Petitioner: Shell (Principal)

Respondents: CA; FIREMEN'S INSURANCE COMPANY OF NEWARK, NEW JERSEY COMMERCIAL

CASUALTY INSURANCE CO.; SALVADOR SISON (Car Owner), PORFIRIO DE LA FUENTE (Company
Agent)

Facts

- Respondent Sison owned a Plymouth car, which was brought to petitioner company's
gasoline and service station for washing, greasing and spraying, in which such
services were undertaken by Profirio De La Fuente (agent of petitioner) through his
two employees.
- Nearly finishing the services, the crew positioned carefully the car for a final
greasing but it accidentally fell off, damaging the said car.
- Car of respondent sison was repaired and after the investigation made by the
car's insurance companies, both the insurance companies and the owner of the car
brought an action in the CFI Manila against petitioner Shell and de la fuente
- RTC dismissed complaint, but CA reversed and sentenced petitioner to pay
respondents

Issue:

WON Petitioner Shell Phil is bound to the acts of his agent de la Fuente.

Ruling:

- Yes, As the act of the agent or his employees acting within the scope of his
authority is the act of the principal, the breach of the undertaking by the agent
is one for which the principal is answerable.
- the finding of the Court of Appeals that the operator De la fuente was an agent
of the company and not an independent contractor should not be disturbed, in which,
the servicing job on Appellant Sison's automobile was accepted by De la Fuente in
the normal and ordinary conduct of his business as operator of his co-appellee's
service station, and that the jerking and swaying of the hydraulic lift which
caused the fall of the subject car were due to its defective condition, resulting
in its faulty operation.
- Court of Appeals found, Company's mechanic failed to make a thorough check up of
the hydraulic lifter, check up was "merely routine" by raising "the lifter once or
twice, after observing that the operator was satisfactory, he (the mechanic) left
the place. The latter was negligent and the company must answer for the negligent
act of its mechanic which was the cause of the fall of the car from the hydraulic
lifter.