G.R. No. 188493 , December 13, 2017
Vivian B. Torreon and Felomina F. Abellana, Petitioners, v. Generoso Aparra, Jr., Felix Caballes, and Carmelo Simolde, Respondents.

FACTS

Petitioners Vivian Torreon and Felomina Abellana filed a civil case for damages against respondents Carmelo Simolde (owner/operator), Felix Caballes (driver), and Generoso Aparra, Jr. (mechanic) following a tragic accident. On November 1, 1989, Torreon’s husband, Rodolfo, and their daughter, Monalisa, died, while another daughter, Johanna, and Abellana were injured when a cargo truck owned by Simolde and driven by Aparra fell off a wharf in Jetafe, Bohol. The truck, which was transporting passengers from Simolde’s motor boat, was driven by Aparra, who only possessed a student driver’s permit. Caballes, the official driver, was present but allowed Aparra to drive. The Regional Trial Court found respondents liable for quasi-delict and awarded damages.
The Court of Appeals affirmed the finding of liability but modified the damages. It deleted the award for loss of earning capacity for Rodolfo, holding that the claim was not supported by competent evidence. The appellate court ruled that Abellana’s testimony regarding Rodolfo’s salary as manager of her businesses—P10,000 basic pay plus commission, totaling about P15,000 monthly—was insufficient without documentary proof like income tax returns or payroll records. Petitioners sought review, arguing this was error.

ISSUE

Whether the Court of Appeals erred in deleting the award for loss of earning capacity due to a purported lack of documentary evidence.

RULING

Yes, the Court of Appeals erred. The Supreme Court reinstated the award for loss of earning capacity, emphasizing that while documentary evidence is preferable, the lack thereof is not fatal to the claim. The Court clarified that testimonial evidence from a competent witness, if credible and based on personal knowledge, is a sufficient basis for determining the deceased’s income. Abellana, as the business owner and Rodolfo’s employer, was a competent witness familiar with his compensation. Her detailed testimony on his fixed salary and commission structure provided a reasonable basis for computation. The Court applied the formula from established jurisprudence, using the testified gross income of P15,000 monthly, a life expectancy of 26 years (based on age 50), and a just discount rate of 6% for present cash value, resulting in an award of P2,079,675.00. This ruling underscores that in adjudicating damages, courts must consider all evidence of record, and credible testimony alone can substantiate a claim for compensatory damages when it establishes the fact of loss with reasonable certainty.