Lasam vs.

Smith, Nature of responsibility; definition

FACTS
 Frank Smith was engaged in the business of carrying passengers for hire from the one point to another
in the Province of La Union and the surrounding provinces. Smith undertook to convey Honorio Lasam
and Joaquina Sanchez in a Ford automobile.
 On leaving, the automobile was operated by a licensed chauffeur, but the chauffeur allowed his
assistant, Remigio Bueno, to drive the car.
 Bueno held no driver’s license, but had some experience in driving, and with the exception of some
slight engine trouble.
 The defects developed in the steering gear so as to make accurate steering impossible, and after
zigzagging for a distance of about half a kilometer, the car left the road and went down a steep
embankment.
 The automobile was overturned and the plaintiffs pinned down under it. Mr. Lasam escaped with a few
contusions and a “dislocated” rib but his wife received serious injuries, among which was a compound
fracture of one of the bones in her left wrist.
 Plaintiff Lasam brought the action to recover damages against Smith for the physical injuries sustained
in an automobile accident.
 The Trial court ruled in favor of the plaintiff.
 Both the plaintiffs and the defendant appeal, Lasam maintained that the damages awarded are
insufficient while the Smith denies all liability for any damages whatever.

ISSUE: W/N Smith is liable to the injuries caused by the accident

RULING:
 Yes. Smith’s liability is contractual. The source of the its liability is the contract of carriage; that by
entering into that contract he bound himself to carry the plaintiffs safely and securely to their
destination; and that having failed to do so he is liable in damages unless he shows that the failure to
fulfill his obligation was due to causes mentioned in article 1105 of the Civil Code.
 Some extraordinary circumstance independent of the will of the obligor of his employees is an essential
element of a caso fortuito. This element is lacking. It is not suggested that the accident was due to an
act of God or to adverse road conditions which could not have been foreseen. The accident was
caused either by defects in the automobile or else through the negligence of its driver.
 Neither under the American nor Spanish law is a carrier of passengers an absolute insurer against the
risks of travel from which the passenger may protect himself by exercising ordinary care and diligence.
Here, the passengers had no means of avoiding the danger or escaping the injury.
 In determining the extent of the liability for losses or damages resulting from negligence in the
fulfillment of a contractual obligation, the courts have “a discretionary power to moderate the liability
according to the circumstances”.
 As a consequence of her refusal to submit such an operation of Joaquina, a series of infections ensued
and which required constant and expensive medical treatment for several years. The court agreed that
the Smith should not be charged with these expenses.
Note:
Caso Fortuito- An event that takes place by accident and could not have been foreseen and though
foreseen is inevitable.

A caso fortuito presents the following essential characteristics: (1) The cause of the unforeseen and
unexpected occurrence, or of the failure of the debtor to comply with his obligation, must be independent of
the human will. (2) It must be impossible to foresee the event which constitutes the caso fortuito, or if it can
be foreseen, it must be impossible to avoid. (3) The occurrence must be such as to render it impossible for
the debtor to fulfill his obligation in a normal manner. And (4) the obligor (debtor) must be free from any
participation in the aggravation of the injury resulting to the creditor.”