumed to know that he
games. An ordinary boy of that age is practically as would be running the race alongside moving
well advised as to the hazards of baseball, vehicular traffic, such knowledge of the general
basketball, football, foot races and other games of danger was not enough, for some authorities have
skill and endurance as is an adult required that the knowledge must be of the specific
risk that caused the harm to him.81 In theory, the
x x x." standard to be applied is a subjective one, and
should be geared to the particular plaintiff and his
situation, rather than that of the reasonable person a As far as the Cosmos Bottling Company (sic) was
of ordinary prudence who appears in contributory a sponsor as to the actual conduct of the race, it is
negligence.82 He could not have appreciated the my responsibility. The conduct of the race is my
risk of being fatally struck by any moving vehicle responsibility. The sponsor has nothing to do as
while running the race. Instead, he had every well as its code of the race because they are not
reason to believe that the organizer had taken the ones running. I was the one running. The
adequate measures to guard all participants responsibility of Cosmos was just to provide the
against any danger from the fact that he was sponsor's money.
participating in an organized marathon. Stated
differently, nobody in his right mind, COURT
including minors like him, would have
joined the marathon if he had known of or q They have no right to who (sic) suggest the
appreciated the risk of harm or even death location, the number of runners, you decide these
from vehicular accident while running in the yourself without consulting them?
organized running event. Without question, a
marathon route safe and free from foreseeable a Yes, your honor.86
risks was the reasonable expectation of every
runner participating in an organized running event. We uphold the finding by the CA that the role of
Cosmos was to pursue its corporate commitment to
Neither was the waiver by Rommel, then a minor, sports development of the youth as well as to serve
an effective form of express or implied consent in the need for advertising its business. In the
the context of the doctrine of assumption of risk. absence of evidence showing that Cosmos had a
There is ample authority, cited in hand in the organization of the race, and took part
Prosser,83 to the effect that a person does in the determination of the route for the race and
the adoption of the action plan, including the safety
not comprehend the risk involved in a
and security measures for the benefit of the
known situation because of his youth, 84 or runners, we cannot but conclude that the
lack of information or experience,85 and requirement for the direct or immediate causal
thus will not be taken to consent to assume connection between the financial sponsorship of
the risk. Cosmos and the death of Rommel simply did not
exist. Indeed, Cosmos' mere sponsorship of the
Clearly, the doctrine of assumption of risk does not race was, legally speaking, too remote to be the
apply to bar recovery by the petitioners. efficient and proximate cause of the injurious
consequences.
IV
V
Cosmos is not liable for the negligence
of Intergames as the organizer Damages
Nonetheless, the CA did not err in absolving Article 2202 of the Civil Code lists the damages
Cosmos from liability. that the plaintiffs in a suit upon crimes and quasi-
delicts can recover from the defendant, viz.:
The sponsorship of the marathon by Cosmos was
limited to financing the race. Cosmos did nothing Art. 2202. In crimes and quasi-delicts, the
beyond that, and did not involve itself at all in the defendant shall be liable for all damages which are
preparations for the actual conduct of the race. This the natural and probable consequences of the act
verity was expressly confirmed by Intergames, or omission complained of. It is not necessary that
through Castro, Jr., who declared as follows: such damages have been foreseen or could have
reasonably been foreseen by the defendant.
COURT
Accordingly, Intergames was liable for all damages
q Do you discuss all your preparation with Cosmos that were the natural and probable consequences
Bottling Company? of its negligence. In its judgment, the RTC
explained the award of damages in favor of the
petitioners, as follows:
As borne by the evidence on record, the plaintiffs would have conformed to jurisprudence whereby
incurred medical, hospitalization and burial the Court has unhesitatingly allowed such recovery
expenses for their son in this aggregate amount of in respect of children, students and other non-
₱28,061.65 (Exhibits "D'', "D-1" and "D-2"). In working or still unemployed victims. The legal basis
instituting this case, they have paid their lawyer for doing so is Article 2206 (l) of the Civil
₱5,000 as initial deposit, their arrangement being Code, which stipulates that the defendant "shall be
that they would pay attorney's fees to the extent of liable for the loss of the earning capacity of the
10% of whatever amount would be awarded to deceased, and the indemnity shall be paid to the
them in this case. heirs of the latter; such indemnity shall in every
case be assessed and awarded by the court,
For the loss of a son, it is unquestionable that unless the deceased on account of permanent
plaintiffs suffered untold grief which should entitle physical disability not caused by the defendant,
them to recover moral damages, and this Court had no earning capacity at the time of his death."
believes that if only to assuage somehow their
untold grief but not necessarily to compensate them Indeed, damages for loss of earning capacity may
to the fullest, the nominal amount of ₱l00,00.00 be awarded to the heirs of a deceased non-working
should be paid by the defendants. victim simply because earning capacity, not
necessarily actual earning, may be lost.
For failure to adopt elementary and basic
precautionary measure to insure the safety of the In Metro Manila Transit Corporation v. Court of
participants so that sponsors and organizers of Appeals,90 damages for loss of earning capacity
sports events should exercise utmost diligence in were granted to the heirs of a third-year high school
preventing injury to the participants and the public student of the University of the Philippines
as well, exemplary damages should also be paid by Integrated School who had been killed when she
the defendants and this Court considers the was hit and run over by the petitioner's passenger
amount of ₱50,000.00 bus as she crossed Katipunan Avenue in Quezon
City. The Court justified the grant in this wise:
as reasonable.87
Compensation of this nature is awarded not for loss
Although we will not disturb the foregoing findings of earnings but for loss of capacity to earn money.
and determinations, we need to add to the Evidence must be presented that the victim, if not
justification for the grant of exemplary damages. yet employed at the time of death, was reasonably
Article 2231 of the Civil Code stipulates that certain to complete training for a specific
exemplary damages are to be awarded in cases of profession. In People v. Teehankee, no award of
quasi-delict if the defendant acted with gross compensation for loss of earning capacity was
negligence. The foregoing characterization by the granted to the heirs of a college freshman because
RTC indicated that Intergames' negligence was there was no sufficient evidence on record to show
gross. We agree with the characterization. Gross that the victim would eventually become a
negligence, according to Mendoza v. Spouses professional pilot. But compensation should be
Gomez,88 is the absence of care or diligence as to allowed for loss of earning capacity resulting from
amount to a reckless disregard of the safety of the death of a minor who has not yet commenced
persons or property; it evinces a thoughtless employment or training for a specific profession if
disregard of consequences without exerting any sufficient evidence is presented to establish the
effort to avoid them. Indeed, the failure of amount thereor.91 (bold underscoring supplied for
Intergames to adopt the basic precautionary emphasis)
measures for the safety of the minor participants
like Rommel was in reckless disregard of their In People v. Sanchez,92 damages for loss of
safety. Conduct is reckless when it is an extreme earning capacity was also allowed to the heirs of
departure from ordinary care, in a situation in which the victims of rape with homicide despite the lack of
a high degree of danger is apparent; it must be sufficient evidence to establish what they would
more than any mere mistake resulting from have earned had they not been killed. The Court
inexperience, excitement, or confusion, and more rationalized its judgment with the following
than mere thoughtlessness or inadvertence, or observations:
simple inattention.89 The RTC did not recognize the
right of the petitioners to recover the loss of earning Both Sarmenta and Gomez were senior agriculture
capacity of Rommel. It should have, for doing so students at UPLB, the country's leading educational
institution in agriculture.1âwphi1 As reasonably the time of his death. The formula for this purpose
assumed by the trial court, both victims would have is:
graduated in due course. Undeniably, their untimely
death deprived them of their future time and Net Earning Capacity = Life Expectancy x [Gross
earning capacity. For these deprivation, their heirs Annual Income less Necessary Living Expenses ]96
are entitled to compensation. xxxx. However,
considering that Sarmenta and Gomez would have Life expectancy is equivalent to 2/3 multiplied by
graduated in due time from a reputable university, it the difference of 80 and the age of the deceased.
would not be unreasonable to assume that in 1993 Since Rommel was 18 years of age at the time of
they would have earned more than the minimum his death, his life expectancy was 41 years. His
wage. All factors considered, the Court believes projected gross annual income, computed based
that it is fair and reasonable to fix the monthly on the minimum wage for workers in the non-
income that the two would have earned in 1993 at agricultural sector in effect at the time of his
₱8,000.000 per month (or ₱96,000.00/year) and death,97 then fixed at ₱l4.00/day, is ₱5,535.83.
their deductible living and other incidental expenses Allowing for necessary living expenses of 50% of
at ₱3,000.00 per month (or his projected gross annual income, his total net
₱36,000.00/year).93 (bold underscoring supplied for earning capacity is ₱l13,484.52.
emphasis)
Article 2211 of the Civil Code expressly provides
In Perena v. Zarate,94 the Court fixed damages for that interest, as a part of damages, may be
loss of earning capacity to be paid to the heirs of awarded in crimes and quasi-delicts at the
the 15-year-old high school student of Don Bosco discretion of the court. The rate of interest provided
Technical Institute killed when a moving train hit the under Article 2209 of the Civil Code is 6% per
school van ferrying him to school while it was annum in the absence of stipulation to the contrary.
traversing the railroad tracks. The RTC and the CA The legal interest rate of 6% per annum is to be
had awarded damages for loss of earning capacity imposed upon the total amounts herein awarded
computed on the basis of the minimum wage in from the time of the judgment of the RTC on May
effect at the time of his death. Upholding said 10, 1991 until finality of judgment.98 Moreover,
findings, the Court opined: pursuant to Article 221299 of the Civil Code, the
legal interest rate of 6o/o per annum is to be further
x x x, the fact that Aaron was then without a history imposed on the interest earned up to the time this
of earnings should not be taken against his parents judgment of the Court becomes final and executory
and in favor of the defendants whose negligence until its full satisfaction.100
not only cost Aaron his life and his right to work and
earn money, but also deprived his parents of their Article 2208 of the Civil Code expressly allows the
right to his presence and his services as well. x x x. recovery of attorney's fees and expenses of
Accordingly, we emphatically hold in favor of the litigation when exemplary damages have been
indemnification for Aaron's loss of earning capacity awarded.1âwphi1 Thus, we uphold the RTC's
despite him having been unemployed, because allocation of attorney's fees in favor of the
compensation of this nature is awarded not for loss petitioners equivalent to 10% of the total amount to
of time or earnings but for loss of the deceased's be recovered, inclusive of the damages for loss of
power or ability to earn money. earning capacity and interests, which we consider
to be reasonable under the circumstances.
The petitioners sufficiently showed that Rommel
was, at the time of his untimely but much lamented WHEREFORE, the Court PARTLY AFFIRMS the
death, able-bodied, in good physical and mental decision promulgated on March 10, 2004 to the
state, and a student in good standing. 95 It should be extent that it absolved COSMOS BOTTLING
reasonable to assume that Rommel would have COMPANY, INC. from
finished his schooling and would turn out to be a liability; REVERSES and SETS ASIDE the decision
useful and productive person had he not died. as to INTERGAMES, INC., and REINSTATES as
Under the foregoing jurisprudence, the petitioners to it the judgment rendered on May 10, 1991 by the
should be compensated for losing Rommel's power Regional Trial Court, Branch 83, in Quezon City
or ability to earn. The basis for the computation of subject to
earning capacity is not what he would have become the MODIFICATIONS that INTERGAMES, INC. is
or what he would have wanted to be if not for his ORDERED TO PAY to the petitioners, in addition to
untimely death, but the minimum wage in effect at the aw3:rds thereby allowed: (a) the sum of
₱l13,484.52 as damages for the loss of Rommel
Abrogar's earning capacity; (b) interest of 6% per
annum on the actual damages, moral damages,
exemplary damages and loss of earning capacity
reckoned from May 10, 1991 until full payment; (c)
compounded interest of 6% per annum from the
finality of this decision until full payment; and (d)
costs of suit.
SO ORDERED.
G.R. No. L-47851 October 3, 1986 November 29, 1968, the date of the
filing of the complaint until full
JUAN F. NAKPIL & SONS, and JUAN F. payment;
NAKPIL, petitioners,
vs. (b) Dismissing the complaint with
THE COURT OF APPEALS, UNITED respect to defendant Juan J. Carlos;
CONSTRUCTION COMPANY, INC., JUAN J.
CARLOS, and the PHILIPPINE BAR (c) Dismissing the third-party
ASSOCIATION, respondents. complaint;
G.R. No. L-47863 October 3, 1986 (d) Dismissing the defendant's and
third-party defendants'
THE UNITED CONSTRUCTION CO., INC., counterclaims for lack of merit;
petitioner,
vs. (e) Ordering defendant United
COURT OF APPEALS, ET AL., respondents. Construction Co., Inc. and third-party
defendants (except Roman Ozaeta)
G.R. No. L-47896 October 3, 1986 to pay the costs in equal shares.
Thus, if upon the happening of a fortuitous event or It is well settled that the findings of facts of the
an act of God, there concurs a corresponding fraud, Court of Appeals are conclusive on the parties and
negligence, delay or violation or contravention in on this court (cases cited in Tolentino vs. de Jesus,
any manner of the tenor of the obligation as 56 SCRA 67; Cesar vs. Sandiganbayan, January
provided for in Article 1170 of the Civil Code, which 17, 1985, 134 SCRA 105, 121), unless (1) the
results in loss or damage, the obligor cannot conclusion is a finding grounded entirely on
escape liability. speculation, surmise and conjectures; (2) the
inference made is manifestly mistaken; (3) there is
The principle embodied in the act of God doctrine grave abuse of discretion; (4) the judgment is
strictly requires that the act must be one based on misapprehension of facts; (5) the findings
occasioned exclusively by the violence of of fact are conflicting , (6) the Court of Appeals
nature and all human agencies are to be went beyond the issues of the case and its findings
excluded from creating or entering into the are contrary to the admissions of both appellant
cause of the mischief. When the effect, the cause and appellees (Ramos vs. Pepsi-Cola Bottling Co.,
of which is to be considered, is found to be in part February 8, 1967, 19 SCRA 289, 291-292; Roque
vs. Buan, Oct. 31, 1967, 21 SCRA 648, 651); (7) The PBA in its brief insists that the proper award
the findings of facts of the Court of Appeals are should be P1,830,000.00 representing the total
contrary to those of the trial court; (8) said findings value of the building (L-47896, PBA's No. 1
of facts are conclusions without citation of specific Assignment of Error, p. 19), while both the
evidence on which they are based; (9) the facts set NAKPILS and UNITED question the additional
forth in the petition as well as in the petitioner's award of P200,000.00 in favor of the PBA (L-
main and reply briefs are not disputed by the 47851, NAKPIL's Brief as Petitioner, p. 6,
respondents (Garcia vs. CA, June 30, 1970, 33 UNITED's Brief as Petitioner, p. 25). The PBA
SCRA 622; Alsua-Bett vs. Court of Appeals, July further urges that the unrealized rental income
30, 1979, 92 SCRA 322, 366); (10) the finding of awarded to it should not be limited to a period of
fact of the Court of Appeals is premised on the one-half year but should be computed on a
supposed absence of evidence and is contradicted continuing basis at the rate of P178,671.76 a year
by evidence on record (Salazar vs. Gutierrez, May until the judgment for the principal amount shall
29, 1970, 33 SCRA 243, 247; Cited in G.R. No. have been satisfied L- 47896, PBA's No. 11
66497-98, Sacay v. Sandiganbayan, July 10, Assignment of Errors, p. 19).
1986).
The collapse of the PBA building as a result of the
It is evident that the case at bar does not fall August 2, 1968 earthquake was only partial and it is
under any of the exceptions above-mentioned. undisputed that the building could then still be
On the contrary, the records show that the lower repaired and restored to its tenantable condition.
court spared no effort in arriving at the correct The PBA, however, in view of its lack of needed
appreciation of facts by the referral of technical funding, was unable, thru no fault of its own, to
issues to a Commissioner chosen by the parties have the building repaired. UNITED, on the other
whose findings and conclusions remained hand, spent P13,661.28 to shore up the building
convincingly unrebutted by the intervenors/amicus after the August 2, 1968 earthquake (L-47896, CA
curiae who were allowed to intervene in the Decision, p. 46). Because of the earthquake on
Supreme Court. April 7, 1970, the trial court after the needed
consultations, authorized the total demolition of the
In any event, the relevant and logical observations building (L-47896, Vol. 1, pp. 53-54).
of the trial court as affirmed by the Court of Appeals
that "while it is not possible to state with There should be no question that the NAKPILS
certainty that the building would not have and UNITED are liable for the damage resulting
collapsed were those defects not present, the from the partial and eventual collapse of the
fact remains that several buildings in the same PBA building as a result of the earthquakes.
area withstood the earthquake to which the
building of the plaintiff was similarly We quote with approval the following from the
subjected," cannot be ignored. erudite decision penned by Justice Hugo E.
Gutierrez (now an Associate Justice of the
The next issue to be resolved is the amount of Supreme Court) while still an Associate Justice of
damages to be awarded to the PBA for the partial the Court of Appeals:
collapse (and eventual complete collapse) of its
building. There is no question that an
earthquake and other forces of
The Court of Appeals affirmed the finding of the trial nature such as cyclones, drought,
court based on the report of the Commissioner that floods, lightning, and perils of the
the total amount required to repair the PBA building sea are acts of God. It does not
and to restore it to tenantable condition was necessarily follow, however, that
P900,000.00 inasmuch as it was not initially a total specific losses and suffering
loss. However, while the trial court awarded the resulting from the occurrence of
PBA said amount as damages, plus unrealized these natural force are also acts
rental income for one-half year, the Court of of God. We are not convinced on
Appeals modified the amount by awarding in favor the basis of the evidence on record
of PBA an additional sum of P200,000.00 that from the thousands of structures
representing the damage suffered by the PBA in Manila, God singled out the
building as a result of another earthquake that blameless PBA building in
occurred on April 7, 1970 (L-47896, Vol. I, p. 92). Intramuros and around six or
seven other buildings in various auspicious and prophetic.
parts of the city for collapse or Fortunately, the facts on record
severe damage and that God allow a more down to earth
alone was responsible for the explanation of the collapse. The
damages and losses thus failure of the PBA building, as a
suffered. unique and distinct construction
with no reference or comparison
The record is replete with evidence to other buildings, to weather the
of defects and deficiencies in the severe earthquake forces was
designs and plans, defective traced to design deficiencies and
construction, poor workmanship, defective construction, factors
deviation from plans and which are neither mysterious nor
specifications and other esoteric. The theological allusion of
imperfections. These deficiencies appellant United that God acts in
are attributable to negligent men and mysterious ways His wonders to
not to a perfect God. perform impresses us to be
inappropriate. The evidence reveals
The act-of-God arguments of the defects and deficiencies in design
defendants- appellants and third and construction. There is no
party defendants-appellants mystery about these acts of
presented in their briefs are negligence. The collapse of the PBA
premised on legal generalizations or building was no wonder performed
speculations and on theological by God. It was a result of the
fatalism both of which ignore the imperfections in the work of the
plain facts. The lengthy discussion of architects and the people in the
United on ordinary earthquakes and construction company. More
unusually strong earthquakes and relevant to our mind is the lesson
on ordinary fortuitous events and from the parable of the wise man in
extraordinary fortuitous events leads the Sermon on the Mount "which
to its argument that the August 2, built his house upon a rock; and the
1968 earthquake was of such an rain descended and the floods came
overwhelming and destructive and the winds blew and beat upon
character that by its own force and that house; and it fen not; for it was
independent of the particular founded upon a rock" and of the
negligence alleged, the injury would "foolish upon the sand. And the rain
have been produced. If we follow descended and man which built his
this line of speculative reasoning, we house the floods came, and the
will be forced to conclude that under winds blew, and beat upon that
such a situation scores of buildings house; and it fell and great was the
in the vicinity and in other parts of fall of it. (St. Matthew 7: 24-27)." The
Manila would have toppled down. requirement that a building
Following the same line of should withstand rains, floods,
reasoning, Nakpil and Sons alleges winds, earthquakes, and natural
that the designs were adequate in forces is precisely the reason why
accordance with pre-August 2, 1968 we have professional experts like
knowledge and appear inadequate architects, and engineers.
only in the light of engineering Designs and constructions vary
information acquired after the under varying circumstances and
earthquake. If this were so, conditions but the requirement to
hundreds of ancient buildings which design and build well does not
survived the earthquake better than change.
the two-year old PBA building must
have been designed and The findings of the lower Court on
constructed by architects and the cause of the collapse are more
contractors whose knowledge and rational and accurate. Instead of
foresight were unexplainably laying the blame solely on the
motions and forces generated by the a. Increase the inertia forces that
earthquake, it also examined the move the building laterally toward
ability of the PBA building, as the Manila Fire Department.
designed and constructed, to
withstand and successfully weather b. Create another stiffness
those forces. imbalance.
These two issues, being interrelated (11) Big cavity in core of Column 2A-
with each other, will be discussed 4, second floor,
together.
(12) Columns buckled at different
The findings of the Commissioner on planes. Columns buckled worst
these issues were as follows: where there are no spirals or where
spirals are cut. Columns suffered
We now turn to the construction of worst displacement where the
the PBA Building and the alleged eccentricity of the columnar
deficiencies or defects in the reinforcement assembly is more
construction and violations or acute.
deviations from the plans and
specifications. All these may be b. Summary of alleged defects as
summarized as follows: reported by Engr. Antonio Avecilla.
Investigation shows that at above TDPO, Thereafter, petitioner Sicam filed a Motion to
while victims were inside the office, two (2) Dismiss as far as he is concerned considering that
male unidentified persons entered into the he is not the real party-in-interest. Respondents
said office with guns drawn. Suspects(sic) opposed the same. The RTC denied the motion in
(1) went straight inside and poked his gun an Order dated November 8, 1989.5
toward Romeo Sicam and thereby tied him
with an electric wire while suspects (sic) (2) After trial on the merits, the RTC rendered its
poked his gun toward Divina Mata and Decision6 dated January 12, 1993, dismissing
Isabelita Rodriguez and ordered them to lay respondents’ complaint as well as petitioners’
(sic) face flat on the floor. Suspects asked counterclaim. The RTC held that petitioner Sicam
forcibly the case and assorted pawned could not be made personally liable for a claim
jewelries items mentioned above. arising out of a corporate transaction; that in the
Amended Complaint of respondents, they asserted
Suspects after taking the money and that "plaintiff pawned assorted jewelries in
jewelries fled on board a Marson Toyota defendants' pawnshop"; and that as a consequence
unidentified plate number.3 of the separate juridical personality of a
corporation, the corporate debt or credit is not the
Petitioner Sicam sent respondent Lulu a letter debt or credit of a stockholder.
dated October 19, 1987 informing her of the
loss of her jewelry due to the robbery incident The RTC further ruled that petitioner
corporation could not be held liable for the loss
of the pawned jewelry since it had not been are foreseeable risks in that those engaged in the
rebutted by respondents that the loss of the pawnshop business are expected to foresee.
pledged pieces of jewelry in the possession of
the corporation was occasioned by armed The CA concluded that both petitioners should be
robbery; that robbery is a fortuitous event jointly and severally held liable to respondents for
which exempts the victim from liability for the the loss of the pawned jewelry.
loss, citing the case of Austria v. Court of
Appeals;7 and that the parties’ transaction was that Petitioners’ motion for reconsideration was denied
of a pledgor and pledgee and under Art. 1174 of in a Resolution dated August 8, 2003.
the Civil Code, the pawnshop as a pledgee is not
responsible for those events which could not be Hence, the instant petition for review with the
foreseen. following assignment of errors:
Respondents appealed the RTC Decision to the THE COURT OF APPEALS ERRED AND
CA. In a Decision dated March 31, 2003, the CA WHEN IT DID, IT OPENED ITSELF TO
reversed the RTC, the dispositive portion of which REVERSAL, WHEN IT ADOPTED
reads as follows: UNCRITICALLY (IN FACT IT
REPRODUCED AS ITS OWN WITHOUT IN
WHEREFORE, premises considered, the THE MEANTIME ACKNOWLEDGING IT)
instant Appeal is GRANTED, and the WHAT THE RESPONDENTS ARGUED IN
Decision dated January 12, 1993,of the THEIR BRIEF, WHICH ARGUMENT WAS
Regional Trial Court of Makati, Branch 62, is PALPABLY UNSUSTAINABLE.
hereby REVERSED and SET ASIDE,
ordering the appellees to pay appellants the THE COURT OF APPEALS ERRED, AND
actual value of the lost jewelry amounting WHEN IT DID, IT OPENED ITSELF TO
to P272,000.00, and attorney' fees REVERSAL BY THIS HONORABLE
of P27,200.00.8 COURT, WHEN IT AGAIN ADOPTED
UNCRITICALLY (BUT WITHOUT
In finding petitioner Sicam liable together with ACKNOWLEDGING IT) THE
petitioner corporation, the CA applied the doctrine SUBMISSIONS OF THE RESPONDENTS
of piercing the veil of corporate entity reasoning IN THEIR BRIEF WITHOUT ADDING
that respondents were misled into thinking that they ANYTHING MORE THERETO DESPITE
were dealing with the pawnshop owned by THE FACT THAT THE SAID ARGUMENT
petitioner Sicam as all the pawnshop tickets issued OF THE RESPONDENTS COULD NOT
to them bear the words "Agencia de R.C. Sicam"; HAVE BEEN SUSTAINED IN VIEW OF
and that there was no indication on the pawnshop UNREBUTTED EVIDENCE ON RECORD.9
tickets that it was the petitioner corporation that
owned the pawnshop which explained why Anent the first assigned error, petitioners point out
respondents had to amend their complaint that the CA’s finding that petitioner Sicam is
impleading petitioner corporation. personally liable for the loss of the pawned
jewelries is "a virtual and uncritical reproduction of
The CA further held that the corresponding the arguments set out on pp. 5-6 of the Appellants’
diligence required of a pawnshop is that it brief."10
should take steps to secure and protect the
pledged items and should take steps to insure Petitioners argue that the reproduced arguments of
itself against the loss of articles which are respondents in their Appellants’ Brief suffer from
entrusted to its custody as it derives earnings infirmities, as follows:
from the pawnshop trade which petitioners
failed to do; that Austria is not applicable to (1) Respondents conclusively asserted in
this case since the robbery incident happened paragraph 2 of their Amended Complaint
in 1961 when the criminality had not as yet that Agencia de R.C. Sicam, Inc. is the
reached the levels attained in the present day; present owner of Agencia de R.C. Sicam
that they are at least guilty of contributory Pawnshop, and therefore, the CA cannot
negligence and should be held liable for the rule against said conclusive assertion of
loss of jewelries; and that robberies and hold-ups respondents;
(2) The issue resolved against petitioner one of the parties, as long as these are legally
Sicam was not among those raised and tenable and supported by law and the facts on
litigated in the trial court; and records.11
(3) By reason of the above infirmities, it was Our jurisdiction under Rule 45 of the Rules of Court
error for the CA to have pierced the is limited to the review of errors of law committed
corporate veil since a corporation has a by the appellate court. Generally, the findings of
personality distinct and separate from its fact of the appellate court are deemed conclusive
individual stockholders or members. and we are not duty-bound to analyze and calibrate
all over again the evidence adduced by the parties
Anent the second error, petitioners point out that in the court a quo.12 This rule, however, is not
the CA finding on their negligence is likewise an without exceptions, such as where the factual
unedited reproduction of respondents’ brief which findings of the Court of Appeals and the trial court
had the following defects: are conflicting or contradictory13 as is obtaining in
the instant case.
(1) There were unrebutted evidence on
record that petitioners had observed the However, after a careful examination of the
diligence required of them, i.e, they wanted records, we find no justification to absolve
to open a vault with a nearby bank for petitioner Sicam from liability.
purposes of safekeeping the pawned
articles but was discouraged by the Central The CA correctly pierced the veil of the corporate
Bank (CB) since CB rules provide that they fiction and adjudged petitioner Sicam liable
can only store the pawned articles in a vault together with petitioner corporation. The rule is
inside the pawnshop premises and no other that the veil of corporate fiction may be pierced
place; when made as a shield to perpetrate fraud
and/or confuse legitimate issues. 14 The theory
(2) Petitioners were adjudged negligent as of corporate entity was not meant to promote
they did not take insurance against the loss unfair objectives or otherwise to shield them.15
of the pledged jelweries, but it is judicial
notice that due to high incidence of crimes, Notably, the evidence on record shows that at the
insurance companies refused to cover time respondent Lulu pawned her jewelry, the
pawnshops and banks because of high pawnshop was owned by petitioner Sicam
probability of losses due to robberies; himself. As correctly observed by the CA, in all the
pawnshop receipts issued to respondent Lulu in
(3) In Hernandez v. Chairman, Commission September 1987, all bear the words "Agencia de R.
on Audit (179 SCRA 39, 45-46), the victim C. Sicam," notwithstanding that the pawnshop was
of robbery was exonerated from liability for allegedly incorporated in April 1987. The receipts
the sum of money belonging to others and issued after such alleged incorporation were still in
lost by him to robbers. the name of "Agencia de R. C. Sicam," thus
inevitably misleading, or at the very least,
Respondents filed their Comment and petitioners creating the wrong impression to respondents
filed their Reply thereto. The parties subsequently and the public as well, that the pawnshop was
submitted their respective Memoranda. owned solely by petitioner Sicam and not by a
corporation.
We find no merit in the petition.
Even petitioners’ counsel, Atty. Marcial T. Balgos,
To begin with, although it is true that indeed the CA in his letter16 dated October 15, 1987 addressed to
findings were exact reproductions of the arguments the Central Bank, expressly referred to petitioner
raised in respondents’ (appellants’) brief filed with Sicam as the proprietor of the pawnshop
the CA, we find the same to be not fatally infirmed. notwithstanding the alleged incorporation in April
Upon examination of the Decision, we find that it 1987.
expressed clearly and distinctly the facts and the
law on which it is based as required by Section 8, We also find no merit in petitioners' argument that
Article VIII of the Constitution. The discretion to since respondents had alleged in their Amended
decide a case one way or another is broad enough Complaint that petitioner corporation is the present
to justify the adoption of the arguments put forth by
owner of the pawnshop, the CA is bound to decide due diligence commensurate with the business
the case on that basis. which resulted in the loss of their pawned jewelry.
Section 4 Rule 129 of the Rules of Court provides Markedly, respondents, in their Opposition to
that an admission, verbal or written, made by a petitioners’ Motion to Dismiss Amended Complaint,
party in the course of the proceedings in the same insofar as petitioner Sicam is concerned, averred
case, does not require proof. The admission may as follows:
be contradicted only by showing that it was made
through palpable mistake or that no such admission Roberto C. Sicam was named the
was made. defendant in the original complaint because
the pawnshop tickets involved in this case
Thus, the general rule that a judicial admission is did not show that the R.C. Sicam Pawnshop
conclusive upon the party making it and does not was a corporation. In paragraph 1 of his
require proof, admits of two exceptions, to wit: (1) Answer, he admitted the allegations in
when it is shown that such admission was made paragraph 1 and 2 of the Complaint. He
through palpable mistake, and (2) when it is shown merely added "that defendant is not now the
that no such admission was in fact made. The real party in interest in this case."
latter exception allows one to contradict an
admission by denying that he made such an It was defendant Sicam's omission to
admission.17 correct the pawnshop tickets used in the
subject transactions in this case which was
The Committee on the Revision of the Rules of the cause of the instant action. He cannot
Court explained the second exception in this wise: now ask for the dismissal of the complaint
against him simply on the mere allegation
x x x if a party invokes an "admission" by an that his pawnshop business is now
adverse party, but cites the admission "out incorporated. It is a matter of defense, the
of context," then the one making the merit of which can only be reached after
"admission" may show that he made no consideration of the evidence to be
"such" admission, or that his admission presented in due course.19
was taken out of context.
Unmistakably, the alleged admission made in
x x x that the party can also show that he respondents' Amended Complaint was taken "out
made no "such admission", i.e., not in of context" by petitioner Sicam to suit his own
the sense in which the admission is purpose. Ineluctably, the fact that petitioner Sicam
made to appear. continued to issue pawnshop receipts under his
name and not under the corporation's name
That is the reason for the modifier "such" militates for the piercing of the corporate veil.
because if the rule simply states that the
admission may be contradicted by showing We likewise find no merit in petitioners' contention
that "no admission was made," the rule that the CA erred in piercing the veil of corporate
would not really be providing for a fiction of petitioner corporation, as it was not an
contradiction of the admission but just a issue raised and litigated before the RTC.
denial.18 (Emphasis supplied).
Petitioner Sicam had alleged in his Answer filed
While it is true that respondents alleged in their with the trial court that he was not the real party-in-
Amended Complaint that petitioner corporation is interest because since April 20, 1987, the
the present owner of the pawnshop, they did so pawnshop business initiated by him was
only because petitioner Sicam alleged in his incorporated and known as Agencia de R.C. Sicam.
Answer to the original complaint filed against him In the pre-trial brief filed by petitioner Sicam, he
that he was not the real party-in-interest as the submitted that as far as he was concerned, the
pawnshop was incorporated in April 1987. basic issue was whether he is the real party in
Moreover, a reading of the Amended Complaint in interest against whom the complaint should be
its entirety shows that respondents referred to both directed.20 In fact, he subsequently moved for the
petitioner Sicam and petitioner corporation where dismissal of the complaint as to him but was not
they (respondents) pawned their assorted pieces of favorably acted upon by the trial court. Moreover,
jewelry and ascribed to both the failure to observe the issue was squarely passed upon, although
erroneously, by the trial court in its Decision in this the happening is not impossibility to foresee
manner: the same. 22
It is not a defense for a repair shop of motor Article 2123 of the Civil Code provides that with
vehicles to escape liability simply because regard to pawnshops and other establishments
the damage or loss of a thing lawfully which are engaged in making loans secured by
placed in its possession was due to pledges, the special laws and regulations
carnapping. Carnapping per se cannot be concerning them shall be observed, and
considered as a fortuitous event. The fact subsidiarily, the provisions on pledge,
that a thing was unlawfully and forcefully mortgage and antichresis.
taken from another's rightful possession,
as in cases of carnapping, does not The provision on pledge, particularly Article
automatically give rise to a fortuitous 2099 of the Civil Code, provides that the
event. To be considered as such, creditor shall take care of the thing pledged
carnapping entails more than the mere with the diligence of a good father of a family.
forceful taking of another's property. It This means that petitioners must take care of the
must be proved and established that the pawns the way a prudent person would as to his
event was an act of God or was done own property.
solely by third parties and that neither
the claimant nor the person alleged to be In this connection, Article 1173 of the Civil Code
negligent has any participation. In further provides:
accordance with the Rules of Evidence,
the burden of proving that the loss was Art. 1173. The fault or negligence of the
due to a fortuitous event rests on him obligor consists in the omission of that
who invokes it — which in this case is diligence which is required by the nature of
the private respondent. However, other the obligation and corresponds with the
than the police report of the alleged circumstances of the persons, of time and of
carnapping incident, no other evidence was the place. When negligence shows bad
presented by private respondent to the faith, the provisions of Articles 1171 and
effect that the incident was not due to its 2201, paragraph 2 shall apply.
fault. A police report of an alleged crime, to
which only private respondent is privy, does If the law or contract does not state the
not suffice to establish the carnapping. diligence which is to be observed in the
Neither does it prove that there was no fault performance, that which is expected of a
on the part of private respondent good father of a family shall be required.
notwithstanding the parties' agreement at
the pre-trial that the car was carnapped.
We expounded in Cruz v. Gangan30 that negligence
Carnapping does not foreclose the
is the omission to do something which a reasonable
possibility of fault or negligence on the part
man, guided by those considerations which
of private respondent.28
ordinarily regulate the conduct of human affairs,
would do; or the doing of something which a
Just like in Co, petitioners merely presented the prudent and reasonable man would not do.31 It is
police report of the Parañaque Police Station on the want of care required by the circumstances.
robbery committed based on the report of
petitioners' employees which is not sufficient to
A review of the records clearly shows that revealing that there were no security measures
petitioners failed to exercise reasonable care and adopted by petitioners in the operation of the
caution that an ordinarily prudent person would pawnshop. Evidently, no sufficient precaution and
have used in the same situation. Petitioners were vigilance were adopted by petitioners to protect the
guilty of negligence in the operation of their pawnshop from unlawful intrusion. There was no
pawnshop business. Petitioner Sicam testified, clear showing that there was any security guard at
thus: all. Or if there was one, that he had sufficient
training in securing a pawnshop. Further, there is
Court: no showing that the alleged security guard
exercised all that was necessary to prevent any
Q. Do you have security guards in your untoward incident or to ensure that no
pawnshop? suspicious individuals were allowed to enter
the premises. In fact, it is even doubtful that there
A. Yes, your honor. was a security guard, since it is quite impossible
that he would not have noticed that the robbers
Q. Then how come that the robbers were were armed with caliber .45 pistols each, which
able to enter the premises when according were allegedly poked at the
to you there was a security guard? employees.33 Significantly, the alleged security
guard was not presented at all to corroborate
petitioner Sicam's claim; not one of petitioners'
A. Sir, if these robbers can rob a bank, how
employees who were present during the
much more a pawnshop.
robbery incident testified in court.
Q. I am asking you how were the robbers
Furthermore, petitioner Sicam's admission that
able to enter despite the fact that there was
the vault was open at the time of robbery is
a security guard?
clearly a proof of petitioners' failure to observe
the care, precaution and vigilance that the
A. At the time of the incident which circumstances justly demanded. Petitioner
happened about 1:00 and 2:00 o'clock in Sicam testified that once the pawnshop was open,
the afternoon and it happened on a the combination was already off. Considering
Saturday and everything was quiet in the petitioner Sicam's testimony that the robbery took
area BF Homes Parañaque they pretended place on a Saturday afternoon and the area in BF
to pawn an article in the pawnshop, so one Homes Parañaque at that time was quiet, there
of my employees allowed him to come in was more reason for petitioners to have exercised
and it was only when it was announced that reasonable foresight and diligence in protecting the
it was a hold up. pawned jewelries. Instead of taking the precaution
to protect them, they let open the vault, providing
Q. Did you come to know how the vault was no difficulty for the robbers to cart away the pawned
opened? articles.
A. When the pawnshop is official (sic) open We, however, do not agree with the CA when it
your honor the pawnshop is partly open. found petitioners negligent for not taking steps to
The combination is off. insure themselves against loss of the pawned
jewelries.
Q. No one open (sic) the vault for the
robbers? Under Section 17 of Central Bank Circular No. 374,
Rules and Regulations for Pawnshops, which took
A. No one your honor it was open at the effect on July 13, 1973, and which was issued
time of the robbery. pursuant to Presidential Decree No. 114,
Pawnshop Regulation Act, it is provided that pawns
Q. It is clear now that at the time of the pledged must be insured, to wit:
robbery the vault was open the reason why
the robbers were able to get all the items Sec. 17. Insurance of Office Building and
pawned to you inside the vault. Pawns- The place of business of a
pawnshop and the pawns pledged to it must
A. Yes sir.32 be insured against fire and against
burglary as well as for the latter(sic), by an reversed the RTC decision holding that the fact of
insurance company accredited by the robbery was duly established and declared the
Insurance Commissioner. Abads not responsible for the loss of the jewelry on
account of a fortuitous event. We held that for the
However, this Section was subsequently amended Abads to be relieved from the civil liability of
by CB Circular No. 764 which took effect on returning the pendant under Art. 1174 of the Civil
October 1, 1980, to wit: Code, it would only be sufficient that the
unforeseen event, the robbery, took place without
Sec. 17 Insurance of Office Building and any concurrent fault on the debtor’s part, and this
Pawns – The office building/premises and can be done by preponderance of evidence; that to
pawns of a pawnshop must be be free from liability for reason of fortuitous event,
insured against fire. (emphasis supplied). the debtor must, in addition to the casus itself, be
free of any concurrent or contributory fault or
where the requirement that insurance against negligence.38
burglary was deleted. Obviously, the Central
Bank considered it not feasible to require We found in Austria that under the circumstances
insurance of pawned articles against burglary. prevailing at the time the Decision was promulgated
in 1971, the City of Manila and its suburbs had a
The robbery in the pawnshop happened in 1987, high incidence of crimes against persons and
and considering the above-quoted amendment, property that rendered travel after nightfall a matter
there is no statutory duty imposed on to be sedulously avoided without suitable
petitioners to insure the pawned jewelry in precaution and protection; that the conduct of Maria
which case it was error for the CA to consider it as Abad in returning alone to her house in the evening
a factor in concluding that petitioners were carrying jewelry of considerable value would have
negligent. been negligence per se and would not exempt her
from responsibility in the case of robbery. However
Nevertheless, the preponderance of evidence we did not hold Abad liable for negligence since,
shows that petitioners failed to exercise the the robbery happened ten years previously; i.e.,
diligence required of them under the Civil Code. 1961, when criminality had not reached the level of
incidence obtaining in 1971.
The diligence with which the law In contrast, the robbery in this case took place in
requires the individual at all times to 1987 when robbery was already prevalent and
govern his conduct varies with the petitioners in fact had already foreseen it as they
nature of the situation in which he is wanted to deposit the pawn with a nearby bank for
placed and the importance of the act safekeeping. Moreover, unlike in Austria, where no
negligence was committed, we found
which he is to perform.34 Thus, the cases petitioners negligent in securing their
of Austria v. Court of Appeals,35 Hernandez v.
pawnshop as earlier discussed.
Chairman, Commission on Audit36 and Cruz v.
Gangan37 cited by petitioners in their pleadings,
In Hernandez, Teodoro Hernandez was the OIC
where the victims of robbery were exonerated from
and special disbursing officer of the Ternate Beach
liability, find no application to the present case.
Project of the Philippine Tourism in Cavite. In the
morning of July 1, 1983, a Friday, he went to
In Austria, Maria Abad received from Guillermo
Manila to encash two checks covering the wages of
Austria a pendant with diamonds to be sold on
the employees and the operating expenses of the
commission basis, but which Abad failed to
project. However for some reason, the processing
subsequently return because of a robbery
of the check was delayed and was completed at
committed upon her in 1961. The incident became
about 3 p.m. Nevertheless, he decided to encash
the subject of a criminal case filed against several
the check because the project employees would be
persons. Austria filed an action against Abad and
waiting for their pay the following day; otherwise,
her husband (Abads) for recovery of the pendant or
the workers would have to wait until July 5, the
its value, but the Abads set up the defense that the
earliest time, when the main office would open. At
robbery extinguished their obligation. The RTC
that time, he had two choices: (1) return to Ternate,
ruled in favor of Austria, as the Abads failed to
Cavite that same afternoon and arrive early
prove robbery; or, if committed, that Maria Abad
evening; or (2) take the money with him to his
was guilty of negligence. The CA, however,
house in Marilao, Bulacan, spend the night there, government-issued cellular phone. She then
and leave for Ternate the following day. He chose reported the incident to the police authorities;
the second option, thinking it was the safer one. however, the thief was not located, and the
Thus, a little past 3 p.m., he took a passenger jeep cellphone was not recovered. She also reported the
bound for Bulacan. While the jeep was on Epifanio loss to the Regional Director of TESDA, and she
de los Santos Avenue, the jeep was held up and requested that she be freed from accountability for
the money kept by Hernandez was taken, and the the cellphone. The Resident Auditor denied her
robbers jumped out of the jeep and ran. Hernandez request on the ground that she lacked the diligence
chased the robbers and caught up with one robber required in the custody of government property and
who was subsequently charged with robbery and was ordered to pay the purchase value in the total
pleaded guilty. The other robber who held the amount of P4,238.00. The COA found no sufficient
stolen money escaped. The Commission on Audit justification to grant the request for relief from
found Hernandez negligent because he had not accountability. We reversed the ruling and found
brought the cash proceeds of the checks to his that riding the LRT cannot per se be denounced as
office in Ternate, Cavite for safekeeping, which is a negligent act more so because Cruz’s mode of
the normal procedure in the handling of funds. We transit was influenced by time and money
held that Hernandez was not negligent in deciding considerations; that she boarded the LRT to be
to encash the check and bringing it home to able to arrive in Caloocan in time for her 3 pm
Marilao, Bulacan instead of Ternate, Cavite due to meeting; that any prudent and rational person
the lateness of the hour for the following reasons: under similar circumstance can reasonably be
(1) he was moved by unselfish motive for his co- expected to do the same; that possession of a
employees to collect their wages and salaries the cellphone should not hinder one from boarding the
following day, a Saturday, a non-working, because LRT coach as Cruz did considering that whether
to encash the check on July 5, the next working day she rode a jeep or bus, the risk of theft would have
after July 1, would have caused discomfort to also been present; that because of her relatively
laborers who were dependent on their wages for low position and pay, she was not expected to have
sustenance; and (2) that choosing Marilao as a her own vehicle or to ride a taxicab; she did not
safer destination, being nearer, and in view of the have a government assigned vehicle; that placing
comparative hazards in the trips to the two places, the cellphone in a bag away from covetous eyes
said decision seemed logical at that time. We and holding on to that bag as she did is ordinarily
further held that the fact that two robbers attacked sufficient care of a cellphone while traveling on
him in broad daylight in the jeep while it was on a board the LRT; that the records did not show any
busy highway and in the presence of other specific act of negligence on her part and
passengers could not be said to be a result of his negligence can never be presumed.
imprudence and negligence.
Unlike in the Cruz case, the robbery in this case
Unlike in Hernandez where the robbery happened happened in petitioners' pawnshop and they were
in a public utility, the robbery in this case took negligent in not exercising the precautions justly
place in the pawnshop which is under the demanded of a pawnshop.
control of petitioners. Petitioners had the
means to screen the persons who were allowed WHEREFORE, except for the insurance aspect, the
entrance to the premises and to protect itself Decision of the Court of Appeals dated March 31,
from unlawful intrusion. Petitioners had failed 2003 and its Resolution dated August 8, 2003,
to exercise precautionary measures in ensuring are AFFIRMED.
that the robbers were prevented from entering
the pawnshop and for keeping the vault open Costs against petitioners.
for the day, which paved the way for the
robbers to easily cart away the pawned articles. SO ORDERED.