Professional Documents
Culture Documents
[No.L8169.29January1957]
THESHELLCOMPANYOFTHEPHILIPPINES,LTD.,petitioner,
vs. FIREMENS INSURANCE COMPANY OF NEWARK, NEW
JERSEY COMMERCIAL CASUALTY INSURANCE CO.,
SALVADOR SlSON, PORFIRIO DE LA FUENTE and THE
COURTOFAPPEALS(FirstDivision),respondents.
758
758 PHILIPPINEREPORTSANNOTATED
ShellCo.ofthePhils.,Ltd.vs.FiremensIns.Co.ofNewark,N.J.,etal.
to the company and were just loaned to the operator and the
company took charge of their repair and maintenance that an
employee of the company supervised the operator and conducted
periodic inspection of the companys gasoline and service station
thatthepriceoftheproductssoldbytheoperatorwasfixedbythe
companyandnotbytheoperatorandthatthereceiptssignedbythe
operatorindicatedthathewasamereagent.Held:thattheoperator
isanagentofthecompanyandnotanindependentcontractor.
PADILLA,J.:
759
VOL.100,JANUARY29,1957 759
ShellCo.ofthePhils.,Ltd.vs.FiremensIns.Co.ofNewark,N.J.,et
al.
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A. The greaseman, for the escape of the air. As the escape of the air is
too strong for my ear I faced backward. I faced toward Isaac Peral Street,
and covered my ear. After the escape of the air has been finished, the air
comingoutfromthevalve,IturnedtofacethecarandIsawthecarswaying
atthattime,andjustforafewsecondthecarfell.,(t.s.n.,pp.2223.)
760
760 PHILIPPINEREPORTSANNOTATED
ShellCo.ofthePhils.,Ltd.vs.FiremensIns.Co.ofNewark,N.J.,et
al.
toP1,651.38,andwasdeliveredtoSalvadorR.Sison,who,inturn
madeassignmentofhisrightstorecoverdamagesinexavorofthe
Firemens Insurance Company and the Commercial Casualty
InsuranceCompany.
On the other hand, the fall of the car from the hydraulic lifter has been
explained by Alfonse M. Adriano, a greaseman in the Shell Gasoline and
ServiceStation,asfollows:
Q. Were you able to lift the car on the hydraulic lifter on the occasion,
September3,1947?
A.Yes,sir.
Q.Towhatheightdidyouraisemoreorless?
A.Moreorlessfivefeet,sir.
Q.Afterliftingthatcarthatheight,whatdidyoudowiththecar?
A.Ialsowashedit,sir.
Q.Andafterwashing?
A.Igreasedit.
Q. On that occasion, have you been able to finish greasing and washing
thecar?
A.ThereisonepointwhichIcouldnotreach.
Q.Andwhatdidyoudothen?
A.Iloweredthelifterinordertoreachthatpoint.
Q.Afterloweringitalittle,whatdidyoudothen?
A.Ipushedandpressedthevalveinitsgradualpressure.
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Q.Wereyouabletoreach.theportionwhichyouwerenotabletoreach
whileitwaslower?
A.Nomore,sir.
Q.Why?
A. Because when I was lowering the lifter I saw that the car was
swinginganditfell.
THECOURT.Whydidthecarswingandfall?
WITNESS:ThatiswhatIdonotknow,sir.(t.s.n.,p.67.)"
761
VOL.100,JANUARY29,1957 761
ShellCo.ofthePhils.,Ltd.vs.FiremensIns.Co.ofNewark,N.J.,et
al.
Islands,Limited,butoperatedbythedefendantPorfiriodelaFuente,forthe
purposeofhavingsaidcarwashedandgreasedforaconsiderationofP8.00.
(t.s.n., pp. 1920.) , Said car was insured against loss or damage by
Firemens Insurance Company of Newark, New Jersey, and Commercial
CasualtyInsuranceCompanyjointlyforthesumofP10,000(ExhibitsA",
B",andD").
The job of washing and greasing was undertaken by defendant Porfirio
delaFuentethroughhistwoemployees,AlfonsoM.Adriano,asgreaseman
andonesurnameddelosReyes,ahelperandwasher(t.s.n.,pp.6567).To
performthejobthecarwascarefullyandcentrallyplacedontheplatformof
thelifterinthegasolineandservicestationaforementionedbeforeraisingup
said platform to a height of about 5 feet and then the servicing job was
started.Aftermorethanonehourofwashingandgreasing,thejobwasabout
to be completed except for an ungreased portion underneath the vehicle
which could not be reached by the greasemen. So, the lifter was lowered a
littlebyAlfonsoM.Adrianoandwhiledoingso,thecarforunknownreason
accidentally fell and suffered damage to the value of P1,651.38 (t.s.n., pp.
6567).
The insurance companies after paying the sum of P1,651.38 for the
damage and charging the balance of P1 00.00 to Salvador Sison in
accordance with the terms of the insurance contracts, have filed this action
togetherwithsaidSalvadorSisonfortherecoveryofthetotalamountofthe
damagefromthedefendantsonthegroundofnegligence(RecordonAppeal,
pp.16).
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ThedefendantPorfiriodelaFuentedeniednegligenceintheoperationof
thelifterinhisseparateanswerandcontendedfurtherthattheaccidentalfall
ofthecarwascausedbyunforseenevent(RecordonAppeal,pp.1719)."
The owner of the car forthwith notified the insurers who ordered
their adjustor, the Manila Adjustors Company, to investigate the
incidentandaftersuchinvestigationthedamagedcar,uponorderof
the insurers and with the consent of the owner, was brought to the
shopofthePhilippineMotors,Inc.Thecarwasrestoredtorunning
condition after repairs thereon which amounted to P1,651.38 and
returnedtotheownerwhoassignedhisrighttocollecttheaforesaid
amount to the Firemens Insurance Company and the Commercial
CasualtyInsuranceCompany.
On6December1947theinsurersandtheownerofthe
762
762 PHILIPPINEREPORTSANNOTATED
ShellCo.ofthePhils.,Ltd.vs.FiremensIns.Co.ofNewark,N.J.,et
al.
carbroughtanactionintheCourtofFirstInstanceofManilaagainst
theShellCompanyofthePhilippines,Ltd.andPorfiriodelaFuente
to recover from them, jointly and severally, the sum of P1,651.38,
interestthereonatthelegalratefromthefilingofthecomplaintuntil
fullypaid,andcosts.AftertrialtheCourtdismissedthecomplaint.
Theplaintiffsappealed.TheCourtofAppealsreversedthejudgment
and sentenced the defendant to pay the amount sought to be
recovered,legalinterestandcosts,asstatedatthebeginningofthis
opinion.
Inarrivingattheconclusionthaton3September1947whenthe
carwasbroughttothestationforservicingPorfiriodelaFuente,the
operator of the gasoline and service station, was an agent of the
ShellCompanyofthePhilippines,Ltd.,theCourtofAppealsfound
that
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763
VOL.100,JANUARY29,1957 763
ShellCo.ofthePhils.,Ltd.vs.FiremensIns.Co.ofNewark,N.J.,et
al.
Takingintoconsiderationthefactthattheoperatorowedhisposition
to the company and the latter could remove him or terminate his
servicesatwillthattheservicestationbelongedtothecompanyand
bore its tradename and the operator sold only the products of the
company that the equipment used by the operator belonged to the
companyandwerejustloanedtotheoperatorandthecompanytook
charge of their repair and maintenance that an employee of the
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companysupervisedtheoperatorandconductedperiodicinspection
of the companys gasoline and service station that the price of the
productssoldbytheoperatorwasfixedbythecompanyandnotby
the operator and that the receipts signed by the operator indicated
that he was a mere agent, the finding of the Court of Appeals that
theoperatorwasanagentofthe
764
764 PHILIPPINEREPORTSANNOTATED
ShellCo.ofthePhils.,Ltd.vs.FiremensIns.Co.ofNewark,N.J.,et
al.
companyandnotanindependentcontractorshouldnotbedisturbed.
To determine the nature of a contract courts do not have or are
notboundtorelyuponthenameortitlegivenitbythecontracting
parties, should there be a controversy as to what they really had
intended to enter into, but the way the contracting parties do or
perform their respective obligations stipulated or agreed upon may
be shown and inquired into, and should such performance conflict
with the name or title given the contract by the parties, the former
mustprevailoverthelatter.
Itwasadmittedbytheoperatorofthegasolineandservicestation
that the car was carefully and centrally placed on the platform of
thelifter***"andtheCourtofAppealsfoundthat
***thefallofAppellantSisonscarfromthehydraulicliftandthedamage
caused therefor, were the result of the jerking and swaying of the lift when
the valve was released, and that the jerking was due to some accident and
unforeseen shortcoming of the mechanism itself, which caused its faulty or
defectiveoperationorfunctioning,andthat
***theservicingjobonAppellantSisonsautomobilewasacceptedby
DelaFuenteinthenormalandordinaryconductofhisbusinessasoperator
of his coappellees service station, and that the jerking and swaying of the
hydraulic lift which caused the fall of the subject car were due to its
defectivecondition,resultinginitsfaultyoperation.***.
Astheactoftheagentorhisemployeesactingwithinthescopeof
hisauthorityistheactoftheprincipal,thebreachoftheundertaking
bytheagentisoneforwhichtheprincipalisanswerable.Moreover,
thecompanyundertooktoanswerandseetoitthattheequipments
are in good running order and usable condition and the Court of
Appeals found that the Companys mechanic failed to make a
thoroughcheckupofthehydrauliclifterandthecheckupmadeby
itsmechanicwasmerely
765
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VOL.100,JANUARY29,1957 765
Peoplevs.Arpon,etal.
routinebyraisingthelifteronceortwiceandafterobservingthat
theoperationwassatisfactory,he(themechanic)lefttheplace.The
latterwasnegligentandthecompanymustanswerforthenegligent
actofitsmechanicwhichwasthecauseofthefallofthecarfrom
thehydrauliclifter.
The judgment under review is affirmed, with costs against the
petitioner.
Pars,C.J.,Bengzon,Montemayor,Reyes,A.,BautistaAngelo,
Labrador, Concepcion, Reyes, J.B. L., Endencia, and Felix, JJ.,
concur.
Decisionaffirmed.
_____________
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