You are on page 1of 2

Philippine Hawk Corporation v. Lee o (b) P10,000.

00 as temperate damages;
February 16, 2010| Peralta, J. | Actual Damages – Loss of earning capacity o (c) P100,000.00 as moral damages;
Digester: LO o (d) P590,000.00 as unearned income; and
o (e) P50,000.00 as civil indemnity
SUMMARY: Respondent Lee and her husband were riding a motorcycle when it was
bumped by a bus owned by Philippine Hawk. All three courts were unanimous in ruling RULING: Judgment affirmed, modification as to damages
that the driver was negligent (last clear chance, it appears) and that Hawk was likewise ● (a) civil indemnity (P50,000.00);
liable for failing to exercise due diligence of an employer. However, accepting testimony ● (b) actual damages (P127,192.85);
of the wife and presented in evidence a Certificate of Creditable Income Tax Withheld ● (c) moral damages (P80,000.00);
9 years prior to the incident, the SC made an estimate as to his earning capacity at the ● (d) indemnity for loss of earning capacity (P1,000,000.00);
time of the incident. ● (e) temperate damages (P10,000.00).
DOCTRINE:
As a rule, documentary evidence should be presented to substantiate the claim for W/N negligence may be attributed to petitioner’s driver, and whether negligence
damages for loss of earning capacity. By way of exception, damages for loss of earning on his part was the proximate cause of the accident, resulting in the death of
capacity may be awarded despite the absence of documentary evidence when: (1) the Silvino Tan and causing physical injuries to respondent – YES. Factual issues
deceased is selfemployed and earning less than the minimum wage under current labor which SC declined to pass upon
laws, in which case, judicial notice may be taken of the fact that in the deceased’s line of ● Avila, the bus driver, who was driving on the right side of the road, already saw the
work no documentary evidence is available; or (2) the deceased is employed as a daily motorcycle on the left side of the road before the collision. However, he did not
wage worker earning less than the minimum wage under current labor laws take the necessary precaution to slow down, but drove on and bumped the
motorcycle, and also the passenger jeep parked on the left side of the road,
FACTS: showing that the bus was negligent in veering to the left lane, causing it to hit the
● March 15, 2005 Lee filed complaint against Philippine Hawk for damages based on motorcycle and the passenger jeep.
quasi-delict in an vehicular collision in Gumaca Quezon, which resulted in the ● Phil. Hawk failed to exercise the diligence of a good father of the family in the
death of her husband and physical injuries to her. selection and supervision of its bus driver, Margarito Avila, for having failed to
o She sought the payment of indemnity for the death of her husband, sufficiently inculcate in him discipline and correct behavior on the road. Indeed,
moral and exemplary damages, funeral and interment expenses, petitioner’s tests were concentrated on the ability to drive and physical fitness to do
medical and hospitalization expenses, the cost of the motorcycle’s so. It also did not know that Avila had been previously involved in sideswiping
repair, attorney’s fees, and other just and equitable reliefs incidents
● She and her husband were riding a motorcycle when a Metro Bus driven by Avila W/N CA erred in awarding (additional) damages because it was Phil Hawk who
(employee of Philippine Hawk) appealed and not Lee – NO
● Material facts which gave rise to a finding of negligence with respect to Avila ● Clothed with ample authority to review matters, even if they are not assigned as
o Involved in several sideswiping incidents before errors on appeal, if it finds that their consideration is necessary in arriving at a just
o Since Avila saw the motorcycle before the collision, he should have decision of the case.
stepped on the brakes and slowed down, but he just maintained his ● Also, an unassigned error closely related to an error properly assigned will be
speed and veered to the left – LAST CLEAR CHANCE considered by the appellate court notwithstanding the failure to assign it as error
● Material facts which gave rise to a finding of negligence with respect to Phil. Hawk
o Did not prove that it exercised due diligence Discussion on award of damages
o Was not aware of Avila’s previous sideswiping incidents ● CA affirmed award of damages although it was modified
● TC: Loss of earning capacity
o P745,575.00 actual damages ● The indemnity for loss of earning capacity of the deceased is provided for by
o for loss of earning capacity (P590,000.00) Article 2206 of the Civil Code. Compensation of this nature is awarded not for loss
o (P155,575.00) for funeral expenses of earnings, but for loss of capacity to earn money
o P50,000.00 as moral damages ● As a rule, documentary evidence should be presented to substantiate the claim for
● CA: damages for loss of earning capacity. By way of exception, damages for loss of
o (a) P168,019.55 as actual damages;
earning capacity may be awarded despite the absence of documentary evidence ● However, the award of P50,000.00 should be reduced to P30,000.00
when: Civil indemnity for death
o (1) the deceased is selfemployed and earning less than the minimum ● Fixed by current jurisprudence at P50,000.00
wage under current labor laws, in which case, judicial notice may be
taken of the fact that in the deceased’s line of work no documentary
evidence is available; or
o (2) the deceased is employed as a daily wage worker earning less than
the minimum wage under current labor laws.
In this case
● Respondent’s husband was leasing and operating a Caltex gasoline station in
Gumaca, Quezon. Respondent testified that her husband earned an annual
income of one million pesos. Respondent presented in evidence a
Certificate of Creditable Income Tax Withheld at Source for the Year 1990,
which showed that respondent’s husband earned a gross income of P950,988.43 in
1990. It is reasonable to use the Certificate and respondent’s testimony as bases for
fixing the gross annual income of the deceased at one million pesos before
respondent’s husband died on March 17, 1999.
● However, no documentary evidence was presented regarding the income
derived from their copra business; hence, the testimony of respondent as
regards such income cannot be considered.
Computation, applying Villa Rey Standard
● In the computation of loss of earning capacity, only net earnings, not gross
earnings, are to be considered;
● In the absence of documentary evidence, it is reasonable to peg necessary expenses
for the lease and operation of the gasoline station at 80 percent of the gross
income, and peg living expenses at 50 percent of the net income (gross income less
necessary expenses).
Funeral expenses
● Actual damages must be substantiated by documentary evidence, such as receipts,
in order to prove expenses incurred as a result of the death of the victim or the
physical injuries sustained by the victim.
● A review of the valid receipts submitted in evidence showed that the funeral and
related expenses amounted only to P114,948.60, while the medical expenses of
respondent amounted only to P12,244.25, yielding a total of P127,192.85 in actual
damages
Moral damages for death
● Awarded to allow the plaintiff to obtain means, diversions or amusements that will
serve to alleviate the moral suffering he/she has undergone due to the defendant’s
culpable action
Temperate damages
● In the absence of competent proof of the actual damage caused on the motorcycle
or the actual cost of its repair, the award of temperate damages by the appellate
court in the amount of P10,000.00 was reasonable
Moral damages for injuries
● Under Art. 2219 of the Civil Code, 45 moral damages may be recovered in quasi-
delicts causing physical injuries.