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FGU INSURANCE CORPORATION v. VS.

FACTS:

Two vehicles, both Mitsubishi Colt Lancers, were involved in a collision along Epifanio de los Santos Avenue, Mandaluyong City. The first vehicle, owned by Lydia F. Soriano and driven by Benjamin Jacildone, was at the outer lane of the highway. The second vehicle, owned by FILCAR Transport, Inc. and driven by Peter Dahl-Jensen as a lessee, was at the center lane. Dahl-Jensen, a Danish tourist, did not possess a Philippine driver's license at that time. The second vehicle swerved to the right and hit the left side of Soriano's car. As a result, Soriano's insurance company, FGU Insurance Corporation, paid her for the damages and filed a subrogation claim against Dahl-Jensen and FILCAR, as well as Fortune Insurance Corporation, which insured FILCAR.

ISSUES:

  1. May an action based on quasi-delict prosper against a rent-a-car company for the fault or negligence of the car lessee in driving the rented vehicle?

RULING:

  1. No. The Court ruled that an action based on quasi-delict cannot prosper against a rent-a-car company for the fault or negligence of the car lessee because the company does not have a vinculum juris (legal tie) with the lessee akin to an employer-employee relationship. Additionally, the damage caused was solely attributable to the lessee and not to the rent-a-car company.

PRINCIPLES:

  • Article 2176 of the Civil Code Quasi-delict requires concurrence of the following elements: (a) damage suffered by the plaintiff; (b) fault or negligence of the defendant; and, (c) connection of cause and effect between the fault or negligence of the defendant and the damage incurred by the plaintiff.

  • Article 2180 of the Civil Code Establishes instances where individuals or entities are responsible for the damages caused by persons for whom they are legally responsible, such as parents for their children, employers for their employees, and so forth.

  • Article 2184 of the Civil Code Provides the conditions under which the owner of a vehicle can be solidarily liable with the driver in case of a motor vehicle mishap.

  • Res ipsa loquitur The principle implicitly applied in assessing the fault or negligence related to the control and appropriate use of the vehicle.

  • Vinculum juris Legal relationship required for liability under specific provisions such as employer-employee relationship in Article 2180.