Published — September 1, 2018
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
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Generally speaking, every person who, contrary to law, willfully or negligently causes damage to another, shall indemnify the latter for the such damage caused [See: Art. 20, Civil Code]. Likewise, any person who willfully causes loss or injury to another in a manner that is contrary to morals, good customs or public policy shall compensate the latter for the damage. Knowing this principle is very important in all civil relationships, and business relationships are no exception.
One may be liable for damages for injury caused not only by reason of intentional acts and omissions, but also by reason of negligence. Also, as applied to business owners, it is likewise important to note that there are certain instances when the law makes them liable for damages, not only for their own acts or omissions, but also for that of other persons when the situation falls under any of those discussed below.
Vicarious liability of managers and employers
The owners and managers of an establishment or enterprise are responsible for damages caused by their employees in the service of the branches in which they are employed, or on the occasion of their official functions. In other words, employers shall be liable for the damages caused by their employees acting within the scope of their assigned tasks. However, they may be held free of liability when such employers are able to prove that they observed all the diligence of a good father of a family to prevent damage [See: Art. 2180].
To be fair to employers, whenever they pay for the damage caused by their employees, they are allowed to recover from such erring employee what he has paid or delivered to satisfy the damage claims [See: Art. 2181].
Liability for damages in connection with motor vehicles
In motor vehicle mishaps, the owner is solidarily liable with his driver, if such owner was also in the vehicle and he could have prevented the misfortune through the exercise of due diligence. The driver, however, shall be presumed negligent if he had been found guilty of reckless driving or found to have violated traffic regulations at least twice within the previous two months [See: Art. 2184].
Also, unless there is proof to the contrary, it is likewise presumed that the driver was negligent if at the time of the mishap, he was violating any traffic regulation [See: Art. 2185].
It must be noted, however, that in case it is found that the death or injuries had been suffered by any person by reason of the defective condition of roads, streets, bridges, public buildings, and other public works, it will be the provincial, city and municipal governments (whoever among them exercises supervision over the defective infrastructures) who shall be liable for damages [See: Art. 2189].
Liability for damages in connection with consumer products
Manufacturers and processors of foodstuffs, drinks, toilet articles and similar goods shall be liable for death or injuries caused by any noxious or harmful substances used. It does not matter whether or not such manufacturer or processor was the one who directly transacted with the consumers [See: Art. 2187]. Since the law makes them liable in their capacity as manufacturers or processors, they cannot interpose as a defense that it was not them who sold the products or articles to the victim.
Liability for damages for possessing harmful articles
There is also a presumption of negligence on the part of a person 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 [See: Art. 2188].
Liability in connection with construction works
The engineer or architect who drew up the plans and specifications for a building shall be liable for damages if within 15 years from the completion of the structure, it would collapse by reason of a defect in those plans and specifications, or due to the defects in the ground. The contractor is likewise responsible for the damages if the edifice falls, also within 15 years, on account of defects in the construction or the use of substandard materials, or due to any violation of the terms of his contract engaging him in the construction project. If the engineer or architect supervises the construction, he shall be solidarily liable with the contractor [See: Art. 1723].
The contractor is responsible for the work of his employees [See: Art. 1727]. Thus, said contractor shall be liable for all the claims of laborers and others persons that he employs, and of third persons for death or physical injuries during the construction [See: Art. 1728].
Liability of proprietors of buildings and business premises
The proprietor of a building or structure is responsible for the damages resulting from its total or partial collapse, if it should be due to the lack of necessary repairs [See: Art. 2190].
Proprietors shall also be responsible for damages caused by the following:
- By the explosion of machinery which has not been taken care of with due diligence, and the inflammation of explosive substances which have not been kept in a safe and adequate place;
- By excessive smoke, which may be harmful to persons or property;
- By the falling of trees situated at or near highways or lanes, unless it is caused by force majeure;
- By emanations from tubes, canals, sewers or deposits of infectious matter, constructed without precautions suitable to the place [See: Art. 2191].
As one may notice, exercise of due diligence is still the key to avoid liability for any claim for damages. This is especially true for business owners, as they are more vulnerable to such claims considering that the negligence of their employees or other persons in their service will still give rise to claims, unless diligence is shown to have been observed. Therefore, though it would greatly help to know the specific instances under the law when liability for damages may arise, there is still no substitute to observance of due diligence in dealing with customers, suppliers, own employees, and third persons in general.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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