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ABELARDO LIM v. CA

FACTS:

Private respondent Donato Gonzales purchased an Isuzu passenger jeepney from Gomercino Vallarta, who was the registered owner and operator of the vehicle. Despite purchasing the jeepney, Gonzales did not transfer the registration to his name or secure a certificate of public convenience for its operation. On July 22, 1990, the jeepney collided with a ten-wheeler-truck owned by petitioner Abelardo Lim and driven by petitioner Esmadito Gunnaban. The accident resulted in severe damage to the jeepney and a passenger's death.

Lim covered the costs of hospitalization, compensated the deceased passenger's heirs, and attempted to negotiate repairs with Gonzales. However, negotiations failed, and Gonzales filed a complaint for damages against petitioners. In their defense, Lim denied liability, claiming due diligence in employee supervision, while Gunnaban argued that the accident was a fortuitous event.

The trial court eventually ruled in favor of Gonzales, awarding him damages. Petitioners appealed the decision to the Court of Appeals, which affirmed the trial court's ruling.

ISSUES:

  1. Does the new owner have any legal personality to bring the action for damages against the erring vehicle?

  2. Is the new owner the real party in interest in the suit, despite not being the registered owner under the certificate of public convenience?

RULING:

  1. Yes, the new owner has legal personality to bring the action for damages against the erring vehicle. The court held that the new owner, as the vendee and current owner of the passenger jeepney, is the real party in interest in the suit.

  2. Yes, the new owner is the real party in interest in the suit. The court ruled that the new owner, despite not being the registered owner under the certificate of public convenience, has standing to sue for damages because he is the actual owner and operator of the vehicle.

PRINCIPLES:

  • The new owner of a passenger jeepney under the kabit system has legal personality to bring an action for damages against an erring vehicle.

  • The new owner, as the actual owner and operator of the vehicle, is considered the real party in interest in the suit, regardless of not being the registered owner under the certificate of public convenience.