G.R. No. 174089 & 174266; January 25, 2012
ORIX METRO LEASING AND FINANCE CORPORATION (Formerly CONSOLIDATED ORIX LEASING AND FINANCE CORPORATION), Petitioner, vs. MINORS: DENNIS, MYLENE, MELANIE and MARIKRIS, all surnamed MANGALINAO y DIZON, MANUEL M. ONG, LORETO LUCILO, SONNY LI, AND ANTONIO DE LOS SANTOS, Respondents.

SONNY LI and ANTONIO DE LOS SANTOS, Petitioners, vs. MINORS: DENNIS, MYLENE, MELANIE and MARIKRIS, all surnamed MANGALINAO y DIZON, LORETO LUCILO, CONSOLIDATED ORIX LEASING AND FINANCE CORPORATION and MANUEL M. ONG, Respondents.

FACTS

On June 27, 1990, at about 11:15 p.m., a multiple-vehicle collision occurred on the northbound lane of the North Luzon Expressway (NLEX) in Barangay Tibag, Pulilan, Bulacan. It was raining. The vehicles involved were: (1) a Nissan Pathfinder driven by Anacleto Edurese, Jr., carrying the owner-spouses Roberto and Josephine Mangalinao, their daughter Marriane, a housemaid, and a helper; (2) a Fuso 10-wheeler truck driven by Loreto Lucilo, moving erratically and swerving on the outer lane; and (3) an Isuzu Cargo 10-wheeler truck driven by Antonio de los Santos, following the Pathfinder. As the Pathfinder was about to overtake the Fuso truck on the fast lane, the Fuso suddenly swerved left, cutting into the Pathfinder’s lane and blocking its way. The Pathfinder hit the left side of the Fuso, causing both to stop in the middle of the expressway. Almost instantly, the Isuzu truck, despite Antonio applying the brakes, crashed into the rear of the Pathfinder. The collision resulted in the deaths of all occupants of the Pathfinder. The minor children of the Mangalinao spouses filed a complaint for damages based on quasi-delict against the drivers (Loreto Lucilo and Antonio de los Santos) and the registered owners of the trucks: Orix Metro Leasing and Finance Corporation (for the Fuso) and Sonny Li (for the Isuzu). Orix claimed it had sold the Fuso truck to Manuel M. Ong prior to the accident and filed a third-party complaint against him. The Regional Trial Court (RTC) found all defendants (Sonny Li, Antonio de los Santos, Loreto Lucilo, and Orix) jointly and severally liable for damages and ordered third-party defendant Manuel M. Ong to indemnify Orix. The Court of Appeals affirmed the RTC’s findings. Orix, Sonny Li, and Antonio de los Santos filed separate petitions for review.

ISSUE

Whether the Court of Appeals erred in affirming the RTC’s decision holding the petitioners (Orix, Sonny Li, and Antonio de los Santos) liable for damages arising from the vehicular collision.

RULING

The Supreme Court DENIED the petitions and AFFIRMED the decision of the Court of Appeals with MODIFICATIONS regarding the award of damages.
1. On the Liability of the Drivers and Registered Owners:
* The Court upheld the concurrent findings of the RTC and CA that both truck drivers, Loreto Lucilo and Antonio de los Santos, were negligent and reckless.
* Loreto Lucilo was negligent for suddenly swerving his Fuso truck into the lane of the overtaking Pathfinder without due caution, considering the rainy weather and road conditions, thereby causing the initial collision.
* Antonio de los Santos was likewise negligent for tailgating the Pathfinder at an unsafe speed and distance given the dark, slippery highway, failing to stop in time to avoid crashing into the rear of the Pathfinder after the initial impact. His claim of driving prudently was belied by the severe damage to the vehicles.
* Sonny Li, as the registered owner of the Isuzu truck, is solidarily liable with his driver, Antonio de los Santos, under the principle of respondeat superior (Article 2180 of the Civil Code). He failed to prove he exercised the diligence of a good father of a family in the selection and supervision of his driver.
* Orix Metro Leasing, as the registered owner of the Fuso truck at the time of the accident (the deed of sale to Manuel M. Ong was not registered with the LTO), is also solidarily liable with its driver, Loreto Lucilo, under the same principle and for public policy reasons to protect victims of vehicular accidents. However, the Court upheld the RTC’s ruling that Orix is entitled to be indemnified by the actual owner, third-party defendant Manuel M. Ong, who was declared in default.
2. On the Award of Damages: The Court modified the awards as follows:
* Actual Damages: Reduced to ₱1,577,000.00, representing duly substantiated funeral and burial expenses.
* Loss of Earning Capacity: Awarded ₱7,200,000.00 to the heirs, computed based on the proven average annual income of the deceased spouses Roberto and Josephine Mangalinao.
* Moral Damages: Reduced to ₱100,000.00 for each deceased parent (₱200,000.00 total), in line with prevailing jurisprudence.
* Exemplary Damages: Reduced to ₱100,000.00, awarded due to the gross negligence of the drivers.
Attorney’s Fees: Reduced to ₱100,000.00, as the claimants were compelled to litigate.
Interest: All monetary awards shall earn legal interest at 6% per annum from the date of finality of the judgment until full payment.
The registered owners (Orix and Sonny Li) and their respective drivers (Loreto Lucilo and Antonio de los Santos) are held jointly and severally liable for the above awards. Orix is entitled to reimbursement from Manuel M. Ong.