Article 1173.

The fault or negligence of the obligor consists in the

omission of that diligence which is required by the nature of the obligation
and corresponds with the circumstances of the persons of the time and of
the place. When the negligence shows bad faith, the provisions of article
1171 and 2201 paragraph 2, shall apply.
Picart vs Smith
In this action the plaintiff, Amado Picart, seeks to recover of the defendant, Frank
Smith, jr., the sum of P31,000, as damages alleged to have been caused by an
automobile driven by the defendant. From a judgment of the Court of First Instance
of the Province of La Union absolving the defendant from liability the plaintiff has
appealed.
The occurrence which gave rise to the institution of this action took place on
December 12, 1912, on the Carlatan Bridge, at San Fernando, La Union. It appears
that upon the occasion in question the plaintiff was riding on his pony
over said bridge. Before he had gotten half way across, the defendant
approached from the opposite direction in an automobile, going at the
rate of about ten or twelve miles per hour. As the defendant neared the bridge
he saw a horseman on it and blew his horn to give warning of his
approach. He continued his course and after he had taken the bridge he
gave two more successive blasts, as it appeared to him that the man on
horseback before him was not observing the rule of the road.
The plaintiff, it appears, saw the automobile coming and heard the warning signals.
However, being perturbed by the novelty of the apparition or the rapidity of the
approach, he pulled the pony closely up against the railing on the right side of the
bridge instead of going to the left. He says that the reason he did this was that he
thought he did not have sufficient time to get over to the other side. The bridge is
shown to have a length of about 75 meters and a width of 4.80 meters. As the
automobile approached, the defendant guided it toward his left, that being the
proper side of the road for the machine. In so doing the defendant assumed that the
horseman would move to the other side. The pony had not as yet exhibited fright,
and the rider had made no sign for the automobile to stop. Seeing that the pony
was apparently quiet, the defendant, instead of veering to the right while yet some
distance away or slowing down, continued to approach directly toward the horse
without diminution of speed. When he had gotten quite near, there being then
no possibility of the horse getting across to the other side, the defendant
quickly turned his car sufficiently to the right to escape hitting the horse
alongside of the railing where it as then standing; but in so doing the
automobile passed in such close proximity to the animal that it became
frightened and turned its body across the bridge with its head toward the
railing. In so doing, it as struck on the hock of the left hind leg by the
flange of the car and the limb was broken. The horse fell and its rider was
thrown off with some violence. From the evidence adduced in the case we
believe that when the accident occurred the free space where the pony stood
between the automobile and the railing of the bridge was probably less than one

and one half meters. As a result of its injuries the horse died. The plaintiff
received contusions which caused temporary unconsciousness and
required medical attention for several days.
The question presented for decision is whether or not the defendant in maneuvering
his car in the manner above described was guilty of negligence such as gives rise to
a civil obligation to repair the damage done; and we are of the opinion that he is so
liable
Held:
The question as to what would constitute the conduct of a prudent man in a given
situation must of course be always determined in the light of human experience and
in view of the facts involved in the particular case. Abstract speculations cannot
here be of much value but this much can be profitably said: Reasonable men govern
their conduct by the circumstances which are before them or known to them. They
are not, and are not supposed to be, omniscient of the future. Hence they can be
expected to take care only when there is something before them to suggest or warn
of danger. Could a prudent man, in the case under consideration, foresee harm as a
result of the course actually pursued? If so, it was the duty of the actor to take
precautions to guard against that harm. Reasonable foresight of harm, followed by
ignoring of the suggestion born of this prevision, is always necessary before
negligence can be held to exist. Stated in these terms, the proper criterion for
determining the existence of negligence in a given case is this: Conduct is said to
be negligent when a prudent man in the position of the tortfeasor would
have foreseen that an effect harmful to another was sufficiently probable
to warrant his foregoing conduct or guarding against its consequences.
Applying this test to the conduct of the defendant in the present case we think that
negligence is clearly established. A prudent man, placed in the position of the
defendant, would in our opinion, have recognized that the course which he was
pursuing was fraught with risk, and would therefore have foreseen harm to the
horse and the rider as reasonable consequence of that course. Under these
circumstances the law imposed on the defendant the duty to guard against the
threatened harm.
It goes without saying that the plaintiff himself was not free from fault, for he was
guilty of antecedent negligence in planting himself on the wrong side of the road .
But as we have already stated, the defendant was also negligent; and in such case
the problem always is to discover which agent is immediately and directly
responsible. It will be noted that the negligent acts of the two parties were
not contemporaneous, since the negligence of the defendant succeeded
the negligence of the plaintiff by an appreciable interval. Under these
circumstances the law is that the person who has the last fair chance to
avoid the impending harm and fails to do so is chargeable with the
consequences, without reference to the prior negligence of the other
party.

From what has been said it results that the judgment of the lower court must be
reversed, and judgment is her rendered that the plaintiff recover of the defendant
the sum of two hundred pesos (P200), with costs of other instances. The sum here
awarded is estimated to include the value of the horse, medical expenses of the
plaintiff, the loss or damage occasioned to articles of his apparel, and lawful interest
on the whole to the date of this recovery. The other damages claimed by the
plaintiff are remote or otherwise of such character as not to be recoverable. So
ordered.
Taylor vs Manila Railroad
Jarco Marketing vs CA
Petitioner Jarco Marketing Corporation is the owner of Syvel's Department
Store, Makati City. Petitioners Leonardo Kong, Jose Tiope and Elisa Panelo are the
store's branch manager, operations manager, and supervisor, respectively. Private
respondents are spouses and the parents of Zhieneth Aguilar (ZHIENETH).
In the afternoon of 9 May 1983, CRISELDA and ZHIENETH were at the 2nd floor
of Syvel's Department Store, Makati City. CRISELDA was signing her credit
card slip at the payment and verification counter when she felt a sudden
gust of wind and heard a loud thud. She looked behind her. She then
beheld her daughter ZHIENETH on the floor, her young body pinned by the
bulk of the store's gift-wrapping counter/structure. ZHIENETH was crying
and screaming for help. Although shocked, CRISELDA was quick to ask the
assistance of the people around in lifting the counter and retrieving ZHIENETH from
the floor. 3
ZHIENETH was quickly rushed to the Makati Medical Center where she was operated
on. The next day ZHIENETH lost her speech and thereafter communicated with
CRISELDA by writing on a magic slate. The injuries she sustained took their toil
on her young body. She died fourteen (14) days after the accident or on 22
May 1983, on the hospital bed. She was six years old. 4 The cause of her
death was attributed to the injuries she sustained
After the burial of their daughter, private respondents demanded upon petitioners
the reimbursement of the hospitalization, medical bills and wake and funeral
expenses 6 which they had incurred. Petitioners refused to pay. Consequently,
private respondents filed a complaint for damages, docketed as Civil Case No. 7119
wherein they sought the payment of P157,522.86 for actual damages, P300,000 for
moral damages, P20,000 for attorney's fees and an unspecified amount for loss of
income and exemplary damages.
In their answer with counterclaim, petitioners denied any liability for the
injuries and consequent death of ZHIENETH. They claimed that CRISELDA
was negligent in exercising care and diligence over her daughter by
allowing her to freely roam around in a store filled with glassware and
appliances. ZHIENETH too, was guilty of contributory negligence since she
climbed the counter, triggering its eventual collapse on her. Petitioners also

emphasized that the counter was made of sturdy wood with a strong support; it
never fell nor collapsed for the past fifteen years since its construction.
Additionally, petitioner Jarco Marketing Corporation maintained that it
observed the diligence of a good father of a family in the selection,
supervision and control of its employees. The other petitioners likewise
raised due care and diligence in the performance of their duties and
countered that the complaint was malicious for which they suffered
besmirched reputation and mental anguish. They sought the dismissal of the
complaint and an award of moral and exemplary damages and attorney's fees in
their favor.
In its decision 7 the trial court dismissed the complaint and counterclaim after
finding that the preponderance of the evidence favored petitioners. It ruled that the
proximate cause of the fall of the counter on ZHIENETH was her act of clinging to it.
It believed petitioners' witnesses who testified that ZHIENETH clung to the counter,
afterwhich the structure and the girl fell with the structure falling on top of her,
pinning her stomach. In contrast, none of private respondents' witnesses testified
on how the counter fell. The trial court also held that CRISELDA's negligence
contributed to ZHIENETH's accident.
In absolving petitioners from any liability, the trial court reasoned that the counter
was situated at the end or corner of the 2nd floor as a precautionary measure
hence, it could not be considered as an attractive nuisance. 8 The counter was
higher than ZHIENETH. It has been in existence for fifteen years. Its structure was
safe and well-balanced. ZHIENETH, therefore, had no business climbing on and
clinging to it.
The Court of Appeals, however, decided in favor of private respondents and
reversed the appealed judgment. It found that petitioners were negligent in
maintaining a structurally dangerous counter. The counter was shaped like an
inverted "L" 11 with a top wider than the base. It was top heavy and the weight of
the upper portion was neither evenly distributed nor supported by its narrow base.
Thus, the counter was defective, unstable and dangerous; a downward pressure on
the overhanging portion or a push from the front could cause the counter to fall. Two
former employees of petitioners had already previously brought to the attention of
the management the danger the counter could cause. But the latter ignored their
concern. The Court of Appeals faulted the petitioners for this omission, and
concluded that the incident that befell ZHIENETH could have been avoided had
petitioners repaired the defective counter. It was inconsequential that the counter
had been in use for some time without a prior incident.
The Court of Appeals declared that ZHIENETH, who was below seven (7) years old at
the time of the incident, was absolutely incapable of negligence or other tort. It
reasoned that since a child under nine (9) years could not be held liable even for an
intentional wrong, then the six-year old ZHIENETH could not be made to account for
a mere mischief or reckless act. It also absolved CRISELDA of any negligence,
finding nothing wrong or out of the ordinary in momentarily allowing ZHIENETH to
walk while she signed the document at the nearby counter.

Held:
The two issues to be resolved are: (1) whether the death of ZHIENETH was
accidental or attributable to negligence; and (2) in case of a finding of negligence,
whether the same was attributable to private respondents for maintaining a
defective counter or to CRISELDA and ZHIENETH for failing to exercise due and
reasonable care while inside the store premises.
An accident pertains to an unforeseen event in which no fault or negligence
attaches to the defendant. 15 It is "a fortuitous circumstance, event or happening;
an event happening without any human agency, or if happening wholly or partly
through human agency, an event which under the circumstances is unusual or
unexpected by the person to whom it happens." 16
On the other hand, negligence is the omission to do something which a reasonable
man, guided by those considerations which ordinarily regulate the conduct of
human affairs, would do, or the doing of something which a prudent and reasonable
man would not do. 17 Negligence is "the failure to observe, for the protection of the
interest of another person, that degree of care, precaution and vigilance which the
circumstances justly demand, whereby such other person suffers injury." 18
Accident and negligence are intrinsically contradictory; one cannot exist with the
other. Accident occurs when the person concerned is exercising ordinary care, which
is not caused by fault of any person and which could not have been prevented by
any means suggested by common prudence
The test in determining the existence of negligence is enunciated in the landmark
case of Plicart v. Smith, 20 thus: Did the defendant in doing the alleged
negligent act use that reasonable care and caution which an ordinarily
prudent person would have used in the same situation? If not, then he is
guilty of negligence. 21
We rule that the tragedy which befell ZHIENETH was no accident and that
ZHIENETH's death could only be attributed to negligence
Without doubt, petitioner Panelo and another store supervisor were
personally informed of the danger posed by the unstable counter. Yet,
neither initiated any concrete action to remedy the situation nor ensure the safety
of the store's employees and patrons as a reasonable and ordinary prudent man
would have done. Thus, as confronted by the situation petitioners miserably
failed to discharge the due diligence required of a good father of a family .
On the issue of the credibility of Gonzales and Guevarra, petitioners failed to
establish that the former's testimonies were biased and tainted with partiality.
Therefore, the allegation that Gonzales and Guevarra's testimonies were blemished
by "ill feelings" against petitioners since they (Gonzales and Guevarra) were
already separated from the company at the time their testimonies were offered in
court was but mere speculation and deserved scant consideration.

Even if we attribute contributory negligence to ZHIENETH and assume that she

climbed over the counter, no injury should have occurred if we accept petitioners'
theory that the counter was stable and sturdy. For if that was the truth, a frail
six-year old could not have caused the counter to collapse. The physical
analysis of the counter by both the trial court and Court of Appeals and a
scrutiny of the evidence 29 on record reveal otherwise, i.e., it was not
durable after all. Shaped like an inverted "L," the counter was heavy, huge, and
its top laden with formica. It protruded towards the customer waiting area and its
base was not secured. 30
CRISELDA too, should be absolved from any contributory negligence. Initially,
ZHIENETH held on to CRISELDA's waist, later to the latter's hand. 31 CRISELDA
momentarily released the child's hand from her clutch when she signed
her credit card slip. At this precise moment, it was reasonable and usual
for CRISELDA to let go of her child. Further, at the time ZHIENETH was
pinned down by the counter, she was just a foot away from her mother;
and the gift-wrapping counter was just four meters away from CRISELDA.
32 The time and distance were both significant. ZHIENETH was near her
mother and did not loiter as petitioners would want to impress upon us.
She even admitted to the doctor who treated her at the hospital that she did not do
anything; the counter just fell on her.
Reinstated CA ruling.
The Court of Appeals also rejected the testimonies of the witnesses of petitioners. It
found them biased and prejudiced. It instead gave credit to the testimony of
disinterested witness Gonzales. The Court of Appeals then awarded P99,420.86 as
actual damages, the amount representing the hospitalization expenses incurred by
private respondents as evidenced by the hospital's statement of account. 12 It
denied an award for funeral expenses for lack of proof to substantiate the same.
Instead, a compensatory damage of P50,000 was awarded for the death of
ZHIENETH.
We quote the dispositive portion of the assailed decision, 13 thus:
WHEREFORE, premises considered, the judgment of the lower court is SET ASIDE
and another one is entered against [petitioners], ordering them to pay jointly and
severally unto [private respondents] the following:
1.
2.
3.
4.
5.

P50,000.00 by way of compensatory damages for the death of Zhieneth

Aguilar, with legal interest (6% p.a.) from 27 April 1984;
P99,420.86 as reimbursement for hospitalization expenses incurred; with
legal interest (6% p.a.) from 27 April 1984;
P100,000.00 as moral and exemplary damages;
P20,000.00 in the concept of attorney's fees; and
Costs.
Del Rosario vs Manila

Shortly after 2 o'clock on the afternoon of August 4, 1930, trouble developed in a

wire used by the defendant on Dimas-Alang Street for the purpose of
conducting electricity used in lighting the City of Manila and its suburbs.
Jose Noguera, who had charge of a tienda nearby, first noticed that the wire
was burning and its connections smoking. In a short while the wire parted
and one of the ends of the wire fell to the ground among some shrubbery
close to the way. As soon as Noguera took cognizance of the trouble, he
stepped into a garage which was located nearby and asked Jose Soco, the
timekeeper, to telephone the Malabon station of the Manila Electric
Company that an electrical wire was burning at that place. Soco transmitted
the message at 2.25 p.m. and received answer from the station to the effect that
they would send an inspector. From the testimony of the two witnesses mentioned
we are justified in the conclusion that information to the effect that the electric wire
at the point mentioned had developed trouble was received by the company's
servant at the time stated. At the time that message was sent the wire had not yet
parted, but from the testimony of Demetrio Bingao, one of the witnesses for the
defense, it is clear that the end of the wire was on the ground shortly after 3 p.m.
At 4 p. m. the neighborhood school was dismissed and the children went
home. Among these was Alberto del Rosario, of the age of 9 years, who
was a few paces ahead of two other boys, all members of the second
grade in the public school. These other two boys were Jose Salvador, of
the age of 8, and Saturnino Endrina, of the age of 10. As the three neared
the place where the wire was down, Saturnino made a motion as if it touch
it. His companion, Jose Salvador, happened to be the son of an electrician
and his father had cautioned him never to touch a broken electrical wire,
as it might have a current. Jose therefore stopped Saturnino, telling him
that the wire might be charged. Saturnino yielded to this admonition and
desisted from his design, but Alberto del Rosario, who was somewhat
ahead, said, I have for some time been in the habit of touching wires ("Yo
desde hace tiempo cojo alambres"). Jose Salvador rejoined that he should into touch
wires as they carry a current, but Alberto, no doubt feeling that he was challenged
in the matter, put out his index finger and touch the wire. He immediately fell face
downwards, exclaiming "Ay! madre". The end of the wire remained in contact with
his body which fell near the post. A crowd soon collected, and some one cut
the wire and disengaged the body. Upon being taken to St. Luke's Hospital
the child was pronounced dead.
The wire was an ordinary number 6 triple braid weather proof wire, such as is
commonly used by the defendant company for the purpose of conducting electricity
for lighting. The wire was cased in the usual covering, but this had been burned off
for some distance from the point where the wire parted. The engineer of the
company says that it was customary for the company to make a special inspection
of these wires at least once in six months, and that all of the company's inspectors
were required in their daily rounds to keep a lookout for trouble of this kind. There is
nothing in the record indicating any particular cause for the parting of the
wire.lawphil.net

Held:
We are of the opinion that the presumption of negligence on the part of
the company from the breakage of this wire has not been overcome, and
the defendant is in our opinion responsible for the accident. Furthermore,
when notice was received at the Malabon station at 2.25 p. m., somebody should
have been dispatched to the scene of the trouble at once, or other measures taken
to guard the point of danger; but more than an hour and a half passed before
anyone representing the company appeared on the scene, and in the meantime this
child had been claimed as a victim.
It is doubtful whether contributory negligence can properly be imputed to the
deceased, owing to his immature years and the natural curiosity which a child would
feel to do something out of the ordinary, and the mere fact that the deceased
ignored the caution of a companion of the age of 8 years does not, in our opinion,
alter the case. But even supposing that contributory negligence could in some
measure be properly imputed to the deceased, a proposition upon which the
members of the court do not all agree, yet such negligence would not be wholly
fatal to the right of action in this case, not having been the determining cause of the
accident. (Rakes vs. Atlantic, Gulf and Pacific Co., 7 Phil., 359.)
With respect to the amount of damages recoverable the majority of the members of
this court are of the opinion that the plaintiff is entitled to recover P250 for
expenses incurred in connection with the death and burial of the boy. For the rest, in
accordance with the precedents cited in Astudillo vs. Manila Electric Company (55
Phil., 427), the majority of the court are of the opinion that the plaintiff should
recover the sum of P1,000 as general damages for loss of service. The judgment
appealed from is therefore reversed and the plaintiff will recover of the
defendant the sum of P1,250, with costs of both instances. So ordered.
Ylarde vs Aquino
In 1963, private respondent Mariano Soriano was the principal of the
Gabaldon Primary School, a public educational institution located in Tayug,
Pangasinan-Private respondent Edgardo Aquino was a teacher therein. At
that time, the school was fittered with several concrete blocks which were remnants
of the old school shop that was destroyed in World War II. Realizing that the huge
stones were serious hazards to the schoolchildren, another teacher by the
name of Sergio Banez started burying them one by one as early as 1962.
In fact, he was able to bury ten of these blocks all by himself.
Deciding to help his colleague, private respondent Edgardo Aquino gathered
eighteen of his male pupils, aged ten to eleven, after class dismissal on
October 7, 1963. Being their teacher-in-charge, he ordered them to dig
beside a one-ton concrete block in order to make a hole wherein the stone
can be buried. The work was left unfinished. The following day, also after classes,
private respondent Aquino called four of the original eighteen pupils to continue the
digging. These four pupils Reynaldo Alonso, Francisco Alcantara, Ismael
Abaga and Novelito Ylarde, dug until the excavation was one meter and

forty centimeters deep. At this point, private respondent Aquino alone

continued digging while the pupils remained inside the pit throwing out
the loose soil that was brought about by the digging.
When the depth was right enough to accommodate the concrete block, private
respondent Aquino and his four pupils got out of the hole. Then, said private
respondent left the children to level the loose soil around the open hole while he
went to see Banez who was about thirty meters away. Private respondent wanted to
borrow from Banez the key to the school workroom where he could get some rope.
Before leaving. , private respondent Aquino allegedly told the children "not to touch
the stone."
A few minutes after private respondent Aquino left, three of the four kids,
Alonso, Alcantara and Ylarde, playfully jumped into the pit. Then, without
any warning at all, the remaining Abaga jumped on top of the concrete
block causing it to slide down towards the opening. Alonso and Alcantara
were able to scramble out of the excavation on time but unfortunately fo
Ylarde, the concrete block caught him before he could get out, pinning
him to the wall in a standing position.
Three days later, Novelito Ylarde died.
Ylarde's parents, petitioners in this case, filed a suit for damages against both
private respondents Aquino and Soriano. The lower court dismissed the complaint
on the following grounds: (1) that the digging done by the pupils is in line with their
course called Work Education; (2) that Aquino exercised the utmost diligence of a
very cautious person; and (3) that the demise of Ylarde was due to his own reckless
imprudence.
Held:
The issue to be resolved is whether or not under the cited provisions, both private
respondents can be held liable for damages.
As regards the principal, We hold that he cannot be made responsible for
the death of the child Ylarde, he being the head of an academic school and
not a school of arts and trades. This is in line with Our ruling in Amadora vs.
Court of Appeals, 4 wherein this Court thoroughly discussed the doctrine that under
Article 2180 of the Civil Code, it is only the teacher and not the head of an academic
school who should be answerable for torts committed by their students. This Court
went on to say that in a school of arts and trades, it is only the head of the school
who can be held liable. In the same case, We explained:
After an exhaustive examination of the problem, the Court has come to the
conclusion that the provision in question should apply to all schools, academic as
well as non-academic. Where the school is academic rather than technical or
vocational in nature, responsibility for the tort committed by the student will attach
to the teacher in charge of such student, following the first part of the provision.
This is the general rule. In the case of establishments of arts and trades, it is the
head thereof, and only he, who shall be held liable as an exception to the general

rule. In other words, teachers in general shall be liable for the acts of their students
except where the school is technical in nature, in which case it is the head thereof
who shall be answerable. Following the canon of reddendo singula sinquilis
'teachers' should apply to the words "pupils and students' and 'heads of
establishments of arts and trades to the word "apprentices."
Hence, applying the said doctrine to this case, We rule that private respondent
Soriano, as principal, cannot be held liable for the reason that the school
he heads is an academic school and not a school of arts and trades.
Besides, as clearly admitted by private respondent Aquino, private
respondent Soriano did not give any instruction regarding the digging.
From the foregoing, it can be easily seen that private respondent Aquino can be
held liable under Article 2180 of the Civil Code as the teacher-in-charge of the
children for being negligent in his supervision over them and his failure to take the
necessary precautions to prevent any injury on their persons. However, as earlier
pointed out, petitioners base the alleged liability of private respondent Aquino on
Article 2176 which is separate and distinct from that provided for in Article 2180.
With this in mind, the question We need to answer is this: Were there acts and
omissions on the part of private respondent Aquino amounting to fault or
negligence which have direct causal relation to the death of his pupil Ylarde? Our
answer is in the affirmative. He is liable for damages.
From a review of the record of this case, it is very clear that private
respondent Aquino acted with fault and gross negligence when he: (1)
failed to avail himself of services of adult manual laborers and instead
utilized his pupils aged ten to eleven to make an excavation near the oneton concrete stone which he knew to be a very hazardous task; (2)
required the children to remain inside the pit even after they had finished
digging, knowing that the huge block was lying nearby and could be easily
pushed or kicked aside by any pupil who by chance may go to the perilous
area; (3) ordered them to level the soil around the excavation when it was
so apparent that the huge stone was at the brink of falling; (4) went to a
place where he would not be able to check on the children's safety; and
(5) left the children close to the excavation, an obviously attractive
nuisance.
The negligent act of private respondent Aquino in leaving his pupils in such a
dangerous site has a direct causal connection to the death of the child
Ylarde. Left by themselves, it was but natural for the children to play
around. Tired from the strenuous digging, they just had to amuse themselves with
whatever they found. Driven by their playful and adventurous instincts and
not knowing the risk they were facing three of them jumped into the hole
while the other one jumped on the stone. Since the stone was so heavy
and the soil was loose from the digging, it was also a natural consequence
that the stone would fall into the hole beside it, causing injury on the
unfortunate child caught by its heavy weight. Everything that occurred was
the natural and probable effect of the negligent acts of private respondent Aquino.

Needless to say, the child Ylarde would not have died were it not for the unsafe
situation created by private respondent Aquino which exposed the lives of all the
pupils concerned to real danger.
We cannot agree with the finding of the lower court that the injuries which resulted
in the death of the child Ylarde were caused by his own reckless imprudence, It
should be remembered that he was only ten years old at the time of the
incident, As such, he is expected to be playful and daring. His actuations
were natural to a boy his age. Going back to the facts, it was not only him but
the three of them who jumped into the hole while the remaining boy jumped on the
block. From this, it is clear that he only did what any other ten-year old child would
do in the same situation.
In ruling that the child Ylarde was imprudent, it is evident that the lower court did
not consider his age and maturity. This should not be the case. The degree of
care required to be exercised must vary with the capacity of the person
endangered to care for himself. A minor should not be held to the same
degree of care as an adult, but his conduct should be judged according to
the average conduct of persons of his age and experience. 5 The standard
of conduct to which a child must conform for his own protection is that
degree of care ordinarily exercised by children of the same age, capacity,
discretion, knowledge and experience under the same or similar
circumstances. 6 Bearing this in mind, We cannot charge the child Ylarde with
reckless imprudence.
The court is not persuaded that the digging done by the pupils can pass as part of
their Work Education. A single glance at the picture showing the excavation and the
huge concrete block 7 would reveal a dangerous site requiring the attendance of
strong, mature laborers and not ten-year old grade-four pupils. We cannot
comprehend why the lower court saw it otherwise when private respondent Aquino
himself admitted that there were no instructions from the principal requiring what
the pupils were told to do. Nor was there any showing that it was included in the
lesson plan for their Work Education. Even the Court of Appeals made mention of
the fact that respondent Aquino decided all by himself to help his co-teacher Banez
bury the concrete remnants of the old school shop. 8 Furthermore, the excavation
should not be placed in the category of school gardening, planting trees, and the
like as these undertakings do not expose the children to any risk that could result in
death or physical injuries.
The contention that private respondent Aquino exercised the utmost diligence of a
very cautious person is certainly without cogent basis. A reasonably prudent
person would have foreseen that bringing children to an excavation site,
and more so, leaving them there all by themselves, may result in an
accident. An ordinarily careful human being would not assume that a
simple warning "not to touch the stone" is sufficient to cast away all the
serious danger that a huge concrete block adjacent to an excavation
would present to the children. Moreover, a teacher who stands in loco parentis

to his pupils would have made sure that the children are protected from all harm in
his company
WHEREFORE, in view of the foregoing, the petition is hereby GRANTED and the
questioned judgment of the respondent court is REVERSED and SET ASIDE and
another judgment is hereby rendered ordering private respondent Edagardo Aquino
to pay petitioners the following:
(1)
(2)
(3)

Indemnity for the death of Child Ylarde P30,000.00

Exemplary damages 10,000.00
Moral damages 20,000.00
Cullion vs Philippine

This action was instituted in the Court of First Instance of Manila by the Culion Ice,
Fish & Electric Co., Inc., for the purpose of recovering from the Philippine Motors
Corporation the sum of P11,350, with interest and costs. Upon hearing the cause
the trial court gave judgment in favor of the plaintiff to recover of the defendant the
sum of P9,850, with interest at 6 per centum per annum from March 24,1927, the
date of the filing of the complaint, until satisfaction of the judgment, with costs.
From this judgment the defendant appealed.
The plaintiff and defendant are domestic corporations; and at the time of
the incident with which we are here concerned, H.D. Cranston was the
representative of the plaintiff in the City of Manila. At the same time the
plaintiff was the registered owner of the motor schooner Gwendoline,
which was used in the fishing trade in the Philippine Islands. In January,
1925, Cranston decided, if practicable, to have the engine on the Gwendoline
changed from a gasoline consumer to a crude oil burner, expecting thereby to
effect economy in the cost of running the boat. He therefore made known his desire
to McLeod & Co., a firm dealing in tractors, and was told by Mc Kellar, of said
company, that he might make inquiries of the Philippine Motors Corporations, which
had its office on Ongpin Street, in the City of Manila. Cranston accordingly repaired
to the office of the Philippine Motors Corporation and had a conference with C.E.
Quest, its manager, who agreed to do the job, with the understanding that payment
should be made upon completion of the work.
The Philippine Motors Corporation was at this time engaged in business as an
automobile agency, but, under its charter, it had authority to deal in all sorts of
machinery engines and motors, as well as to build, operate, buy and sell
the same and the equipment therof. Quest, as general manager, had full
charge of the corporations in all its branches.
As a result of the aforesaid interview, Quest, in company with Cranston, visited the
Gwendoline while it lay at anchor in the Pasig River, and the work of effecting the
change in the engine was begun and conducted under the supervision of Quest,
chiefly by a mechanic whom Quest took with him to the boat. In this work Quest had
the assistance of the members of the crew of the Gwendoline, who had been
directed by Cranston to place themselves under Quest's directions.

Upon preliminary inspection of the engine, Quest came to the conclusion that
the principal thing necessary to accomplish the end in view was to install
a new carburetor, and a Zenith carburetor was chosen as the one most
adapted to the purpose. After this appliance had been installed, the engine was
tried with gasoline as a fuel, supplied from the tank already in use. The result of this
experiment was satisfactory. The next problem was to introduce into the
carburetor the baser fuel, consisting of a low grade of oil mixed with
distillate. For this purpose a temporary tank to contain the mixture was
placed on deck above and at a short distance from the compartment
covering the engine. This tank was connected with the carburetor by a
piece of tubing, which was apparently not well fitted at the point where it
was connected with the tank. Owing to this fact the fuel mixture leaked from the
tank and dripped sown into the engine compartment. The new fuel line and that
already in use between the gasoline tank and carburetor were so fixed that it was
possible to change from the gasoline fuel to the mixed fuel. The purpose of this
arrangement was to enable the operator to start the engine on gasoline and then,
after the engine had been operating for a few moments, to switch to the new fuel
supply. lawphil.net
In the course of the preliminary work upon the carburetor and its
connections, it was observed that the carburetor was flooding, and that
the gasoline, or other fuel, was trickling freely from the lower part to the
carburetor to the floor. This fact was called to Quest's attention, but he appeared
to think lightly of the matter and said that, when the engine had gotten to running
well, the flooding would disappear.
After preliminary experiments and adjustments had been made the boat was
taken out into the bay for a trial run at about 5 p.m. or a little later, on the
evening of January 30,1925. The first part of the course was covered
without any untoward development, other than he fact that the engine
stopped a few times, owing no doubt to the use of an improper mixture of
fuel. In the course of the trial Quest remained outside of the engine compartment
and occupied himself with making distillate, with a view to ascertaining what
proportion of the two elements would give best results in the engine.
As the boat was coming in from this run, at about 7:30 p.m. and when passing near
Cavite, the engine stopped, and connection again had to be made with the gasoline
line to get a new start. After this had been done the mechanic, or engineer,
switched to the tube connecting with the new mixture. A moment later a back
fire occurred in the cylinder chamber. This caused a flame to shoot back
into the carburetor, and instantly the carburetor and adjacent parts were
covered with a mass of flames, which the members of the crew were
unable to subdue. They were therefore compelled, as the fire spread, to
take to a boat, and their escape was safely effected, but the Gwendoline
was reduced to a mere hulk. The salvage from, the wreck, when sold,
brought only the sum of P150. The value of the boat, before the accident
occured, as the court found, was P10,000.

Held:
A study of the testimony lead us to the conclusion that the loss of this boat was
chargeable to the negligence and lack of skill of Quest. The temporary tank in which
the mixture was prepared was apparently at too great an elevation from the
carburetor, with the result that when the fuel line was opened, the hydrostatic
pressure in the carburetor was greater than the delicate parts of the carburetor
could sustain. This was no doubt the cause of the flooding of the carburetor; and the
result was that; when the back fire occurred, the external parts of the carburetor,
already saturated with gasoline, burst into flames, whence the fire was quickly
communicated to the highly inflammable material near-by. Ordinarily a back fire
from an engine would not be followed by any disaster, but in this case the leak
along the pipe line and the flooding of the carburetor had created a dangerous
situation, which a prudent mechanic, versed in repairs of this nature, would have
taken precautions to avoid. The back fire may have been due either to the fact that
the spark was too advanced or the fuel improperly mixed.
In this connection it must be remembered that when a person holds himself
out as being competent to do things requiring professional skill, he will be
held liable for negligence if he fails to exhibit the care and skill of one
ordinarily skilled in the particular work which he attempts to do. The proof
shows that Quest had had ample experience in fixing the engines of
automobiles and tractors, but it does not appear that he was experienced
in the doing of similar work on boats. For this reason, possibly the
dripping of the mixture form the tank on deck and the flooding of the
carburetor did not convey to his mind an adequate impression of the
danger of fire. But a person skilled in that particular sort of work would, we think
have been sufficiently warned from those circumstances to cause him to take
greater and adequate precautions against the danger. In other words Quest did
not use the skill that would have been exhibited by one ordinarily expert
in repairing gasoline engines on boats. There was here, in our opinion, on
the part of Quest, a blameworthy antecedent inadvertence to possible
harm, and this constitutes negligence. The burning of the Gwendoline may
be said to have resulted from accident, but this accident was in no sense
an unavoidable accident. It would not have occured but for Quest's
carelessness or lack of skill. The test of liability is not whether the injury
was accidental in a sense, but whether Quest was free from blame.
We therefore see no escape from the conclusion that this accident is chargeable to
lack of skill or negligence in effecting the changes which Quest undertook to
accomplish; and even supposing that our theory as to the exact manner in which
the accident occurred might appear to be in some respects incorrect, yet the origin
of the fire in not so inscrutable as to enable us to say that it was casus fortuitus.
The trial judge seems to have proceeded on the idea that, inasmuch as Quest had
control of the Gwendoline during the experimental run, the defendant corporation
was in the position of a bailee and that, as a consequence, the burden of proof was
on the defendant to exculpate itself from responsibility by proving that the accident

was not due to the fault of Quest. We are unable to accede to this point of view.
Certainly, Quest was not in charge of the navigation of the boat on this trial run. His
employment contemplated the installation of new parts in the engine only, and it
seems rather strained to hold that the defendant corporation had thereby become
bailee of the boat. As a rule workmen who make repairs on a ship in its owner's
yard, or a mechanic who repairs a coach without taking it to his shop, are not
bailees, and their rights and liabilities are determined by the general rules of law,
under their contract. The true bailee acquires possession and what is usually spoken
of as special property in the chattel bailed. As a consequence of such possession
and special property, the bailee is given a lien for his compensation. These ideas
seem to be incompatible with the situation now under consideration. But though
defendant cannot be held liable in the supposition that the burden of proof had not
been sustained by it in disproving the negligence of its manager, we are
nevertheless of the opinion that the proof shows by a clear preponderance that the
accident to the Gwendoline and the damages resulting therefrom are chargeable to
the negligence or lack of skill of Quest.
This action was instituted about two years after the accident in question had
occured, and after Quest had ceased to be manager of the defendant corporation
and had gone back to the United States. Upon these facts, the defendant bases the
contention that the action should be considered stale. It is sufficient reply to say
that the action was brought within the period limited by the statute of limitations
and the situation is not one where the defense of laches can be properly invoked.
It results that the judgment appealed from, awarding damages to the plaintiff in the
amount of P9,850, with interest, must be affirmed; and it is so ordered, with costs
against the appellant.
US vs Pineda
Santiago Pineda, the defendant, is a registered pharmacist of long
standing and the owner of a drug store located at Nos. 442, 444, Calle
Santo Cristo, city of Manila. One Feliciano Santos, having some sick
horses, presented a copy of a prescription obtained from Dr. Richardson,
and which on other occasions Santos had given to his horses with good
results, at Pineda's drug store for filling. The prescription read "clorato de
potasa 120 gramos en seis papelitos de 20 gramos, para caballo." Under the
supervision of Pineda, the prescription was prepared and returned to Santos in the
form of six papers marked, "Botica Pineda Clorato potasa 120.00 en seis
papeles para caballo Sto. Cristo 442, 444, Binondo, Manila." Santos, under
the belief that he had purchased the potassium chlorate which he had
asked for, put two of the packages in water the doses to two of his sick
horses. Another package was mixed with water for another horse, but was
not used. The two horses, to which had been given the preparation, died
shortly afterwards. Santos, thereupon, took the three remaining packages to the
Bureau of Science for examination. Drs. Pea and Darjuan, of the Bureau of Science,
on analysis found that the packages contained not potassium chlorate but
barium chlorate. At the instance of Santos, the two chemists also went to

the drug store of the defendant and bought potassium chlorate, which
when analyzed was found to be barium chlorate. (Barium chlorate, it
should be noted, is a poison; potassium chlorate is not.) Dr. Buencamino, a
veterinarian, performed an autopsy on the horses, and found that death
was the result of poisoning.
Held:
Turning to the law, certain points therein as bearing on our present facts must be
admitted. Thus, defendant is a pharmacist. As a pharmacist, he is made
responsible for the quality of all drugs and poisons which he sells. And
finally it is provided that it shall be unlawful for him to sell any drug or
poison under any "fraudulent nam e." It is the one word "fraudulent" which has
given the court trouble. What did the Legislature intend to convey by this restrictive
adjective?
Were we to adhere to the technical definition of fraud, which the appellant
vigorously insists upon, it would be difficult, if not impossible, to convict any
druggist of a violation of the law. The prosecution would have to prove to a
reasonable degree of certainty that the druggist made a material representation;
that it was false; that when he made it he knew that it was false or made it
recklessly without any knowledge of its truth and as positive assertion; that he
made it with the intention that it should be acted upon by the purchaser; that the
purchaser acted in reliance upon it, and that the purchased thereby suffered injury.
Such a construction with a literal following of well-known principles on the subject of
fraud would strip the law of at least much of its force. It would leave the innocent
purchaser of drugs, who must blindly trust in the good faith and vigilance of the
pharmacist, at the mercy of any unscrupulous vendor. We should not, therefore,
without good reason so devitalize the law.
The profession of pharmacy, it has been said again and again, is one
demanding care and skill. The responsibility of the druggist to use care
has been variously qualified as "ordinary care," "care of a special high
degree," "the highest degree of care known to practical men." Even under
the first conservative expression, "ordinary care" with reference to the business of a
druggist, the Supreme Court of Connecticut has said must be held to signify "the
highest practicable degree of prudence, thoughtfulness, and vigilance, and most
exact and reliable safeguards consistent with the reasonable conduct of the
business, in order that human life may not be constantly be exposed to the danger
flowing from the substitution of deadly poisons for harmless medicine." (Tombari vs.
Connors [1912], 85 Conn., 235. See also Willson vs. Faxon, Williams and Faxon
[1913], 208 N. Y., 108; Knoefel vs. Atkins [1907], 81 N. E., 600.) The "skill" required
of a druggist is denominated as "high" or "ample." (Peters vs. Jackson [1902], 50 W.
Va., 644; 57 L. R. A., 428.) In other words, the care required must be
commensurate with the danger involved, and the skill employed must
correspond with the superior knowledge of the business which the law
demands.

Under the other conception, in which the proof of negligence is considered as

material, where a customer calls upon a druggist for a harmless remedy,
delivery of a poisonous drug by mistake by the druggist is prima facie
negligence, placing the burden on him to show that the mistake was under
the circumstances consistent with the exercise of due care. (See Knoefel vs.
Atkins, supra,) The druggist cannot, for example in filling a prescription calling for
potassium chlorate give instead to the customer barium chlorate, a poison, place
this poison in a package labeled "potassium chlorate," and expect to escape
responsibility on plea of mistake. His mistake, under the most favorable aspect for
himself, was negligence. So in a case where a druggist filled an order for calomel
tablets with morphine and placed the morphine in a box labeled calomel, it was
said:
The rule of caveat emptor cannot apply to the purchase and sale of drugs.
The vendor and the vendee do not stand at arms length as in ordinary
transactions. An imperative duty is on the druggist to take precautions to
prevent death or serious injury to anyone who relies on his absolute
honesty and peculiar leaning. The nature of drugs is such that examination
would not avail the purchaser anything. It would be idle mockery for the customer
to make an examination of a compound of which he can know nothing.
Consequently, it must be that the druggist warrants that he will deliver the drug
called for.
In civil cases, the druggist is made liable for any injury approximately
resulting from his negligence. If B negligently sells poison under the guise
of a beneficial drug to A, he is liable for the injury done to A. In a case,
which has repeatedly been termed the leading case on the subject and
which has been followed by the United States Supreme Court, it was said,
"Pharmacists or apothecaries who compound or sell medicines, if they carelessly
label a poison as a harmless medicine, and sent it so labeled into the market, are
liable to all persons who, without fault on their part, are injured by using it as such
medicine, in consequence of the false label; the rule being that the liability in such a
case arises not out of any contract or direct privity between the wrong-doer and the
person injured, but out of the duty which the law imposes on him to avoid acts in
their nature dangerous to the lives of others." (Nat. Savings Bank vs. Ward [1879],
100 U. S., 195, following Thomas vs. Winchester [1852], 2 Seld. [N. Y.], 387.) In
reality, for the druggist, mistake is negligence and care is no defense. Throughout
the criminal law, run the same rigorous rules. For example, apothecaries or
apothecary clerks, who are guilty of negligence in the sale of medicine when death
ensues in consequence, have been held guilty of manslaughter. (See Tessymond's
Case [1828], 1 Lewin, C. C., 169.)
Bearing these general principles in mind, and remembering particularly the care
and skill which are expected of druggist, that in some jurisdictions they are liable
even for their mistake and in others have the burden placed upon them to establish
that they were not negligent, it cannot be that the Philippine Legislature intended to
use the word "fraudulent" in all its strictness. A plea of accident and mistake cannot
excuse for they cannot take place unless there be wanton and criminal carelessness

and neglect. How the misfortune occurs is unimportant, if under all the
circumstances the fact of occurrence is attributed to the druggist as a legal fault.
Rather considering the responsibility for the quality of drugs which the
law imposes on druggists and the position of the word "fraudulent" in
juxtaposition to "name," what is made unlawful is the giving of a false
name to the drug asked for. This view is borne out by Spanish translation,
which we are permitted to consult to explain the English text. In the
Spanish "supuesto" is used, and this word is certainly not synonymous
with "fraudulent." The usual badges of fraud, falsify, deception, and injury
must be present-but not scienter.
The judgment of the lower court, sentencing the defendant to pay a fine of P100,
with subsidiary imprisonment in case of insolvency, and to pay the costs, is affirmed
with the cost of this instance against the appellant, without prejudice to any civil
action which may be instituted. So ordered.

BPI vs CA
The story underlying this case began in the afternoon of October 9, 1981 with a
phone call to BPI's Money Market Department by a woman who identified
herself as Eligia G. Fernando who had a money market placement as
evidenced by a promissory note with a maturity date of November 11,
1981 and a maturity value of P2,462,243.19. The caller wanted to
preterminate the placement, but Reginaldo Eustaquio, Dealer Trainee in BPI's Money
Market Department, who received the call and who happened to be alone in the
trading room at the time, told her "trading time" was over for the day, which was a
Friday, and suggested that she call again the following week. The promissory note
the caller wanted to preterminate was a roll-over of an earlier 50-day money market
placement that had matured on September 24, 1981.
Later that afternoon, Eustaquio conveyed the request for pretermination to the
officer who before had handled Eligia G. Fernando's account, Penelope Bulan, but
Eustaquio was left to attend to the pretermination process.
The next Monday, October 12, 1981, in the morning, the caller of the previous
Friday followed up with Eustaquio, merely by phone again, on the
pretermination of the placement. Although not familiar with the voice of
the real Eligia G. Fernando, Eustaquio "made certain" that the caller was
the real Eligia G. Fernando by "verifying" that the details the caller gave
about the placement tallied with the details in "the ledger/folder" of the
account. Eustaquio knew the real Eligia G. Fernando to be the Treasurer of
Philippine American Life Insurance Company (Philamlife) since he was handling
Philamlife's corporate money market account. But neither Eustaquio nor Bulan who
originally handled Fernando's account, nor anybody else at BPI, bothered to call up
Fernando at her Philamlife office to verify the request for pretermination.

Informed that the placement would yield less than the maturity value because of its
pretermination, the caller insisted on the pretermination just the same and asked
that two checks be issued for the proceeds, one for P1,800,000.00 and the second
for the balance, and that the checks be delivered to her office at Philamlife.
Eustaquio, thus, proceeded to prepare the "purchase order slip" for the
requested pretermination as required by office procedure, and from his
desk, the papers, following the processing route, passed through the
position analyst, securities clerk, verifier clerk and documentation clerk,
before the two cashier's checks, nos. 021759 and 021760 for
P1,800,000.00 and P613,215.16, respectively, both payable to Eligia G. Fernando,
covering the preterminated placement, were prepared. The two cashier's checks,
together with the papers consisting of the money market placement was to be
preterminated and the promissory note (No. 35623) to be preterminated, were sent
to Gerlanda E. de Castro and Celestino Sampiton, Jr., Manager and Administrative
Assistant, respectively, in BPI's Treasury Operations Department, both authorized
signatories for BPI, who signed the two checks that very morning. Having been
singed, the checks now went to the dispatcher for delivery.
Later in the same morning, however, the same caller changed the delivery
instructions; instead of the checks being delivered to her office at
Philamlife, she would herself pick up the checks or send her niece,
Rosemarie Fernando, to pick them up. Eustaquio then told her that if it
were her niece who was going to get the checks, her niece would have to
being a written authorization from her to pick up the checks. This
telephone conversation ended with the caller's statement that "definitely"
it would be her niece, Rosemarie Fernando, who would pick up the checks.
Thus, Eustaquio had to hurriedly go to the dispatcher, Bernardo Laderas, to tell him
of the new delivery instructions for the checks; in fact, he changed the delivery
instruction on the purchase order slip, writing thereon "Rosemarie Fernando release
only with authority to pick up.
It was, in fact Rosemarie Fernando who got the two checks from the
dispatcher, as shown by the delivery receipt. Actually, as it turned out, the
same impersonated both Eligia G. Fernando and Rosemarie Fernando.
Although the checks represented the termination proceeds of Eligia G. Fernando's
placement, not just a roll-over of the placement, the dispatcher failed to get or to
require the surrender of the promissory note evidencing the placement. There is
also no showing that Eligia G. Fernando's purported signature on the letter
requesting the pretermination and the latter authorizing Rosemarie Fernando to pick
up the two checks, both of which letters were presumably handed to the dispatcher
by Rosemarie Fernando, was compared or verified with Eligia G. Fernando's
signature in BPI's file. Such purported signature has been established to be forged
although it has a "close similarity" to the real signature of Eligia G. Fernando (TSN of
January 15, 1985, pp. 24 and 26).

The story's scene now shifted when, in the afternoon of October 13, 1981, a woman
who represented herself to be Eligia G. Fernando applied at CBC's Head
Office for the opening of a current account.
She was accompanied and introduced to Emily Sylianco Cuaso, Cash
Supervisor, by Antonio Concepcion whom Cuaso knew to have opened,
earlier that year, an account upon the introduction of Valentin Co, a longstanding "valued client" of CBC. What Cuaso indicated in the application form,
however, was that the new client was introduced by Valentin Co, and with her
initials on the form signifying her approval, she referred the application to the New
Accounts Section for processing. As finally proceeds, the application form shows the
signature of "Eligia G. Fernando", "her" date of birth, sex, civil status, nationality,
occupation ("business woman"), tax account number, and initial deposit of
P10,000.00. This final approval of the new current account is indicated on the
application form by the initials of Regina G. Dy, Cashier, who did not interview the
new client but affixed her initials on the application form after reviewing it. The new
current account was given the number: 26310-3.
The following day, October 14, 1981, the woman holding herself out as Eligia
G. Fernando deposited the two checks in controversy with Current Account
No. 126310-3. Her endorsement on the two checks was found to conform
with the depositor's specimen signature. CBC's guaranty of prior
endorsements and/or lack of endorsement was then stamped on the two checks,
which CBC forthwith sent to clearing and which BPI cleared on the same day.
Two days after, withdrawals began on Current Account No. 26310-3: On
October 16, 1981, by means of Check No. 240005 dated the same day for
P1,000,000.00, payable to "cash", which the woman holding herself out as
Eligia G. Fernando encashed over the counter, and Check No. 240003
dated October 15, 1981 for P48,500.00, payable to "cash" which was
received through clearing from PNB Pasay Branch; on October 19, 1981, by
means of Check No. 240006 dated the same day for P1,000,000.00, payable to
"cash," which the woman identifying herself as Eligia G. Fernando encashed over
the counter; on October 22, 1981, by means of Check No. 240007 dated the same
day for P370,000.00, payable to "cash" which the woman herself also encashed
over the counter; and on November 4, 1981, by means of Check No. 240001 dated
November 3, 1981 for P4,100.00, payable to "cash," which was received through
clearing from Far East Bank.
All these withdrawals were allowed on the basis of the verification of the drawer's
signature with the specimen signature on file and the sufficiency of the funds in the
account. However, the balance shown in the computerized teller terminal when a
withdrawal is serviced at the counter, unlike the ledger or usual statement prepared
at month-end, does not show the account's opening date, the amounts and dates of
deposits and withdrawals. The last withdrawal on November 4, 1981 left Current
Account No. 26310-3 with a balance of only P571.61.
The day of reckoning came on November 11, 1981, the maturity date of Eligia G.
Fernado's money market placement with BPI, when the real Eligia G.

Fernando went to BPI for the roll-over of her placement. She disclaimed
having preterminated her placement on October 12, 1981. She executed
an affidavit stating that while she was the payee of the two checks in
controversy, she never received nor endorsed them and that her
purported signature on the back of the checks was not hers but forged.
With her surrender of the original of the promissory note (No. 35623 with maturity
value of P2,462,243.19) evidencing the placement which matured that day, BPI
issued her a new promissory note (No. 40314 with maturity date of December 23,
1981 and maturity value of P2,500.266.77) to evidence a roll-over of the placement.
On November 12, 1981, supported by Eligia G. Fernando's affidavit, BPI returned
the two checks in controversy to CBC for the reason "Payee's endorsement
forged". A ping-pong started when CBC, in turn, returned the checks for
reason "Beyond Clearing Time", and the stoppage of this ping-pong, as we
mentioned at the outset, prompted the filing of this case.
Investigation of the fraud by the Presidential Security Command led to the filing of
criminal actions for "Estafa Thru Falsification of Commercial Documents" against
four employees of BPI, namely Quirino Victorio, Virgilio Gayon, Bernardo Laderas
and Jorge Atayan, and the woman who impersonated Eligia G. Fernando, Susan
Lopez San Juan. Victorio and Gayon were both bookkeepers in BPI's Money Market
Operations Department, Laderas was a dispatcher in the same department. . . .
(Rollo, pp. 74-79)
The Arbitration Committee ruled in favor of BPI and ordered CBC to pay the former
with interest. - However, upon CBCs motion for reconsideration, the Board of
Directors of the PCHC reversed the Arbitration Committee's decision and dismissed
the complaint of BPI while ordering it to pay CBC.
BPI then filed a petition for review with the Regional Trial Court which dismissed said
petition but modified the award by including a provision for attorneys fees in favor
of CBC, among others. The court of appeals affirmed the trial courts decision
Held:
When a bank (in this case CBC) presents checks for clearing and payment, what is
the extent of the bank's warranty of the validity of all prior endorsements stamped
at the back of the checks? In the event that the payee's signature is forged, may
the drawer/drawee bank (in this case BPI) claim reimbursement from the collecting
bank [CBC] which earlier paid the proceeds of the checks after the same checks
were cleared by petitioner BPI through the PCHC?
Petitioner BPIs theory that the present clearing guarantee requirement
imposed on the representing or collecting bank under the PCHC rules and
regulations is independent of the Negotiable Instruments Law is not in
order.As can be gleaned from the decision, one of the main considerations in
affirming the PCHCs decision was the finding that as between the drawee bank
(Equitable Bank) and the representing or collecting bank (Banco de Oro) the latter
was negligent and thus responsible for undue payment. Parenthetically, petitioner

BPIs theory that the present clearing guarantee requirement imposed on the
representing or collecting bank under the PCHC rules and regulations is
independent of the Negotiable Instruments Law is not in order. Bank of the Phil.
Islands vs. Court of Appeals, 216 SCRA 51, G.R. No. 102383 November 26, 1992
Another reason why the petitioners theory is uncalled for is the fact that the
Negotiable Instruments Law (Act No. 2031) applies to negotiable instruments as
defined under section one thereof. Undeniably, the present case involves
checks as defined by and under the coverage of the Negotiable
Instruments Law. To affirm the theory of the petitioner would, therefore,
violate the rule that rules and regulations implementing the law should
conform to the law, otherwise the rules and regulations are null and void.
Bank of the Phil. Islands vs. Court of Appeals, 216 SCRA 51, G.R. No. 102383
November 26, 1992
Section 23 of the Negotiable Instruments Law states:
When signature is forged or made without the authority of the person whose
signature it purports to be, it is wholly inoperative and no right to retain the
instrument, or to give discharge therefore, or to enforce payment thereof,
against any party thereto, can be acquired through or under such forged
signature, unless the party against whom it is sought to enforce such right is
precluded from setting up the forgery or want of authority.
There are two (2) parts of the provision. The first part states the general rule while
the second part states the exception to the general rule. The general rule is to
the effect that a forged signature is "wholly inoperative", and payment
made "through or under such signature" is ineffectual or does not
discharge the instrument. The exception to this rule is when the party
relying in the forgery is "precluded from setting up the forgery or want of
authority. In this jurisdiction we recognize negligence of the party
invoking forgery as an exception to the general rule. (See Banco de Oro
Savings and Mortgage Bank v. Equitable Banking Corporation supra; Philippine
National Bank v. Quimpo, 158 SCRA 582 [1988]; Philippine National Bank v. Court of
Appeals, 25 SCRA 693 [1968]; Republic v. Equitable Banking Corporation, 10 SCRA 8
[1964]; National Bank v. National City Bank of New York, 63 Phil. 711 [1936]; San
Carlos Milling Co. v. Bank of P.I., 59 Phil. 59 [1933]). In these cases we determined
the rights and liabilities of the parties under a forged endorsement by looking at the
legal effects of the relative negligence of the parties thereto.
In the present petition the payee's names in the two (2) subject checks
were forged. Following the general rule, the checks are "wholly
inoperative" and of no effect. However, the underlying circumstances of
the case show that the general rule on forgery is not applicable. The issue
as to who between the parties should bear the loss in the payment of the
forged checks necessities the determination of the rights and liabilities of
the parties involved in the controversy in relation to the forged checks.

Banks handle daily transactions involving millions of pesos. By the very nature of
their work the degree of responsibility, care and trustworthiness expected of their
employees and officials is far greater than those of ordinary clerks and employees.
For obvious reasons, the banks are expected to exercise the highest degree of
diligence in the selection and supervision of their employees.
In the present case, there is no question that the banks were negligent in
the selection and supervision of their employees. The Arbitration Committee,
the PCHC Board of Directors and the lower court, however disagree in the
evaluation of the degree of negligence of the banks. While the Arbitration
Committee declared the negligence of respondent CBC graver, the PCHC Board of
Directors and the lower courts declared that petitioner BPI's negligence was
graver. To the extent that the degree of negligence is equated to the
proximate cause of the loss, we rule that the issue as to whose negligence
is graver is relevant. No matter how many justifications both banks
present to avoid responsibility, they cannot erase the fact that they were
both guilty in not exercising extraordinary diligence in the selection and
supervision of their employees. The next issue hinges on whose negligence was
the proximate cause of the payment of the forged checks by an impostor.
Petitioner BPI accuses the Court of Appeals of inconsistency when it affirmed the
PCHC's Board of Directors' Order but in the same breath declared that the negligent
acts of the CBC employees occurred immediately before the actual loss.
In this regard petitioner BPI insists that the doctrine of last clear chance enunciated
in the case of Picart v. Smith (37 Phil. 809 [1918]) should have been applied
considering the circumstances of the case.
In the Picart case, Amado Picart was then riding on his pony over the Carlatan
Bridge at San Fernando, La Union when Frank Smith approached from the opposite
direction in a car. As Smith neared the bridge he saw Picart and blew his horn to
give warning of his approach. When he was already on the bridge Picart gave two
more successive blasts as it appeared to him that Picart was not observing the rule
of the road. Picart saw the car coming and heard the warning signals. An accident
then ensued resulting in the death of the horse and physical injuries suffered by
Picart which caused him temporary unconsciousness and required medical attention
for several days. Thereafter, Picart sued Smith for damages.
The test by which by which to determine the existence of negligence in
a particular case may be stated as follows: Did the defendant in doing
the alleged negligent act use that reasonable care and caution which
an ordinarily prudent person would have used in the same situation? If
not, then he is guilty of negligence.
Applying these principles, petitioner BPI's reliance on the doctrine of last
clear chance to clear it from liability is not well-taken. CBC had no prior
notice of the fraud perpetrated by BPI's employees on the pretermination
of Eligia G. Fernando's money market placement. Moreover, Fernando is not a
depositor of CBC. Hence, a comparison of the signature of Eligia G. Fernando with

that of the impostor Eligia G. Fernando, which respondent CBC did, could not have
resulted in the discovery of the fraud. Hence, unlike in the Picart case herein the
defendant, had he used reasonable care and caution, would have recognized the
risk he was taking and would have foreseen harm to the horse and the plaintiff but
did not, respondent CBC had no way to discover the fraud at all. In fact the
records fail to show that respondent CBC had knowledge, actual or
implied, of the fraud perpetrated by the impostor and the employees of
BPI.
However, petitioner BPI insists that even if the doctrine of proximate cause is
applied, still, respondent CBC should be held responsible for the payment to the
impostor of the two (2) checks. It argues that the acts and omissions of respondent
CBC are the cause "that set into motion the actual and continuous sequence of
events that produced the injury and without which the result would not have
occurred." On the other hand, it assets that its acts and omissions did not end in a
loss. Petitioner BPI anchors its argument on its stance that there was "a gap, a
hiatus, an interval between the issuance and delivery of said checks by petitioner
BPI to the impostor and their actual payment of CBC to the impostor. Petitioner BPI
points out that the gap of one (1) day that elapsed from its issuance and delivery of
the checks to the impostor is material on the issue of proximate cause. At this
stage, according to petitioner BPI, there was yet no loss and the impostor could
have decided to desist from completing the same plan and could have held to the
checks without negotiating them.
We are not persuaded.
Again, applying the doctrine of proximate cause, petitioner BPI's contention that
CBC alone should bear the loss must fail. The gap of one (1) day between the
issuance and delivery of the checks bearing the impostor's name as payee
and the impostor's negotiating the said forged checks by opening an
account and depositing the same with respondent CBC is not controlling. It
is not unnatural or unexpected that after taking the risk of impersonating
Eligia G. Fernando with the connivance of BPI's employees, the impostor
would complete her deception by encashing the forged checks. There is
therefore, greater reason to rule that the proximate cause of the payment of the
forged checks by an impostor was due to the negligence of petitioner BPI. This
finding, notwithstanding, we are not inclined to rule that petitioner BPI
must solely bear the loss of P2,413,215.16, the total amount of the two (2)
forged checks. Due care on the part of CBC could have prevented any loss.
The Court cannot ignore the fact that the CBC employees closed their eyes to the
suspicious circumstances of huge over-the-counter withdrawals made immediately
after the account was opened. The opening of the account itself was accompanied
by inexplicable acts clearly showing negligence. And while we do not apply the last
clear chance doctrine as controlling in this case, still the CBC employees had ample
opportunity to avoid the harm which befell both CBC and BPI. They let the
opportunity slip by when the ordinary prudence expected of bank employees would
have sufficed to seize it.

Both banks were negligent in the selection and supervision of their

employees resulting in the encashment of the forged checks by an
impostor. Both banks were not able to overcome the presumption of
negligence in the selection and supervision of their employees. It was the
gross negligence of the employees of both banks which resulted in the
fraud and the subsequent loss. While it is true that petitioner BPI's
negligence may have been the proximate cause of the loss, respondent
CBC's negligence contributed equally to the success of the impostor in
encashing the proceeds of the forged checks. Under these circumstances, we
apply Article 2179 of the Civil Code to the effect that while respondent CBC may
recover its losses, such losses are subject to mitigation by the courts. (See Phoenix
Construction Inc. v. Intermediate Appellate Courts, 148 SCRA 353 [1987]).
Considering the comparative negligence of the two (2) banks, we rule that the
demands of substantial justice are satisfied by allocating the loss of P2,413,215.16
and the costs of the arbitration proceeding in the amount of P7,250.00 and the cost
of litigation on a 60-40 ratio. Conformably with this ruling, no interests and
attorney's fees can be awarded to either of the parties.
WHEREFORE, the questioned DECISION and RESOLUTION of the Court of Appeals are
MODIFIED as outlined above. Petitioner Bank of the Philippine Islands shall be
responsible for sixty percent (60%) while respondent China Banking Corporation
shall share forty percent (40%) of the loss of TWO MILLION FOUR HUNDRED
THIRTEEN THOUSAND, TWO HUNDRED FIFTEEN PESOS and SIXTEEN CENTAVOS
(2,413,215.16) and the arbitration costs of SEVEN THOUSAND, TWO HUNDRED FIFTY
PESOS (7,250.00). The Philippine Clearing House Corporation is hereby directed to
effect the corresponding entries to the banks' clearing accounts in accordance with
this decision. Costs in the same proportion against the Bank of the Philippine Islands
and the China Banking Corporation.
Wright vs Manila Electric
The defendant is a corporation engaged in operating an electric street
railway in the city of Manila and its suburbs, including the municipality of
Caloocan. The plaintiff's residence in Caloocan fronts on the street along
which defendant's tracks run, so that to enter his premises from the street
plaintiff is obliged to cross defendant's tracks. On the night mentioned
plaintiff drove home in a calesa and in crossing the tracks to enter his
premises the horse stumbled, leaped forward, and fell, causing the vehicle
with the rails, resulting in a sudden stop, threw plaintiff from the vehicle
and caused the injuries complained of.
It is undisputed that at the point where plaintiff crossed the tracks on the night in
question not only the rails were above-ground, but that the ties upon which the
rails rested projected from one-third to one-half of their depth out of the
ground, thus making the tops of the rails some 5 or 6 inches or more
above the level of the street.

It is admitted that the defendant was negligent in maintaining its tracks as

described, but it is contended that the plaintiff was also negligent in that he was
intoxicated to such an extent at the time of the accident that he was unable to take
care of himself properly and that such intoxication was the primary cause of the
accident
Held:
The questioned as stated by plaintiff is as follows: "The main question at issue is
whether or not the plaintiff was negligent, and, if so, to what extent. If the
negligence of the plaintiff was the primary cause of the accident then, of course, he
cannot recover; if his negligence had nothing to do with the accident but
contributed to his injury, then the court was right in apportioning the damages, but
if there was no negligence on the part of the plaintiff, then he should be awarded
damages adequates to the injury sustained."
In support of the defendant's contention counsel says: "Defendant's negligence was
its failure properly to maintain the track; plaintiff's negligence was his intoxication;
the 'principal occurrence' was plaintiff's fall from his calesa. It seems clear that
plaintiff's intoxication contributed to the fall; if he had been sober, it can hardly be
doubted that he would have crossed the track safely, as he had done a hundred
times before."
While both parties appealed from the decision, the defendant on the ground that it
was not liable and the plaintiff on the ground that the damages were insufficient
according to the evidence, and while the plaintiff made a motion for a new trial
upon the statutory grounds and took proper exception to the denial thereof, thus
conferring upon this court jurisdiction to determine the question of fact,
nevertheless, not all of the testimony taken on the trial, so far as can be gathered
from the record, has been brought to this court. There seems to have been two
hearings, one on the 31st of August and the other on the 28th of September. The
evidence taken on the first hearing is here; that taken on the second is not. Not all
the evidence taken on the hearings being before the court, we must refuse, under
our rules, to consider even that evidence which is here; and, in the decision of this
case, we are, therefore, relegated to the facts stated in the opinion of the court and
the pleadings filed.
A careful reading of the decision of the trial court leads us to the
conclusion that there is nothing in the opinion which sustains the
conclusion of the court that the plaintiff was negligent with reference to
the accident which is the basis of this action. Mere intoxication establish a
want of ordinary care. It is but a circumstance to be considered with the
other evidence tending to prove negligence. It is the general rule that it is
immaterial whether a man is drunk or sober if no want of ordinary care or
prudence can be imputed to him, and no greater degree of care is required
than by a sober one. If one's conduct is characterized by a proper degree
of care and prudence, it is immaterial whether he is drunk or sober. (Ward
vs. Chicago etc., R. R. Co., 85 Wis., 601; H & T. C. R. Co. vs. Reason, 61 Tex., 613;
Alger vs. Lowell, 3 Allen, Mass., 402; Central R. R. Co. vs. Phinazee, 93 Ga., 488;

Maguire vs. Middlesex R. R. Co., 115 Mass., 239; Meyer vs. Pacific R. R. Co., 40 Mo.,
151., Chicago & N. W. R. R. Co. vs. Drake, 33 Ill. App., 114.)
If intoxication is not in itself negligence, what are the facts found by the trial court
and stated in its opinion upon which may be predicated the finding that the plaintiff
did not use ordinary care and prudence and that the intoxication contributed to the
injury complained of? After showing clearly and forcibly the negligence of
the defendant in leaving its tracks in the condition in which they were on
the night of the injury, the court has the following to say, and it is all that
can be found in its opinion, with reference to the negligence of the
plaintiff
As is clear from reading the opinion, no facts are stated therein which warrant
the conclusion that the plaintiff was negligent. The conclusion that if he
had been sober he would not have been injured is not warranted by the
facts as found. It is impossible to say that a sober man would not have
fallen from the vehicle under the conditions described. A horse crossing
the railroad tracks with not only the rails but a portion of the ties
themselves aboveground, stumbling by reason of the unsure footing and
falling, the vehicle crashing against the rails with such force as to break a
wheel, this might be sufficient to throw a person from the vehicle no
matter what his condition; and to conclude that, under such circumstances, a
sober man would not have fallen while a drunken man did, is to draw a conclusion
which enters the realm of speculation and guesswork.
It having been found that the plaintiff was not negligent, it is unnecessary to discuss
the question presented by the appellant company with reference to the applicability
of the case of Rakes vs. A. G. & P. Co., above; and we do not find facts in the opinion
of the court below which justify a larger verdict than the one found.
The trial court held that both parties were negligent, but that the plaintiff's
negligence was not as great as defendant's and under the authority of the case of
Rakes vs. A. G. & P. Co. (7 Phil. Rep., 359) apportioned the damages and awarded
plaintiff a judgment of P1,000.

US vs Baggay
About the 4th of October, 1909, several persons were assembled in the defendant's
house in the township of Pearrubia, Abra, Province of Ilocos Sur, for the purpose
of holding a song service called "buni" according to the Tinguian custom,
when he, the non-Christian Baggay, without provocation suddenly
attacked the woman Bil-liingan with a bolo, inflicting a serious wound on
her head from which she expired immediately; and with the same bolo he
likewise inflicted various wounds on the women named Calbayan, Agueng,
Quisamay, Calapini, and on his own mother, named Dioalan.
For this reason the provincial fiscal filed a complaint in the court of Ilocos Sur, dated
February 15, charging the non-Christian Baggay, jr., with murder, because of the

violent death of the woman Bil-liingan. This cause was instituted separately from
the other, No. 1109, for lesiones. After trial and proof that the defendant was
suffering from mental aberration, the judge on April 28 rendered the
judgment cited above, whereupon the defendant's counsel appealed to
this court. United States vs. Baggay., 20 Phil. 142, No. 6659 September 1,
1911
Held:
The question raised on the appeal filed in this case by counsel for the insane
defendant, Baggay, jr., is solely whether he, notwithstanding that he was held
exempt from criminal liability, has nevertheless incurred civil liability, with
obligation to indemnify the heirs of the murdered woman and to pay the costs.
United States vs. Baggay., 20 Phil. 142, No. 6659 September 1, 1911
True it is that civil liability accompanies criminal liabil-ity, because every
person liable criminally for a crime or misdemeanor is also liable for
reparation of damage and for indemnification of the harm done, but there
may be civil liability because of acts ordinarily punishable, although the
law has declared their perpetrators exempt from criminal liability. Such is
the case of a lunatic or insane person who, in spite of his irresponsibility on account
of the deplorable condition of his deranged mind, is still reasonably and justly liable
with his property for the consequences of his acts, even though they be performed
unwittingly, for the reason that his fellows ought not to suffer from the disastrous
results of his harmful acts more than is necessary, in spite of his unfortunate
condition. Law and society are under obligation to protect him during his illness and
so when he is declared to be liable with his property for reparation and
indemnification, he is still entitled to the benefit of what is necessary for his decent
maintenance, but this protection does not exclude liability for damage caused to
those who may have the misfortune to suffer the consequences of his acts.
According to the law, the persons in the first place liable. are those who
have the insane party under their care or guardianship, unless they prove
that there was no blame or negligence on their part; but if the demented
person or imbecile lack a guardian or some person charged with his care,
or if the latter be insolvent, then his own property must meet the civil
liability of indemnifying or repairing the damage done, and for this reason
judges and courts in rendering judgment in a criminal cause prosecuted against an
insane or demented person, even when they hold the accused exempt from criminal
liability, must fix the civil liability of the persons charged with watching
over and caring for him or the liability of the demented person himself
with his property f or reparation of the damage and indemnification for
the harm done, unless the offended party or the heirs of the person
murdered expressly renounce such reparation or indemnification.
Therefore, the judgment appealed from being in accordance with law, affirmation
thereof is proper, and it is hereby affirmed, with costs against the appellant. United
States vs. Baggay., 20 Phil. 142, No. 6659 September 1, 1911

Article 2231. In quasi-delicts, exemplary damages may be granted if the

defendant acted with gross negligence
Marinduque Iron Mines Agents, Inc. vs. Workmen's Compensation
Commission, et al., 99 Phil. 480, No. L-8110 June 30, 1956
"It appears," says the award, "that on August 23, 1951, at 6:00 a.m. in Bo.
Sumangga, Mogpog, Marinduque, the deceased Mamador together with other
laborers of the respondent-corporation, (Marinduque Iron Mines Agents
Inc.) boarded a truck belonging to the latter, which was then driven by one
Procopio Macunat, also employed by the corporation, and on its way to their place
of work at the mine camp at Talantunan, while trying to over-take another truck on
the company road, it turned over and hit a coconut tree, resulting in the
death of said Mamador and injury to the others."
Procopio Macunat was prosecuted, convicted and sentenced to indemnify the heirs
of the deceased. (Criminal Case No. 1491). He has paid nothing however, to the
latter.
In his first proposition petitioner challenges the validity of the proceedings before
the Commission, asserting it had not been given the opportunity to cross-examine
the opposing witnesses.
Held:
The most important aspect of this appeal, is the effect of the deceased's having
violated the employer's prohibition against laborers riding the haulage
trucks. Petitioner claims such violation was the laborer's "notorious
negligence" which, under the law, precludes recovery. The Commission has
not declared that the prohibition was known to Mamador. Yet the employer does not
point out in the record evidence to that effect. Supposing Mamador knew the
prohibition, said the referee, "can we truthfully say that he boarded the fatal truck
with full apprehension of the existence of the danger, if any at all, that an ordinary
prudent man would try to avoid? I do not believe so, and even in the presence of
doubt, the same must be resolved in his favor. Unless of course, we can attribute to
him a desire to end his life. Nowhere in the records of this case can we find the
slightest insinuation of that desire."
There is no doubt that mere riding on a haulage truck or stealing a ride
thereon is not negligence, ordinarily. It couldn't be, because
transportation by truck is not dangerous per se. It is argued that there
was notorious negligence in this particular instance because there was the
employer's prohibition. Does violation of this order constitute negligence? Many
courts hold that violation of a statute or ordinance constitutes negligence per se.
Others consider the circumstances.
However there is practical unanimity in the proposition that violation of a
rule promulgated by a Commission or board is not negligence per se; but
it may be evidence of negligence. (C. J. S., Vol. 65, p. 427.)

This order of the employer (prohibition rather) couldn't be of a greater obligation

than the rule of a Commission or board. And the referee correctly considered this
violation as possible evidence of negligence; but it declared that under the
circumstances, the laborer could not be declared to have acted with
negligence. Gtfrrectly, it is believed, since the prohibition had nothing to
do with personal safety of the riders.
Such finding is virtually a finding of fact which we may not overrule in this certiorari
proceeding.
Nevertheless, even granting there was negligence, it surely was not "notorious"
negligence, which we have interpreted to mean the same thing as "gross"
negligence3 implying "conscious indifference to consequences" "pursuing
a course of conduct which would naturally and probably result in injury"
"utter disregard of consequences." (38 Am. Jur., 691.) Getting or accepting a
free ride on the company's haulage truck couldn't be gross negligence, because as
the referee found, "no danger or risk was apparent."
There being no other material point raised in the petition for review, the award of
compensation is hereby affirmed, with costs against petitioner.
Article 2184. In motor vehicle mishaps, the owner is solidarily liable with
his driver, if the former, who was in the vehicle, could have, by the use of
the due diligence, prevented the misfortune. It is disputably presumed
that a driver was negligent, if he had been found guilty of reckless driving
or violating traffic regulations at least twice within the next preceding two
months.
If the owner was not in the motor vehicle, the provisions of article 2180
are applicable. (n)
Article 2185. Unless there is proof to the contrary, it is presumed that a
person driving a motor vehicle has been negligent if at the time of the
mishap, he was violating any traffic regulation. (n)
Article 2188. There is prima facie presumption of negligence on the part of
the defendant if the death or injury results from his possession of
dangerous weapons or substances, such as firearms and poison, except
when the possession or use thereof is indispensable in his occupation or
business. (n)
Article 1734. Common carriers are responsible for the loss, destruction, or
deterioration of the goods, unless the same is due to any of the following
causes only:
(1)Flood, storm, earthquake, lightning, or other natural disaster or
calamity;
(2)Act of the public enemy in war, whether international or civil;
(3)Act or omission of the shipper or owner of the goods;
(4)The character of the goods or defects in the packing or in the
containers;

(5)Order or act of competent public authority.

Article 1735. In all cases other than those mentioned in Nos. 1, 2, 3, 4, and
5 of the preceding article, if the goods are lost, destroyed or deteriorated,
common carriers are presumed to have been at fault or to have acted
negligently, unless they prove that they observed extraordinary diligence
as required in article 1733.