G.R. No. 136048 January 23, 2001
JOSE BARITUA and JB LINE, petitioners, vs. NIMFA DIVINA MERCADER, et al., respondents.

FACTS

Respondents, the heirs of the late Dominador Mercader, filed a complaint for damages against petitioners Jose Baritua and JB Line. The complaint alleged that on March 16, 1983, Mercader boarded petitioners’ bus as a paying passenger with his baggage of assorted goods. On March 17, 1983, the bus fell into a river in Mondragon, Northern Samar, resulting in Mercader’s death. Respondents attributed the accident to the driver’s negligent and reckless operation of the vehicle. The Regional Trial Court ruled in favor of the respondents, awarding various damages, including loss of earnings. The Court of Appeals affirmed the RTC decision with a modification reducing the amount for loss of earnings.
Petitioners raised a procedural issue before the Supreme Court, arguing that the trial court never acquired jurisdiction over the case because respondents failed to pay the correct docket fees upon filing the original complaint. They invoked the ruling in Manchester Development Corporation v. Court of Appeals.

ISSUE

Whether the trial court acquired jurisdiction over the case despite the alleged non-payment of the correct docket fees.

RULING

Yes, the trial court validly acquired jurisdiction. The Supreme Court held that the Manchester ruling, which requires the payment of docket fees as a jurisdictional prerequisite, has no retroactive effect. It applies only to cases filed after its finality on May 7, 1987. The present case was initiated in 1984, long before the Manchester doctrine was promulgated. Therefore, the rule applicable at the time of filing governed, which did not consider the non-payment of the full docket fee as a jurisdictional defect provided there was a good faith effort to pay the correct amount or the court allowed payment within a reasonable time.
The Court found that the respondents had substantially complied with the payment requirements. Furthermore, the trial court, in its discretion, had accepted the filing and subsequently required additional payments, which were satisfied. On the substantive merits, the Court affirmed the findings of negligence. As a common carrier, petitioner JB Line was bound to observe extraordinary diligence for the safety of its passengers. The death of Mercader gave rise to the presumption of negligence under Article 1756 of the Civil Code, which petitioners failed to rebut. The awarded damages, as modified by the Court of Appeals, were upheld as justified.