G.R. No. 105180 July 5, 1993
PANTRANCO NORTH EXPRESS, INC., petitioner, vs. HONORABLE COURT OF APPEALS, Heirs of BENJAMIN TANDOC y DELA CRUZ, DAISY TANDOC MAMENTA in her behalf and in behalf of her minor children DAPHNE MOREN-MAMENTA and PATRICIA DAYAN MAMENTA, respondents.

FACTS

On April 23, 1985, a vehicular accident occurred along MacArthur Highway in Villasis, Pangasinan, involving two buses owned by Pantranco North Express, Inc. (PNEI) and a Toyota Corona car owned by Vice-Mayor Benjamin Tandoc, driven by his son-in-law Patricio Mamenta. The collision resulted in the deaths of Mamenta and a PNEI bus driver, physical injuries to Tandoc and others, and the total wreck of the car. Benjamin Tandoc and the heirs of Patricio Mamenta filed a complaint for damages against PNEI and the Philippine National Bank (PNB). During the pendency of the case, Benjamin Tandoc died and was substituted by his heirs. The trial court dismissed the complaint against PNB but held PNEI liable, awarding various damages to the heirs of Tandoc and Mamenta. The Court of Appeals affirmed the trial court’s decision with modifications, reducing some awards. PNEI appealed to the Supreme Court, raising issues on jurisdiction due to alleged non-payment of docket fees, the awards for loss of earning capacity and attorney’s fees, the disregard of the rule on res gestae, and the finding of negligence against its driver.

ISSUE

1. Whether the trial court erred in assuming jurisdiction over the case despite alleged non-payment of required docket fees.
2. Whether the award for loss of earning capacity of Benjamin Tandoc was proper.
3. Whether the award for attorney’s fees was proper.
4. Whether the Court of Appeals disregarded the rule on res gestae.
5. Whether the driver of Pantranco Bus No. 1202 was responsible for the accident.

RULING

1. The Supreme Court held that the trial court did not err in assuming jurisdiction. The unpaid docket fees constitute a lien on the judgment award, and the court may allow payment within a reasonable time, not beyond the applicable prescriptive period. The deficiency in docket fees does not affect the court’s jurisdiction.
2. The award for loss of earning capacity of Benjamin Tandoc was reduced. The Court found the computation based on his gross income without deducting living expenses to be erroneous. Using the formula (2/3 x [80 – age at death] x [gross annual income – necessary living expenses]), and considering his age of 77 and annual income of P14,700, the correct award was computed to be P6,125.00.
3. The award for attorney’s fees was reduced from P80,000.00 to P25,000.00. The Court found the original award excessive and not reasonable, though the private respondents were entitled to attorney’s fees as they were compelled to litigate to protect their interests.
4. The Court of Appeals did not disregard the rule on res gestae. The testimony of defense witness Leonardo Lopez, Jr., a police officer who witnessed the accident, was correctly found inadmissible as part of the res gestae because it was not spontaneously given at the scene of the accident but was a deliberate account offered in court.
5. The Court affirmed the finding that the driver of Pantranco Bus No. 1202 was responsible for the accident. The factual findings of the trial court, as affirmed by the Court of Appeals, are conclusive. The evidence, including the police investigation report, established that the PNEI bus was overtaking in a no-overtaking zone and caused the collision.
The Supreme Court partly granted the petition, modifying the Court of Appeals’ decision by reducing the award for loss of earning capacity of Benjamin Tandoc to P6,125.00, reducing the attorney’s fees to P25,000.00, and increasing the death indemnity to P50,000.00. The deficiency in docket fees was declared a lien on the judgment.