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Case Digest: Spouses Pereña v. Spouses Zarate, G.R. No. 157917


Spouses Pereña v. Spouses Zarate, G.R. No. 157917. Aug. 29, 2012

Subject: Transportation Law


FACTS

The Pereñas were engaged in the business of transporting students from their respective residences in Parañaque City to Don Bosco in Pasong Tamo, Makati City, and back. In their business, the Pereñas used a KIA Ceres Van (van) with Plate No. PYA 896, which had the capacity to transport 14 students at a time, two of whom would be seated in the front beside the driver, and the others in the rear, with six students on either side. They employed Clemente Alfaro (Alfaro) as driver of the van.

On August 22, 1996, just like the usual school days, the van picked up Aaron and other 13 students to school. The students were running late due to traffic. Alfaro decided to take an alternate route underneath the Magallanes Interchange. The railroad crossing along this route lacked warning signs, watchmen, or other safety measures. When the van approached the crossing, a PNR Commuter train operated by Jhonny Alano was nearing the area.

At about the time the van was to traverse the railroad crossing, PNR Commuter No. 302 (train), operated by Jhonny Alano (Alano), was in the vicinity of the Magallanes Interchange travelling northbound. As the train neared the railroad crossing, Alfaro drove the van eastward across the railroad tracks, closely tailing a large passenger bus. His view of the oncoming train was blocked because he overtook the passenger bus on its left side. The train blew its horn to warn motorists of its approach. When the train was about 50 meters away from the passenger bus and the van, Alano applied the ordinary brakes of the train. He applied the emergency brakes only when he saw that a collision was imminent. The passenger bus successfully crossed the railroad tracks, but the van driven by Alfaro did not. The train hit the rear end of the van, and the impact threw nine of the students in the rear, including Aaron, out of the van. Aaron landed in the path of the train, which dragged his body and severed his head, instantaneously killing him. Alano fled the scene on board the train and did not wait for the police investigator to arrive.

Spouses Zarates, parents of Aaron, filed a lawsuit seeking damages against Alfaro, the Perefias, Philippine National Railways (PNR), and Alano. The parties stipulated on several facts and issues, including those related to the incident, the absence of warning signs at the railroad crossing, and PNR's refusal to acknowledge liability.

RTC ruled in favor of the Zarates. Defendants appealed the lower court’s decision. CA upheld the RTC's decision but made some modifications, including award for the loss of Aaron's earning capacity.

ISSUE

Whether or not the petitioner is a private/special carrier, expected to exercise ordinary diligence.

RULING

No, the petitioner is not a private carrier but is a common carrier.

Under the law, common carriers are persons, corporations, firms or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public.

In this case, SC held that the true test for a common carrier is not the quantity or extent of the business transacted, or the number and character of the conveyances used in the activity, but whether the undertaking is a part of the activity engaged in by the carrier that he has held out to the general public as his business or occupation.

Applying the considerations mentioned above, there is no question that Perenas as the operators of a school service were: 1) engaged in transporting passengers generally as a business not just as a casual occupation;2) undertaking to carry passengers over established roads; 3) transporting students for a fee. Despite catering limited clientele, the Perenas operated as a common carrier because they hold themselves out as a ready transportation indiscriminately to the students at a particular school living within or near where they operated the service and for a fee.

Given the nature of the business and for reasons of public policy, the common carrier is bound "to observe extraordinary diligence in the vigilance over the goods and for the safety of the passengers transported by them, according to all the circumstances of each case.


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