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RUKS KONSULT v. ADWORLD SIGN

FACTS:

Adworld, the owner of a billboard structure, filed a complaint for damages against Transworld and Comark International Corporation (Comark) before the Regional Trial Court (RTC). Adworld alleged that its billboard was damaged when the adjacent billboard owned by Transworld and used by Comark collapsed and crashed against it. Adworld sent a demand letter for payment of repairs and loss of rental income to Transworld and Comark, but they refused to pay. Adworld filed the complaint praying for damages amounting to P474,204.00.

Transworld admitted the damage caused by its billboard but claimed it was due to strong winds. Transworld filed a Third-Party Complaint against Ruks Konsult and Construction, the company that built the collapsed billboard, alleging the structure had a weak foundation. Comark denied liability and sought exemplary damages from Transworld for being included as a party-defendant.

Ruks admitted to constructing the billboard but denied liability for its collapse, arguing that there was already an existing foundation when they were hired. The RTC ruled in favor of Adworld, holding Transworld and Ruks jointly and severally liable for damages. Both Transworld and Ruks appealed but Transworld's appeal was dismissed for failure to file an appellant's brief on time. The CA affirmed the RTC's ruling, finding negligence on the part of Transworld and Ruks. Ruks's motion for reconsideration was denied, leading to this petition. Transworld's separate appeal was also denied by the Court.

The issue before the Court is whether or not Ruks should be held jointly and severally liable with Transworld for the damages sustained by Adworld.

ISSUES:

  1. Whether or not the Court of Appeals correctly affirmed the ruling of the Regional Trial Court holding Ruks Konsult and Construction (Ruks) jointly and severally liable with Transworld Media Ads, Inc. (Transworld) for damages sustained by Adworld Sign and Advertising Corporation (Adworld).

RULING:

  1. The Court of Appeals correctly affirmed the ruling of the Regional Trial Court holding Ruks Konsult and Construction (Ruks) jointly and severally liable with Transworld Media Ads, Inc. (Transworld) for damages sustained by Adworld Sign and Advertising Corporation (Adworld).

PRINCIPLES:

  • Negligence as basis for liability: The RTC found both Transworld and Ruks negligent in the construction of the billboard, which led to the damages suffered by Adworld. Negligent acts that are the direct and proximate cause of damages can make the liable parties jointly and severally liable.

  • Knowledge of danger: Transworld and Ruks were aware that the foundation of the billboard was weak and posed a danger to adjacent properties. Their failure to remedy the situation despite this knowledge was a negligent act that caused the damages suffered by Adworld.

  • Compliance with approved plans and specifications: Transworld failed to ensure that Ruks would comply with the approved plans and specifications of the billboard structure. Ruks continued the construction despite the lack of adequate support columns, contributing to the collapse of the structure and the resulting damages.