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Gsis vs. Court of Appeal G.R. No. 101439

In: Historical Events

Submitted By liaoweiqin
Words 811
Pages 4
Graduate School of Business
Master of Business Administration

Business Law
Case 3
GSIS vs. Court of Appeals

Submitted by:
Liao, Weiqin
Facts of the case • National Food Authority (NFA, formerly National Grains Authority) was the owner of a Chevrolet truck which was insured against liabilities for death of and injuries to third persons with the GSIS.

• On May 9, 1979, at about 7:00 in the evening at Tabon-Tabon, Butuan City, the said truck driven by Guillermo Corbeta collided with a public utility vehicle, a Toyota Tamaraw. The Toyota Tamaraw was owned and operated by Victor Uy, under the name and style of “Victory Line”. The Tamaraw was a total wreck.

• The Toyota Tamaraw insurer was Mabuhay Insurance and Guaranty Co. (MIGC).

• The truck crossed over to the other lane, its left front wheel was detached and the truck traveled for about fifty (50) meters and fell into a ravine.

• All the collision victims were passengers of the Toyota Tamaraw. Five (5) passengers died while ten (10) others sustained bodily injuries. Among those injured were private respondents, Victoria Jaime Vda. de Kho and Gloria Kho Vda. de Calabia. Among the dead were Maxima Ugmad Vda. de Kho, Roland Kho and Willie Calabia, Sr.

Legal Problems

• First Case (Civil – Case No. 2196) June 5, 1979 o Uy against NFA and Corbeta due for quasi-delict, damages and attorney’s fees • Second Case (Civil – Case No. 2225) August 27, 1979 o Injured passenger, Librado Taer, against Uy, MIGC. o In turn, Uy filed a cross-claim against MIGC, Corbeta and NFA • Third case (Civil – Case no. 2256) November 26, 1979 o Private responders against NFA and Corbeta for damages dut to quasi-delict. o GSIS as insurer of the truck; Uy for breach of contract of carriage; and MIGC as insurer of the Toyota Tamaraw. o GSIS Also elevated the decision in this civil case to the same appellate court.

Resolved by court • First Case (Civil – Case No. 2196) June 5, 1979 o The RTC awarded Uy the total amount of P109,100.00 for damages • Second Case (Civil – Case No. 2225) August 27, 1979 o RTC dismissed the case against UY and orered MIGC o Corbeta and NFA to pay plaintiff Tear (Private Passenger), jointly and severally, the amount of P40,559.94 for actual, compensatory, and moral damages plus attorney’s fees. • Third case (Civil – Case no. 2256) November 26, 1979 o Damages likewise award to the herein private respondents. o Corbeta, NFA and MIGC are solidarity liable for damages. Injured Victims Victoria Jainme Vda. De Kho Transportation and and Telegraph Expense P 2,372.30 Other Compensatory/Moral Damages P10,000.00 Loss of Income P12,000.00 Total P33,307.36 Gloria Kho Vda. De Calabia Other Compensatory/Moral Damages P10,000.00 Total P10,000.00 Heirs of Deceased Victims Funeral Death Mora Total Expenses Indemnity Damages

Heirs of Willie P 2,500.00 P18,000.00 P10,000.00 P30,500.00 Calabia , Sr.

Heirs of P 2,500.00 P18,000.00 P10,000.00 P30,500.00 Roland Kho

Heirs of Maxima P 2,500.00 P18,000.00 P10,000.00 P30,500.00 Ugmad Vda. De Kho

o GSIS direct liable to the private respondents base con contract in the following amount: Injured Victims Medical Expense Victoria Jainme Vda. De Kho P832.00 Gloria Kho Vda. De Calabia P8,935.06 Heirs of Deceased Victims Death Indemnity Heirs of Willie Calabia , Sr. P12,000.00 Heirs of Roland Kho P12,000.00 Heirs of Maxima Ugmad Vda. De Kho P12,000.00

Evaluation • GSIS and NFA are liable under different obligations. GSIS not solidary liability with the NFA or the negligent operator of the cargo truck because it claims that they are liabile under different obligations. It assert that the NFA’s liability is base on quasi-delict, while GSIS’s liability is based on the contract of insurance. Citing articles 1207 and 1208 of the Civil Code of the Philippine, petitioner states that when there are two or more debtors or two or more creditors, the obligation as a general rule is joint. It claims that the only exceptions are: (1) when there is a stipulation for solidary obligation; (2) when the nature of the obligation requires solidary liability; and (3) when the law declares the obligation to be solidary. However, since neither the provision of the contract nor the insurance law provides for solidary liability. The liability of GSIS should base on the insurance contract.

Recommendation • NFA should increase their monitoring on recruitment, must use qualify person on qualify position. • Make sure each angle of the truck, owned by NFA, can be seen by driver in corresponding side mirror. • Government should limit and monitor the maximum speed of truck base on circumstances of the road.…...

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