Equitable Leasing Corporation v. Lucita Suyom

Summary

The Supreme Court affirmed the liability of Equitable Leasing Corporation for damages arising from a vehicular accident despite having sold the vehicle through an unregistered deed of sale. The Court applied the established principle that the registered owner remains liable to third parties for consequences of the vehicle's operation until the sale is properly registered with the Land Transportation Office. The case reinforces the policy that motor vehicle registration serves to identify a definite individual responsible for damages or injuries caused by the vehicle. The Court awarded actual and moral damages to the victims' families, emphasizing that in quasi delict actions, the registered owner is considered the employer of the driver under vicarious liability principles, regardless of the actual employment relationship. This decision strengthens protection for accident victims by ensuring they can hold registered owners accountable.