Plaintiff-appellant [respondent] Felix Paras (Paras for brevity), who hails from Cainta. Rizal is engaged in the buy and sell of fish products. Sometime on 08 February 1987, on his way home to Manila from Bicol Region, he hoarded a bus with Body No. 101 and Plate No. EVE 508, owned and operated- by Inland Trailways. Inc. (Inland for brevity) and driven by its driver Calvin Coner (Coner for brevity).
At approximately 3:50 o'clock in the morning of 09 February 1987, while the said bus was travelling along Maharlika Highway, Tiaong, Quezon, it was bumped at the rear by another bus with Plate No. 1-VB 259. owned and operated by Philtranco Service Enterprises, Inc. (Philtranco for brevity). As a result of the strong and violent impact, the Inland bus was pushed forward and smashed into a cargo truck parked along the outer right portion of the. highway and the shoulder thereof. Consequently, the said accident bought considerable damage to the vehicles involved and caused physical injuries to the passengers and crew of the two buses, including the death of Coner who was the driver of the Inland Bus at the time of the incident.
Paras was not spared from the pernicious effects of the accident. After an emergency treatment at the San Pablo Medical Center, San Pablo City. Laguna. Paras was taken to the National Orthopedic Hospital. At the latter hospital, he was found and diagnosed by Dr. Antonio Tanchuling, Jr. to be affected with the following injuries: a) contusion/hematoma: b) dislocation of hip upon fracture of the fibula on the right leg; c) fractured small bone on the right leg: and d) close fracture on the tibial plateau of the left leg. (Exh. "A", p. 157. record)
On 04 March 1987 and 15 April 1987. Paras underwent two (2) operations affecting the fractured portions of his body. (Exhs. "A-2" and "A-3", pp. 159 and 160 respectively, record)
Unable to obtain sufficient financial assistance from Inland for the costs of his operations, hospitalization, doctors' fees and other miscellaneous expenses, on 31 July 1989. Paras filed a complaint for damages based on breach of contract of carriage against Inland.
In its answer, defendant Inland denied responsibility, by alleging, among others, that its driver Coner had observed an utmost and extraordinary care and diligence to ensure the safety of its passengers. In support of its disclaimer of responsibility. Inland invoked the Police Investigation Report which established the fact that the Philtranco bus driver of [sic] Apolinar Miralles was the one which violently bumped the rear portion of the inland bus. and therefore, the direct and proximate cause of Paras' injuries.
On 02 March 1990. upon leave of court. Inland Hied a third-party complaint against Philtranco and Apolinar Miralles (Third Party defendants). In this third-party complaint. Inland, sought for exoneration of its liabilities to Paras, asserting that the latter's cause of action should be directed against Philtranco considering that the accident was caused by Miralles' lack of care, negligence and reckless imprudence, (pp. 50 to 56, records).
WHEREFORE, third-party defendant Philtranco and Apolinar Miralles are hereby ordered to pay plaintiff jointly and severally, the following amounts:SO ORDERED.
- P54.000.00 as actual damages;
- P50,000.00 as moral damages;
- P20.000.00 as attorney's fees and costs.
I. THE TRIAL COURT ERRED IN HOLDING THAT ONLY THIRD-PARTY DEFENDANT-APPELLANT PHILTRANCO IS LIABLE FOR THE DAMAGES SUFFERED BY APPELLANT PARAS.
II. THE TRIAL COURT ERRED IN NOT HOLDING APPELLANT INLAND TRAILWAYS INC. TO BE JOINTLY AND SEVERALLY LIABLE FOR THE DAMAGES SUFFERED BY PARAS.
III. THE TRIAL COURT ERRED IN NOT AWARDING UNEARNED INCOME AS ADDITIONAL ACTUAL DAMAGES SUFFERED BY APPELLANT PARAS AS HIS PHYSICAL DISABILITY IS PERMANENT IN NATURE.
IV. THE TRIAL COURT ERRED IN NOT AWARDING EXEMPLARY DAMAGES IN FAVOR OF APPELLANT PARAS.
THE TRIAL COURT ERRED WHEN IT FAILED TO AWARD DAMAGES UNTO THE THIRD PARTY PLAINTIFF NOTWITHSTANDING CLEAR FINDING THAT:'It is clear from the evidence that the plaintiff sustained injuries because of the reckless, negligence, and lack of precaution of third party defendant Apolinar Miralles, an employee of Philtranco. '
AND, COMPLETELY DISREGARDED "THE UNCONTROVERTED ORAL AND DOCUMENTARY EVIDENCES ESTABLISHING THE EXTENT AND DEGREE OF DAMAGES SUSTAINED BY THE THIRD PARTY PLAINTIFF.
I
THE COURT A QUO MISERABLY ERRED IN AWARDING ACTUAL DAMAGES GREATER THAN WHAT WAS ALLEGED IN THE COMPLAINT ITSELF, AND EVEN MUCH MORE GREATER THAN WHAT WERE PROVED DURING HIE TRIAL, HENCE, PERPETUATING UNJUST ENRICHMENT.II
THE COURT A QUO SERIOUSLY ERRED IN AWARDING MORAL DAMAGES TO A CAUSE OF ACTION OF CULPA-CONTRACTUAL EVEN WITHOUT ANY EVIDENCE OF GROSS BAD FAITH; HENCE, CONTRARY TO THE ESTABLISHED DOCTRINE IN THE CASES OF PHIL. RABBIT BUS LINES VS. ESGUERRA; SOBERANO VS. BENGUET AUTO LINE AND FLORES VS. MIRANDA.III
THE COURT A QUO MISERABLY ERRED IN HOLDING THAT MIRALLES WAS THE ONE AT FAULT MERELY ON THE STRENGTH OF THE TESTIMONY OF THE POLICE INVESTIGATOR WHICH IS IN TURN BASED ON THE STATEMENTS OF ALLEGED WITNESSES WHO WERE NEVER PRESENTED ON 'THE WITNESS STAND.
THE COURT A QUO COMMITTED A GRIEVOUS ERROR IN DISREGARDING THE TESTIMONY OF APPELLANTS' WITNESSES WHO TESTIFIED AS TO THE DEFENSE OP EXERCISE OF DUE DILIGENCE IN THE SELECTION AND SUPERVISION OF EMPLOYEES PURSUANT TO ART. 2180, LAST PARAGRAPH, NEW CIVIL CODE.
WHEREFORE, in consideration of the foregoing premises, the assailed decision dated 18 July 19(9)7 is perforce affirmed with the following modifications:
1. Third party defendants-appellants Philtranco and Apolinar Miralles are ordered to pay plaintiff-appellant Felix Paras jointly and severally the following amounts:a) P1,397.95 as actual damages;2. On the third party plaintiff-appellant Inland's claims, the third party defendant-appellants Philtranco and Apolinar Miralles are hereby ordered to pay the former (Inland) jointly and severally the amount of P250.000.00 as and by way of temperate damages.
b) P50.000.00 as temperate damages;
c) P50,000.00 as moral damages; and
d) P20,000.00 as attorney's fees and costs of suit.
SO ORDERED.
Section 12. Third-party complaint. — A third-party complaint is a claim that a defending party may, with leave of court, file against a person not a party to the action, called the third-party defendant, for contribution, indemnity, subrogation or any other relief, in respect of his opponent's claim.12
Section 12 of Rule 6 of the Revised Rules of Court authorizes a defendant to bring into a lawsuit any person "not a party to the action . . . for contribution, indemnity, subrogation or any other relief in respect of his opponent's claim." From its explicit language it does not compel the defendant to bring the third-parties into the litigation, rather it simply permits the inclusion of anyone who meets the standard set forth in the rule. The secondary or derivative liability of the third-party is central — whether the basis is indemnity, subrogation, contribution, express or implied warranty or some other theory. The impleader of new parties under this rule is proper only when a right to relief exists under the applicable substantive law. This rule is merely a procedural mechanism, and cannot be utilized unless there is some substantive basis under applicable law.
Apart from the requirement that the third-party complainant should assert a derivative or secondary claim for relief from the third-party defendant there arc other limitations on said party's ability to implead. The rule requires that the third-party defendant is "not a party to the action" for otherwise the proper procedure for asserting a claim against one who is already a party to the suit is by means of counterclaim or cross-claim under sections 6 and 7 of Rule 6. In addition to the aforecited requirement, the claim against the third-party defendant must be based upon plaintiffs claim against the original defendant (third-party claimant). The crucial characteristic of a claim under section 12 of Rule 6, is that the original "defendant is attempting to transfer to the third-party defendant the liability asserted against him by the original plaintiff."
Article 2176. Whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. Such fault or negligence, if there is no pre-existing contractual relation between the parties, is called a quasi-delict and is governed by the provisions of this chapter. (1902a)
Article 2180. The obligation imposed by article 2176 is demandable not only for one's own acts or omissions, but also for those of persons for whom one is responsible.xxx
Employers shall be liable for the damages caused by their employees and household helpers acting within the scope of their assigned tasks, even though the former are not engaged in any business or industry.xxx
The responsibility treated of in this article shall cease when the persons herein mentioned prove that they observed all the diligence of a good father of a family to prevent damage. (1903a)
The third-party claim need not be based on the same theory as the main claim. For example, there arc cases in which the third-party claim is based on an express indemnity contract and the original complaint is framed in terms of negligence. Similarly, there need not be any legal relationship between the third-party defendant and any of the other parties to the action. Impleader also is proper even though the third party's liability is contingent, and technically does not come into existence until the original defendant's liability has been established. In addition, the words Ms or may be liable' in Rule 14(a) make it clear that impleader is proper even though the third-party defendant's liability is not automatically established once the third-party plaintiffs liability to the original plaintiff has been determined.
Appellants argue that since plaintiffs filed a complaint for damages against the defendants on a breach of contract of carriage, they cannot recover from the third-party defendants on a cause of action based on quasi-delict. The third party defendants, they allege, are never parties liable with respect to plaintiffs claim although they are with respect to the defendants for indemnification, subrogation, contribution or other reliefs. Consequently, they are not directly liable to the plaintiffs. Their liability commences only when the defendants are adjudged liable and not when they are absolved from liability as in the case at bar.
Quite apparent from these arguments is the misconception entertained by appellants with respect to the nature and office of a third party complaint.
Section 16. Rule 6 of the Revised Rules of Court defines a third party complaint as a "claim that a defending party may, with leave of court, file against a person not a party to the action, called the third-party defendant, for contribution, indemnification, subrogation, or any other relief, in respect of his opponent's claim." In the case of Viluan vs. Court of Appeals, et al, 16 SCRA 742 [I966|. this Court had occasion to elucidate on the subjects covered by this Rule, thus:... As explained in the Atlantic Coast Line R. Co. vs. U.S. Fidelity & Guaranty Co., 52 F. Supp. 177(1943:)
'From the sources of Rule 14 and the decisions herein cited, it is clear that this rule, like the admiralty rule, 'covers two distinct subjects, the addition of parties defendant to the main cause of action, and the bringing in of a third party for a defendant's remedy over", xxx
'If the third party complaint alleges facts showing a third party's direct liability to plaintiff on the claim set out in plaintiffs petition, then third party 'shall' make his defenses as provided in Rule 12 and his counterclaims against plaintiff as provided in Rule 13. In the case of alleged direct liability, no amendment (to the complaint) is necessary or required. The subject-matter of the claim is contained in plaintiffs complaint, the ground of third party's liability on that claim is alleged in third party complaint, and third party's defense to set up in his answer to plaintiffs complaint. At that point and without amendment, the plaintiff and third party are at issue as to their rights respecting the claim.
The provision in the rule that, 'The third-party defendant may assert any defense which the third-party plaintiff may assert to the plaintiffs claim,' applies to the other subject, namely, the alleged liability of third party defendant. The next sentence in the rule, 'The third-party defendant is bound by the adjudication of the third party plaintiffs liability to the plaintiff, as well as of his own to the plaintiff or to the third-party plaintiff applies to both subjects. If third party is brought in as liable only to defendant and judgment is rendered adjudicating plaintiffs right to recover against defendant and defendant's rights to recover against third party, he is bound by both adjudications.That part of the sentence refers to the second subject. If third party is brought in as liable to plaintiff, then third party is bound by the adjudication as between him and plaintiff. That refers to the first subject. If third party is brought in as liable to plaintiff and also over to defendant, then third party is bound by both adjudications.
xxx
Under this Rule, a person not a party to an action may be impleaded by the defendant either (a) on an allegation of liability to the latter; (b) on the ground of direct liability to the plaintiff-; or, (c) both (a) and (b). The situation in (a) is covered by the phrase "for contribution. indemnity or subrogation;" while (b) and (c) are subsumed under the catch all "or any other relief, in respect of his opponent's claim."
The case at bar is one in which the third party defendants are brought into the action as directly liable to the plaintiffs upon the allegation that "the primary and immediate cause as shown by the police investigation of said vehicular collision between (sic) the above-mentioned three vehicles was the recklessness and negligence and lack of imprudence (sic) of the third-party defendant Virgilio (should be Leonardo) Esguerra y Ledesma then driver of the passenger bus." The effects are that "plaintiff and third party arc at issue as to their rights respecting the claim" and "the third party is bound by the adjudication as between him and plaintiff." It is not indispensable in the premises that the defendant be first adjudged liable to plaintiff before the third-party defendant may he held liable to the plaintiff, as precisely, the theory of defendant is that it is the third party defendant, and not he, who is directly liable to plaintiff. The situation contemplated by appellants would properly pertain to situation (a) above wherein the third party defendant is being sued for contribution, indemnity or subrogation, or simply stated, for a defendant's "remedy over".19
Article 2224. Temperate or moderate damages, which are more than nominal but less than compensatory damages, may be recovered when the court finds that some pecuniary loss has been suffered but its amount cannot, from the nature of the case, be proved with certainty.
Even if not recoverable as compensatory damages. Panacor may still be awarded damages in the concept of temperate or moderate damages. When the court finds that some pecuniary loss has been suffered but the amount cannot, from the nature of the case, be proved with certainty, temperate damages may be recovered. Temperate damages may be allowed in cases where from the nature of the case, definite proof of pecuniary loss cannot be adduced, although the court is convinced that the aggrieved party suffered some pecuniary loss.
The Code Commission, in explaining the concept of temperate damages under Article 2224. makes the following comment:In some States of the American Union, temperate damages are allowed. There are cases where from the nature of the case, definite proof of pecuniary loss cannot be offered, although the court is convinced that there has been such loss. For instance, injury to one's commercial credit or to the goodwill of a business firm is often hard to show with certainty in terms of money. Should damages be denied for that reason? The judge should be empowered to calculate moderate damages in such cases, rather than that the plaintiff should suffer, without redress from the defendant's wrongful act.
1. To Felix Paras:
(a) P1,397.95, as reimbursement for the costs of medicines purchased between February 1987 and July 1989;
(b) P50,000.00 as temperate damages;
(c) P50,000.00 as moral damages;
(d) P36.000.00 for lost earnings;
(e) 10% of the total of items (a) to (d) hereof as attorney's fees; and
(f) Interest of 6% per annum from July 18, 1997 on the total o[ items (a) to (d) hereof until finality of this decision, and 12% per annum thereafter until full payment.
2. To Inland Trail ways, Inc.:
(a) P250,000.00 as temperate damages;
(b) 10% of item (a) hereof; and
(c) Interest of 6% per annum on item (a) hereof from July 18, 1997 until finality of this decision, and 12% per annum thereafter until full payment.
3. The petitioner shall pay the costs of suit.
Endnotes:
1 Rollo, pp. 66-70.
2 CA rollo, pp. 115-132; penned by Associate Justice Bienvenido I,. Reyes (now a Member of the Court), with Associate Justice Hilarion L. Aquino (retired) and Associate Justice Mario L. Guariña 111 (retired) concurring.
3 CA rollo, pp. 133-143.
4 Id., pp. 129-131.
5 Article 2219. Morai damages may be recovered in the following and analogous cases:
(1) A criminal offense resulting in physical injuries;
(2) Quasi-delicts causing physical injuries;
(3) Seduction, abduction, rape, or other lascivious acts;
(4) Adultery or concubinage;
(5) Illegal or arbitrary detention or arrest;
(6) Illegal search;
(7) Libel, slander or any other form of defamation;
(8) Malicious prosecution;
(9) Acts mentioned in article 309;
(10) Acts and actions referred to in articles 21, 26, 27, 28, 29, 30, 32, 34, and 35.
The parents of the female seduced, abducted, raped, or abused, referred to in No. 3 of this article, may also recover moral damages.
The spouse, descendants, ascendants, and brothers and sisters may bring the action mentioned in No. 9 of this article, in the order named.
6 Article 1764. Damages in cases comprised in this Section shall be awarded in accordance with '1 hie XVIII of this Book, concerning Damages. Article 2206 shall also apply to the death of a passenger caused by the breach of contract by a common carrier.
7 Article 2206. The amount of damages for death caused by a crime or quasi-delict shall be at least three thousand pesos, even though there may have been mitigating circumstances. In addition:
(1) The defendant shall be liable for the loss of the earning capacity of the deceased, and the indemnity shall be paid to the heirs of the latter; such indemnity shall in every case be assessed and awarded by the court, unless the deceased on account of permanent physical disability not caused by the defendant, had no earning capacity at the time of his death;
(2) If the deceased was obliged to give support according to the provisions of article 291, the recipient who is not an heir called to the decedent's inheritance by the law of testate or intestate succession, may demand support from the person causing (he death, for a period not exceeding five years, the exact duration to be fixed by the court;
(3) The spouse, legitimate and illegitimate descendants and ascendants of the deceased may demand moral damages for mental anguish by reason of the death of the deceased.
8 Japan Airlines v. Simangan, G.R. No. 17014 1, April 22, 2008, 552 SCRA 34!, 361.
9 Article 2220. Willful injury to property may be a legal ground for awarding moral damages if the court should find that, under the circumstances, such damages are justly due. The same rule applies to breaches of contract where the defendant acted fraudulently or in bad faith.
10 Rollo, p. 57.
11 Id, p. 13.
12 The rule, as revised in 1997, presently provides:
Section 11. Third (fourth, etc.) pony complaint. — A third (fourth, etc.)-party complaint is a claim that a defending party may, with leave of court, file against a person not a party to the action, called the third (fourth, etc.)-party defendant, for contribution, indemnity, subrogation or any other relief, in respect of his opponent's claim. (12a)
13 No. 33255, November 29, 1972, 48 SCRA 23 1 (bold emphasis supplied)
14 Id., pp. 236-237.
15 Viluan v. Court of Appeals. Nos. 1,-21477-81, April 29, 1966. 16 SCRA 742: Samala v. Judge Victor. G.R. No. L,-53969, February 21, 1989, 170 SCRA 453, 460.
16 Wright, Miller & Kane, Federal Practice and Procedure, Vol. 6, §1446, 1990 Edition. pp. 372-373.
17 Viluan v. Court of Appeals, supra, note 15.
18 Samala v. Judge Victor, supra, note 15.
19 Id., at pp. 458-160 (bold underscoring supplied lor emphasis).
20 Id., at p. 460.
21 Viron Transportation Co., Inc. v. Delos Samos, G.R. No. 138296, November 22, 2000, 345 SCRA 509,519.
22 Records, pp. 176-1 85.
23 Rollo, p.35.
24 Id. p. 36.
25 TSN, October 18, 1991, pp. 11-12.
26 The Civil Code states:
Article 2225. Temperate damages must be reasonable under the circumstances.
27 Government Service Insurance System v. Labung-Deang. G.R. No. 135644, September 17, 2001, 365 SCRA 341, 350.
28 G.R. No. 159352, April 14, 2004, 427 SCRA 686, 699.
29 Rollo, pp. 34-35.
30 Titan-Ikeda Construction and Development Corporation v. Primetown Property Group, Inc., G.R. No. 158768. February 12. 2008, 544 SCRA 466, 491.
31 Villa Rey Transit. Inc. v. Court of Appeals, 31 SCRA 511, 515-517.
32 See. e.g., Ramos v. Court of Appeals. G.R. No. 124354, December 29, 1999, 321 SCRA 584, 624-625.
33 The Civil Code provides:
Article. 21 77. Responsibility for fault or negligence under the preceding article is entirely separate and distinct from the civil liability arising from negligence under the Penal Code. But the plaintiff cannot recover damages twice for the same act or omission of the defendant, (n)
34 Durban Apartments Corporation v. Pioneer Insurance and Surety Corporation, G.R. No. 179419, January 12, 2011, 639 SCRA 441, 454; see also Bank of the Philippine Islands v. Casa Montessori International, G.R. Nos. 149454 & 149507. May 28, 2004, 430 SCRA 261, 296.
35 Article 2208, par. 2, Civil Code.
36 Article 2208, par. 11, Civil Code.
37 New World International Development (Phils.), Inc. v. NYK-FilJapan Shipping Corp. G.R. No. 171468/174241, August 24, 2011.
38 G.R. No. 97412, July 12, 1994, 234 SCRA 78, 96-97.