gsis v. pacific airways

19
SECOND DIVISION GOVERNMENT SERVICE G.R. No. 170414 INSURANCE SYSTEM, Petitioner, versus PACIFIC AIRWAYS CORPORATION, ELY BUNGABONG, and MICHAEL GALVEZ, Respondents. x x PHILIPPINE AIRLINES, INC., G.R. No. 170418 ROGELIO CASIO, and RUEL ISAAC, Petitioners, versus PACIFIC AIRWAYS CORPORATION, ELY BUNGABONG and MICHAEL GALVEZ, Respondents. x x AIR TRANSPORTATION OFFICE, G.R. No. 170460 DANILO ALZOLA, and ERNESTO * LIM, Present: Petitioners, CARPIO, J., Chairperson, PERALTA, versus ABAD, PEREZ, ** and MENDOZA, JJ.

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  • 6/28/2015 G.R.No.170414

    http://sc.judiciary.gov.ph/jurisprudence/2010/august2010/170414.htm 1/19

    SECONDDIVISION

    GOVERNMENTSERVICEG.R.No.170414INSURANCESYSTEM,Petitioner,versus

    PACIFICAIRWAYSCORPORATION,ELYBUNGABONG,andMICHAELGALVEZ,Respondents.xxPHILIPPINEAIRLINES,INC.,G.R.No.170418ROGELIOCASIO,andRUELISAAC,Petitioners,versusPACIFICAIRWAYSCORPORATION,ELYBUNGABONGandMICHAELGALVEZ,Respondents.xxAIRTRANSPORTATIONOFFICE,G.R.No.170460DANILOALZOLA,andERNESTO*LIM,Present:Petitioners,CARPIO,J.,Chairperson,PERALTA,versusABAD,PEREZ,**andMENDOZA,JJ.

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    PACIFICAIRWAYSCORPORATION,ELYBUNGABONG,andMICHAELGALVEZ,Respondents,GOVERNMENTSERVICEPromulgated:INSURANCESYSTEM,Intervenor.August25,2010xx

    DECISIONCARPIO,J.:

    TheCase

    Before theCourt are three consolidated petitions for review[1]

    of the 28October 2004

    Decision[2]

    andthe15November2005Resolution[3]

    oftheCourtofAppealsinCAG.R.

    CVNo.73214.The28October2004Decisionaffirmedthe27July2001Decision[4]

    oftheRegionalTrialCourt(Branch112)ofPasayCity.The15November2005Resolutionmodifiedthe28October2004DecisionoftheCourtofAppeals.

    TheAntecedentFacts

    On 2 April 1996, at around 6:45 p.m., the Twin Otter aircraft of Philippine Airways

    Corporation(PAC)arrivedattheManilaInternationalAirport[5]

    fromElNido,Palawan.[6]

    IncommandoftheaircraftwasElyB.Bungabong.[7]

    WithBungabonginthecockpit

    wasMichaelF.Galvezascopilot.[8]

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    Upontouchdown, theTwinOtter taxiedalongtherunwayandproceededtotheSoriano

    Hangartodisembarkitspassengers.[9]

    Afterthelastpassengerdisembarked,PACspilotsstartedtheengineoftheTwinOtterinordertoproceedtothePACHangarlocatedatthe

    otherendoftheairport.[10]

    Ataround7:18p.m.,Galvezcontactedgroundcontroltoask

    forclearancetotaxitotaxiwaydelta.[11]

    RogelioLim,groundtrafficcontrollerondutyatthe Air Transportation Office (ATO), issued the clearance on condition that he be

    contactedagainuponreachingtaxiwaydeltaintersection.[12]

    PACs pilots then proceeded to taxi to taxiway delta at about 7:19 and 19 seconds.[13]

    Upon reaching the intersection of taxiway delta,Galvez repeated the request to taxi to

    taxiway delta, which request was granted.[14]

    Upon reaching fox 1, Galvez requestedclearancetomakearightturntofox1andtocrossrunway13inordertoproceedtofox1

    bravo.[15]

    ATOgrantedtherequest.[16]

    Atthispoint,theTwinOtterwasstill350meters

    away from runway13.[17]

    Upon reaching runway13,PACspilots did notmake a full

    stop at the holding point to request clearance right before crossing runway 13.[18]

    Withoutsuchclearance,PACspilotsproceededtocrossrunway13.Meanwhile, thePhilippineAirlines (PAL)Boeing737,mannedbypilotsRogelioCasioandRuel Isaac,was preparing for takeoff along runway13.ThePALpilots requested

    clearancetopushandstart[19]

    onrunway13.ErnestoLinog,Jr.,airtrafficcontrolleron

    dutyat theATOissuedtheclearance.[20]

    Subsequently,at7:20and18seconds,Linog,

    Jr.gavePALsBoeing737clearancetotakeoff.[21]

    PilotsCasioandIsaacthenproceeded

    withthetakeoffprocedure.[22]

    Whilealreadyontakeoffroll,Casiocaughtaglimpseof

    theTwinOtterontheleftsideoftheBoeing737abouttocrossrunway13.[23]

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    While theTwinOtterwas halfway through runway13,Galvez noticed theBoeing737

    and told Bungabong that an airplane was approaching them from the right side.[24]

    Bungabongthensaid,Diyoskopoandgavefullpower to theTwinOtter.[25]

    ThePAL

    pilotsattemptedtoabortthetakeoffbyreversingthethrustoftheaircraft.[26]

    However,

    theBoeing737stillcollidedwiththeTwinOtter.[27]

    TheBoeing737draggedtheTwinOtterabout100metersaway.[28]

    WhentheTwinOtter

    stopped, PACs pilots ran away from the aircraft for fear it might explode.[29]

    Whileobserving theTwinOtter fromasafedistance, theysawpassengers runningdownfrom

    the Boeing 737.[30]

    When PACs pilots returned to the aircraft to get their personal

    belongings,theysawthattheTwinOtterwasatotalwreck.[31]

    At 7:21 and 2 seconds on that fateful evening, the PAL pilots informedATOs control

    tower that they had hit another aircraft, referring to the Twin Otter.[32]

    Bungabong

    suffered sprain on his shoulder whileGalvez had laceration on his left thumb.[33]

    AnambulancebroughtthetwopilotstoMakatiMedicalCenterwheretheyweretreatedfor

    seriousandslightphysicalinjuries.[34]

    On7May1996,PAC,Bungabong,andGalvezfiledintheRegionalTrialCourt(Branch

    112)ofPasayCityacomplaint[35]

    forsumofmoneyanddamagesagainstPAL,Casio,Isaac, ATO, Lim, Linog, Jr., and ATOs traffic control supervisor, Danilo Alzola. TheGovernmentServiceInsuranceSystem(GSIS),asinsureroftheBoeing737thatfiguredinthecollision,intervened.

    TheRulingoftheTrialCourt

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    The trial court ruled that the proximate cause of the collision was the negligence ofAlzola,Lim,andLinog,Jr.,asATOstrafficcontrolsupervisor,groundtrafficcontroller,andairtrafficcontroller,respectively,atthetimeofthecollision.Thetrialcourtfurtherheld that thedirect causeof thecollisionwas thenegligenceofCasioand Isaac,as thepilotsoftheBoeing737thatcollidedwiththeTwinOtter.Thedecretalportionofthetrialcourtsdecisionreads:

    PREMISES CONSIDERED, judgment is hereby rendered ordering defendantsPhilippine Air Lines and its pilots, Rogelio Casio and Ruel Isaac, and AirTransportation Office and its comptrollers, Danilo Alzola, Rogelio Lim and ErnestoLinog,Jr.,jointlyandseverally,topay:a) Plaintiff Pacific Airways Corporation the amount of Php15,000,000.00 and thefurtheramountofPhp100,000.00adayfromApril2,1996untilitisfullyreimbursedfor the value of its RPC1154 plane, as actual damages, and the amount ofPhp3,000,000.00,asexemplarydamages,and theamountofPhp1,000,000.00,asandforattorneysfeesandexpensesoflitigation

    b)PlaintiffsElyB.Bongabong[36]

    andMichaelF.Galvez,theamountofPhp5,000.00each, as actual damages the amount of Php500,000.00, as and for moral damagesPhp500,000.00asandforexemplarydamages,andtheamountofPhp50,000.00,asandforattorneysfeesc)Defendantsare,likewise,orderedtopay,jointlyandseverally,toplaintiffsthecostsofthissuit.

    SOORDERED.[37]

    PAL,Casio,Isaac,GSIS,ATO,Alzola,Lim,andLinog,Jr.,allappealedthetrialcourtsDecisiontotheCourtofAppeals.

    TheRulingoftheCourtofAppeals

    TheCourtofAppealsfoundthatthetrialcourtdidnotcommitanyreversibleerror.Inits28October2004decision,theCourtofAppealsaffirmedintotothedecisionofthetrialcourt,thus:

    WHEREFORE,theinstantappealisherebyDISMISSED.ThedecisionoftheRegionalTrialCourt,Branch112,PasayCitydatedJuly27,2001isherebyAFFIRMEDintoto.

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    SOORDERED.[38]

    PAL,Casio,Isaac,GSIS,ATO,Alzola,Lim,andLinog,Jr.,filedtheirrespectivemotionsfor reconsideration. The appellate court denied for lack of merit all the motions forreconsiderationexcepttheonefiledbyLinog,Jr.

    TheCourtofAppealsgaveweight to the20March2003Decision[39]

    onappealof theRTC(Branch108)ofPasayCityinCriminalCaseNo.021979acquittingLinog,Jr.,whowas convicted in the original Decision together with Alzola and Lim, of recklessimprudence resulting in damage to propertywith serious and slight physical injuries inconnection with the collision. Since Alzola and Lim did not appeal, the judgment ofconvictionagainstthembecamefinal.AlzolaandLimweresentencedtoarrestomayoror

    imprisonmentfortwo(2)months.[40]

    TheCourtofAppealsreasonedthatsincethetrialcourtinthecriminalcasehasruledthatLinog,Jr.wasnotnegligent,thentheactfromwhichthecivilliabilitymightarisedidnotexist.Inits15November2005Resolution,theCourtofAppealsdecreed:

    WHEREFORE,thedecisionsubjectofthemotionsforreconsiderationisMODIFIEDinthatthecaseagainstdefendantappellantERNESTOLINOG,JR.isdismissed.ThedecisionisAFFIRMEDinallotherrespects.

    SOORDERED.[41]

    Hence,theinstantconsolidatedpetitionsforreview.InG.R.No.170418,petitionersPAL,Casio, and Isaacargue that theCourtofAppealsshould have applied the emergency rule instead of the last clear chance doctrine.Petitioners claim that even if the PAL pilots were negligent, PAL had exercised duediligenceintheselectionandsupervisionofitspilots.Petitionerscontendthat theCourtofAppealsawardeddamageswithoutanyspecific supportingproofas requiredby law.PetitionersalsoclaimthattheCourtofAppealsshouldhaveawardedtheircounterclaim

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    fordamages.InG.R.No.170414,petitionerGSISpointsoutthatPACspilotsweretheonesguiltyofnegligenceastheyviolatedtheRulesoftheAir,whichprovidethatrightofwaybelongstotheaircraftontakeoffrollandtheaircraftontherightsideofanother.GSISstressesthat such negligence was the proximate cause of the collision. GSIS posits that PAC,Bungabong,andGalvezshouldbeheldsolidarilyliabletopayGSISthecostofrepairingtheinsuredaircraft.InG.R.No.170460,petitionersATO,Alzola,andLimcallourattentiontothefactthatPACwasamerelessee,nottheowneroftheTwinOtter.TheyarguethatPAC,asmerelessee,wasnot the realpartyininterest in thecomplaint seeking recovery fordamagessustained by theTwinOtter. Petitionersmaintain thatground and air traffic clearanceswere the joint responsibility of ATO and the pilotsincommand. Petitioners aver thatBungabongandGalvezwerenegligentinaskingforclearancetocrossanactiverunwaywhilestill350metersawayfromtherunway.PetitionersclaimthatPALhadtherightofwayandthatPACspilotshadthelastclearchancetopreventthecollision.

    TheIssue

    Thesoleissueforresolutioniswhoamongthepartiesisliablefornegligenceunderthecircumstances.

    TheCourtsRuling

    Thepetitionsaremeritorious.In apetition for reviewunderRule45,onlyquestionsof lawmaybe raised.This rule,however,admitsofcertainexceptionsaswhen the judgmentof theCourtofAppeals ispremised on amisapprehension of facts or theCourt ofAppeals fails to notice certain

    relevantfactswhich,ifproperlyconsidered,willjustifyadifferentconclusion.[42]

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    Afterthoroughlygoingovertheevidenceonrecordinthiscase,weareunabletosustainthefindingoffactandlegalconclusionoftheCourtofAppeals.To ascertain who among the parties is liable for negligence, we must refer to theapplicablerulesgoverningthespecifictrafficmanagementofaircraftsatanairport.The

    RulesoftheAir[43]

    oftheAirTransportationOfficeapplytoallaircraftsregisteredinthe

    Philippines.[44]

    TheBoeing737andtheTwinOtterinthiscasewerebothregisteredinthePhilippines.BotharethussubjecttotheRulesoftheAir.Incaseofdangerofcollisionbetweentwoaircrafts,theRulesoftheAirstate:

    2.2.4.7 Surface Movement of Aircraft. In case of danger of collision between twoaircraftstaxiingonthemaneuveringareaofanaerodrome,thefollowingshallapply:a)Whentwoaircraftsareapproachingheadon,orapproximatelyso,eachshallstoporwherepracticable,alteritscoursetotherightsoastokeepwellclear.b)Whentwoaircraftsareonaconvergingcourse,theonewhichhastheotheron

    itsrightshallgiveway.[45]

    (Emphasissupplied)Inthiscase,however,theBoeing737andtheTwinOtterwerenotbothtaxiingatthetimeofthecollision.OnlytheTwinOtterwastaxiing.TheBoeing737wasalreadyontakeoffroll.TheRulesoftheAirprovide:

    2.2.4.6TakingOff.Anaircrafttaxiingonthemaneuveringareaofanaerodromeshall

    givewaytoaircrafttakingofforabouttotakeoff.[46]

    (Emphasissupplied)

    Therefore,PALsaircrafthadtherightofwayatthetimeofcollision,notsimplybecauseitwasontherightsideofPACsaircraft,butmoresignificantly,becauseitwastakingofforabouttotakeoff.

    PACsPilotsFor disregarding PALs right of way, PACs pilots were grossly negligent. Grossnegligenceisonethatischaracterizedbythewantofevenslightcare,actingoromittingto act in a situation where there is a duty to act, not inadvertently but willfully and

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    intentionallywithaconsciousindifferencetoconsequencesinsofarasotherpersonsmay

    beaffected.[47]

    WefindithardtobelievethatPACspilotsdidnotseetheBoeing737whentheylookedtotheleftandtotherightbeforeapproachingtherunway.ItwasaclearsummereveninginAprilandtheBoeing737,only200metersaway,haditsinboardlights,outboardlights,

    taxi lights, and logo lights on before and during the actual takeoff roll.[48]

    The onlyplausibleexplanationwhyPACspilotsdidnotseetheBoeing737wasthattheydidnotreallylooktotheleftandtotherightbeforecrossingtheactiverunway.Records show that PACs pilots, while still 350 meters away, prematurely requested

    clearance tocross theactive runway.[49]

    ATOpoints out thatPACspilots shouldhavemadeafullstopattheholdingpointtoaskforupdatedclearancerightbeforecrossingthe

    active runway.[50]

    Had PACs pilots done so, ATOwould by then be in a position todetermineiftherewasanaircraftonatakeoffrollattherunway.Thecollisionwouldnothavehappened.

    ATO,Alzola,Lim,andLinog,Jr.TheRulesofAirControlgovernairplane trafficmanagement andclearanceat the thenManilaInternationalAirport.Itcontainsseveralprovisionsindicatingthatairplanetrafficmanagement and clearance are not the sole responsibility of ATO and its trafficcontrollers, butof thepilotsincommandof aircrafts aswell.TheRulesofAirControlstate:

    1.3Thepilotincommandofanaircraftshall,whethermanipulatingthecontrolsornot,beresponsiblefortheoperationoftheaircraftinaccordancewiththerulesoftheair,exceptthathemaydepartfromtheserulesincircumstancesthatrendersuchdepartureabsolutelynecessaryintheinterestofsafety.(Emphasissupplied)1.5 The pilotincommand of an aircraft shall have final authority as to the

    dispositionoftheaircraftwhileheisincommand.[51]

    (Emphasissupplied)3.1Clearances are based solely on expediting and separating aircraft and do notconstituteauthority toviolateanyapplicableregulations forpromotingsafetyof

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    flightoperationsorforanyotherpurpose.(Emphasissupplied)xxxxIf an air traffic control clearance is not suitable to the pilotincommand of an

    aircraft, hemay request, and, if practicable, obtain an amended clearance.[52]

    (Emphasissupplied)10.1.5 Clearances issued by controllers relate to traffic and aerodromeconditions only and do not relieve a pilot of any responsibility whatsoever in

    connection with a possible violation of applicable rules and regulations.[53]

    (Emphasissupplied)

    Therefore,evenifATOgavebothPALspilotsandPACspilotsclearancetotakeoffandclearance tocrossrunway13, respectively, it remained theprimaryresponsibilityof thepilotsincommandtoseetoitthattherespectiveclearancesgivenweresuitable.Sincethepilotsincommand have the final authority as to the disposition of the aircraft, theycannot,incaseacollisionoccurs,passtheblametoATOforissuingclearancesthatturnouttobeunsuitable.Theclearance to cross runway13,premature as itwas,wasnot anabsolute license forPACspilotstorecklesslymaneuvertheTwinOtteracrossanactiverunway.PACspilotsshould have stopped first at the holding point to ask for clearance to cross the activerunway.Itwaswrongforthemtohavereliedonaprematurelyrequestedclearancewhichwas issuedwhile theywere still 350meters away.Their defense, that it did notmatterwhethertheclearancewasprematureornotaslongastheclearancewasactuallygranted,[54]

    only reveals their poor judgment andgross negligence in the performanceof theirduties.Ontheotherhand,evidenceonrecordshowsthattheairtrafficcontrollerproperlyissuedtheclearancetotakeofftotheBoeing737.Nothingonrecordindicatesanyirregularityinthe issuance of the clearance. In fact, the trial court, in the criminal case for recklessimprudence resulting in damage to propertywith serious and slight physical injuries inconnectionwiththecollision,ruledthatairtrafficcontrollerLinog,Jr.wasnotnegligent.TheCourtofAppeals, inits15November2005Resolution,absolvedLinog,Jr.ofcivilliabilityfordamagesbasedonhisacquittalinthecriminalcase.

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    While Alzola and Lim, as found by the trial court in the criminal case for recklessimprudence, may have been negligent in the performance of their functions, such

    negligence is only contributory.[55]

    Their contributory negligence arises from theirgrantingtheprematurerequestofPACspilotsforclearancetocrossrunway13whiletheTwinOtterwasstill350metersawayfromrunway13.However,asexplainedearlier,thegranting of their premature request for clearance did not relieve PACs pilots fromcomplyingwiththeRulesoftheAir.

    PALsPilotsRecordsshowthatPALspilotstimelyrequestedclearancetotakeoff.Linog,Jr.,ATOsair

    traffic controller, duly issued the clearance to takeoff.[56]

    Under theRules of theAir,

    PALs aircraft being on takeoff roll undisputedly had the right ofway.[57]Further, theRulesofAirControlprovide:

    2.2.4.1Theaircraftthathastherightofwayshallmaintainitsheadingandspeed,xx

    x.[58]

    (Emphasissupplied)

    Thus,evenifCasionoticedfromthecornerofhiseyeasmallairplanetaxiingontheleft

    side and approaching halfway of fox 1,[59]

    itwas fairly reasonable for PALs pilots toassume that they may proceed with the takeoff because the taxiing aircraft wouldnaturallyrespecttheirrightofwayandnotventuretocrosstheactiverunwaywhiletheBoeing737wasontakeoffroll.

    Applicable by analogy is the case ofSantos v.BLTB,[60]

    where theCourt applied theprinciplethatamotoristwhoisproperlyproceedingonhisownsideofthehighway,evenafterheseesanapproachingmotoristcomingtowardhimonthewrongside,isgenerallyentitledtoassumethattheothermotoristwillreturntohisproperlaneoftraffic.

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    ProximateCauseAfterassiduouslystudyingtherecordsofthiscaseandcarefullyweighingtheargumentsoftheparties,weareconvincedthattheimmediateandproximatecaseofthecollisionisthegrossnegligenceofPACspilots.Proximatecauseisdefinedasthatcause,which,innaturalandcontinuoussequence,unbrokenbyanyefficient interveningcause,produces

    theinjury,andwithoutwhichtheresultwouldnothaveoccurred.[61]

    Inthiscase,thefactthat PACs pilots disregarded PALs right ofway and did not ask for updated clearancerightbeforecrossinganactiverunwaywastheproximatecauseofthecollision.Wereitnot for such gross negligence on the part of PACs pilots, the collisionwould not havehappened.The Civil Code provides that when a plaintiffs own negligence is the immediate andproximatecauseofhisinjury,hecannotrecoverdamages.

    Art.2179.When theplaintiffsownnegligencewas the immediateandproximatecause of his injury, he cannot recover damages. But if his negligence was onlycontributory, the immediate and proximate cause of the injury being the defendantslackofduecare, theplaintiffmay recoverdamages,but thecourts shallmitigate thedamagestobeawarded.(Emphasissupplied)

    Under the law and prevailing jurisprudence,[62]

    PAC and its pilots, whose own grossnegligencewas the immediateandproximatecauseof theirown injuries,mustbear thecostofsuch injuries.Theycannotrecoverdamages.CivilCaseNo.960565forsumofmoney and damages, which PAC, Bungabong, and Galvez filed against PAL, Casio,Isaac, ATO, Alzola, Lim, and Linog, Jr. should have been dismissed for lack of legalbasis.

    PALsCounterclaims

    We find supported by law and evidence on record PALs counterclaim for actual or

    compensatorydamagesbutonlyintheamountofUS$548,819.93[63]

    representingleasecharges during the period the Boeing 737 was not flying. The said amount cannot beclaimed against the insurance policy covering the Boeing 737. In this connection, theCivilCodeprovides:

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    Art. 2207. If theplaintiffs propertyhas been insured, andhehas received indemnityfromtheinsurancecompanyfortheinjuryorlossarisingoutofthewrongorbreachofcontractcomplainedof,theinsurancecompanyshallbesubrogatedtotherightsoftheinsured against the wrongdoer or the person who has violated the contract. If theamountpaidbytheinsurancecompanydoesnotfullycovertheinjuryorloss,theaggrievedpartyshallbeentitledtorecoverthedeficiencyfromthepersoncausingthelossorinjury.(Emphasissupplied)

    Underthelaw,GSIS,asinsurersubrogeeofPALsrighttoclaimactualorcompensatorydamages in connection with the repair of the damaged Boeing 737, is entitled toreimbursementfortheamountitadvanced.GSISclaimsreimbursementfortheamountof

    US$2,775,366.84.[64]

    In support of its claim, GSIS presented statements of account,

    checkvouchers,andinvoices[65]

    provingpaymentfortherepairoftheBoeing737inthetotal amount of US$2,775,366.84. We find the claim fully supported by evidence onrecordandthusweresolvetograntthesame.

    WithregardtoPALsothercounterclaims,settledistherulethattheawardofmoralandexemplary damages as well as attorneys fees is discretionary based on the facts andcircumstancesofeachcase.Theactual lossessustainedbytheaggrievedpartiesandthe

    gravity of the injuries must be considered in arriving at reasonable levels.[66]

    Understandably,CasioandIsaacsufferedsleeplessnightsandweretemporarilyunabletowork after the collision.They are thus entitled tomoral damages aswell as exemplary

    damagesconsideringthatPACspilotsactedwithgrossnegligence.[67]

    Attorneysfeesare

    generally not recoverable except when exemplary damages are awarded[68]

    as in thiscase.WethusdeemtheamountsofP100,000inmoraldamages,P100,000inexemplarydamages,andP50,000inattorneysfeestobeinaccordancewithprevailingjurisprudenceandappropriategiventhecircumstances.WHEREFORE, we GRANT the petitions. We SET ASIDE the 28 October 2004Decisionandthe15November2005ResolutionoftheCourtofAppealsinCAG.R.CVNo. 73214 affirming in toto the 27 July 2001 Decision of the Regional Trial Court(Branch 112) of PasayCity.However,weSUSTAIN the dismissal of the case against

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    ErnestoLinog,Jr.Civil Case No. 960565 for sum of money and damages, filed by Pacific AirwaysCorporation(PAC),ElyB.Bungabong,andMichaelF.Galvez,isDISMISSEDforlackoflegalbasis.PacificAirwaysCorporation,ElyB.Bungabong,andMichaelF.GalvezareORDEREDtosolidarilypay:

    (1) Philippine Airlines, Inc. actual or compensatory damages in the amount ofUS$548,819.93

    (2) Rogelio Casio and Ruel Isaac individually moral damages in the amount ofP100,000,exemplarydamagesintheamountofP100,000,andattorneysfeesintheamountofP50,000and

    (3)theGovernmentServiceInsuranceSystem,asinsurersubrogeeofPhilippineAirlines,actualorcompensatorydamagesintheamountofUS$2,775,366.84.

    Nopronouncementastocosts.SOORDERED.

    ANTONIOT.CARPIOAssociateJustice

    WECONCUR:

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    DIOSDADOM.PERALTA

    AssociateJustice

    ROBERTOA.ABADJOSEPORTUGALPEREZ

    AssociateJusticeAssociateJustice

    JOSEC.MENDOZA

    AssociateJustice

    ATTESTATION

    IattestthattheconclusionsintheaboveDecisionhadbeenreachedinconsultationbefore

    thecasewasassignedtothewriteroftheopinionoftheCourtsDivision.

    ANTONIOT.CARPIO

    AssociateJustice

    Chairperson

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    CERTIFICATION

    Pursuant toSection 13,ArticleVIII of theConstitution, and theDivision Chairpersons

    Attestation, I certify that the conclusions in the above Decision had been reached in

    consultation before the case was assigned to the writer of the opinion of the Courts

    Division.

    RENATOC.CORONA

    ChiefJustice

    *RogelioinsomepartsoftheRecords.**DesignatedadditionalmemberperRaffledated23August2010.[1]

    UnderRule45oftheRulesofCourt.[2]

    Rollo(G.R.No.170414),pp.1135.PennedbyAssociateJusticeEloyR.Bello,Jr.,withAssociateJusticesRegaladoE.MaambongandLucenitoN.Tagle,concurring.

    [3]Id.at3638.PennedbyAssociateJusticeMarioL.GuarinaIII,withAssociateJusticesRobertoA.BarriosandMariflor

    PunzalanCastillo,concurring.

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    [4]Id.at155180.PennedbyJudgeManuelP.Dumatol.

    [5]NowNinoyAquinoInternationalAirport.

    [6]StipulationofFacts.Records,p.1503.

    [7]BongabonginsomepartsoftheRecords.TSN,6October1997,pp.67

    [8]TSN,6October1997,p.6.

    [9]Id.at9.

    [10]Id.at10.

    [11]Id.at11.

    [12]Id.at12.

    [13]TSN,12October1998,p.32.

    [14]TSN,6October1997,p.12.

    [15]Id.

    [16]TSN,12October1998,p.33.

    [17]TSN,7January1999,p.15.

    [18]Records,p.776.

    [19]TSN,12October1998,p.36.

    Q:Whatisthispushandstartclearance?A:Pushandstartclearance,whentheaircraft isalreadyreadythepassengertheyhavetobepushedto thestarting

    pointandstarttheengine.[20]

    Id.at3637.[21]

    Id.at38.[22]

    Id.at37.[23]

    TSN,17May1999,p.55.[24]

    TSN,6October1997,pp.1516.[25]

    Id.at16.[26]

    TSN,8June2000,pp.1718.[27]

    TSN,16June1999,pp.45.[28]

    TSN,6October1997,p.17.[29]

    Id.[30]

    Id.at18.[31]

    Id.at19.[32]

    TSN,12October1998,p.38.[33]

    TSN,6October1997,pp.1920.[34]

    Id.at20.[35]

    Records,pp.111.[36]

    Seenote7.

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    [37]Records,pp.14951520.

    [38]Rollo(G.R.No.170414),p.206.

    [39]Rollo(G.R.No.170418),pp.144150.PennedbyJudgePriscillaC.Mijares.

    [40]Id.at146.

    [41]Rollo(G.R.No.170414),p.38.

    [42]MEABuilders,Inc.v.CourtofAppeals,490Phil.565(2005).

    [43]FormallyofferedbyATOasExhibit9.

    [44]1.1.1oftheRulesoftheAir.

    [45]Records,p.779.

    [46]Id.

    [47]Magalingv.Ong,G.R.No.173333,13August2008,562SCRA152.

    [48]TSN,17May1999,pp.4549.

    [49]TSN,7January1999,pp.1415.

    [50]Rollo(G.R.No.170460),ATOsMemorandum,pp.640641.

    [51]Records,p.777.

    [52]Id.at776.

    [53]Id.at778.

    [54]Rollo(G.R.No.170418),p.178.ConsolidatedCommentofRespondents,p.20.

    [55]Ramosv.C.O.L.RealtyCorporation,G.R.No.184905,28August2009,597SCRA526.

    [56]TSN,12October1998,pp.3637.

    [57]Records,p.779.

    [58]Id.

    [59]TSN,17May1999,pp.6061.

    [60]145Phil.422(1970).

    [61]Ramosv.C.O.L.RealtyCorporation,supranote55.

    [62]Id.

    [63]Rollo(G.R.No.170418),p.373.DefendantsFormalOfferofExhibits,Exhibit29,p.25.

    [64]Rollo(G.R.No.170414),p.723.

    [65]Records,pp.1439,1450.DefendantsFormalOfferofExhibits,Exhibit24b,p.16.

    [66]Plenov.CourtofAppeals,244Phil.213(1988).

    [67]Article2231oftheCivilCodeprovides:

    Art.2231.Inquasidelicts,exemplarydamagesmaybegrantedifthedefendantactedwithgrossnegligence.[68]

    Article2208oftheCivilCodeprovides:Art.2208.Intheabsenceofstipulation,attorneysfeesandexpensesoflitigation,otherthanjudicialcosts,cannotberecovered,except:

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    (1)Whenexemplarydamagesareawardedxxxx