Philippine Rabbit Bus Lines, Inc. v. Esguerra
REITERATIONFacts
The Antecedents: Patrocinio Esguerra, a paying passenger of Philippine Rabbit Bus Lines, Inc., was injured when the bus he was in sideswiped a freight truck owned by Transport Contractors, Inc. The collision occurred near barrio San Marcos, Calumpit, Bulacan. Esguerra's left forearm was hit by a hard blunt object, resulting in severe injury that necessitated amputation. Procedural History: The Court of First Instance of Manila rendered judgment sentencing Nicasio de los Reyes and Philippine Rabbit Bus Lines, Inc. jointly and severally to pay Esguerra P25,085.40 as compensatory damages, P5,000.00 as moral damages, P2,000.00 as attorney's fees, and costs. The complaint against Transport Contractors, Inc. and Modesto Joaquin was dismissed. The Court of Appeals modified the decision, initially absolving Transport Contractors, Inc. and Modesto Joaquin, but later, in a resolution, ordered them to pay solidarily with Philippine Rabbit Bus Lines, Inc. and Nicasio de los Reyes. The Court of Appeals also corrected the compensatory damages to P20,085.40. The Petition: Petitioners Philippine Rabbit Bus Lines, Inc. and Nicasio de los Reyes sought to revoke the portion of the Court of Appeals' decision sentencing them to pay P5,000.00 as moral damages and P2,000.00 as attorney's fees, arguing that moral damages are not recoverable in ex-contracto cases unless death results or fraud/bad faith is proven, neither of which was established. They also contended that the award for attorney's fees lacked legal and factual basis.
Issue(s)
Whether moral damages are recoverable in an action for breach of contract of transportation where the passenger did not die and there was no proof of fraud or bad faith on the part of the carrier. Whether the award of attorney's fees is supported by legal and factual basis.
Ruling
The petition is granted in part. The award of P5,000.00 as moral damages is set aside. The award of P2,000.00 as attorney's fees is affirmed.
Ratio Decidendi
On the issue of moral damages: The Supreme Court held that moral damages are generally not recoverable in actions for damages predicated on a breach of the contract of transportation, as provided by Articles 2219 and 2220 of the New Civil Code. The exceptions to this rule are (1) when the mishap results in the death of a passenger, and (2) when it is proved that the carrier was guilty of fraud or bad faith, even if death does not result. In this case, the passenger did not die, and the Court of Appeals found that both vehicles were in their respective lanes when they sideswiped each other, which does not indicate fraud or bad faith on the part of the carrier's driver. Therefore, the award of moral damages was contrary to law and jurisprudence. The Court cited several previous rulings, including Cachero v. Manila Yellow Taxicab, Inc., Necesito v. Paras, et al., Fores v. Miranda, and Tamayo v. Aquino, et al., to support this conclusion. On the issue of attorney's fees: The Supreme Court affirmed the award of P2,000.00 as attorney's fees. The Court reasoned that attorney's fees need not be proved with the same exactitude as other damages. They are allowed in the discretion of the court after considering various factors discernible from the facts brought out during the trial. In this case, the plaintiff was compelled to litigate and incur expenses to protect his interests, justifying the award.
Main Doctrine
Moral damages are generally not recoverable in actions for damages predicated on a breach of the contract of transportation, except when the mishap results in the death of a passenger or when it is proved that the carrier was guilty of fraud or bad faith, even if death does not result. Attorney's fees are recoverable in the discretion of the court.