GR 25499; (February, 1970) (Digest)
G.R. No. L-25499 February 18, 1970
VILLA REY TRANSIT, INC., petitioner, vs. THE COURT OF APPEALS, TRINIDAD A. QUINTOS, PRIMA A. QUINTOS, AND JULITA A. QUINTOS, respondents.
FACTS
On March 17, 1960, a passenger bus owned and operated by Villa Rey Transit, Inc. hit a bullcart loaded with hay. A bamboo pole from the cart penetrated the bus windshield, striking passenger Policronio Quintos, Jr., who died later that day from his injuries. The sisters and only surviving heirs of the deceased, who was single and without descendants or ascendants, filed an action for breach of contract of carriage against the bus company. Both the trial court and the Court of Appeals found the accident was due to the negligence of the bus driver, not a fortuitous event, and held the company liable. The trial court awarded damages of P63,750 as prayed for in the complaint. The Court of Appeals affirmed this decision.
ISSUE
The sole issue raised on appeal is the proper amount of damages recoverable by the heirs, specifically depending on: (1) the number of years to be used for computation, and (2) the rate at which the losses should be fixed.
RULING
The Supreme Court modified the amount of damages but affirmed the decisions in all other respects. The Court held:
1. On the Computation Period: The lower courts correctly based the computation on the life expectancy of the deceased, which was 33 1/3 years (using the formula 2/3 x [80 – 30]), and not on an arbitrary period like the four-year basis mentioned in a prior case (Alcantara v. Surro), which was not controlling. Life expectancy is a relevant and important factor in fixing damages.
2. On the Rate of Damages: Damages should be based on the deceased’s net earning capacity, not his gross earnings. The amount recoverable is the loss of that portion of his earnings which the beneficiaries would have received as support, after deducting his necessary living expenses. The deceased’s annual salary was P2,184. The Court deemed it fair to deduct P1,184 for his necessary living expenses, leaving a net annual loss of support of P1,000.
3. Final Computation: The Court computed the total damages as follows:
Loss of support for 33 1/3 years: P1,000 x 33.333 = P33,333.33
Indemnity for death under Article 2206 of the Civil Code: P12,000.00
Actual medical and burial expenses: P1,727.95
Attorney’s fees (increased due to appeals): P2,500.00
* Total: P49,561.28, with legal interest from December 29, 1961.