TORTS
fixed order or commission, foreign to the exercise of the duties of
SECOND DIVISION
[ G.R. No. 197593, October 12, 2020 ]
BANK OF THE PHILIPPINE ISLANDS, PETITIONER, VS.
CENTRAL BANK OF THE PHILIPPINES (NOW BANGKO
SENTRAL NG PILIPINAS) AND CITIBANK, N.A.,
RESPONDENTS.
DECISION
HERNANDO, J.:
Issue: Whether or not CBP exercised the diligence of a good
father of a family in supervising the two employees involved in
the bank fraud.
Ruling:
CBP is not liable for the acts of its employees because Valentino
and Estacio were not "special agents".
Anent the issue of whether CBP is liable for the torts committed
by its employees Valentino and Estacio, the test of liability
depends on whether or not the employees, acting in behalf of
CBP, were performing governmental or proprietary functions.
The State in the performance of its governmental functions is
liable only for the tortuous acts of its special agents. On the other
hand, the State becomes liable as an ordinary employer when
performing its proprietary functions.42 Thus, Articles 2176 and
2180 of the Civil Code provide that:
Art. 2176. Whoever by act or omission causes damage to another, there being fault or
negligence, is obliged to pay for the damage done. Such fault or negligence, if there is no
pre-existing contractual relation between the parties, is called a quasi-delict and is
governed by the provisions of this Chapter.
Art. 2180. The obligation imposed by Article 2176 is demandable not only for one's own
acts or omissions, but also for those of persons for whom one is responsible.
xxxx
Employers shall be liable for the damages caused by their employees and household
helpers acting within the scope of their assigned tasks, even though the former are not
engaged in any business or industry.
The State is responsible in like manner when it acts through a special agent; but not when
the damage has been caused by the official to whom the task done properly pertains, in
which case what is provided in Article 2176 shall be applicable.
xxxx
The responsibility treated of in this article shall cease when the persons herein mentioned
prove that they observed all the diligence of a good father of a family to prevent damage.
To reiterate, CBP's establishment of clearing house facilities for
its member banks to which Valentino and Estacio were assigned
as Bookkeeper and Janitor-Messenger, respectively, is a
governmental function. As such, the State or CBP in this case, is
liable only for the torts committed by its employee when the latter
acts as a special agent but not when the said employee or
official performs his or her functions that naturally pertain to his
or her office.
A special agent is defined as one who receives a definite and
his office.43 Evidently, both Valentino and Estacio are not
considered as special agents of CBP during their commission of
the fraudulent acts against petitioner BPI as they were regular
employees performing tasks pertaining to their offices, namely,
bookkeeping and janitorial-messenger. Thus, CBP cannot be
held liable for any damage caused to petitioner BPI by reason of
Valentino and Estacio's unlawful acts.
Nonetheless, even assuming that CBP is an ordinary employer,
it still cannot be held liable.
Article 2180 of the Civil Code provides that an employer shall be
liable for the damages caused by their employees acting within
the scope of their assigned tasks. An act is deemed an
assigned task if it is "done by an employee, in furtherance of
the interests of the employer or for the account of the employer
at the time of the infliction of the injury or damage."Obviously,
Valentino and Estacio's fraudulent acts of tampering with and
pilfering of documents are not in furtherance of CBP's interests
nor done for its account as the said acts were unauthorized and
unlawful.
Also, petitioner BPI has the burden to prove that Valentino and
Estacio's fraudulent acts were performed within the scope of
their assigned tasks,45 which it failed to do. It is only then that the
presumption that CBP, as employer, was negligent would arise
which then compels CBP to show evidence that it exercised due
diligence in the selection and supervision of its employee.
Thus, where a public officer acts without or in excess of
jurisdiction, any injury or damage caused by such acts is his or
her own personal liability and cannot be imputed to the State. In
the case at bar, the fraudulent acts of CBP's employees
Valentino and Estacio, were evidently not pursuant to their
functions and were in excess of or without authority; therefore,
any injury or damage caused by such acts to petitioner BPI shall
be Valentino's and Estacio's own personal liabilities which should
not be imputed to CBP as their employer.
THIRD DIVISION
G.R. No. 206806, June 25, 2014
ARCO PULP AND PAPER CO., INC. AND CANDIDA A.
SANTOS, Petitioners, v. DAN T. LIM, DOING BUSINESS
UNDER THE NAME AND STYLE OF QUALITY PAPERS &
PLASTIC PRODUCTS ENTERPRISES, Respondent.
DECISION
LEONEN, J.:
Important principles discussed in this case:
1. Article 19 is the general rule which governs the conduct of
human relations. By itself, it is not the basis of an actionable tort.
Article 19 describes the degree of care required so that an
actionable tort may arise when it is alleged together with Article
20 or Article 21.
2. Article 2219, therefore, is not an exhaustive list of the
instances where moral damages may be recovered since it only
specifies, among others, Article 21. When a party reneges on his
or her obligations arising from contracts in bad faith, the act is
not only contrary to morals, good customs, and public policy; it is
also a violation of Article 1159. Breaches of contract become the
basis of moral damages, not only under Article 2220, but also
under Articles 19 and 20 in relation to Article 1159.
SECOND DIVISION
for the guidance of employees and the issuance of proper
instructions intended for the protection of the public and persons
with whom the employer has relations through his or its
employees and the imposition of necessary disciplinary
measures upon employees in case of breach or as may be
warranted to ensure the performance of acts indispensable to
the business of and beneficial to their employer. To this, we add
that actual implementation and monitoring of consistent
compliance with said rules should be the constant concern of the
employer, acting through dependable supervisors who should
regularly report on their supervisory functions.

G.R. No. 170631, February 10, 2016

CARAVAN TRAVEL AND TOURS INTERNATIONAL,

INC., Petitioner, v. ERMILINDA R. ABEJAR, Respondent.

DECISION

LEONEN, J.

Issue: Respondent's Complaint is anchored on an employer's

liability for quasi-delict provided in Article 2180, in relation to
Article 2176 of the Civil Code.

Article 2180 requires proof of two things: first, an

employment relationship between the driver and the owner; and
second, that the driver acted within the scope of his or her
assigned tasks. On the other hand, applying the registered-
owner rule only requires the plaintiff to prove that the defendant-
employer is the registered owner of the vehicle.

The appropriate approach is that in cases where both the

registered-owner rule and Article 2180 apply, the plaintiff
must first establish that the employer is the registered owner of
the vehicle in question. Once the plaintiff successfully proves
ownership, there arises a disputable presumption that the
requirements of Article 2180 have been proven. As a
consequence, the burden of proof shifts to the defendant to show
that no liability under Article 2180 has arisen.

This disputable presumption, insofar as the registered owner of

the vehicle in relation to the actual driver is concerned,
recognizes that between the owner and the victim, it is the
former that should carry the costs of moving forward with the
evidence. The victim is, in many cases, a hapless pedestrian or
motorist with hardly any means to uncover the employment
relationship of the owner and the driver, or any act that the
owner may have done in relation to that employment.The
registration of the vehicle, on the other hand, is accessible to the
public.

How to establish diligence in the selection and supervision

of employees

Metro Manila Transit Corporation v. Court of

Appeals115 emphasized that to establish diligence in the
supervision of employees, the issuance of company policies
must be coupled with proof of compliance:
chanRoblesvirtualLawlibrary

Due diligence in the supervision of employees, on the other

hand, includes the formulation of suitable rules and regulations