Professional Documents
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OIL CORPORATION, ROMY LIM, and THE COURT OF APPEALS claimed that petitioner abandoned the project on 16 July 1988.
G.R. No. 119033, July 9, 2008 Respondents further alleged that certain portions of the
construction work did not conform to the specifications agreed
upon by the parties.
The trial court ruled in favor of petitioner. The trial court held that
FACTS: Ek Lee Steel Works Corporation (petitioner) is engaged in petitioner was justified in abandoning its construction of the
the construction business while Manila Castor Oil Corporation project. The Court of Appeals reversed the decision of the trial
(respondent) claims to be a pioneer in the castor oil industry with court. The appellate court ruled that the 16 May 1988 letter
Romy Lim (Lim) as its President. novated all the earlier agreements between the parties; that
petitioner was not entitled to further payments from respondent
because petitioner failed to comply with its obligation of finishing
respondent contracted petitioner for the construction of
all the contracted work, except the office building, on 15 June 1988
respondents castor oil plant and office complex in Sasa, Davao
as clearly stipulated in the 16 May 1988 letter.
City. Petitioner agreed to undertake the construction.
Art. 1170 of the Civil Code provides that "those who in the
performance of their obligations are guilty of fraud, negligence or
delay, and those who in any manner contravene the tenor thereof,
are liable for damages." Art. 2176 also provides that "whoever by
Telefast v. Castro Digest
act or omission causes damage to another, there being fault or
negligence, is obliged to pay for the damage done."
Facts:
1. The petitioner is a company engaged in transmitting
telegrams. The plaintiffs are the children and spouse of
CATHAY PACIFIC AIRWAYS LTD., petitioner,
Consolacion Castro who died in the Philippines. One of the
vs. SPOUSES DANIEL VASQUEZ and MARIA LUISA MADRIGAL
plaintiffs, Sofia sent a telegram thru Telefast to her father and
VASQUEZ, respondents.
other siblings in the USA to inform about the death of their mother.
Unfortunately, the deceased had already been interred but not one
FACTS:
from the relatives abroad was able to pay their last respects. Sofia
found out upon her return in the US that the telegram was never
In respondents return flight to Manila from Hongkong, they were
received. Hence the suit for damages on the ground of breach of
deprived of their original seats in Business Class with their
contract. The defendant-petitioner argues that it should only pay
companions because of overbooking. Since respondents were
the actual amount paid to it.
privileged members, their seats were upgraded to First Class.
2. The lower court ruled in favor of the plaintiffs and awarded Respondents refused but eventually persuaded to accept it. Upon
compensatory, moral, exemplary, damages to each of the plaintiffs return to Manila, they demanded that they be indemnified in the
with 6% interest p.a. plus attorneys fees. The Court of Appeals amount of P1million for the humiliation and embarrassment
affirmed this ruling but modified and eliminated the compensatory caused by its employees. Petitioners Country Manager failed to
damages to Sofia and exemplary damages to each plaintiff, it also respond. Respondents instituted action for damages. The RTC ruled
reduced the moral damages for each. The petitioner appealed in favor of respondents. The Court of Appeals affirmed the RTC
contending that, it can only be held liable for P 31.92, the fee or decision with modification in the award of damages.
ISSUE: (3) YES. Nominal damages (Art. 2221, NCC) were awarded in the
amount of P5,000.00. Moral damages (Art.2220, NCC) and
Whether or not the petitioners (1) breached the contract of attorneys fees were set aside and deleted from the Court of
carriage, (2) acted with fraud and (3) were liable for damages. Appeals ruling
RULING:
(2) NO. There was no evident bad faith or fraud in upgrade of seat
neither on overbooking of flight as it is within 10% tolerance.
Africa vs Caltext the one who had exclusive control of the thing that caused the
injury complained of.
Note that ordinarily, he who charges negligence shall prove it. MMTC vs. CA(Gr no. 104408)
However, res ipsa loquitur is the exception because the burden of Facts:
proof is shifted to the party charged of negligence as the latter is The case arose from Nenita who incurred injuries from being
thrown out of the windshield of the jeepney that she was riding
that collided with a bus operated by MMTC (petitioner). Nenita filed due diligence in the selection and supervision the employees to
for damages for neither the operator of the jeepney nor the MMTC protect the public
would pay for the damages sustained by Nenita. The RTC ruled that
MMTC is abstained from liability for it has proven that it has shown PRECILLANO NECESITO, ETC. vs. NATIVIDAD PARAS, ET AL.
diligence of a good father of a family in employing and supervising G.R. No. L-10605, June 30, 1958)
its employees. MMTC stated that it goes through a process of
screening! Interviewing! and seminar attending before they hire FACTS:
their employees. The C" reversed the decision of the RTC holding
that the MMTC was not able to further prove that its employees A mother and her son boarded a passenger auto-truck of the
complied with its requirements. Philippine Rabbit Bus Lines. While entering a wooden bridge, its
front wheels swerved to the right, the driver lost control and the
Issue: truck fell into a breast-deep creek. The mother drowned and the
Whether or not diligence of a good father has been observed by son sustained injuries. These cases involve actions ex contractu
MMTC. against the owners of PRBL filed by the son and the heirs of the
mother. Lower Court dismissed the actions, holding that the
Ruling: accident was a fortuitous event.
The SC ruled that MMTC being sued as employer of the bus driver
&Leonardo under "Article 2180 vicarious liability! was not able to ISSUE:
prove that it had exercised due diligence of a good father of a
family in the selection and supervision of its employees as it has Whether or not the carrier is liable for the manufacturing defect of
not proven that it exercised due diligence in supervising its the steering knuckle, and whether the evidence discloses that in
employees for mere imposition of hiring procedures and regard thereto the carrier exercised the diligence required by law
supervisory policies without anything more is not sufficient to (Art. 1755, new Civil Code)
overcome the presumption of negligence imposed upon them by
the law. The basis of the employer-s vicarious liability is that the HELD:
responsibility imposed by the article arises by reason of a
presumption of negligence on the part of the persons made Yes.
responsible under the article from their failure to exercise due care
and vigilance over the acts of subordinates to present them from While the carrier is not an insurer of the safety of the passengers,
causing damage. Negligence is imputed to them by law unless they the manufacturer of the defective appliance is considered in law
prove the contrary by showing that they exercised diligence of a the agent of the carrier, and the good repute of the manufacturer
good father of a family to prevent damage. It is clear that it is the will not relieve the carrier from liability. The rationale of the
non-performance certain duties of precaution and prudence carriers liability is the fact that the passengers has no privity with
imposed upon them why they are made answerable for damages the manufacturer of the defective equipment; hence, he has no
caused by their employees. remedy against him, while the carrier has. We find that the defect
could be detected. The periodical, usual inspection of the steering
For the doctrine to apply! it must first be shown that there is knuckle did not measure up to the utmost diligence of a very
employer0employee relationship and that the plaintiff must show cautious person as far as human care and foresight can provide
that the tort complained of was committed in the scope of his and therefore the knuckles failure cannot be considered a
assigned tas2 and that is when the employer may and it necessary fortuitous event that exempts the carrier from responsibility.
to interpose a defense of due diligence of a good father of a family.
The diligence of a good father of a family required to be observed MANILA INTERNATIONAL AIRPORT AUTHORITY VS. ALA INDUSTRIES
by the employer to prevent damages under "Art. 2118* refers to CORPORATION
G.R. No. 147349. February 13, 2004
compromise justified execution. It is the height of absurdity for
Facts: The contract for the structural repair and waterproofing of petitioner to attribute to a fortuitous event its delayed payment.
the IPT and ICT building of the NAIA airport was awarded, after a Petitioners explanation is clearly a gratuitous assertion that
public bidding, to respondent ALA. Respondent made the borders callousness.
necessary repair and waterproofing.
After submission of its progress billings to the petitioner, PHILIPPINE COMMUNICATION SATELLITE CORPORATION.vs
respondent received partial payments. Progress billing remained GLOBE TELECOM, INC
unpaid despite repeated demands by the respondent. Meanwhile
petitioner unilaterally rescinded the contract on the ground that Facts:
respondent failed to complete the project within the agreed
completion date. Globe Telecom, Inc., formerly known as Globe McKay Cable and
Respondent objected to the rescission made by the petitioner and Radio Corporation installed and configured communication facilities
reiterated its claims. The trial court directed the parties to proceed for the exclusive use of the US Defense Communications Agency
to arbitration. Both parties executed a compromise agreement and (USDCA) in Clark Air Base and Subic Naval Base. Globe Telecom
jointly filed in court a motion for judgment based on the later contracted the Philippine Communications Satellite
compromise agreement. The Court a quo rendered judgment Corporation (Philcomsat) for the provision of the communication
approving the compromise agreement. facilities. As both companies entered into an Agreement, Globe
For petitioners failure to pay within the period stipulated, obligated itself to operate and provide an IBS Standard B earth
respondent filed a motion for execution to enforce its claim. station with Cubi Point for the use of the USDCA. The term of the
Petitioner filed a comment and attributed the delays to its being a contract was for 60 months, or five (5) years. In turn, Globe
government agency. The trial court denied the respondents promised to pay Philcomsat monthly rentals for each leased circuit
motion. Reversing the trial court, the CA ordered it to issue a writ involved.
of execution to enforce respondents claim. The appellate court
ratiocinated that a judgment rendered in accordance with a As the saga continues, the Philippine Senate passed and adopted
compromise agreement was immediately executory, and that a Senate Resolution No. 141 and decided not to ratify the Treaty of
delay was not substantial compliance therewith. Friendship, Cooperation and Security, and its Supplementary
Agreements to extend the term of the use by the US of Subic Naval
Issues: 1) Whether or not decision based on compromise Base, among others. In other words, the RP-US Military Bases
agreement is final and executory. Agreement was suddenly terminated.
2) Whether or not delay by one party on a compromise justifies Because of this event, Globe notified Philcomsat of its intention to
execution. discontinue the use of the earth station effective 08 November
1992 in view of the withdrawal of US military personnel from Subic
Held: 1) A compromise once approved by final orders of the court Naval Base after the termination of the RP-US Military Bases
has the force of res judicata between the parties and should not be Agreement.
disturbed except for vices of consent or forgery. Hence, a decision
on a compromise agreement is final and executory. Such After the US military forces left Subic Naval Base, Philcomsat sent
agreement has the force of law and is conclusive between the Globe a letter in 1993 demanding payment of its outstanding
parties. It transcends its identity as a mere contract binding only obligations under the Agreement amounting to US$4,910,136.00
upon the parties thereto, as it becomes a judgment that is subject plus interest and attorneys fees. However, Globe refused to heed
to execution in accordance with the Rules. Judges therefore have Philcomsats demand. On the other hand, the latter with the
the ministerial and mandatory duty to implement and enforce it. Regional Trial Court of Makati a Complaint against Globe, however,
2. The failure to pay on the date stipulated was clearly a violation Globe filed an Answer to the Complaint, insisting that it was
of the Agreement. Thus, non-fulfillment of the terms of the constrained to end the Agreement due to the termination of the
RP-US Military Bases Agreement and the non-ratification by the Article 1174, which exempts an obligor from liability on account of
Senate of the Treaty of Friendship and Cooperation, which events fortuitous events or force majeure, refers not only to events that
constituted force majeure under the Agreement. Globe explained are unforeseeable, but also to those which are foreseeable, but
that the occurrence of said events exempted it from paying rentals inevitable:
for the remaining period of the Agreement.
A fortuitous event under Article 1174 may either be an "act of
Four years after, the trial court its decision but both parties God," or natural occurrences such as floods or typhoons,24 or an
appealed to the Court of Appeals. "act of man," such as riots, strikes or wars.
ISSUES: After a thorough review of the records, the SC found that FEU failed
WON Saludaga may claim damages from FEU for breach of to discharge the burden of proving that they exercised due
student-school contract for a safe learning environment diligence in providing a safe learning environment for their
Whether FEUs liability is based on quasi-delict or on contract students. They failed to prove that they ensured that the guards
From what source of obligation did the other claims arose? assigned in the campus met the requirements stipulated in the
Security Service Agreement. Certain documents about Galaxy were
HELD: presented during trial; however, no evidence as to the
1) Yes. qualifications of Rosete as a security guard for the university was
2) FEUs liability is based on contract, not quasi-delict. offered. FEU also failed to show that they undertook steps to
3) Quasi-delict vicarious liability between Galaxy Agency and ascertain and confirm that the security guards assigned to them
security guard Rosete actually possess the qualifications required in the Security Service
Quasi-delict but SC held that there is no vicarious liability Agreement.
between FEU and Rosete
Quasi-delict damage to FEU due to the negligence of Galaxy Consequently, FEU's defense of force majeure must fail. In order
Agency in supplying FEU with an unqualified guard (Imperial, the for force majeure to be considered, FEU must show that no
president of Galaxy is solidarily liable with the agency) negligence or misconduct was committed that may have
occasioned the loss. An act of God cannot be invoked to protect a
It is undisputed that Saludaga was enrolled as a sophomore law person who has failed to take steps to forestall the possible
student in FEU. As such, there was created a contractual obligation adverse consequences of such a loss. When the effect is found to
between the two parties. On Saludaga's part, he was obliged to be partly the result of a person's participation - whether by active
comply with the rules and regulations of the school. On the other intervention, neglect or failure to act - the whole occurrence is
hand, FEU, as a learning institution is mandated to impart humanized and removed from the rules applicable to acts of God.
knowledge and equip its students with the necessary skills to
pursue higher education or a profession. At the same time, it is Article 1170 of the Civil Code provides that those who are
obliged to ensure and take adequate steps to maintain peace and negligent in the performance of their obligations are liable for
order within the campus. damages. Accordingly, for breach of contract due to negligence in
providing a safe learning environment, respondent FEU is liable to
It is settled that in culpa contractual, the mere proof of the petitioner for damages.
existence of the contract and the failure of its compliance justify,
prima facie, a corresponding right of relief. In the instant case We note that the trial court held respondent De Jesus solidarily
when Saludaga was shot inside the campus by no less the security liable with respondent FEU. In Powton Conglomerate, Inc. v.
guard who was hired to maintain peace and secure the premises, Agcolicol, we held that:
there is a prima facie showing that FEU failed to comply with its ... Personal liability of a corporate director, trustee or officer along
obligation to provide a safe and secure environment to its (although not necessarily) with the corporation may so validly
students. attach, as a rule, only when - (1) he assents to a patently unlawful
act of the corporation, or when he is guilty of bad faith or gross
In order to avoid liability, however, FEU alleged that the shooting negligence in directing its affairs, or when there is a conflict of
incident was a fortuitous event because they could not have interest resulting in damages to the corporation, its stockholders or
reasonably foreseen nor avoided the accident caused by Rosete as other persons; (2) he consents to the issuance of watered down
he was not their employee; and that they complied with their stocks or who, having knowledge thereof, does not forthwith file
with the corporate secretary his written objection thereto; (3) he
agrees to hold himself personally and solidarily liable with the On October 19, 1987, two armed men entered the pawnshop and
corporation; or (4) he is made by a specific provision of law took away whatever cash and jewelry were found inside the
personally answerable for his corporate action. pawnshop vault.
None of the foregoing exceptions was established in the instant On the same date, Sicam sent Lulu a letter informing her of the
case; hence, respondent De Jesus should not be held solidarily loss of her jewelry due to the robbery incident in the pawnshop.
liable with respondent FEU. Respondent Lulu then wroteback expressing disbelief, then
requested Sicam to prepare the pawned jewelry for withdrawal on
Incidentally, although the main cause of action in the instant case November 6, but Sicam failed to return the jewelry.
is the breach of the school-student contract, petitioner, in the
alternative, also holds respondents vicariously liable under Article Lulu, joined by her husband Cesar, filed a complaint against Sicam
2180 of the Civil Code. However, respondents cannot be held liable with the RTC of Makati seeking indemnification for the loss of
for damages under Art. 2180 of the Civil Code because pawned jewelry and payment of AD, MD and ED as well as AF.
respondents are not the employers of Rosete. The latter was
employed by Galaxy. The instructions issued by respondents' The RTC rendered its Decision dismissing respondents complaint
Security Consultant to Galaxy and its security guards are ordinarily as well as petitioners counterclaim. Respondents appealed the RTC
no more than requests commonly envisaged in the contract for Decision to the CA which reversed the RTC, ordering the appellees
services entered into by a principal and a security agency. to pay appellants the actual value of the lost jewelry and AF.
Petitioners MR denied, hence the instant petition for review on
As to the Third Party Claim against Galaxy, evidence duly supports Certiorari.
that Galaxy is negligent not only in the selection of its employees
but also in their supervision. Indeed, no administrative sanction ISSUE: are the petitioners liable for the loss of the pawned articles
was imposed against Rosete despite the shooting incident; in their possession? (Petitioners insist that they are not liable since
moreover, he was even allowed to go on leave of absence which robbery is a fortuitous event and they are not negligent at all.)
led eventually to his disappearance. Galaxy also failed to monitor
petitioner's condition or extend the necessary assistance. For these HELD: The Decision of the CA is AFFIRMED.
acts of negligence and for having supplied respondent FEU with an
unqualified security guard, which resulted to the latter's breach of YES
obligation to petitioner, it is proper to hold Galaxy liable to
respondent FEU for such damages equivalent to the above- Article 1174 of the Civil Code provides:
mentioned amounts awarded to petitioner. Art. 1174. Except in cases expressly specified by the law, or when
Unlike respondent De Jesus, we deem Imperial to be solidarily it is otherwise declared by stipulation, or when the nature of the
liable with Galaxy for being grossly negligent in directing the affairs obligation requires the assumption of risk, no person shall be
of the security agency. It was Imperial who assured petitioner that responsible for those events which could not be foreseen or which,
his medical expenses will be shouldered by Galaxy but said though foreseen, were inevitable.
representations were not fulfilled.
Fortuitous events by definition are extraordinary events not
ROBERTO C. SICAM and AGENCIA de R.C. SICAM, INC. vs. foreseeable or avoidable. It is therefore, not enough that the event
SPOUSES JORGE should not have been foreseen or anticipated, as is commonly
G.R. No. 159617, August 8, 2007 believed but it must be one impossible to foresee or to avoid. The
mere difficulty to foresee the happening is not impossibility to
FACTS: On different dates, Lulu Jorge pawned several pieces of foresee the same.
jewelry with Agencia de R. C. Sicam located in Paraaque to secure To constitute a fortuitous event, the following elements must
a loan. concur:
(a) the cause of the unforeseen and unexpected occurrence or of Art. 1170. Those who in the performance of their obligations are
the failure of the debtor to comply with obligations must be guilty of fraud, negligence, or delay, and those who in any manner
independent of human will; contravene the tenor thereof, are liable for damages.
(b) it must be impossible to foresee the event that constitutes the
caso fortuito or, if it can be foreseen, it must be impossible to **
avoid; Article 2123 of the Civil Code provides that with regard to
(c) the occurrence must be such as to render it impossible for the pawnshops and other establishments which are engaged in making
debtor to fulfill obligations in a normal manner; and, loans secured by pledges, the special laws and regulations
(d) the obligor must be free from any participation in the concerning them shall be observed, and subsidiarily, the provisions
aggravation of the injury or loss. on pledge, mortgage and antichresis.
The burden of proving that the loss was due to a fortuitous event The provision on pledge, particularly Article 2099 of the Civil Code,
rests on him who invokes it. And, in order for a fortuitous event to provides that the creditor shall take care of the thing pledged with
exempt one from liability, it is necessary that one has committed the diligence of a good father of a family. This means that
no negligence or misconduct that may have occasioned the loss. petitioners must take care of the pawns the way a prudent person
Sicam had testified that there was a security guard in their would as to his own property.
pawnshop at the time of the robbery. He likewise testified that
when he started the pawnshop business in 1983, he thought of In this connection, Article 1173 of the Civil Code further provides:
opening a vault with the nearby bank for the purpose of Art. 1173. The fault or negligence of the obligor consists in the
safekeeping the valuables but was discouraged by the Central omission of that diligence which is required by the nature of the
Bank since pawned articles should only be stored in a vault inside obligation and corresponds with the circumstances of the persons,
the pawnshop. The very measures which petitioners had allegedly of time and of the place. When negligence shows bad faith, the
adopted show that to them the possibility of robbery was not only provisions of Articles 1171 and 2201, paragraph 2 shall apply.
foreseeable, but actually foreseen and anticipated. Sicams
testimony, in effect, contradicts petitioners defense of fortuitous If the law or contract does not state the diligence which is to be
event. observed in the performance, that which is expected of a good
father of a family shall be required.
Moreover, petitioners failed to show that they were free from any
negligence by which the loss of the pawned jewelry may have been We expounded in Cruz v. Gangan that negligence is the omission to
occasioned. do something which a reasonable man, guided by those
considerations which ordinarily regulate the conduct of human
Robbery per se, just like carnapping, is not a fortuitous event. It affairs, would do; or the doing of something which a prudent and
does not foreclose the possibility of negligence on the part of reasonable man would not do. It is want of care required by the
herein petitioners. circumstances.
Petitioners merely presented the police report of the Paraaque A review of the records clearly shows that petitioners failed to
Police Station on the robbery committed based on the report of exercise reasonable care and caution that an ordinarily prudent
petitioners employees which is not sufficient to establish robbery. person would have used in the same situation. Petitioners were
Such report also does not prove that petitioners were not at fault. guilty of negligence in the operation of their pawnshop business.
On the contrary, by the very evidence of petitioners, the CA did not Sicams testimony revealed that there were no security measures
err in finding that petitioners are guilty of concurrent or adopted by petitioners in the operation of the pawnshop. Evidently,
contributory negligence as provided in Article 1170 of the Civil no sufficient precaution and vigilance were adopted by petitioners
Code, to wit: to protect the pawnshop from unlawful intrusion. There was no
clear showing that there was any security guard at all. Or if there
was one, that he had sufficient training in securing a pawnshop. where the requirement that insurance against burglary was
Further, there is no showing that the alleged security guard deleted. Obviously, the Central Bank considered it not feasible to
exercised all that was necessary to prevent any untoward incident require insurance of pawned articles against burglary.
or to ensure that no suspicious individuals were allowed to enter
the premises. In fact, it is even doubtful that there was a security The robbery in the pawnshop happened in 1987, and considering
guard, since it is quite impossible that he would not have noticed the above-quoted amendment, there is no statutory duty imposed
that the robbers were armed with caliber .45 pistols each, which on petitioners to insure the pawned jewelry in which case it was
were allegedly poked at the employees. Significantly, the alleged error for the CA to consider it as a factor in concluding that
security guard was not presented at all to corroborate petitioner petitioners were negligent.
Sicams claim; not one of petitioners employees who were present
during the robbery incident testified in court. Nevertheless, the preponderance of evidence shows that
petitioners failed to exercise the diligence required of them under
Furthermore, petitioner Sicams admission that the vault was open the Civil Code.
at the time of robbery is clearly a proof of petitioners failure to SOUTHEASTERN COLLEGE, INC., petitioner, vs. COURT OF
observe the care, precaution and vigilance that the circumstances APPEALS, JUANITA DE JESUS VDA. DE DIMAANO, EMERITA
justly demanded. DIMAANO, REMEDIOS DIMAANO, CONSOLACION DIMAANO
and MILAGROS DIMAANO, respondents; PURISIMA, J.:
The robbery in this case happened in petitioners pawnshop and
they were negligent in not exercising the precautions justly FACTS:
demanded of a pawnshop.
Private respondents are owners of a house at 326 College Road,
NOTES: Pasay while petitioner owns a four-storey school building along the
same College Road. That on October 11, 1989, a powerful typhoon
We, however, do not agree with the CA when it found petitioners hit Metro Manila. Buffeted by very strong winds, the roof of the
negligent for not taking steps to insure themselves against loss of petitioners building was partly ripped off and blown away, landing
the pawned jewelries. on and destroying portions of the roofing of private respondents
house. When the typhoon had passed, an ocular inspection of the
Under Section 17 of Central Bank Circular No. 374, Rules and destroyed building was conducted by a team of engineers headed
Regulations for Pawnshops, which took effect on July 13, 1973, and by the city building official.
which was issued pursuant to Presidential Decree No. 114,
Pawnshop Regulation Act, it is provided that pawns pledged must In their report, they imputed negligence to the petitioner for the
be insured, to wit: structural defect of the building and improper anchorage of trusses
to the roof beams to cause for the roof be ripped off the building,
Sec. 17. Insurance of Office Building and Pawns- The place of thereby causing damage to the property of respondent.
business of a pawnshop and the pawns pledged to it must be
insured against fire and against burglary as well as for the Respondents filed an action before the RTC for recovery of
latter(sic), by an insurance company accredited by the Insurance damages based on culpa aquiliana. Petitioner interposed denial of
Commissioner. negligence and claimed that the typhoon as an Act of God is the
However, this Section was subsequently amended by CB Circular sole cause of the damage. RTC ruled in their favor relying on the
No. 764 which took effect on October 1, 1980, to wit: testimony of the City Engineer and the report made after the
ocular inspection. Petitioners appeal before the CA which affirmed
Sec. 17 Insurance of Office Building and Pawns The office the decision of the RTC.
building/premises and pawns of a pawnshop must be insured
against fire. (emphasis supplied). Hence this present appeal.
when battered by strong winds. Based on such finding, the trial
ISSUES: court imputed negligence to petitioner and adjudged it liable for
damages to private respondents.
(1) Whether the damage on the roof of the building of private
respondents resulting from the impact of the falling portions of the There is no question that a typhoon or storm is a fortuitous event,
school buildings roof ripped off by the strong winds of typhoon a natural occurrence which may be foreseen but is unavoidable
Saling, was, within legal contemplation, due to fortuitous event? despite any amount of foresight, diligence or care. In order to be
(2) Whether or not an ocular inspection is sufficient evidence exempt from liability arising from any adverse consequence
to prove negligence? engendered thereby, there should have been no human
participation amounting to a negligent act. In other words; the
HELD: person seeking exoneration from liability must not be guilty of
negligence. Negligence, as commonly understood, is conduct
1. Yes, petitioner should be exonerated from liability arising from which naturally or reasonably creates undue risk or harm to others.
the damage caused by the typhoon. Under Article 1174 of the Civil It may be the failure to observe that degree of care, precaution,
Code, Except in cases expressly specified by the law, or when it is and vigilance which the circumstances justify demand, or the
otherwise declared by stipulation, or when the nature of the omission to do something which a prudent and reasonable man,
obligation requires the assumption of risk, no person shall be guided by considerations which ordinarily regulate the conduct of
responsible for those events which could not be foreseen, or which, human affairs, would do.
though foreseen, were inevitable.
2. It bears emphasizing that a person claiming damages for the
In order that a fortuitous event may exempt a person from liability, negligence of another has the burden of proving the existence of
it is necessary that he be free from any previous negligence or fault or negligence causative of his injury or loss. The facts
misconduct by reason of which the loss may have been constitutive of negligence must be affirmatively established by
occasioned. 12 An act of God cannot be invoked for the protection competent evidence, 19 not merely by presumptions and
of a person who has been guilty of gross negligence in not trying to conclusions without basis in fact. Private respondents, in
forestall its possible adverse consequences. When a persons establishing the culpability of petitioner, merely relied on the
negligence concurs with an act of God in producing damage or aforementioned report submitted by a team which made an ocular
injury to another, such person is not exempt from liability by inspection of petitioners school building after the typhoon. As the
showing that the immediate or proximate cause of the damages or term imparts, an ocular inspection is one by means of actual sight
injury was a fortuitous event. When the effect is found to be partly or viewing. What is visual to the eye through, is not always
the result of the participation of man whether it be from active reflective of the real cause behind.
intervention, or neglect, or failure to act the whole occurrence is
hereby humanized, and removed from the rules applicable to acts In the present case, other than the said ocular inspection, no
of God. investigation was conducted to determine the real cause of the
partial unroofing of petitioners school building.
In the case at bar, the lower court accorded full credence to the
finding of the investigating team that subject school buildings
roofing had no sufficient anchorage to hold it in position especially