- Petitioner
- Rcj Bus Lines
- Respondent
- Standard Insurance Company
- Citation
- G.R. No. 193629
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Carpio, J.
- Decided
- August 17, 2011
Summary
Standard Insurance sued RCJ Bus Lines and driver Mangoba for P162,151.22 paid to repair a Mitsubishi Lancer damaged when Mangoba's speeding bus rear-ended it on June 19, 1994. The bus exceeded speed limits and failed to stop when traffic ahead halted due to road obstacles. Through all court levels, RCJ was held vicariously liable under Article 2180 of the Civil Code for failing to prove extraordinary diligence in driver selection and supervision. Mangoba was found negligent under Article 2185 for violating traffic regulations. Standard's subrogation rights under Article 2207 were upheld after paying the insurance claim. The Supreme Court affirmed the award of actual damages with modified interest rates, rejecting RCJ's defenses and establishing clear precedent on motor vehicle owner liability and insurance subrogation principles.