GR 143008; (June, 2002) (Digest)
G.R. No. 143008 ; June 10, 2002
SMITH BELL DODWELL SHIPPING AGENCY CORPORATION, petitioner, vs. CATALINO BORJA and INTERNATIONAL TOWAGE AND TRANSPORT CORPORATION, respondents.
FACTS
Petitioner Smith Bell was the agent of M/T King Family, which arrived at the Port of Manila carrying chemicals. Respondent Catalino Borja, a customs inspector, was assigned to the vessel. On September 24, 1987, while the chemicals were being unloaded onto barges, including one owned by respondent International Towage and Transport Corporation (ITTC), a sudden explosion occurred, setting the vessels ablaze. Borja, who was inside the cabin, jumped overboard to escape but sustained severe burns from the fire on the water, resulting in permanent disability. Borja filed a damages suit against both Smith Bell and ITTC.
The Regional Trial Court ruled in favor of Borja, holding petitioner Smith Bell solely liable for damages and loss of earning capacity, and dismissed all cross-claims. The Court of Appeals affirmed the trial court’s decision. Smith Bell filed this Petition for Review, arguing that the explosion originated from ITTC’s barge and not from its vessel, and contesting the amount of damages awarded.
ISSUE
The primary issues are: (1) Who is liable for Borja’s injuries? (2) What is the proper amount of damages for loss of earning capacity?
RULING
The Supreme Court affirmed petitioner Smith Bell’s liability but modified the awarded damages. On the first issue, the Court upheld the findings of the lower courts that the fire originated from M/T King Family. The factual findings of the trial court, affirmed by the CA, are conclusive and binding, especially as they are supported by the testimonies of Borja and another eyewitness, as well as an official investigation report. Petitioner’s contrary evidence, including survey reports and testimonies from its crew, was deemed insufficient to overturn these consistent findings. As agent of the vessel’s owner, Smith Bell is liable under the doctrine of respondeat superior for all natural and proximate damages caused by negligence in the vessel’s management.
On the second issue, the Court recalculated the award for loss of earning capacity. The RTC used Borja’s gross annual income. Applying the correct formula from prevailing jurisprudence, the Court based the computation on his net earning capacity, considering his life expectancy and necessary living expenses. The award was thus reduced from P495,360 to P320,240. The awards for moral damages (P100,000) and attorney’s fees (P50,000) were sustained as reasonable. The Petition was partly granted, modifying only the compensatory damages.