I. EQUITABLE LEASING CORPORATION VS.

LUCITA SUYOM

GR No. 143360, September 5, 2002

PANGANIBAN, J.

II. PETITIONER: EQUITABLE LEASING CORPORATION

RESPONDENTS: LUCITA SUYOM, MARISSA ENANO, MYRNA TAMAYO

and FELIX OLEDAN

III. Transportation Law

IV. STATEMENT OF THE FACTS:

On July 17, 1994, a Fuso Road Tractor driven by Raul Tutor crashed into the house
of Myrna Tamayo in Tondo, Manila. The collision resulted to the decimation of a
portion of Tamayos house, the deaths of two children which were Tamayos son and
Felix Oledans daughter, the injury of Marissa Enano and Oledan himself, and two
sons of Lucita Suyom. Tutor was later charged and convicted of reckless imprudence
resulting in multiple homicide and multiple physical injuries. Upon verification with
the Land Transportation Office, it was discovered that the tractor is registered to the
petitioner, Equitable Leasing Corporation and leased to a certain Edwin Lim, a
representative of Ecatine Corporation.

V. STATEMENT OF THE CASE

The respondents filed a complaint for damages against Raul Tutor, Ecatine and
Equitable Leasing. Raul Tutor, Ecatine and Edwin Lim were dropped from the
complaint because they could not be summoned. The petitioner was then left to be
impleaded. The petitioner alleged that the vehicle had already been sold to Ecatine,
hence it is no longer in their possession at the time of the horrendous incident. The
petitioner also pointed out the fact that Tutor was an employee of Ecatine. The
Regional Trial Court, as affirmed by the Court of Appeals, ordered the petitioner to
pay actual and moral damages.

VI.ISSUE:
1. Whether or not the Court of Appeals and the trial court gravely erred when they
decided and held that petitioner was liable for damages suffered by private
respondents in an action based on quasi delict for the negligent acts of a driver who
was not the employee of the petitioner.

2. Whether or not the Court of Appeals and the trial court gravely erred when they
awarded moral damages to private respondents despite their failure to prove that the
injuries they suffered were brought by petitioners wrongful act.

VII. RUILING:

The petition has not merit.

Petitioner is liable for the deaths and the injuries complained of, because it was the
registered owner of the tractor at the time of the accident. Equitable cannot escape
liability for the deaths and injuries caused by the vehicle during the accident.

Moral damages are not punitive in nature, but are designed to compensate and
alleviate in some way the physical suffering, mental anguish, fright, serious anxiety,
besmirched reputation, wounded feelings, moral shock, social humiliation, and
similar injury unjustly caused a person. Viewed as an action for quasi delict, the
present case falls squarely within the purview of Article 2219 which provides for the
payment of moral damages in cases of quasi delict. Having established the liability of
petitioner as the registered owner of the vehicle, respondents have satisfactorily shown
the existence of the factual basis for the award and its causal connection to the acts of
Raul Tutor, who is deemed as petitioners employee.

VIII. DISPOSITIVE PORTION

WHEREFORE, the Petition is DENIED and the assailed Decision AFFIRMED.

Costs against petitioner.

Submitted by:

Jeanne Pauline J. Dumaual, Section 1-D

UST Faculty of Civil Law

Submitted to:

Atty. Marianne Joanne K. Co-Pua, Legal Writing Professor

UST Faculty of Civil Law