GR L 48747; (September, 1982) (Digest)
G.R. No. L-48747 September 30, 1982
ANGEL JEREOS, petitioner, vs. HON. COURT OF APPEALS, SOLEDAD RODRIGUEZ, et al., respondents.
FACTS
Private respondent Domingo Pardorla, Jr. held a certificate of public convenience for a jeepney line in Iloilo City. On February 23, 1971, a jeepney registered under his franchise and driven by Narciso Jaravilla hit and killed Judge Jesus S. Rodriguez and injured his wife, Soledad. Jaravilla was criminally convicted. The Rodriguez heirs filed a civil action for damages against driver Jaravilla, franchise holder Pardorla, Jr., and Angel Jereos, alleged to be the actual owner of the jeepney. The trial court exonerated Jereos, finding he had sold the vehicle before the accident.
The Court of Appeals reversed, finding Jereos jointly and severally liable. It ruled the sale was simulated, part of a scheme to shield Jereos from creditors, as the vehicle was sold to his sister-in-law and then registered to Pardorla under the “kabit system.” Testimony indicated Jereos remained the real owner, paying monthly fees to Pardorla and receiving daily “boundary” payments from the driver.
ISSUE
Whether the Court of Appeals erred in finding the sale of the jeepney simulated and in holding petitioner Angel Jereos jointly and severally liable for damages.
RULING
The Supreme Court denied the petition, affirming the Court of Appeals. While factual findings of the appellate court are generally final, a scrutiny is warranted when they contradict the trial court’s findings. Here, the Court of Appeals properly exercised its appellate jurisdiction. The trial court relied solely on a deed of sale, ignoring substantial testimonial evidence from Pardorla, his employee, and the driver’s wife. Their consistent accounts proved Jereos orchestrated a fictitious sale to his sister-in-law to avoid liability from a prior accident involving another operator, continued to control the jeepney’s operation, and remained its beneficial owner.
Petitioner’s reliance on Vargas v. Langcay is misplaced. That case established the registered owner’s solidary liability with the driver to correct the erroneous view that such liability was merely subsidiary. It did not exempt the actual owner. Jurisprudence consistently holds that while the registered operator is directly liable to third parties, he has the right to be indemnified by the real owner. Consequently, Jereos, as the actual owner, is correctly held solidarily liable for damages arising from the accident.