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January 24, 2017

BACHELOR BUS LINES, CO.

Dear Ma'am/Sir,

This letter is in relation to the fatal bus accident which led to the wrongful death of Mr. ROLAN
CATAYAS, caused by one of your bus drivers last January 20, 2016.

This letter serves as the formal demand for the payment of the Loss of Earning Capacity of MR.
CATAYAS.

Article 2209 of the Civil Code of the Philippines provides that when death is caused by quasi -
delict, the defendant shall be liable for the loss of the earning capacity of the deceased, and the
indemnity shall be paid to the heirs of the latter.

Mr. Rolan Catayas has been a regular employee for the Provincial Government of Compostela
Valley since July 3, 2000. He was designated as Project Evaluation Officer IV under the
Provincial Planning and Development Office (PPDO) with Salary Grade 22, earning a monthly
rate of Php 47, 448.00 at the time of the accident.

In People vs. Librando, 390 PHIL 543, 559 (2000), the amount of damages recoverable for the
loss of earning capacity of the deceased is based on two factors:

1) the number of years on the basis of which the damages shall be computed; and
2) the rate at which the losses sustained by the heirs of the deceased should be fixed.

The first factor is based on the formula (2/3 x 80 – age of the deceased at the time of his death
= life expectancy) which is adopted from the American Expectancy Table of Mortality. The
Court uses the American Experience/Expectancy Table of Mortality or the Actuarial or Combined
Experience Table of Mortality, which consistently pegs the life span of the average Filipino at 80
years, from which it extrapolates the estimated income to be earned by the deceased had he or
she not been killed.

Net income is computed by deducting from the amount of the victim’s gross income the amount
of his living expenses. If there is no proof of the deceased's living expenses, the net income is
estimated to be 50% of the gross annual income.

Thus, the loss of earning capacity of the deceased is computed as follows:


Net Earning Capacity = life expectancy x [gross annual income – living expenses]
= 2/3 [80-age at time of death] x [gross annual income -
50% of gross annual income]

The demanded payment, using the afore-mentioned formula, are computed as follows:

Life Expectancy = 2/3 x 80 - age of deceased at the


time of death
= 2/3 x 80 - 41
= 2/3 x 39
= 26

Loss of Earning Capacity = Life Expectancy x [ gross annual


income - living expense ]

= 26 x [ P 47,448 - P 23,724 ]

= 26 x P 23, 724

= Php 616,824

We hereby demand the payment of SIX HUNDRED SIXTEEN THOUSAND EIGHT HUNDRED
TWENTY FOUR pesos (Php 616, 824.00) representing the Loss of Earning Capacity of MR.
CATAYAS. The service records of Mr. Catayas are attached to this letter for your perusal and
verification.

Legal actions have already been initiated against the bus driver. However, as provided under
Article 2180, employers shall be liable for the damages caused by their employees acting within
the scope of their assigned tasks. Hence, this demand.

Although, no amount can ever compensate for the life of Mr. Catayas, as he was a loving
husband, a doting father, a good provider, and an astounding employee, it would somehow
alleviate the emotional suffering of his family during this tragic event.