Jimmy Co v. Court of Appeals

Summary

Jimmy Co entrusted his Nissan pick-up to Broadway Motor Sales for repair services but the vehicle was carnapped while in the repair shop's custody three days after the agreed delivery date. The trial court held the repair shop liable for delay and negligence, awarding damages. The Court of Appeals reversed, finding the loss was due to fortuitous event. The Supreme Court ultimately ruled in favor of the customer, establishing that repair shops cannot escape liability by claiming carnapping as fortuitous event. The Court held that repair shops assume business risk, must secure insurance coverage, and are presumed at fault when vehicles are lost in their possession. The decision reinforced that delay in performance makes obligors liable even for fortuitous events under Article 1165 of the Civil Code, and emphasized the repair industry's duty to provide security for entrusted property.