TIU v.

ARRIESGADO et al
G.R. No. 138060; 01 September 2004
CALLEJO, SR., J.
FACTS:
This is a petition for review on certiorari under Rule 45 of R.O.C. from the CA’s decision affirming
with modification the RTC Decision for breach of contract of carriage, damages and atty’s fees. A
Truck was on its way to Cebu when one of its rear tires exploded. The driver, Sergio Pedrano,
parked the truck on the side of the Highway, left the tail lights on, and instructed his helper Mitante
to watch over the truck and place a spare tire on the road six fathoms away behind the stalled
truck to serve as a warning device for oncoming vehicles as he went and had the faulty tire
vulcanized. After Pedrano left, D’ Rough Riders passenger bus driven by Virgilio Te LasPinas and
carrying respondent Pedro and spouse Felisa,passed by the same route. As the bus was
approaching the bridge, Laspiñas saw the truck, applied the brakes and tried to swerve to the left
but it was too late; the bus rammed into the truck’s left rear, resulting to Pedro’s loss of
consciousness and death of his wife. Pedro filed a complaint for breach of contract of carriage
before the RTC against the petitioners, Respondent alleged that the passenger bus was cruising
at a high speed and petitioner did not take precautionary measures. Petitioner filed a 3rd party
complaint alleging that the said truck was parked in a slanted manner and did not have any early
warning devices displayed while it was left by the driver and further averred that he was covered
by Philippine Phoenix Surety and Insurance (PPSI) at the time of the incident which would
therefore make the same liable for part of the damages that may arise. PPSI argued that it already
attended to and settled claims of those who were injured in the collision and that it could not
accede to Arriesgado’s claim because it was beyond that of the terms of the insurance. RTC ruled
that if petitioner Laspiñas had not been driving at a fast pace, he could have easily swerved to
the left to avoid hitting the truck and concluded that Laspiñas was negligent. It found that the truck
had its tail lights open and that the said road was well lit at the time. Hence, petitioner’s fault in
traveling at a fast pace. Petitioner, Tiu, appealed to the CA but was denied.
ISSUE/S: Whether or not petitioner Tiu was negligent in driving the ill-fated bus; and Whether or
not respondent PPSII as insurer is liable.
RULING:
YES. Under the contract of carriage, petitioners assumed the express obligation to transport
respondent and his wife to their destination safely and to observe extraordinary diligence with due
regard for all circumstances. Upon the happening of the accident, the presumption of negligence
at once arises, and it becomes the duty of a common carrier to prove that he observed
extraordinary diligence in the care of his passengers. petitioner Tiu failed to conclusively rebut
such presumption. Under Article 2185 of NCC, a person driving a vehicle is presumed negligent
if at the time of the mishap, he was violating any traffic regulation. Petitioner traversed the highway
at a speed of 40 to 50 kph, even when the maximum speed allowed by law on a bridge is only 30
kph. Respondent PPSII as insurer is liable as well. The nature of Compulsory Motor Vehicle
Liability Insurance is such that it is primarily intended to provide compensation for the death or
bodily injuries suffered by innocent third parties or passengers as a result of the negligent
operation and use of motor vehicles. An insurer in an indemnity contract for third party liability is
directly liable to the injured party up to the extent specified in the agreement but it cannot be held
solidarily liable beyond that amount. Respondent could not then just deny petitioner Tiu’s claim;
it should have paid P12,000 for the death of Felisa, and Pedro’s hospital expenses. Respondent
Pedrano was also negligent in leaving the truck parked askew without any warning lights;
suchfailure created the presumption of negligence on the part of his employer, respondent
Condor, in supervising his employees properly and adequately.