TOPIC: Damages; actual damages; loss of earning capacity.

PHILIPPINE HAWK CORPORATION vs. VIVIAN TAN LEE

G.R. No. 166869, February 16, 2010
PERALTA, J.:
FACTS:
The bus owned by the Philippine Hawk Company collided with the motorcycle of
spouses Vivian Tan Lee and SIlverio Tan. The accident causes the death of
respondents husband and claims for actual damages.
Respondents husband was leasing and operating a gasoline station and earned an
annual income of one million pesos and they also had a copra business which gave
them an income of P3,000 a month. In order to prove for loss of earning capacity for
the operation of gasoline station, respondent presented in evidence a Certificate of
Creditable Income Tax Withheld at Source. On the other hand, she presented her
testimony as evidence for his husbands earnings for copra business.
ISSUE:
Is the evidence presented sufficient to compute the actual damages as indemnity?
HELD:
No. The indemnity for loss of earning capacity of the deceased is provided for by
Article 2206 of the Civil Code. As a rule, documentary evidence should be presented
to substantiate the claim for damages for loss of earning capacity. It is reasonable to
use the Certificate and respondents testimony as bases for fixing the gross annual
income of the deceased at one million pesos before respondents 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. 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).