Benedicto v.

Intermediate Appellate Court 187 SCRA 547

Facts:

In this case, Greenhills Wood Industries Company, Inc. (Greenhills for brevity) a lumber
manufacturing firm bound itself to Blue Star Mahogany, Inc. (Mahogany for brevity) to sell and
deliver will will be made on 15 May 1980. In turn, Greenhills contracted Licuden, the driver of the
cargo truck to make the said delivery. Note that the said truck is registered under the name of
Benedicto (the Petitioner). Unfortunately, the said lumber products failed to arrive on the agreed
date which in turn caused Greenhills to file for damages against the petitioner due to the
former's lost business opportunity.

The argument of Benedicto was, she is not liable considering that she was completely stranger
to the contract of carriage and that she had already sold the truck to Benjamin Tee and also, the
driver mentioned before was an employee of Tee.

RTC : Benedicto was liable considering she was still the registered owner of the subject truck,
and holding that Licuden (Driver) was her employee.

CA: Affirmed in toto

Issue:

W/N Benedicto is liable considering that she was the registered owner of the carrier.

Ruling: YES. She is liable.

As stated by the Supreme Court, the prevailing doctrine on common carriers makes the
registered owner liable for consequences flowing from the operations of the carrier, even
though the specific vehicle involved may already have been transferred to another person. This
doctrine rests upon the principle that in dealing with vehicles registered under the Public Service
Law, the public has the right to assume that the registered owner is the actual or lawful owner
thereof. It would be very difficult and often impossible as a practical matter, for members of the
general public to enforce the rights of action that may have for injuries inflicted by the vehicles
being negligently operated if they should be required to prove who the actual owner is.