G.R. Nos. L-21583 and L-21591-92 May 20, 1968
DANIEL BULANTE, petitioner-appellant, vs. CHU LIANTE, CAPITAL INSURANCE and SURETY CO., INC., RUPINA BORERES, JUANITA MARQUEZ, SERGIO LAREDO, VALENTIN MOMO, HEIRS OF BIBIANO BORERES, (Cornelio Boreres, Fortunata Boreres and Carmen Zamoranos), HEIRS OF PELAGIA CABALTERA (Samuel Lauzon, Catalina Tamayo and Norberto Cabaltera), HEIRS OF FLAVIANA HEMBRA, MILAGROS MARQUEZ and ALBERTA MARQUEZ (Andres Marquez, Dominador Marquez, Teresita Marquez, Rogelio Marquez, Pedro Marquez and Roberto Marquez), HEIR OF APOLONIA RELI, and HEIRS OF MARIA CORTON (Alejandra, Prima, Roberto, Levina, Medrando, Nemesia and Miguel, all surnamed Aranez), respondents-appellees.

FACTS

On April 19, 1955, a Visayan Transit passenger bus owned by Daniel Bulante collided with a cargo truck owned by Chu Liante in Barugo, Leyte, resulting in ten deaths and seven injuries. Separate actions for damages were filed against Bulante: Chu Liante’s complaint (Civil Case No. 237) was based on tort (culpa aquiliana), while the complaints by injured passengers and heirs of deceased passengers (Civil Cases Nos. 241 and 243) were for breach of contract of carriage (culpa contractual). Capital Insurance & Surety Co., Inc., which had paid Chu Liante under insurance contracts, intervened in Civil Case No. 237. Bulante denied liability, claiming the truck driver was at fault and that the bus was owned by Visayan Bus Transit Co., Inc., though registered in his name. After a joint trial, the trial court dismissed all complaints and awarded Bulante damages against Chu Liante. On appeal, the Court of Appeals reversed the trial court, found the bus driver solely negligent, and ordered Bulante to pay damages aggregating P100,771.50. Bulante petitioned for review by certiorari.

ISSUE

The primary issues were: (1) whether the Court of Appeals erred in finding the bus driver solely negligent for the collision; and (2) whether the awards of damages were proper.

RULING

The Supreme Court affirmed the Court of Appeals’ finding of negligence with modifications to the damages awarded. The Court upheld the appellate court’s factual findings that the bus driver was recklessly driving at high speed, racing to overtake another bus, failed to yield the right of way at a narrow culvert, and caused the collision. The Court found no reason to overturn these conclusions. Regarding damages, the Court eliminated the award of moral damages to the injured passengers (Rufina Boreres, Juanita Marquez, and Valentin Momo) because their action was based on breach of contract, and there was no allegation or proof of fraud or bad faith by Bulante. For Chu Liante’s claim, the Court reduced the award for damage to the truck from P4,004.00 to P1,526.00, holding that the acquisition cost should not be the basis but its depreciated value (25% depreciation from July 1954 to April 1955, reducing the basis to P7,426.00). After deducting insurance proceeds (P3,100.00) and sale price (P2,800.00), the net was P1,526.00. Adding other allowable items (lost tools P200.00, lost cargo P287.50, expenses for dead passengers P500.00, amount paid to driver’s heirs P2,000.00), the total award to Chu Liante was modified to P4,513.50. The judgment of the Court of Appeals was affirmed with these modifications.