G.R. Nos. L-35697-99, April 15, 1988
ELADIA DE LIMA, POTENCIANO REQUIJO, NEMESIO FLORES, REYNALDO REQUIJO, DOMINADOR REQUIJO and MARIO REQUIJO, petitioners, vs. LAGUNA TAYABAS CO., CLARO SAMONTE, SANTIAGO SYJUCO, INC. (SEVEN-UP BOTTLING CO., OF THE PHILIPPINES) and PORVENIR ABAJAR BARRETO, respondents.

FACTS

This case originated from a vehicular collision on June 3, 1958, involving a passenger bus of Laguna Tayabas Bus Co. (LTB) and a delivery truck of Seven-up Bottling Co., resulting in the death of passenger Petra de la Cruz and serious injuries to passengers Eladia de Lima and Nemesio Flores. Three consolidated civil cases for damages were filed against LTB, its driver, and Seven-up. The trial court rendered a decision on December 27, 1963, awarding various sums for damages, loss of earning capacity, and attorney’s fees against LTB and its driver. The plaintiffs moved for reconsideration, seeking legal interest on the awards from the date of the trial court’s decision, but this motion was not acted upon. The plaintiffs did not appeal, hoping for prompt payment, while the defendants LTB and its driver appealed to the Court of Appeals.
The Court of Appeals, in its decision dated January 31, 1972, affirmed the trial court’s judgment but modified it by awarding legal interest on the damages, to be computed from the date of its own appellate decision. The petitioners moved for reconsideration, arguing the interest should run from the date of the trial court’s 1963 decision and seeking an increase in the civil indemnity for death from P3,000 to P12,000. The Court of Appeals denied their motion, prompting this petition for review.

ISSUE

The issues are: (1) Whether the Court of Appeals erred in ordering legal interest to run only from the date of its decision instead of from the date of the trial court’s decision; and (2) Whether the Court of Appeals erred in not increasing the civil indemnity for the death of Petra de la Cruz.

RULING

The Supreme Court granted the petition and modified the decision. On the first issue, the Court held that the legal interest on the awarded damages should indeed commence from the date of the trial court’s decision, December 27, 1963, until full payment. While the general rule is that a party who does not appeal cannot seek affirmative relief, the award of interest in this case fell under the discretionary power of the court based on equity and Article 2210 of the Civil Code. The Court found that the petitioners had initially sought interest via a motion for reconsideration in the trial court, which was unacted upon, and the issue was subsequently raised in the appellate proceedings. Given the inordinate delay since the 1963 judgment, equity demanded that interest run from the date the obligation to pay was judicially established, not from the later appellate affirmation, to prevent unjust enrichment from the defendants’ delay.
On the second issue, the Court ruled that the civil indemnity for the death of Petra de la Cruz must be increased. Applying Article 1764 in relation to Article 2206 of the Civil Code, which governs a common carrier’s liability for death of a passenger, and following prevailing jurisprudence at the time, the Court increased the indemnity from P3,000 to P30,000.00. The Court emphasized that the defendants’ appeal, instead of immediate compliance with the trial court’s judgment, contributed to the protracted litigation, further justifying the increased award. The modified judgment was declared immediately executory.